diff --git a/packages/next/build/webpack-config.ts b/packages/next/build/webpack-config.ts
index 0f5f5b4da54b8..b6182fbae4be5 100644
--- a/packages/next/build/webpack-config.ts
+++ b/packages/next/build/webpack-config.ts
@@ -964,6 +964,7 @@ export default async function getBaseWebpackConfig(
         'error-loader',
         'next-babel-loader',
         'next-client-pages-loader',
+        'next-image-loader',
         'next-serverless-loader',
         'noop-loader',
         'next-style-loader',
@@ -1012,6 +1013,15 @@ export default async function getBaseWebpackConfig(
               ]
             : defaultLoaders.babel,
         },
+        ...(config.experimental.enableStaticImages
+          ? [
+              {
+                test: /\.(png|svg|jpg|jpeg|gif|webp|ico|bmp)$/i,
+                loader: 'next-image-loader',
+                dependency: { not: ['url'] },
+              },
+            ]
+          : []),
       ].filter(Boolean),
     },
     plugins: [
diff --git a/packages/next/build/webpack/loaders/next-image-loader.js b/packages/next/build/webpack/loaders/next-image-loader.js
new file mode 100644
index 0000000000000..7299c8afbb3e8
--- /dev/null
+++ b/packages/next/build/webpack/loaders/next-image-loader.js
@@ -0,0 +1,52 @@
+import loaderUtils from 'next/dist/compiled/loader-utils'
+import sizeOf from 'image-size'
+import { processBuffer } from '../../../next-server/server/lib/squoosh/main'
+
+const PLACEHOLDER_SIZE = 6
+
+async function nextImageLoader(content) {
+  const context = this.rootContext
+  const opts = { context, content }
+  const interpolatedName = loaderUtils.interpolateName(
+    this,
+    '/static/image/[path][name].[hash].[ext]',
+    opts
+  )
+
+  let extension = loaderUtils.interpolateName(this, '[ext]', opts)
+  if (extension === 'jpg') {
+    extension = 'jpeg'
+  }
+
+  const imageSize = sizeOf(content)
+  let placeholder
+  if (extension === 'jpeg' || extension === 'png') {
+    // Shrink the image's largest dimension to 6 pixels
+    const resizeOperationOpts =
+      imageSize.width >= imageSize.height
+        ? { type: 'resize', width: PLACEHOLDER_SIZE }
+        : { type: 'resize', height: PLACEHOLDER_SIZE }
+    const resizedImage = await processBuffer(
+      content,
+      [resizeOperationOpts],
+      extension,
+      0
+    )
+    placeholder = `data:image/${extension};base64,${resizedImage.toString(
+      'base64'
+    )}`
+  }
+
+  const stringifiedData = JSON.stringify({
+    src: '/_next' + interpolatedName,
+    height: imageSize.height,
+    width: imageSize.width,
+    placeholder,
+  })
+
+  this.emitFile(interpolatedName, content, null)
+
+  return `${'export default '} ${stringifiedData};`
+}
+export const raw = true
+export default nextImageLoader
diff --git a/packages/next/client/image.tsx b/packages/next/client/image.tsx
index e41f5c4b94475..9033611d3690d 100644
--- a/packages/next/client/image.tsx
+++ b/packages/next/client/image.tsx
@@ -22,6 +22,7 @@ export type ImageLoaderProps = {
   src: string
   width: number
   quality?: number
+  isStatic?: boolean
 }
 
 type DefaultImageLoaderProps = ImageLoaderProps & { root: string }
@@ -49,11 +50,44 @@ type PlaceholderValue = 'blur' | 'empty'
 
 type ImgElementStyle = NonNullable<JSX.IntrinsicElements['img']['style']>
 
+interface StaticImageData {
+  src: string
+  height: number
+  width: number
+  placeholder?: string
+}
+
+interface StaticRequire {
+  default: StaticImageData
+}
+
+type StaticImport = StaticRequire | StaticImageData
+
+function isStaticRequire(
+  src: StaticRequire | StaticImageData
+): src is StaticRequire {
+  return (src as StaticRequire).default !== undefined
+}
+
+function isStaticImageData(
+  src: StaticRequire | StaticImageData
+): src is StaticImageData {
+  return (src as StaticImageData).src !== undefined
+}
+
+function isStaticImport(src: string | StaticImport): src is StaticImport {
+  return (
+    typeof src === 'object' &&
+    (isStaticRequire(src as StaticImport) ||
+      isStaticImageData(src as StaticImport))
+  )
+}
+
 export type ImageProps = Omit<
   JSX.IntrinsicElements['img'],
   'src' | 'srcSet' | 'ref' | 'width' | 'height' | 'loading' | 'style'
 > & {
-  src: string
+  src: string | StaticImport
   loader?: ImageLoader
   quality?: number | string
   priority?: boolean
@@ -145,6 +179,7 @@ type GenImgAttrsData = {
   unoptimized: boolean
   layout: LayoutValue
   loader: ImageLoader
+  isStatic?: boolean
   width?: number
   quality?: number
   sizes?: string
@@ -164,6 +199,7 @@ function generateImgAttrs({
   quality,
   sizes,
   loader,
+  isStatic,
 }: GenImgAttrsData): GenImgAttrsResult {
   if (unoptimized) {
     return { src, srcSet: undefined, sizes: undefined }
@@ -177,7 +213,7 @@ function generateImgAttrs({
     srcSet: widths
       .map(
         (w, i) =>
-          `${loader({ src, quality, width: w })} ${
+          `${loader({ src, quality, isStatic, width: w })} ${
             kind === 'w' ? w : i + 1
           }${kind}`
       )
@@ -189,7 +225,7 @@ function generateImgAttrs({
     // updated by React. That causes multiple unnecessary requests if `srcSet`
     // and `sizes` are defined.
     // This bug cannot be reproduced in Chrome or Firefox.
-    src: loader({ src, quality, width: widths[last] }),
+    src: loader({ src, quality, isStatic, width: widths[last] }),
   }
 }
 
@@ -265,6 +301,35 @@ export default function Image({
   if (!configEnableBlurryPlaceholder) {
     placeholder = 'empty'
   }
+  const isStatic = typeof src === 'object'
+  let staticSrc = ''
+  if (isStaticImport(src)) {
+    const staticImageData = isStaticRequire(src) ? src.default : src
+
+    if (!staticImageData.src) {
+      throw new Error(
+        `An object should only be passed to the image component src parameter if it comes from a static image import. It must include src. Received ${JSON.stringify(
+          staticImageData
+        )}`
+      )
+    }
+    if (staticImageData.placeholder) {
+      blurDataURL = staticImageData.placeholder
+    }
+    staticSrc = staticImageData.src
+    if (!layout || layout !== 'fill') {
+      height = height || staticImageData.height
+      width = width || staticImageData.width
+      if (!staticImageData.height || !staticImageData.width) {
+        throw new Error(
+          `An object should only be passed to the image component src parameter if it comes from a static image import. It must include height and width. Received ${JSON.stringify(
+            staticImageData
+          )}`
+        )
+      }
+    }
+  }
+  src = (isStatic ? staticSrc : src) as string
 
   if (process.env.NODE_ENV !== 'production') {
     if (!src) {
@@ -294,7 +359,6 @@ export default function Image({
       )
     }
   }
-
   let isLazy =
     !priority && (loading === 'lazy' || typeof loading === 'undefined')
   if (src && src.startsWith('data:')) {
@@ -442,6 +506,7 @@ export default function Image({
       quality: qualityInt,
       sizes,
       loader,
+      isStatic,
     })
   }
 
@@ -569,6 +634,7 @@ function cloudinaryLoader({
 
 function defaultLoader({
   root,
+  isStatic,
   src,
   width,
   quality,
@@ -616,5 +682,7 @@ function defaultLoader({
     }
   }
 
-  return `${root}?url=${encodeURIComponent(src)}&w=${width}&q=${quality || 75}`
+  return `${root}?url=${encodeURIComponent(src)}&w=${width}&q=${quality || 75}${
+    isStatic ? '&s=1' : ''
+  }`
 }
diff --git a/packages/next/next-server/server/config-shared.ts b/packages/next/next-server/server/config-shared.ts
index 2f90d201c3008..1bdb62f9e4fd1 100644
--- a/packages/next/next-server/server/config-shared.ts
+++ b/packages/next/next-server/server/config-shared.ts
@@ -44,6 +44,7 @@ export type NextConfig = { [key: string]: any } & {
     workerThreads?: boolean
     pageEnv?: boolean
     optimizeImages?: boolean
+    enableStaticImages?: boolean
     optimizeCss?: boolean
     scrollRestoration?: boolean
     stats?: boolean
@@ -105,6 +106,7 @@ export const defaultConfig: NextConfig = {
     workerThreads: false,
     pageEnv: false,
     optimizeImages: false,
+    enableStaticImages: false,
     optimizeCss: false,
     scrollRestoration: false,
     stats: false,
diff --git a/packages/next/next-server/server/image-optimizer.ts b/packages/next/next-server/server/image-optimizer.ts
index 527201f213c9b..9cb514b8ed3f0 100644
--- a/packages/next/next-server/server/image-optimizer.ts
+++ b/packages/next/next-server/server/image-optimizer.ts
@@ -46,7 +46,7 @@ export async function imageOptimizer(
   }
 
   const { headers } = req
-  const { url, w, q } = parsedUrl.query
+  const { url, w, q, s } = parsedUrl.query
   const mimeType = getSupportedMimeType(MODERN_TYPES, headers.accept)
   let href: string
 
@@ -111,6 +111,14 @@ export async function imageOptimizer(
     return { finished: true }
   }
 
+  if (s && s !== '1') {
+    res.statusCode = 400
+    res.end('"s" parameter must be "1" or omitted')
+    return { finished: true }
+  }
+
+  const isStatic = !!s
+
   const width = parseInt(w, 10)
 
   if (!width || isNaN(width)) {
@@ -261,7 +269,7 @@ export async function imageOptimizer(
         ANIMATABLE_TYPES.includes(upstreamType) && isAnimated(upstreamBuffer)
       if (vector || animate) {
         await writeToCacheDir(hashDir, upstreamType, expireAt, upstreamBuffer)
-        sendResponse(req, res, upstreamType, upstreamBuffer)
+        sendResponse(req, res, upstreamType, upstreamBuffer, isStatic)
         return { finished: true }
       }
 
@@ -333,12 +341,12 @@ export async function imageOptimizer(
 
       if (optimizedBuffer) {
         await writeToCacheDir(hashDir, contentType, expireAt, optimizedBuffer)
-        sendResponse(req, res, contentType, optimizedBuffer)
+        sendResponse(req, res, contentType, optimizedBuffer, isStatic)
       } else {
         throw new Error('Unable to optimize buffer')
       }
     } catch (error) {
-      sendResponse(req, res, upstreamType, upstreamBuffer)
+      sendResponse(req, res, upstreamType, upstreamBuffer, isStatic)
     }
 
     return { finished: true }
@@ -366,10 +374,16 @@ function sendResponse(
   req: IncomingMessage,
   res: ServerResponse,
   contentType: string | null,
-  buffer: Buffer
+  buffer: Buffer,
+  isStatic: boolean
 ) {
   const etag = getHash([buffer])
-  res.setHeader('Cache-Control', 'public, max-age=0, must-revalidate')
+  res.setHeader(
+    'Cache-Control',
+    isStatic
+      ? 'public, immutable, max-age=315360000'
+      : 'public, max-age=0, must-revalidate'
+  )
   if (sendEtagResponse(req, res, etag)) {
     return
   }
diff --git a/packages/next/next-server/server/lib/squoosh/impl.ts b/packages/next/next-server/server/lib/squoosh/impl.ts
index a814249ea89d3..b9efc9859114f 100644
--- a/packages/next/next-server/server/lib/squoosh/impl.ts
+++ b/packages/next/next-server/server/lib/squoosh/impl.ts
@@ -29,7 +29,12 @@ export async function rotate(
   return await m(image.data, image.width, image.height, { numRotations })
 }
 
-export async function resize(image: ImageData, width: number) {
+type ResizeOpts = { image: ImageData } & (
+  | { width: number; height?: never }
+  | { height: number; width?: never }
+)
+
+export async function resize({ image, width, height }: ResizeOpts) {
   image = ImageData.from(image)
 
   const p = preprocessors['resize']
@@ -37,6 +42,7 @@ export async function resize(image: ImageData, width: number) {
   return await m(image.data, image.width, image.height, {
     ...p.defaultOptions,
     width,
+    height,
   })
 }
 
diff --git a/packages/next/next-server/server/lib/squoosh/main.ts b/packages/next/next-server/server/lib/squoosh/main.ts
index 8fbcb89212a47..4b885764481ab 100644
--- a/packages/next/next-server/server/lib/squoosh/main.ts
+++ b/packages/next/next-server/server/lib/squoosh/main.ts
@@ -9,8 +9,7 @@ type RotateOperation = {
 }
 type ResizeOperation = {
   type: 'resize'
-  width: number
-}
+} & ({ width: number; height?: never } | { height: number; width?: never })
 export type Operation = RotateOperation | ResizeOperation
 export type Encoding = 'jpeg' | 'png' | 'webp'
 
@@ -38,8 +37,24 @@ export async function processBuffer(
     if (operation.type === 'rotate') {
       imageData = await worker.rotate(imageData, operation.numRotations)
     } else if (operation.type === 'resize') {
-      if (imageData.width && imageData.width > operation.width) {
-        imageData = await worker.resize(imageData, operation.width)
+      if (
+        operation.width &&
+        imageData.width &&
+        imageData.width > operation.width
+      ) {
+        imageData = await worker.resize({
+          image: imageData,
+          width: operation.width,
+        })
+      } else if (
+        operation.height &&
+        imageData.height &&
+        imageData.height > operation.height
+      ) {
+        imageData = await worker.resize({
+          image: imageData,
+          height: operation.height,
+        })
       }
     }
   }
diff --git a/packages/next/package.json b/packages/next/package.json
index 340364434d988..5b096c71fcf55 100644
--- a/packages/next/package.json
+++ b/packages/next/package.json
@@ -102,6 +102,7 @@
     "raw-body": "2.4.1",
     "react-is": "16.13.1",
     "react-refresh": "0.8.3",
+    "image-size": "1.0.0",
     "stream-browserify": "3.0.0",
     "stream-http": "3.1.1",
     "string_decoder": "1.3.0",
diff --git a/test/integration/image-component/default/components/TallImage.js b/test/integration/image-component/default/components/TallImage.js
new file mode 100644
index 0000000000000..c0fbbcfe6d63c
--- /dev/null
+++ b/test/integration/image-component/default/components/TallImage.js
@@ -0,0 +1,20 @@
+import React from 'react'
+import Image from 'next/image'
+
+import testTall from './tall.png'
+
+const Page = () => {
+  return (
+    <div>
+      <h1 id="page-header">Static Image</h1>
+      <Image
+        id="basic-static"
+        src={testTall}
+        layout="fixed"
+        placeholder="blur"
+      />
+    </div>
+  )
+}
+
+export default Page
diff --git a/test/integration/image-component/default/components/tall.png b/test/integration/image-component/default/components/tall.png
new file mode 100644
index 0000000000000..a792dda6c172f
Binary files /dev/null and b/test/integration/image-component/default/components/tall.png differ
diff --git a/test/integration/image-component/default/pages/static.js b/test/integration/image-component/default/pages/static.js
new file mode 100644
index 0000000000000..b0ddba5fc0702
--- /dev/null
+++ b/test/integration/image-component/default/pages/static.js
@@ -0,0 +1,56 @@
+import React from 'react'
+import testImg from '../public/foo/test-rect.jpg'
+import Image from 'next/image'
+
+import testJPG from '../public/test.jpg'
+import testPNG from '../public/test.png'
+import testSVG from '../public/test.svg'
+import testGIF from '../public/test.gif'
+import testBMP from '../public/test.bmp'
+import testICO from '../public/test.ico'
+import testWEBP from '../public/test.webp'
+
+import TallImage from '../components/TallImage'
+const testFiles = [
+  testJPG,
+  testPNG,
+  testSVG,
+  testGIF,
+  testBMP,
+  testICO,
+  testWEBP,
+]
+
+const Page = () => {
+  return (
+    <div>
+      <h1 id="page-header">Static Image</h1>
+      <Image
+        id="basic-static"
+        src={testImg}
+        layout="fixed"
+        placeholder="blur"
+      />
+      <TallImage />
+      <Image
+        id="defined-size-static"
+        src={testPNG}
+        layout="fixed"
+        height="200"
+        width="200"
+      />
+      <Image id="require-static" src={require('../public/foo/test-rect.jpg')} />
+      <Image
+        id="basic-non-static"
+        src="/test-rect.jpg"
+        width="400"
+        height="300"
+      />
+      {testFiles.map((f, i) => (
+        <Image id={`format-test-${i}`} key={i} src={f} placeholder="blur" />
+      ))}
+    </div>
+  )
+}
+
+export default Page
diff --git a/test/integration/image-component/default/public/foo/test-rect.jpg b/test/integration/image-component/default/public/foo/test-rect.jpg
new file mode 100644
index 0000000000000..68d3a8415f5e6
Binary files /dev/null and b/test/integration/image-component/default/public/foo/test-rect.jpg differ
diff --git a/test/integration/image-component/default/public/test.ico b/test/integration/image-component/default/public/test.ico
new file mode 100644
index 0000000000000..55cce0b4a8547
Binary files /dev/null and b/test/integration/image-component/default/public/test.ico differ
diff --git a/test/integration/image-component/default/public/test.webp b/test/integration/image-component/default/public/test.webp
new file mode 100644
index 0000000000000..4b306cb0898cc
Binary files /dev/null and b/test/integration/image-component/default/public/test.webp differ
diff --git a/test/integration/image-component/default/test/index.test.js b/test/integration/image-component/default/test/index.test.js
index a1b034b36fb7b..bd9d79cbc95f2 100644
--- a/test/integration/image-component/default/test/index.test.js
+++ b/test/integration/image-component/default/test/index.test.js
@@ -553,21 +553,47 @@ function runTests(mode) {
 describe('Image Component Tests', () => {
   describe('dev mode', () => {
     beforeAll(async () => {
+      await fs.writeFile(
+        nextConfig,
+        `
+        module.exports = {
+          experimental: {
+            enableStaticImages: true
+          },
+        }
+      `
+      )
       appPort = await findPort()
       app = await launchApp(appDir, appPort)
     })
-    afterAll(() => killApp(app))
+    afterAll(async () => {
+      await fs.unlink(nextConfig)
+      await killApp(app)
+    })
 
     runTests('dev')
   })
 
   describe('server mode', () => {
     beforeAll(async () => {
+      await fs.writeFile(
+        nextConfig,
+        `
+        module.exports = {
+          experimental: {
+            enableStaticImages: true
+          },
+        }
+      `
+      )
       await nextBuild(appDir)
       appPort = await findPort()
       app = await nextStart(appDir, appPort)
     })
-    afterAll(() => killApp(app))
+    afterAll(async () => {
+      await fs.unlink(nextConfig)
+      await killApp(app)
+    })
 
     runTests('server')
   })
@@ -581,6 +607,7 @@ describe('Image Component Tests', () => {
           target: 'serverless',
           experimental: {
             enableBlurryPlaceholder: true,
+            enableStaticImages: true
           },
         }
       `
diff --git a/test/integration/image-component/default/test/static.test.js b/test/integration/image-component/default/test/static.test.js
new file mode 100644
index 0000000000000..1c4e5e1a0b6d7
--- /dev/null
+++ b/test/integration/image-component/default/test/static.test.js
@@ -0,0 +1,102 @@
+import {
+  findPort,
+  killApp,
+  nextBuild,
+  nextStart,
+  renderViaHTTP,
+  File,
+} from 'next-test-utils'
+import webdriver from 'next-webdriver'
+import { join } from 'path'
+
+jest.setTimeout(1000 * 30)
+
+const appDir = join(__dirname, '../')
+let appPort
+let app
+let browser
+let html
+
+const indexPage = new File(join(appDir, 'pages/static.js'))
+const nextConfig = new File(join(appDir, 'next.config.js'))
+
+const runTests = () => {
+  it('Should allow an image with a static src to omit height and width', async () => {
+    expect(await browser.elementById('basic-static')).toBeTruthy()
+    expect(await browser.elementById('format-test-0')).toBeTruthy()
+    expect(await browser.elementById('format-test-1')).toBeTruthy()
+    expect(await browser.elementById('format-test-2')).toBeTruthy()
+    expect(await browser.elementById('format-test-3')).toBeTruthy()
+    expect(await browser.elementById('format-test-4')).toBeTruthy()
+    expect(await browser.elementById('format-test-5')).toBeTruthy()
+    expect(await browser.elementById('format-test-6')).toBeTruthy()
+  })
+  it('Should automatically provide an image height and width', async () => {
+    expect(html).toContain('width:400px;height:300px')
+  })
+  it('Should allow provided width and height to override intrinsic', async () => {
+    expect(html).toContain('width:200px;height:200px')
+    expect(html).not.toContain('width:400px;height:400px')
+  })
+  it('Should append "&s=1" to URLs of static images', async () => {
+    expect(
+      await browser.elementById('basic-static').getAttribute('src')
+    ).toContain('&s=1')
+  })
+  it('Should not append "&s=1" to URLs of non-static images', async () => {
+    expect(
+      await browser.elementById('basic-non-static').getAttribute('src')
+    ).not.toContain('&s=1')
+  })
+  it('Should add a blurry placeholder to statically imported jpg', async () => {
+    expect(html).toContain(
+      `style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;background-size:cover;background-image:url(&quot;data:image/jpeg;base64,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&quot;)"`
+    )
+  })
+  it('Should add a blurry placeholder to statically imported png', async () => {
+    expect(html).toContain(
+      `style="position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;background-size:cover;background-image:url(&quot;data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAYAAAAGCAQAAABKxSfDAAAAOklEQVR42jXLsQ2AMADEQINYIT2ZgP2VfTLGmy+gObkxeImfhyXU1pSsrDoDPm53RfDOyKiE839y+gIFlSgsTCgClAAAAABJRU5ErkJggg==&quot;)"`
+    )
+  })
+}
+
+describe('Build Error Tests', () => {
+  it('should throw build error when import statement is used with missing file', async () => {
+    await indexPage.replace(
+      '../public/foo/test-rect.jpg',
+      '../public/foo/test-rect-broken.jpg'
+    )
+
+    const { stderr } = await nextBuild(appDir, undefined, { stderr: true })
+    await indexPage.restore()
+
+    expect(stderr).toContain(
+      "Error: Can't resolve '../public/foo/test-rect-broken.jpg"
+    )
+  })
+})
+describe('Static Image Component Tests', () => {
+  beforeAll(async () => {
+    nextConfig.write(
+      `
+        module.exports = {
+          experimental: {
+            enableStaticImages: true,
+            enableBlurryPlaceholder: true,
+          },
+        }
+      `
+    )
+
+    await nextBuild(appDir)
+    appPort = await findPort()
+    app = await nextStart(appDir, appPort)
+    html = await renderViaHTTP(appPort, '/static')
+    browser = await webdriver(appPort, '/static')
+  })
+  afterAll(() => {
+    nextConfig.delete()
+    killApp(app)
+  })
+  runTests()
+})
diff --git a/test/integration/image-optimizer/test/index.test.js b/test/integration/image-optimizer/test/index.test.js
index d8b63b85a937b..db8bbe1fba44a 100644
--- a/test/integration/image-optimizer/test/index.test.js
+++ b/test/integration/image-optimizer/test/index.test.js
@@ -217,6 +217,13 @@ function runTests({ w, isDev, domains }) {
     )
   })
 
+  it('should fail when s is present and not "1"', async () => {
+    const query = { url: '/test.png', w, q: 100, s: 'foo' }
+    const res = await fetchViaHTTP(appPort, '/_next/image', query, {})
+    expect(res.status).toBe(400)
+    expect(await res.text()).toBe(`"s" parameter must be "1" or omitted`)
+  })
+
   it('should fail when domain is not defined in next.config.js', async () => {
     const url = `http://vercel.com/button`
     const query = { url, w, q: 100 }
@@ -503,6 +510,16 @@ function runTests({ w, isDev, domains }) {
     expect(colorType).toBe(4)
   })
 
+  it('should set cache-control to immutable for static images', async () => {
+    const query = { url: '/test.jpg', w, q: 100, s: '1' }
+    const opts = { headers: { accept: 'image/webp' } }
+    const res = await fetchViaHTTP(appPort, '/_next/image', query, opts)
+    expect(res.status).toBe(200)
+    expect(res.headers.get('cache-control')).toBe(
+      'public, immutable, max-age=315360000'
+    )
+  })
+
   it("should error if the resource isn't a valid image", async () => {
     const query = { url: '/test.txt', w, q: 80 }
     const opts = { headers: { accept: 'image/webp' } }
diff --git a/yarn.lock b/yarn.lock
index 2657e2392c3a1..b6cd8ed7d1133 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -8738,6 +8738,13 @@ image-size@0.9.3:
   dependencies:
     queue "6.0.1"
 
+image-size@1.0.0:
+  version "1.0.0"
+  resolved "https://registry.yarnpkg.com/image-size/-/image-size-1.0.0.tgz#58b31fe4743b1cec0a0ac26f5c914d3c5b2f0750"
+  integrity sha512-JLJ6OwBfO1KcA+TvJT+v8gbE6iWbj24LyDNFgFEN0lzegn6cC6a/p3NIDaepMsJjQjlUWqIC7wJv8lBFxPNjcw==
+  dependencies:
+    queue "6.0.2"
+
 immediate@~3.0.5:
   version "3.0.6"
   resolved "https://registry.yarnpkg.com/immediate/-/immediate-3.0.6.tgz#9db1dbd0faf8de6fbe0f5dd5e56bb606280de69b"
@@ -13747,6 +13754,13 @@ queue@6.0.1:
   dependencies:
     inherits "~2.0.3"
 
+queue@6.0.2:
+  version "6.0.2"
+  resolved "https://registry.yarnpkg.com/queue/-/queue-6.0.2.tgz#b91525283e2315c7553d2efa18d83e76432fed65"
+  integrity sha512-iHZWu+q3IdFZFX36ro/lKBkSvfkztY5Y7HMiPlOUjhupPcG2JMfst2KKEpu5XndviX/3UhFbRngUPNKtgvtZiA==
+  dependencies:
+    inherits "~2.0.3"
+
 quick-lru@^4.0.1:
   version "4.0.1"
   resolved "https://registry.yarnpkg.com/quick-lru/-/quick-lru-4.0.1.tgz#5b8878f113a58217848c6482026c73e1ba57727f"