diff --git a/web/.gitignore b/web/.gitignore
index 32d4a19e..06749214 100644
--- a/web/.gitignore
+++ b/web/.gitignore
@@ -2,4 +2,5 @@
 .next
 node_modules
 out
-tsconfig.tsbuildinfo
\ No newline at end of file
+tsconfig.tsbuildinfo
+.env*
diff --git a/web/components/editor.tsx b/web/components/editor.tsx
index 27e8ac45..34113d0a 100644
--- a/web/components/editor.tsx
+++ b/web/components/editor.tsx
@@ -42,6 +42,7 @@ import ItalicIcon from 'web/lib/icons/italic-icon'
 import LinkIcon from 'web/lib/icons/link-icon'
 import { getUrl } from 'common/util/parse'
 import { TiptapSpoiler } from 'common/util/tiptap-spoiler'
+import { ImageModal } from './editor/image-modal'
 
 const DisplayImage = Image.configure({
   HTMLAttributes: {
@@ -232,6 +233,7 @@ export function TextEditor(props: {
   children?: React.ReactNode // additional toolbar buttons
 }) {
   const { editor, upload, children } = props
+  const [imageOpen, setImageOpen] = useState(false)
   const [iframeOpen, setIframeOpen] = useState(false)
   const [marketOpen, setMarketOpen] = useState(false)
 
@@ -245,12 +247,19 @@ export function TextEditor(props: {
           {/* Toolbar, with buttons for images and embeds */}
           <div className="flex h-9 items-center gap-5 pl-4 pr-1">
             <Tooltip text="Add image" noTap noFade>
-              <FileUploadButton
-                onFiles={upload.mutate}
+              <button
+                type="button"
+                onClick={() => setImageOpen(true)}
                 className="-m-2.5 flex h-10 w-10 items-center justify-center rounded-full text-gray-400 hover:text-gray-500"
               >
+                <ImageModal
+                  editor={editor}
+                  upload={upload}
+                  open={imageOpen}
+                  setOpen={setImageOpen}
+                />
                 <PhotographIcon className="h-5 w-5" aria-hidden="true" />
-              </FileUploadButton>
+              </button>
             </Tooltip>
             <Tooltip text="Add embed" noTap noFade>
               <button
diff --git a/web/components/editor/image-modal.tsx b/web/components/editor/image-modal.tsx
new file mode 100644
index 00000000..bef785f0
--- /dev/null
+++ b/web/components/editor/image-modal.tsx
@@ -0,0 +1,160 @@
+import { UploadIcon } from '@heroicons/react/outline'
+import { Editor } from '@tiptap/react'
+import { useState } from 'react'
+import { AlertBox } from '../alert-box'
+import { Button } from '../button'
+import { FileUploadButton } from '../file-upload-button'
+import { Col } from '../layout/col'
+import { Modal } from '../layout/modal'
+import { Row } from '../layout/row'
+import { Tabs } from '../layout/tabs'
+
+const MODIFIERS =
+  '8k, beautiful, illustration, trending on art station, picture of the day, epic composition'
+
+export function ImageModal(props: {
+  editor: Editor | null
+  // TODO: Type this correctly?
+  upload: any
+  open: boolean
+  setOpen: (open: boolean) => void
+}) {
+  const { upload, open, setOpen } = props
+  return (
+    <Modal open={open} setOpen={setOpen}>
+      <Col className="gap-2 rounded bg-white p-6">
+        <Tabs
+          tabs={[
+            {
+              title: 'Upload file',
+              content: (
+                <Col>
+                  <FileUploadButton
+                    onFiles={(files) => {
+                      setOpen(false)
+                      upload.mutate(files)
+                    }}
+                    className="relative block w-full rounded-lg border-2 border-dashed border-gray-300 p-12 text-center hover:border-gray-400 focus:outline-none focus:ring-2 focus:ring-indigo-500 focus:ring-offset-2"
+                  >
+                    <UploadIcon className="mx-auto h-12 w-12 text-gray-400" />
+                    <span className="mt-2 block text-sm font-medium text-gray-400">
+                      Upload an image file
+                    </span>
+                  </FileUploadButton>
+                </Col>
+              ),
+            },
+            {
+              title: 'Dream',
+              content: <DreamTab {...props} />,
+            },
+          ]}
+        />
+      </Col>
+    </Modal>
+  )
+}
+
+const API_KEY = process.env.NEXT_PUBLIC_DREAM_KEY
+
+function DreamTab(props: {
+  editor: Editor | null
+  open: boolean
+  setOpen: (open: boolean) => void
+}) {
+  const { editor, setOpen } = props
+  const [input, setInput] = useState('')
+  const [isDreaming, setIsDreaming] = useState(false)
+  const [imageUrl, setImageUrl] = useState('')
+  const imageCode = `<img src="${imageUrl}" alt="${input}" />`
+
+  if (!API_KEY) {
+    return (
+      <AlertBox
+        title="Missing API Key"
+        text="An API key from https://beta.dreamstudio.ai/ is needed to dream; add it to your web/.env.local"
+      />
+    )
+  }
+
+  async function dream() {
+    setIsDreaming(true)
+    const url = `/api/v0/dream`
+    const data = {
+      prompt: input + ', ' + MODIFIERS,
+      apiKey: API_KEY,
+    }
+    const headers = {
+      'api-key': 'quickstart-QUdJIGlzIGNvbWluZy4uLi4K',
+    }
+    const response = await fetch(url, {
+      method: 'POST',
+      headers,
+      body: JSON.stringify(data),
+    })
+    const json = await response.json()
+    setImageUrl(json.url)
+    setIsDreaming(false)
+  }
+
+  return (
+    <Col className="gap-2">
+      <Row className="gap-2">
+        <input
+          autoFocus
+          type="text"
+          name="embed"
+          id="embed"
+          className="block w-full rounded-md border-gray-300 shadow-sm placeholder:text-gray-300 focus:border-indigo-500 focus:ring-indigo-500 sm:text-sm"
+          placeholder="A crane playing poker on a green table"
+          value={input}
+          onChange={(e) => setInput(e.target.value)}
+          autoComplete="off"
+        />
+        <Button
+          className="whitespace-nowrap"
+          onClick={dream}
+          loading={isDreaming}
+        >
+          Dream
+          {/* TODO: Charge M$5 with ({formatMoney(5)}) */}
+        </Button>
+      </Row>
+      {isDreaming && (
+        <div className="text-sm">This may take ~10 seconds...</div>
+      )}
+      <div className="pt-2 text-sm text-gray-400">Modifiers: {MODIFIERS}</div>
+
+      {/* Show the current imageUrl */}
+      {imageUrl && (
+        <>
+          {' '}
+          <img src={imageUrl} alt="Image" />
+          <Row className="gap-2">
+            <Button
+              disabled={isDreaming}
+              onClick={() => {
+                if (editor) {
+                  editor.chain().insertContent(imageCode).run()
+                  setInput('')
+                  setOpen(false)
+                }
+              }}
+            >
+              Add image
+            </Button>
+            <Button
+              color="gray"
+              onClick={() => {
+                setInput('')
+                setOpen(false)
+              }}
+            >
+              Cancel
+            </Button>
+          </Row>
+        </>
+      )}
+    </Col>
+  )
+}