diff --git a/extensions/markdown-basics/cgmanifest.json b/extensions/markdown-basics/cgmanifest.json
index 46b4bae2286..899a3b2422b 100644
--- a/extensions/markdown-basics/cgmanifest.json
+++ b/extensions/markdown-basics/cgmanifest.json
@@ -33,7 +33,7 @@
 				"git": {
 					"name": "microsoft/vscode-markdown-tm-grammar",
 					"repositoryUrl": "https://github.com/microsoft/vscode-markdown-tm-grammar",
-					"commitHash": "69d3321b4923ca2d5e8e900018887cc38b5fe04a"
+					"commitHash": "97f2f8d38f10d3febd77d85b745945dc60fe334e"
 				}
 			},
 			"license": "MIT",
diff --git a/extensions/markdown-basics/syntaxes/markdown.tmLanguage.json b/extensions/markdown-basics/syntaxes/markdown.tmLanguage.json
index 895836a188f..7ba6ebe393e 100644
--- a/extensions/markdown-basics/syntaxes/markdown.tmLanguage.json
+++ b/extensions/markdown-basics/syntaxes/markdown.tmLanguage.json
@@ -4,7 +4,7 @@
 		"If you want to provide a fix or improvement, please create a pull request against the original repository.",
 		"Once accepted there, we are happy to receive an update request."
 	],
-	"version": "https://github.com/microsoft/vscode-markdown-tm-grammar/commit/69d3321b4923ca2d5e8e900018887cc38b5fe04a",
+	"version": "https://github.com/microsoft/vscode-markdown-tm-grammar/commit/97f2f8d38f10d3febd77d85b745945dc60fe334e",
 	"name": "Markdown",
 	"scopeName": "text.html.markdown",
 	"patterns": [
@@ -2766,7 +2766,24 @@
 					"name": "punctuation.definition.link.title.begin.markdown"
 				},
 				"2": {
-					"name": "string.other.link.title.markdown"
+					"name": "string.other.link.title.markdown",
+					"patterns": [
+						{
+							"include": "#raw"
+						},
+						{
+							"include": "#bold"
+						},
+						{
+							"include": "#italic"
+						},
+						{
+							"include": "#strikethrough"
+						},
+						{
+							"include": "#image-inline"
+						}
+					]
 				},
 				"4": {
 					"name": "punctuation.definition.link.title.end.markdown"
@@ -2826,7 +2843,24 @@
 					"name": "punctuation.definition.link.title.begin.markdown"
 				},
 				"2": {
-					"name": "string.other.link.title.markdown"
+					"name": "string.other.link.title.markdown",
+					"patterns": [
+						{
+							"include": "#raw"
+						},
+						{
+							"include": "#bold"
+						},
+						{
+							"include": "#italic"
+						},
+						{
+							"include": "#strikethrough"
+						},
+						{
+							"include": "#image-inline"
+						}
+					]
 				},
 				"4": {
 					"name": "punctuation.definition.link.title.end.markdown"
@@ -2957,7 +2991,7 @@
 					"name": "punctuation.definition.strikethrough.markdown"
 				}
 			},
-			"match": "(~{2,})((?:[^~]|(?!(?<!~)\\1(?!~))~)*+)(\\1)",
+			"match": "(?<!\\\\)(~{2,})((?:[^~]|(?!(?<![~\\\\])\\1(?!~))~)*+)(\\1)",
 			"name": "markup.strikethrough.markdown"
 		}
 	}
diff --git a/extensions/theme-abyss/themes/abyss-color-theme.json b/extensions/theme-abyss/themes/abyss-color-theme.json
index aa48d9724fe..3157d39b234 100644
--- a/extensions/theme-abyss/themes/abyss-color-theme.json
+++ b/extensions/theme-abyss/themes/abyss-color-theme.json
@@ -7,7 +7,11 @@
 			}
 		},
 		{
-			"scope": ["meta.embedded", "source.groovy.embedded"],
+			"scope": [
+				"meta.embedded",
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
+			],
 			"settings": {
 				"foreground": "#6688cc"
 			}
diff --git a/extensions/theme-defaults/themes/dark_vs.json b/extensions/theme-defaults/themes/dark_vs.json
index 8072b0bdd6e..71b5a62a274 100644
--- a/extensions/theme-defaults/themes/dark_vs.json
+++ b/extensions/theme-defaults/themes/dark_vs.json
@@ -26,7 +26,8 @@
 		{
 			"scope": [
 				"meta.embedded",
-				"source.groovy.embedded"
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown",
 			],
 			"settings": {
 				"foreground": "#D4D4D4"
diff --git a/extensions/theme-defaults/themes/hc_black.json b/extensions/theme-defaults/themes/hc_black.json
index 7a257515d8c..b8eda7974b7 100644
--- a/extensions/theme-defaults/themes/hc_black.json
+++ b/extensions/theme-defaults/themes/hc_black.json
@@ -17,7 +17,8 @@
 		{
 			"scope": [
 				"meta.embedded",
-				"source.groovy.embedded"
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
 			],
 			"settings": {
 				"foreground": "#FFFFFF"
diff --git a/extensions/theme-defaults/themes/light_vs.json b/extensions/theme-defaults/themes/light_vs.json
index ae3ab6645bc..d88e6ff90d6 100644
--- a/extensions/theme-defaults/themes/light_vs.json
+++ b/extensions/theme-defaults/themes/light_vs.json
@@ -32,7 +32,8 @@
 		{
 			"scope": [
 				"meta.embedded",
-				"source.groovy.embedded"
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
 			],
 			"settings": {
 				"foreground": "#000000ff"
diff --git a/extensions/theme-kimbie-dark/themes/kimbie-dark-color-theme.json b/extensions/theme-kimbie-dark/themes/kimbie-dark-color-theme.json
index bc56665a86c..76cdb8a9753 100644
--- a/extensions/theme-kimbie-dark/themes/kimbie-dark-color-theme.json
+++ b/extensions/theme-kimbie-dark/themes/kimbie-dark-color-theme.json
@@ -60,7 +60,11 @@
 			}
 		},
 		{
-			"scope": ["meta.embedded", "source.groovy.embedded"],
+			"scope": [
+				"meta.embedded",
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
+			],
 			"settings": {
 				"foreground": "#d3af86"
 			}
diff --git a/extensions/theme-monokai/themes/monokai-color-theme.json b/extensions/theme-monokai/themes/monokai-color-theme.json
index 11e7caa3c3e..fccdf7cd600 100644
--- a/extensions/theme-monokai/themes/monokai-color-theme.json
+++ b/extensions/theme-monokai/themes/monokai-color-theme.json
@@ -110,7 +110,8 @@
 		{
 			"scope": [
 				"meta.embedded",
-				"source.groovy.embedded"
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
 			],
 			"settings": {
 				"foreground": "#F8F8F2"
diff --git a/extensions/theme-quietlight/themes/quietlight-color-theme.json b/extensions/theme-quietlight/themes/quietlight-color-theme.json
index 753116e27d1..30615a91f03 100644
--- a/extensions/theme-quietlight/themes/quietlight-color-theme.json
+++ b/extensions/theme-quietlight/themes/quietlight-color-theme.json
@@ -9,7 +9,8 @@
 		{
 			"scope": [
 				"meta.embedded",
-				"source.groovy.embedded"
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
 			],
 			"settings": {
 				"foreground": "#333333"
diff --git a/extensions/theme-red/themes/Red-color-theme.json b/extensions/theme-red/themes/Red-color-theme.json
index f5bd596d10d..c139400dc56 100644
--- a/extensions/theme-red/themes/Red-color-theme.json
+++ b/extensions/theme-red/themes/Red-color-theme.json
@@ -69,7 +69,8 @@
 		{
 			"scope": [
 				"meta.embedded",
-				"source.groovy.embedded"
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
 			],
 			"settings": {
 				"foreground": "#F8F8F8"
diff --git a/extensions/theme-solarized-dark/themes/solarized-dark-color-theme.json b/extensions/theme-solarized-dark/themes/solarized-dark-color-theme.json
index 2febfd9bca0..e10c6e67403 100644
--- a/extensions/theme-solarized-dark/themes/solarized-dark-color-theme.json
+++ b/extensions/theme-solarized-dark/themes/solarized-dark-color-theme.json
@@ -9,7 +9,8 @@
 		{
 			"scope": [
 				"meta.embedded",
-				"source.groovy.embedded"
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
 			],
 			"settings": {
 				"foreground": "#839496"
diff --git a/extensions/theme-solarized-light/themes/solarized-light-color-theme.json b/extensions/theme-solarized-light/themes/solarized-light-color-theme.json
index d13c42c0bb2..e5f8e5b5ee5 100644
--- a/extensions/theme-solarized-light/themes/solarized-light-color-theme.json
+++ b/extensions/theme-solarized-light/themes/solarized-light-color-theme.json
@@ -9,7 +9,8 @@
 		{
 			"scope": [
 				"meta.embedded",
-				"source.groovy.embedded"
+				"source.groovy.embedded",
+				"string meta.image.inline.markdown"
 			],
 			"settings": {
 				"foreground": "#657B83"
diff --git a/extensions/theme-tomorrow-night-blue/themes/tomorrow-night-blue-color-theme.json b/extensions/theme-tomorrow-night-blue/themes/tomorrow-night-blue-color-theme.json
index b37fd6b0083..eef990db889 100644
--- a/extensions/theme-tomorrow-night-blue/themes/tomorrow-night-blue-color-theme.json
+++ b/extensions/theme-tomorrow-night-blue/themes/tomorrow-night-blue-color-theme.json
@@ -15,8 +15,8 @@
 		"editor.foreground": "#ffffff",
 		"editor.selectionBackground": "#003f8e",
 		"minimap.selectionHighlight": "#003f8e",
-        "editor.lineHighlightBackground": "#00346e",
-        "editorLineNumber.activeForeground": "#949494",
+		"editor.lineHighlightBackground": "#00346e",
+		"editorLineNumber.activeForeground": "#949494",
 		"editorCursor.foreground": "#ffffff",
 		"editorWhitespace.foreground": "#404f7d",
 		"editorWidget.background": "#001c40",
@@ -65,7 +65,12 @@
 			}
 		},
 		{
-			"scope": ["meta.embedded", "source.groovy.embedded", "meta.jsx.children"],
+			"scope": [
+				"meta.embedded",
+				"source.groovy.embedded",
+				"meta.jsx.children",
+				"string meta.image.inline.markdown"
+			],
 			"settings": {
 				//"background": "#002451",
 				"foreground": "#FFFFFF"