diff --git a/Examples/Demo/Demo/Assets.xcassets/smallDog.imageset/237-30x40.jpg b/Examples/Demo/Demo/Assets.xcassets/smallDog.imageset/237-30x40.jpg
new file mode 100644
index 00000000..b380e62b
Binary files /dev/null and b/Examples/Demo/Demo/Assets.xcassets/smallDog.imageset/237-30x40.jpg differ
diff --git a/Examples/Demo/Demo/Assets.xcassets/smallDog.imageset/Contents.json b/Examples/Demo/Demo/Assets.xcassets/smallDog.imageset/Contents.json
new file mode 100644
index 00000000..6baf171e
--- /dev/null
+++ b/Examples/Demo/Demo/Assets.xcassets/smallDog.imageset/Contents.json
@@ -0,0 +1,12 @@
+{
+  "images" : [
+    {
+      "filename" : "237-30x40.jpg",
+      "idiom" : "universal"
+    }
+  ],
+  "info" : {
+    "author" : "xcode",
+    "version" : 1
+  }
+}
diff --git a/Examples/Demo/Demo/ImageProvidersView.swift b/Examples/Demo/Demo/ImageProvidersView.swift
index ff19982f..e3547614 100644
--- a/Examples/Demo/Demo/ImageProvidersView.swift
+++ b/Examples/Demo/Demo/ImageProvidersView.swift
@@ -13,18 +13,23 @@ struct ImageProvidersView: View {
     """
 
   private let otherContent = """
-    You can use the built-in `AssetImageProvider` to load images from image assets.
+    You can use the built-in `AssetImageProvider` and `AssetInlineImageProvider`
+    to load images from image assets.
 
     ```swift
     Markdown {
       "![A dog](dog)"
+      "A ![dog](smallDog) within a line of text."
       "― Photo by André Spieker"
     }
     .markdownImageProvider(.asset)
+    .markdownInlineImageProvider(.asset)
     ```
 
     ![A dog](dog)
 
+    An image ![dog](smallDog) within a line of text.
+
     ― Photo by André Spieker
     """
 
@@ -36,6 +41,7 @@ struct ImageProvidersView: View {
       Section("Image Assets") {
         Markdown(self.otherContent)
           .markdownImageProvider(.asset)
+          .markdownInlineImageProvider(.asset)
       }
     }
   }
diff --git a/Examples/Demo/Demo/ImagesView.swift b/Examples/Demo/Demo/ImagesView.swift
index e447ec3a..2d03e484 100644
--- a/Examples/Demo/Demo/ImagesView.swift
+++ b/Examples/Demo/Demo/ImagesView.swift
@@ -15,25 +15,31 @@ struct ImagesView: View {
     ― Photo by Jennifer Trovato
     """
 
-  private let assetContent = """
-    You can configure a `Markdown` view to load images from the asset catalog.
+  private let inlineImageContent = """
+    You can also insert images in a line of text, such as
+    ![](https://picsum.photos/id/237/50/25) or
+    ![](https://picsum.photos/id/433/50/25).
 
-    ```swift
-    Markdown {
-      "![This is an image](237-200x300)"
-    }
-    .markdownImageProvider(.asset)
+    ```
+    You can also insert images in a line of text, such as
+    ![](https://picsum.photos/id/237/50/25) or
+    ![](https://picsum.photos/id/433/50/25).
     ```
 
-    ![This is an image](dog)
+    Note that MarkdownUI **cannot** apply any styling to
+    inline images.
 
-    ― Photo by André Spieker
+    ― Photos by André Spieker and Thomas Lefebvre
     """
 
   var body: some View {
     DemoView {
       Markdown(self.content)
 
+      Section("Inline images") {
+        Markdown(self.inlineImageContent)
+      }
+
       Section("Customization Example") {
         Markdown(self.content)
       }
diff --git a/Sources/MarkdownUI/Content/Inlines/Inline.swift b/Sources/MarkdownUI/Content/Inlines/Inline.swift
index 762b318d..40efc46a 100644
--- a/Sources/MarkdownUI/Content/Inlines/Inline.swift
+++ b/Sources/MarkdownUI/Content/Inlines/Inline.swift
@@ -82,19 +82,23 @@ extension Array where Element == Inline {
 }
 
 extension Inline {
-  var image: (source: String?, alt: String)? {
-    guard case let .image(source, children) = self else {
-      return nil
-    }
-    return (source, children.text)
+  struct Image: Hashable {
+    var source: String?
+    var alt: String
+    var destination: String?
   }
 
-  var imageLink: (source: String?, alt: String, destination: String?)? {
-    guard case let .link(destination, children) = self, children.count == 1,
-      let (source, alt) = children.first?.image
-    else {
+  var image: Image? {
+    switch self {
+    case let .image(source, children):
+      return .init(source: source, alt: children.text)
+    case let .link(destination, children) where children.count == 1:
+      guard case let .some(.image(source, children)) = children.first else {
+        return nil
+      }
+      return .init(source: source, alt: children.text, destination: destination)
+    default:
       return nil
     }
-    return (source, alt, destination)
   }
 }
diff --git a/Sources/MarkdownUI/Content/Inlines/InlineImage.swift b/Sources/MarkdownUI/Content/Inlines/InlineImage.swift
index a0e8c2f0..06824583 100644
--- a/Sources/MarkdownUI/Content/Inlines/InlineImage.swift
+++ b/Sources/MarkdownUI/Content/Inlines/InlineImage.swift
@@ -4,13 +4,6 @@ import Foundation
 ///
 /// You can use an image inline to embed an image in a paragraph.
 ///
-/// Note that even if you can compose images and text as part of the same inline content, the ``Markdown``
-/// view is currently limited to displaying image-only paragraphs and will ignore images composed with other
-/// text inlines in the same block.
-///
-/// In the following example, the ``Markdown`` view will not display the image in the last paragraph, as it
-/// is interleaved with other text inline.
-///
 /// ```swift
 /// Markdown {
 ///   Paragraph {
@@ -23,8 +16,9 @@ import Foundation
 ///     }
 ///   }
 ///   Paragraph {
-///     "The following image will be ignored:"
+///     "You can also insert images in a line of text, such as "
 ///     InlineImage(source: URL(string: "https://picsum.photos/id/237/100/150")!)
+///     "."
 ///   }
 /// }
 /// ```
diff --git a/Sources/MarkdownUI/Documentation.docc/Resources/InlineImage@2x.png b/Sources/MarkdownUI/Documentation.docc/Resources/InlineImage@2x.png
index fd4f019a..bc313ba6 100644
Binary files a/Sources/MarkdownUI/Documentation.docc/Resources/InlineImage@2x.png and b/Sources/MarkdownUI/Documentation.docc/Resources/InlineImage@2x.png differ
diff --git a/Sources/MarkdownUI/Documentation.docc/Resources/InlineImage~dark@2x.png b/Sources/MarkdownUI/Documentation.docc/Resources/InlineImage~dark@2x.png
index 61a710d1..c636d1b6 100644
Binary files a/Sources/MarkdownUI/Documentation.docc/Resources/InlineImage~dark@2x.png and b/Sources/MarkdownUI/Documentation.docc/Resources/InlineImage~dark@2x.png differ
diff --git a/Sources/MarkdownUI/Extensions/AssetInlineImageProvider.swift b/Sources/MarkdownUI/Extensions/AssetInlineImageProvider.swift
new file mode 100644
index 00000000..c88f2fe7
--- /dev/null
+++ b/Sources/MarkdownUI/Extensions/AssetInlineImageProvider.swift
@@ -0,0 +1,32 @@
+import SwiftUI
+
+/// An inline image provider that loads images from resources located in an app or a module.
+public struct AssetInlineImageProvider: InlineImageProvider {
+  private let name: (URL) -> String
+  private let bundle: Bundle?
+
+  /// Creates an asset inline image provider.
+  /// - Parameters:
+  ///   - name: A closure that extracts the image resource name from the URL in the Markdown content.
+  ///   - bundle: The bundle where the image resources are located. Specify `nil` to search the app’s main bundle.
+  public init(
+    name: @escaping (URL) -> String = \.lastPathComponent,
+    bundle: Bundle? = nil
+  ) {
+    self.name = name
+    self.bundle = bundle
+  }
+
+  public func image(with url: URL, label: String) async throws -> Image {
+    .init(self.name(url), bundle: self.bundle, label: Text(label))
+  }
+}
+
+extension InlineImageProvider where Self == AssetInlineImageProvider {
+  /// An inline image provider that loads images from resources located in an app or a module.
+  ///
+  /// Use the `markdownInlineImageProvider(_:)` modifier to configure this image provider for a view hierarchy.
+  public static var asset: Self {
+    .init()
+  }
+}
diff --git a/Sources/MarkdownUI/Extensions/DefaultInlineImageProvider.swift b/Sources/MarkdownUI/Extensions/DefaultInlineImageProvider.swift
new file mode 100644
index 00000000..da15910c
--- /dev/null
+++ b/Sources/MarkdownUI/Extensions/DefaultInlineImageProvider.swift
@@ -0,0 +1,29 @@
+import SwiftUI
+
+/// The default inline image provider, which loads images from the network.
+public struct DefaultInlineImageProvider: InlineImageProvider {
+  private let urlSession: URLSession
+
+  /// Creates a default inline image provider.
+  /// - Parameter urlSession: An `URLSession` instance to load images.
+  public init(urlSession: URLSession = .shared) {
+    self.urlSession = urlSession
+  }
+
+  public func image(with url: URL, label: String) async throws -> Image {
+    try await Image(
+      platformImage: DefaultImageLoader.shared
+        .image(with: url, urlSession: self.urlSession)
+    )
+  }
+}
+
+extension InlineImageProvider where Self == DefaultInlineImageProvider {
+  /// The default inline image provider, which loads images from the network.
+  ///
+  /// Use the `markdownInlineImageProvider(_:)` modifier to configure
+  /// this image provider for a view hierarchy.
+  public static var `default`: Self {
+    .init()
+  }
+}
diff --git a/Sources/MarkdownUI/Extensions/InlineImageProvider.swift b/Sources/MarkdownUI/Extensions/InlineImageProvider.swift
new file mode 100644
index 00000000..06bd9e1c
--- /dev/null
+++ b/Sources/MarkdownUI/Extensions/InlineImageProvider.swift
@@ -0,0 +1,16 @@
+import SwiftUI
+
+/// A type that loads images that are displayed within a line of text.
+///
+/// To configure the current inline image provider for a view hierarchy,
+/// use the `markdownInlineImageProvider(_:)` modifier.
+public protocol InlineImageProvider {
+  /// Returns an image for the given URL.
+  ///
+  /// ``Markdown`` views call this method to load images within a line of text.
+  ///
+  /// - Parameters:
+  ///   - url: The URL of the image to display.
+  ///   - label: The accessibility label associated with the image.
+  func image(with url: URL, label: String) async throws -> Image
+}
diff --git a/Sources/MarkdownUI/Views/Blocks/ImageFlow.swift b/Sources/MarkdownUI/Views/Blocks/ImageFlow.swift
index 273ea5a4..88542f68 100644
--- a/Sources/MarkdownUI/Views/Blocks/ImageFlow.swift
+++ b/Sources/MarkdownUI/Views/Blocks/ImageFlow.swift
@@ -43,10 +43,10 @@ extension ImageFlow {
       case let .image(source, children):
         items.append(.image(source: source, alt: children.text))
       case let .link(destination, children) where children.count == 1:
-        guard let (source, alt) = children.first?.image else {
+        guard let image = children.first?.image else {
           return nil
         }
-        items.append(.image(source: source, alt: alt, destination: destination))
+        items.append(.image(source: image.source, alt: image.alt, destination: destination))
       default:
         return nil
       }
diff --git a/Sources/MarkdownUI/Views/Environment/Environment+InlineImageProvider.swift b/Sources/MarkdownUI/Views/Environment/Environment+InlineImageProvider.swift
new file mode 100644
index 00000000..fa1b5918
--- /dev/null
+++ b/Sources/MarkdownUI/Views/Environment/Environment+InlineImageProvider.swift
@@ -0,0 +1,24 @@
+import SwiftUI
+
+extension View {
+  /// Sets the inline image provider for the Markdown inline images in a view hierarchy.
+  /// - Parameter inlineImageProvider: The inline image provider to set. Use one of the built-in values, like
+  ///                                  ``InlineImageProvider/default`` or ``InlineImageProvider/asset``,
+  ///                                  or a custom inline image provider that you define by creating a type that
+  ///                                  conforms to the ``InlineImageProvider`` protocol.
+  /// - Returns: A view that uses the specified inline image provider for itself and its child views.
+  public func markdownInlineImageProvider(_ inlineImageProvider: InlineImageProvider) -> some View {
+    self.environment(\.inlineImageProvider, inlineImageProvider)
+  }
+}
+
+extension EnvironmentValues {
+  var inlineImageProvider: InlineImageProvider {
+    get { self[InlineImageProviderKey.self] }
+    set { self[InlineImageProviderKey.self] = newValue }
+  }
+}
+
+private struct InlineImageProviderKey: EnvironmentKey {
+  static let defaultValue: InlineImageProvider = .default
+}
diff --git a/Sources/MarkdownUI/Views/Inlines/ImageView.swift b/Sources/MarkdownUI/Views/Inlines/ImageView.swift
index ea32549a..1771ecd1 100644
--- a/Sources/MarkdownUI/Views/Inlines/ImageView.swift
+++ b/Sources/MarkdownUI/Views/Inlines/ImageView.swift
@@ -32,17 +32,11 @@ struct ImageView: View {
 
 extension ImageView {
   init?(_ inlines: [Inline]) {
-    guard inlines.count == 1, let inline = inlines.first else {
+    guard inlines.count == 1, let inline = inlines.first, let image = inline.image else {
       return nil
     }
 
-    if let (source, alt) = inline.image {
-      self.init(source: source, alt: alt)
-    } else if let (source, alt, destination) = inline.imageLink {
-      self.init(source: source, alt: alt, destination: destination)
-    } else {
-      return nil
-    }
+    self.init(source: image.source, alt: image.alt, destination: image.destination)
   }
 }
 
diff --git a/Sources/MarkdownUI/Views/Inlines/InlineText.swift b/Sources/MarkdownUI/Views/Inlines/InlineText.swift
index 5e3a1445..5c55d62b 100644
--- a/Sources/MarkdownUI/Views/Inlines/InlineText.swift
+++ b/Sources/MarkdownUI/Views/Inlines/InlineText.swift
@@ -1,9 +1,13 @@
 import SwiftUI
 
 struct InlineText: View {
+  @Environment(\.inlineImageProvider) private var inlineImageProvider
   @Environment(\.baseURL) private var baseURL
+  @Environment(\.imageBaseURL) private var imageBaseURL
   @Environment(\.theme) private var theme
 
+  @State private var inlineImages: [String: Image] = [:]
+
   private let inlines: [Inline]
 
   init(_ inlines: [Inline]) {
@@ -13,21 +17,49 @@ struct InlineText: View {
   var body: some View {
     TextStyleAttributesReader { attributes in
       Text(
-        AttributedString(
-          inlines: self.inlines,
-          environment: .init(
-            baseURL: self.baseURL,
-            code: self.theme.code,
-            emphasis: self.theme.emphasis,
-            strong: self.theme.strong,
-            strikethrough: self.theme.strikethrough,
-            link: self.theme.link
-          ),
-          attributes: attributes
-        )
-        .resolvingFonts()
+        inlines: self.inlines,
+        images: self.inlineImages,
+        environment: .init(
+          baseURL: self.baseURL,
+          code: self.theme.code,
+          emphasis: self.theme.emphasis,
+          strong: self.theme.strong,
+          strikethrough: self.theme.strikethrough,
+          link: self.theme.link
+        ),
+        attributes: attributes
       )
     }
+    .task(id: self.inlines) {
+      self.inlineImages = (try? await self.loadInlineImages()) ?? [:]
+    }
     .fixedSize(horizontal: false, vertical: true)
   }
+
+  private func loadInlineImages() async throws -> [String: Image] {
+    let images = Set(self.inlines.compactMap(\.image))
+    guard !images.isEmpty else { return [:] }
+
+    return try await withThrowingTaskGroup(of: (String, Image).self) { taskGroup in
+      for image in images {
+        guard let source = image.source,
+          let url = URL(string: source, relativeTo: self.imageBaseURL)
+        else {
+          continue
+        }
+
+        taskGroup.addTask {
+          (source, try await self.inlineImageProvider.image(with: url, label: image.alt))
+        }
+      }
+
+      var inlineImages: [String: Image] = [:]
+
+      for try await result in taskGroup {
+        inlineImages[result.0] = result.1
+      }
+
+      return inlineImages
+    }
+  }
 }
diff --git a/Sources/MarkdownUI/Views/Inlines/Text+Inline.swift b/Sources/MarkdownUI/Views/Inlines/Text+Inline.swift
new file mode 100644
index 00000000..935bdd9b
--- /dev/null
+++ b/Sources/MarkdownUI/Views/Inlines/Text+Inline.swift
@@ -0,0 +1,36 @@
+import SwiftUI
+
+extension Text {
+  init(
+    inlines: [Inline],
+    images: [String: Image],
+    environment: InlineEnvironment,
+    attributes: AttributeContainer
+  ) {
+    self = inlines.map { inline in
+      Text(inline: inline, images: images, environment: environment, attributes: attributes)
+    }
+    .reduce(.init(""), +)
+  }
+
+  init(
+    inline: Inline,
+    images: [String: Image],
+    environment: InlineEnvironment,
+    attributes: AttributeContainer
+  ) {
+    switch inline {
+    case .image(let source, _):
+      if let image = images[source] {
+        self.init(image)
+      } else {
+        self.init("")
+      }
+    default:
+      self.init(
+        AttributedString(inline: inline, environment: environment, attributes: attributes)
+          .resolvingFonts()
+      )
+    }
+  }
+}
diff --git a/Tests/MarkdownUITests/MarkdownContentTests.swift b/Tests/MarkdownUITests/MarkdownContentTests.swift
index fff0b282..0a42d156 100644
--- a/Tests/MarkdownUITests/MarkdownContentTests.swift
+++ b/Tests/MarkdownUITests/MarkdownContentTests.swift
@@ -198,7 +198,7 @@ final class MarkdownContentTests: XCTestCase {
     XCTAssertEqual(
       MarkdownContent {
         TextTable {
-          TextTableColumn(title: "Default", value: \[String].[0])
+          TextTableColumn(title: "Default", value: \.[0])
           TextTableColumn(alignment: .leading, title: "Leading", value: \.[1])
           TextTableColumn(alignment: .center, title: "Center", value: \.[2])
           TextTableColumn(alignment: .trailing, title: "Trailing", value: \.[3])