diff --git a/lib/datasource.js b/lib/datasource.js
index a667e4c3..f3a239ca 100644
--- a/lib/datasource.js
+++ b/lib/datasource.js
@@ -165,6 +165,57 @@ DataSource.prototype._setupConnector = function () {
     }
 };
 
+// List possible connector module names
+function connectorModuleNames(name) {
+  var names = [name]; // Check the name as is
+  if (!name.match(/^\//)) {
+    names.push('./connectors/' + name); // Check built-in connectors
+    if (name.indexOf('loopback-connector-') !== 0) {
+      names.push('loopback-connector-' + name); // Try loopback-connector-<name>
+    }
+  }
+  return names;
+}
+
+// testable with DI
+function tryModules(names, loader) {
+  var mod;
+  loader = loader || require;
+  for(var m =0; m<names.length; m++) {
+    try {
+      mod = loader(names[m]);
+    } catch (e) {
+     /* ignore */
+    }
+    if (mod) {
+      break;
+    }
+  }
+  return mod;
+}
+
+/*!
+ * Resolve a connector by name
+ * @param name The connector name
+ * @returns {*}
+ * @private
+ */
+DataSource._resolveConnector = function(name, loader) {
+  var names = connectorModuleNames(name);
+  var connector = tryModules(names , loader);
+  var error = null;
+  if(!connector) {
+    error = '\nWARNING: LoopBack connector "' + name
+      + '" is not installed at any of the locations ' + names
+      + '. To fix, run:\n\n    npm install '
+      + name + '\n';
+  }
+  return {
+    connector: connector,
+    error: error
+  };
+};
+
 /**
  * Set up the data source
  * @param {String} name The name
@@ -218,24 +269,14 @@ DataSource.prototype.setup = function(name, settings) {
             // The first argument might be the connector itself
             connector = name;
             this.name = connector.name;
-        }
-        // The connector has not been resolved
-        else if (name.match(/^\//)) {
-            // try absolute path
-            connector = require(name);
-        } else if (existsSync(__dirname + '/connectors/' + name + '.js')) {
-            // try built-in connector
-            connector = require('./connectors/' + name);
         } else {
-            // try foreign connector
-            try {
-                if(name.indexOf('loopback-connector-') === -1) {
-                    name = 'loopback-connector-' + name;
-                }
-                connector = require(name);
-            } catch (e) {
-                return console.log('\nWARNING: LoopBack connector "' + name + '" is not installed,\nso your models would not work, to fix run:\n\n    npm install ' + name, '\n');
-            }
+          // The connector has not been resolved
+          var result = DataSource._resolveConnector(name);
+          connector = result.connector;
+          if(!connector) {
+            console.error(result.error);
+            return;
+          }
         }
     }
 
diff --git a/package.json b/package.json
index c4dca516..7e86399b 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "loopback-datasource-juggler",
-  "version": "1.2.11",
+  "version": "1.2.12",
   "description": "LoopBack DataSoure Juggler",
   "keywords": [
     "StrongLoop",
diff --git a/test/loopback-dl.test.js b/test/loopback-dl.test.js
index f4214df5..81b7278c 100644
--- a/test/loopback-dl.test.js
+++ b/test/loopback-dl.test.js
@@ -444,6 +444,51 @@ describe('Load models with base', function () {
   });
 });
 
+describe('DataSource constructor', function() {
+  // Mocked require
+  var loader = function(name) {
+    return {
+      name: name
+    }
+  };
+
+  it('should resolve connector by path', function() {
+    var connector = DataSource._resolveConnector(__dirname + '/../lib/connectors/memory');
+    assert(connector.connector);
+  });
+  it('should resolve connector by internal name', function() {
+    var connector = DataSource._resolveConnector('memory');
+    assert(connector.connector);
+  });
+  it('should try to resolve connector by module name starts with loopback-connector-', function() {
+    var connector = DataSource._resolveConnector('loopback-connector-xyz', loader);
+    assert(connector.connector);
+  });
+  it('should try to resolve connector by short module name', function() {
+    var connector = DataSource._resolveConnector('xyz', loader);
+    assert(connector.connector);
+  });
+  it('should try to resolve connector by full module name', function() {
+    var connector = DataSource._resolveConnector('loopback-xyz', loader);
+    assert(connector.connector);
+  });
+  it('should fail to resolve connector by module name starts with loopback-connector-', function() {
+    var connector = DataSource._resolveConnector('loopback-connector-xyz');
+    assert(!connector.connector);
+    assert(connector.error.indexOf('loopback-connector-xyz') !== -1);
+  });
+  it('should fail to resolve connector by short module name', function() {
+    var connector = DataSource._resolveConnector('xyz');
+    assert(!connector.connector);
+    assert(connector.error.indexOf('loopback-connector-xyz') !== -1);
+  });
+  it('should fail to resolve connector by full module name', function() {
+    var connector = DataSource._resolveConnector('loopback-xyz');
+    assert(!connector.connector);
+    assert(connector.error.indexOf('loopback-connector-loopback-xyz') !== -1);
+  });
+});
+
 describe('Load models with relations', function () {
     it('should set up relations', function (done) {
         var ds = new DataSource('memory');