diff --git a/api/class-wc-rest-dev-product-variations-controller.php b/api/class-wc-rest-dev-product-variations-controller.php
index 92cc71b..8a192bd 100644
--- a/api/class-wc-rest-dev-product-variations-controller.php
+++ b/api/class-wc-rest-dev-product-variations-controller.php
@@ -130,8 +130,7 @@ protected function prepare_object_for_database( $request, $creating = false ) {
 		// Thumbnail.
 		if ( isset( $request['image'] ) ) {
 			if ( is_array( $request['image'] ) ) {
-				$image = $request['image'];
-				$variation = $this->set_product_images( $variation, array( $image ) );
+				$variation = $this->set_variation_image( $variation, $request['image'] );
 			} else {
 				$variation->set_image_id( '' );
 			}
@@ -339,6 +338,48 @@ protected function get_image( $variation ) {
 		return;
 	}
 
+	/**
+	 * Set variation image.
+	 *
+	 * @throws WC_REST_Exception REST API exceptions.
+	 * @param  WC_Product_Variation $variation Variation instance.
+	 * @param  array                $image    Image data.
+	 * @return WC_Product_Variation
+	 */
+	protected function set_variation_image( $variation, $image ) {
+		$attachment_id = isset( $image['id'] ) ? absint( $image['id'] ) : 0;
+
+		if ( 0 === $attachment_id && isset( $image['src'] ) ) {
+			$upload = wc_rest_upload_image_from_url( esc_url_raw( $image['src'] ) );
+
+			if ( is_wp_error( $upload ) ) {
+				if ( ! apply_filters( 'woocommerce_rest_suppress_image_upload_error', false, $upload, $variation->get_id(), array( $image ) ) ) {
+					throw new WC_REST_Exception( 'woocommerce_variation_image_upload_error', $upload->get_error_message(), 400 );
+				}
+			}
+
+			$attachment_id = wc_rest_set_uploaded_image_as_attachment( $upload, $variation->get_id() );
+		}
+
+		if ( ! wp_attachment_is_image( $attachment_id ) ) {
+			throw new WC_REST_Exception( 'woocommerce_variation_invalid_image_id', sprintf( __( '#%s is an invalid image ID.', 'woocommerce' ), $attachment_id ), 400 );
+		}
+
+		$variation->set_image_id( $attachment_id );
+
+		// Set the image alt if present.
+		if ( ! empty( $image['alt'] ) ) {
+			update_post_meta( $attachment_id, '_wp_attachment_image_alt', wc_clean( $image['alt'] ) );
+		}
+
+		// Set the image name if present.
+		if ( ! empty( $image['name'] ) ) {
+			wp_update_post( array( 'ID' => $attachment_id, 'post_title' => $image['name'] ) );
+		}
+
+		return $variation;
+	}
+
 	/**
 	 * Get the Variation's schema, conforming to JSON Schema.
 	 *
diff --git a/tests/unit-tests/product-variations.php b/tests/unit-tests/product-variations.php
index d4b1efa..3b3208b 100644
--- a/tests/unit-tests/product-variations.php
+++ b/tests/unit-tests/product-variations.php
@@ -195,6 +195,43 @@ public function test_update_variation() {
 		$product->delete( true );
 	}
 
+	/**
+	 * Test setting variation image from ID. (src is tested in `test_update_variation`)
+	 */
+	public function test_set_variation_image_from_id() {
+		wp_set_current_user( $this->user );
+
+		$orig_file = dirname( __FILE__ ) . '/../../assets/icon-128x128.png';
+		$this->test_file = '/tmp/icon.png';
+		copy( $orig_file, $this->test_file );
+
+		$request = new WP_REST_Request( 'POST', '/wp/v2/media' );
+		$request->set_header( 'Content-Type', 'image/png' );
+		$request->set_header( 'Content-Disposition', 'attachment; filename=icon.png' );
+		$request->set_body( file_get_contents( $this->test_file ) );
+		$response = $this->server->dispatch( $request );
+		$image = $response->get_data();
+
+		$product      = WC_Helper_Product::create_variation_product();
+		$children     = $product->get_children();
+		$variation_id = $children[0];
+
+		$request = new WP_REST_Request( 'PUT', '/wc/v3/products/' . $product->get_id() . '/variations/' . $variation_id );
+		$request->set_body_params( array(
+			'image'       => array( 'id' => $image['id'] ),
+		) );
+		$response  = $this->server->dispatch( $request );
+		$variation = $response->get_data();
+
+		$this->assertNotEmpty( $variation['image'] );
+		$this->assertEquals( $image['id'], $variation['image']['id'] );
+
+		$product->delete( true );
+		if ( file_exists( $this->test_file ) ) {
+			unlink( $this->test_file );
+		}
+	}
+
 	/**
 	 * Test updating a single variation without permission.
 	 *