diff --git a/components/rendering/src/markdown.rs b/components/rendering/src/markdown.rs
index de580e2..78f6a5f 100644
--- a/components/rendering/src/markdown.rs
+++ b/components/rendering/src/markdown.rs
@@ -108,7 +108,15 @@ pub fn markdown_to_html(content: &str, context: &RenderContext) -> Result<(Strin
                     highlighter = None;
                     Event::Html(Owned("</pre>".to_string()))
                 },
-                // Need to handle relative links
+                Event::Start(Tag::Image(src, title)) => {
+                    if is_colocated_asset_link(&src) {
+                        return Event::Start(
+                            Tag::Image(Owned(format!("{}{}", context.current_page_permalink, src)), title)
+                        );
+                    }
+
+                    Event::Start(Tag::Link(src, title))
+                },
                 Event::Start(Tag::Link(link, title)) => {
                     // A few situations here:
                     // - it could be a relative link (starting with `./`)
diff --git a/components/rendering/tests/markdown.rs b/components/rendering/tests/markdown.rs
index f6eb938..2e77b21 100644
--- a/components/rendering/tests/markdown.rs
+++ b/components/rendering/tests/markdown.rs
@@ -492,9 +492,8 @@ fn can_make_valid_relative_link_in_header() {
     );
 }
 
-
 #[test]
-fn can_make_permalinks_with_colocated_assets() {
+fn can_make_permalinks_with_colocated_assets_for_link() {
     let permalinks_ctx = HashMap::new();
     let config = Config::default();
     let context = RenderContext::new(&GUTENBERG_TERA, &config, "https://vincent.is/about/", &permalinks_ctx, InsertAnchor::None);
@@ -504,3 +503,15 @@ fn can_make_permalinks_with_colocated_assets() {
         "<p><a href=\"https://vincent.is/about/image.jpg\">an image</a></p>\n"
     );
 }
+
+#[test]
+fn can_make_permalinks_with_colocated_assets_for_image() {
+    let permalinks_ctx = HashMap::new();
+    let config = Config::default();
+    let context = RenderContext::new(&GUTENBERG_TERA, &config, "https://vincent.is/about/", &permalinks_ctx, InsertAnchor::None);
+    let res = render_content("![alt text](image.jpg)", &context).unwrap();
+    assert_eq!(
+        res.0,
+        "<p><img src=\"https://vincent.is/about/image.jpg\" alt=\"alt text\" /></p>\n"
+    );
+}