diff --git a/docs/src/docPages/api/extensions/image.md b/docs/src/docPages/api/extensions/image.md
index 3c463ea5..1c3c9132 100644
--- a/docs/src/docPages/api/extensions/image.md
+++ b/docs/src/docPages/api/extensions/image.md
@@ -9,8 +9,13 @@ npm install @tiptap/extension-image
 yarn add @tiptap/extension-image
 ```
 
+## Settings
+| Option | Type    | Default | Description              |
+| ------ | ------- | ------- | ------------------------ |
+| inline | boolean | false   | Renders the node inline. |
+
 ## Source code
 [packages/extension-image/](https://github.com/ueberdosis/tiptap-next/blob/main/packages/extension-image/)
 
 ## Usage
-<demo name="Extensions/Image" highlight="12,30" />
+<demo name="Extensions/Image" />
diff --git a/packages/extension-image/index.ts b/packages/extension-image/index.ts
index 424cffc5..67e9c04a 100644
--- a/packages/extension-image/index.ts
+++ b/packages/extension-image/index.ts
@@ -1,13 +1,25 @@
 import { Command, createNode, nodeInputRule } from '@tiptap/core'
 
+export interface ImageOptions {
+  inline: boolean,
+}
+
 export const inputRegex = /!\[(.+|:?)]\((\S+)(?:(?:\s+)["'](\S+)["'])?\)/
 
 const Image = createNode({
   name: 'image',
 
-  inline: true,
+  defaultOptions: <ImageOptions>{
+    inline: false,
+  },
 
-  group: 'inline',
+  inline() {
+    return this.options.inline
+  },
+
+  group() {
+    return this.options.inline ? 'inline' : 'block'
+  },
 
   draggable: true,