diff --git a/src/dvclive/report.py b/src/dvclive/report.py
index 90984010..b47b266b 100644
--- a/src/dvclive/report.py
+++ b/src/dvclive/report.py
@@ -1,3 +1,4 @@
+import base64
 import json
 from pathlib import Path
 from typing import TYPE_CHECKING
@@ -64,13 +65,17 @@ def get_scalar_renderers(metrics_path):
     return renderers
 
 
-def get_image_renderers(images_folder):
+def get_image_renderers(images_folder, report_mode):
     plots_path = images_folder.parent.parent
     renderers = []
     for suffix in Image.suffixes:
         all_images = Path(images_folder).rglob(f"*{suffix}")
         for file in sorted(all_images):
-            src = str(file.relative_to(plots_path))
+            if report_mode in {"html", "notebook"}:
+                base64_str = base64.b64encode(file.read_bytes()).decode()
+                src = f"data:image;base64,{base64_str}"
+            else:
+                src = str(file.relative_to(plots_path))
             name = str(file.relative_to(images_folder))
             data = [
                 {
@@ -144,7 +149,9 @@ def make_report(live: "Live"):
     renderers.extend(get_params_renderers(live.params_file))
     renderers.extend(get_metrics_renderers(live.metrics_file))
     renderers.extend(get_scalar_renderers(plots_path / Metric.subfolder))
-    renderers.extend(get_image_renderers(plots_path / Image.subfolder))
+    renderers.extend(
+        get_image_renderers(plots_path / Image.subfolder, report_mode=live._report_mode)
+    )
     renderers.extend(get_plot_renderers(plots_path / SKLearnPlot.subfolder, live))
 
     if live._report_mode == "html":
diff --git a/tests/test_report.py b/tests/test_report.py
index 616ef29f..81897421 100644
--- a/tests/test_report.py
+++ b/tests/test_report.py
@@ -19,6 +19,24 @@
 )
 
 
+@pytest.mark.parametrize("mode", ["html", "md", "notebook"])
+def test_get_image_renderers(tmp_dir, mode):
+    with Live() as live:
+        img = Image.new("RGB", (10, 10), (255, 0, 0))
+        live.log_image("image.png", img)
+
+    image_renderers = get_image_renderers(
+        tmp_dir / live.plots_dir / LiveImage.subfolder, report_mode=mode
+    )
+    assert len(image_renderers) == 1
+    img = image_renderers[0].datapoints[0]
+    if mode == "md":
+        assert img["src"] == os.path.join("plots", LiveImage.subfolder, "image.png")
+    else:
+        assert img["src"].startswith("data:image;base64,")
+    assert img["rev"] == "image.png"
+
+
 def test_get_renderers(tmp_dir, mocker):
     live = Live()
 
@@ -27,21 +45,8 @@ def test_get_renderers(tmp_dir, mocker):
 
     for i in range(2):
         live.log_metric("foo/bar", i)
-        img = Image.new("RGB", (10, 10), (i, i, i))
-        live.log_image("image.png", img)
         live.next_step()
 
-    image_renderers = get_image_renderers(
-        tmp_dir / live.plots_dir / LiveImage.subfolder
-    )
-    assert len(image_renderers) == 1
-    assert image_renderers[0].datapoints == [
-        {
-            "src": os.path.join("plots", LiveImage.subfolder, "image.png"),
-            "rev": "image.png",
-        }
-    ]
-
     scalar_renderers = get_scalar_renderers(tmp_dir / live.plots_dir / Metric.subfolder)
     assert len(scalar_renderers) == 1
     assert scalar_renderers[0].datapoints == [