diff --git a/docs/src/demos/Extensions/Image/index.vue b/docs/src/demos/Extensions/Image/index.vue
new file mode 100644
index 00000000..52615a3b
--- /dev/null
+++ b/docs/src/demos/Extensions/Image/index.vue
@@ -0,0 +1,45 @@
+<template>
+  <div v-if="editor">
+    <editor-content :editor="editor" />
+  </div>
+</template>
+
+<script>
+import { Editor } from '@tiptap/core'
+import { EditorContent } from '@tiptap/vue'
+import Document from '@tiptap/extension-document'
+import Paragraph from '@tiptap/extension-paragraph'
+import Text from '@tiptap/extension-text'
+import Image from '@tiptap/extension-image'
+
+export default {
+  components: {
+    EditorContent,
+  },
+
+  data() {
+    return {
+      editor: null,
+    }
+  },
+
+  mounted() {
+    this.editor = new Editor({
+      extensions: [
+        Document(),
+        Paragraph(),
+        Text(),
+        Image(),
+      ],
+      content: `
+        <p>This is basic example of implementing images. Try to drop new images here. Reordering also works.</p>
+        <img src="https://66.media.tumblr.com/dcd3d24b79d78a3ee0f9192246e727f1/tumblr_o00xgqMhPM1qak053o1_400.gif" />
+      `,
+    })
+  },
+
+  beforeDestroy() {
+    this.editor.destroy()
+  },
+}
+</script>
diff --git a/docs/src/docPages/api/extensions/image.md b/docs/src/docPages/api/extensions/image.md
new file mode 100644
index 00000000..e811d826
--- /dev/null
+++ b/docs/src/docPages/api/extensions/image.md
@@ -0,0 +1,16 @@
+# Image
+
+## Installation
+```bash
+# With npm
+npm install @tiptap/extension-image
+
+# Or: With Yarn
+yarn add @tiptap/extension-image
+```
+
+## Source code
+[packages/extension-image/](https://github.com/ueberdosis/tiptap-next/blob/main/packages/extension-image/)
+
+## Usage
+<demo name="Extensions/Image" highlight="12,30" />
diff --git a/docs/src/links.yaml b/docs/src/links.yaml
index ce4a8bc9..1b6e7e8d 100644
--- a/docs/src/links.yaml
+++ b/docs/src/links.yaml
@@ -132,6 +132,9 @@
           link: /api/extensions/history
         - title: HorizontalRule
           link: /api/extensions/horizontal-rule
+        - title: Image
+          link: /api/extensions/image
+          draft: true
         - title: Italic
           link: /api/extensions/italic
         - title: Link
@@ -163,6 +166,7 @@
           link: /api/extensions/text
         - title: Text Align
           link: /api/extensions/text-align
+          draft: true
         # - title: TodoItem
         #   link: /api/extensions/todo-item
         #   draft: true
diff --git a/packages/extension-image/index.ts b/packages/extension-image/index.ts
new file mode 100644
index 00000000..605a4b52
--- /dev/null
+++ b/packages/extension-image/index.ts
@@ -0,0 +1,125 @@
+import { Command, createNode, nodeInputRule } from '@tiptap/core'
+import { Plugin } from 'prosemirror-state'
+
+const IMAGE_INPUT_REGEX = /!\[(.+|:?)]\((\S+)(?:(?:\s+)["'](\S+)["'])?\)/
+
+const Image = createNode({
+  name: 'image',
+
+  inline: true,
+
+  group: 'inline',
+
+  addAttributes() {
+    return {
+      src: {
+        default: null,
+      },
+      alt: {
+        default: null,
+      },
+      title: {
+        default: null,
+      },
+    }
+  },
+
+  parseHTML() {
+    return [
+      {
+        tag: 'img[src]',
+      },
+    ]
+  },
+
+  renderHTML({ attributes }) {
+    return ['img', attributes]
+  },
+
+  addCommands() {
+    return {
+      image: (attrs: any): Command => ({ tr }) => {
+        const { selection } = tr
+        console.log({ selection })
+        // const position = selection.$cursor ? selection.$cursor.pos : selection.$to.pos
+        const position = selection.$anchor ? selection.$anchor.pos : selection.$to.pos
+        const node = this.type.create(attrs)
+        tr.insert(position, node)
+
+        return true
+      },
+    }
+  },
+
+  addInputRules() {
+    return [
+      nodeInputRule(IMAGE_INPUT_REGEX, this.type, match => {
+        const [, alt, src, title] = match
+        return {
+          src,
+          alt,
+          title,
+        }
+      }),
+    ]
+  },
+
+  addProseMirrorPlugins() {
+    return [
+      new Plugin({
+        props: {
+          handleDOMEvents: {
+            drop(view, event) {
+              const hasFiles = event.dataTransfer
+                && event.dataTransfer.files
+                && event.dataTransfer.files.length
+
+              if (!hasFiles) {
+                return false
+              }
+
+              const images = Array
+                // @ts-ignore
+                .from(event.dataTransfer.files)
+                .filter(file => (/image/i).test(file.type))
+
+              if (images.length === 0) {
+                return false
+              }
+
+              event.preventDefault()
+
+              const { schema } = view.state
+              const coordinates = view.posAtCoords({ left: event.clientX, top: event.clientY })
+
+              images.forEach(image => {
+                const reader = new FileReader()
+
+                reader.onload = readerEvent => {
+                  const node = schema.nodes.image.create({
+                    // @ts-ignore
+                    src: readerEvent.target.result,
+                  })
+                  // @ts-ignore
+                  const transaction = view.state.tr.insert(coordinates.pos, node)
+                  view.dispatch(transaction)
+                }
+                reader.readAsDataURL(image)
+              })
+
+              return true
+            },
+          },
+        },
+      }),
+    ]
+  },
+})
+
+export default Image
+
+declare module '@tiptap/core/src/Editor' {
+  interface AllExtensions {
+    Image: typeof Image,
+  }
+}
diff --git a/packages/extension-image/package.json b/packages/extension-image/package.json
new file mode 100644
index 00000000..5b017870
--- /dev/null
+++ b/packages/extension-image/package.json
@@ -0,0 +1,17 @@
+{
+  "name": "@tiptap/extension-image",
+  "version": "1.0.0",
+  "source": "index.ts",
+  "main": "dist/tiptap-extension-image.js",
+  "umd:main": "dist/tiptap-extension-image.umd.js",
+  "module": "dist/tiptap-extension-image.mjs",
+  "unpkg": "dist/tiptap-extension-image.js",
+  "jsdelivr": "dist/tiptap-extension-image.js",
+  "files": [
+    "src",
+    "dist"
+  ],
+  "peerDependencies": {
+    "@tiptap/core": "2.x"
+  }
+}