diff --git a/manila/api/extensions.py b/manila/api/extensions.py
index cbb3f79cc9..bea35bec94 100644
--- a/manila/api/extensions.py
+++ b/manila/api/extensions.py
@@ -273,12 +273,16 @@ def load_standard_extensions(ext_mgr, logger, path, package, ext_list=None):
         else:
             relpkg = '.%s' % '.'.join(relpath.split(os.sep))
 
-        # Now, consider each file in turn, only considering .py files
+        # Now, consider each file in turn, only considering .py and .pyc files
         for fname in filenames:
             root, ext = os.path.splitext(fname)
 
-            # Skip __init__ and anything that's not .py
-            if ext != '.py' or root == '__init__':
+            # Skip __init__ and anything that's not .py and .pyc
+            if (ext not in ('.py', '.pyc')) or root == '__init__':
+                continue
+
+            # If .pyc and .py both exist, skip .pyc
+            if ext == '.pyc' and ((root + '.py') in filenames):
                 continue
 
             # Try loading it
diff --git a/releasenotes/notes/bug-1869148-if-only-pyc-exist-the-extension-API-cannot-be-loaded-172cb9153ebd4b56.yaml b/releasenotes/notes/bug-1869148-if-only-pyc-exist-the-extension-API-cannot-be-loaded-172cb9153ebd4b56.yaml
new file mode 100644
index 0000000000..352a4fac00
--- /dev/null
+++ b/releasenotes/notes/bug-1869148-if-only-pyc-exist-the-extension-API-cannot-be-loaded-172cb9153ebd4b56.yaml
@@ -0,0 +1,7 @@
+---
+fixes:
+  - |
+    `Launchpad bug 1869148 <https://launchpad.net/bugs/1869148>`_ has been
+    fixed. This bug could have affected environments where extension APIs were
+    provided in compiled files rather than source code.
+