diff --git a/extensions/markdown-language-features/src/languageFeatures/dropIntoEditor.ts b/extensions/markdown-language-features/src/languageFeatures/dropIntoEditor.ts
index a3b862b5bc3..fc78484fc5c 100644
--- a/extensions/markdown-language-features/src/languageFeatures/dropIntoEditor.ts
+++ b/extensions/markdown-language-features/src/languageFeatures/dropIntoEditor.ts
@@ -7,6 +7,22 @@ import * as path from 'path';
 import * as vscode from 'vscode';
 import * as URI from 'vscode-uri';
 
+const imageFileExtensions = new Set<string>([
+	'.bmp',
+	'.gif',
+	'.ico',
+	'.jpe',
+	'.jpeg',
+	'.jpg',
+	'.png',
+	'.psd',
+	'.svg',
+	'.tga',
+	'.tif',
+	'.tiff',
+	'.webp',
+]);
+
 export function registerDropIntoEditor(selector: vscode.DocumentSelector) {
 	return vscode.languages.registerDocumentOnDropProvider(selector, new class implements vscode.DocumentOnDropProvider {
 		async provideDocumentOnDropEdits(document: vscode.TextDocument, position: vscode.Position, dataTransfer: vscode.DataTransfer, _token: vscode.CancellationToken): Promise<vscode.SnippetTextEdit | undefined> {
@@ -37,7 +53,8 @@ export function registerDropIntoEditor(selector: vscode.DocumentSelector) {
 			uris.forEach((uri, i) => {
 				const rel = path.relative(URI.Utils.dirname(document.uri).fsPath, uri.fsPath);
 
-				snippet.appendText('[');
+				const ext = URI.Utils.extname(uri).toLowerCase();
+				snippet.appendText(imageFileExtensions.has(ext) ? '![' : '[');
 				snippet.appendTabstop();
 				snippet.appendText(`](${rel})`);