diff --git a/packages/cli/src/acp/content.ts b/packages/cli/src/acp/content.ts
index c8b511a092a..66861659002 100644
--- a/packages/cli/src/acp/content.ts
+++ b/packages/cli/src/acp/content.ts
@@ -24,28 +24,13 @@ export function contentBlockToParts(block: ContentBlock): PromptPart[] {
       }
       return [{ type: "text", text: block.text }]
     }
-    case "image":
-      if (block.data) {
-        return [
-          {
-            type: "file",
-            url: `data:${block.mimeType};base64,${block.data}`,
-            filename: filenameFromUri(block.uri ?? undefined) ?? "image",
-            mime: block.mimeType,
-          },
-        ]
-      }
-      if (block.uri?.startsWith("data:") || block.uri?.startsWith("http://") || block.uri?.startsWith("https://")) {
-        return [
-          {
-            type: "file",
-            url: block.uri,
-            filename: filenameFromUri(block.uri) ?? "image",
-            mime: block.mimeType,
-          },
-        ]
-      }
-      return []
+    case "image": {
+      const url = block.data ? `data:${block.mimeType};base64,${block.data}` : block.uri
+      if (!url) return []
+      const filename = filenameFromUri(block.uri ?? undefined) ?? "image"
+      if (url.startsWith("data:")) return [{ type: "file", url, filename, mime: block.mimeType }]
+      return [resourceLinkToPart({ uri: url, name: filename, mimeType: block.mimeType })]
+    }
     case "resource_link":
       return [resourceLinkToPart(block)]
     case "resource":
@@ -180,7 +165,10 @@ export function linkReference(name: string | undefined, uri: string): PromptPart
 
 function filenameFromUri(uri: string | undefined): string | undefined {
   if (!uri || uri.startsWith("data:")) return undefined
-  if (URL.canParse(uri)) return path.basename(new URL(uri).pathname) || undefined
+  if (URL.canParse(uri)) {
+    const url = new URL(uri)
+    return path.basename((url.protocol === "zed:" && url.searchParams.get("path")) || url.pathname) || undefined
+  }
   return path.basename(uri) || undefined
 }
 
diff --git a/packages/cli/src/acp/turn.ts b/packages/cli/src/acp/turn.ts
index 58dda1b8009..3cbee315d1b 100644
--- a/packages/cli/src/acp/turn.ts
+++ b/packages/cli/src/acp/turn.ts
@@ -374,6 +374,9 @@ export const make = Effect.fnUntraced(function* (input: {
       const attached = yield* input.sessions.require(params.sessionId)
       const catalog = yield* input.catalog.get(attached.cwd)
       const childUpdates = (yield* Ref.get(input.capabilities)).childSessionUpdates
+      if (params.prompt.some((block) => block.type === "image" && !block.data && !block.uri)) {
+        return yield* new ACPError.InvalidRequestError({ message: "image content has no data or uri", field: "prompt" })
+      }
       const parts = yield* Effect.forEach(promptContentToParts(params.prompt), referenceUnreadableFile, {
         concurrency: "unbounded",
       })
diff --git a/packages/cli/test/acp/content.test.ts b/packages/cli/test/acp/content.test.ts
index 16588ee9110..6bcee6d2526 100644
--- a/packages/cli/test/acp/content.test.ts
+++ b/packages/cli/test/acp/content.test.ts
@@ -45,22 +45,48 @@ describe("acp content conversion", () => {
     ])
   })
 
-  test("image block with http URI becomes a file part", () => {
+  test("image block with only a data URL URI becomes a file part", () => {
+    expect(
+      contentBlockToParts({ type: "image", data: "", mimeType: "image/png", uri: "data:image/png;base64,AAAA" }),
+    ).toEqual([{ type: "file", url: "data:image/png;base64,AAAA", filename: "image", mime: "image/png" }])
+  })
+
+  test("image block with only an http URI becomes a markdown link", () => {
     expect(
       contentBlockToParts({
         type: "image",
         data: "",
         mimeType: "image/jpeg",
-        uri: "http://example.com/assets/photo.jpg",
+        uri: "https://example.com/assets/photo.jpg",
       }),
-    ).toEqual([
-      {
-        type: "file",
-        url: "http://example.com/assets/photo.jpg",
-        filename: "photo.jpg",
-        mime: "image/jpeg",
-      },
+    ).toEqual([{ type: "text", text: "[photo.jpg](https://example.com/assets/photo.jpg)" }])
+    expect(
+      contentBlockToParts({ type: "image", data: "", mimeType: "image/png", uri: "https://example.com/" }),
+    ).toEqual([{ type: "text", text: "[image](https://example.com/)" }])
+    expect(
+      contentBlockToParts({ type: "image", data: "", mimeType: "image/png", uri: "http://example.com/a.png" }),
+    ).toEqual([{ type: "text", text: "[a.png](http://example.com/a.png)" }])
+  })
+
+  test("image block with only a URI of another scheme or a bare path becomes a markdown link", () => {
+    expect(contentBlockToParts({ type: "image", data: "", mimeType: "image/png", uri: "ftp://host/a.png" })).toEqual([
+      { type: "text", text: "[a.png](ftp://host/a.png)" },
     ])
+    expect(contentBlockToParts({ type: "image", data: "", mimeType: "image/png", uri: "assets/b.png" })).toEqual([
+      { type: "text", text: "[b.png](assets/b.png)" },
+    ])
+  })
+
+  test("image block with only a file URI becomes a file part", () => {
+    expect(
+      contentBlockToParts({ type: "image", data: "", mimeType: "image/png", uri: "file:///tmp/screenshot.png" }),
+    ).toEqual([{ type: "file", url: "file:///tmp/screenshot.png", filename: "screenshot.png", mime: "image/png" }])
+  })
+
+  test("image block with only a zed path becomes a file part named after the path", () => {
+    expect(
+      contentBlockToParts({ type: "image", data: "", mimeType: "image/png", uri: "zed://file?path=/tmp/shot.png" }),
+    ).toEqual([{ type: "file", url: pathToFileURL("/tmp/shot.png").href, filename: "shot.png", mime: "image/png" }])
   })
 
   test("resource_link file URL becomes a file part with name and fallback mime", () => {
diff --git a/packages/cli/test/acp/prompt-content.subprocess.test.ts b/packages/cli/test/acp/prompt-content.subprocess.test.ts
index 74ad7e89319..ab6ab2053da 100644
--- a/packages/cli/test/acp/prompt-content.subprocess.test.ts
+++ b/packages/cli/test/acp/prompt-content.subprocess.test.ts
@@ -7,7 +7,7 @@ import { createAcpFixture, expectOk, initialize, newSession } from "./subprocess
 const tinyPng = "iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mP8/x8AAwMCAO+ip1sAAAAASUVORK5CYII="
 
 describe("acp prompt content subprocess", () => {
-  test("accepts embedded text resource image and file resource link prompt content", async () => {
+  test("accepts embedded text resource, inline and remote image, and file resource link prompt content", async () => {
     await using fixture = await createAcpFixture()
     await Bun.write(path.join(fixture.home, "README.md"), "# ACP content smoke\n")
     const acp = fixture.spawn()
@@ -41,6 +41,16 @@ describe("acp prompt content subprocess", () => {
       }),
     )
 
+    const remote = expectOk(
+      await acp.request<PromptResponse>("session/prompt", {
+        sessionId: session.sessionId,
+        prompt: [
+          { type: "text", text: "Use this remote image." },
+          { type: "image", mimeType: "image/png", data: "", uri: "https://example.com/remote.png" },
+        ],
+      }),
+    )
+
     const linked = expectOk(
       await acp.request<PromptResponse>("session/prompt", {
         sessionId: session.sessionId,
@@ -70,8 +80,9 @@ describe("acp prompt content subprocess", () => {
       }),
     )
 
+    expect(remote.stopReason).toBe("end_turn")
     expect(linked.stopReason).toBe("end_turn")
     expect(missing.stopReason).toBe("end_turn")
-    expect(fixture.llm.requests.length).toBeGreaterThanOrEqual(4)
+    expect(fixture.llm.requests.length).toBeGreaterThanOrEqual(5)
   }, 60_000)
 })
diff --git a/packages/cli/test/acp/prompt.test.ts b/packages/cli/test/acp/prompt.test.ts
index 0e768d4daab..ca94d586d53 100644
--- a/packages/cli/test/acp/prompt.test.ts
+++ b/packages/cli/test/acp/prompt.test.ts
@@ -142,6 +142,44 @@ describe("acp prompt turns over the wire", () => {
     ])
   })
 
+  test("attaches local image links and references remote or unreadable ones in place", async () => {
+    await using dir = await tmpdir()
+    const local = pathToFileURL(path.join(dir.path, "local.png")).href
+    const missing = pathToFileURL(path.join(dir.path, "missing.png")).href
+    await Bun.write(path.join(dir.path, "local.png"), "png")
+    await using acp = await startSession()
+
+    const response = await acp.prompt(acp.sessionId, [
+      { type: "text", text: "compare" },
+      { type: "image", data: "", mimeType: "image/png", uri: "https://example.com/remote.png" },
+      { type: "image", data: "", mimeType: "image/png", uri: local },
+      { type: "image", data: "", mimeType: "image/png", uri: missing },
+    ])
+
+    expect(response.stopReason).toBe("end_turn")
+    expect(acp.server.submissions).toEqual([
+      expect.objectContaining({
+        kind: "prompt",
+        text: `compare\n[remote.png](https://example.com/remote.png)\n[missing.png](${missing})`,
+        files: [{ uri: local, name: "local.png" }],
+      }),
+    ])
+  })
+
+  test("rejects an image with neither data nor uri as invalid params", async () => {
+    await using acp = await startSession()
+
+    expect(
+      await rpcError(
+        acp.prompt(acp.sessionId, [
+          { type: "text", text: "look" },
+          { type: "image", data: "", mimeType: "image/png" },
+        ]),
+      ),
+    ).toMatchObject({ code: -32602, message: expect.stringContaining("image content has no data or uri") })
+    expect(acp.server.submissions).toEqual([])
+  })
+
   test("returns turn usage and publishes current context usage with cumulative session cost", async () => {
     const assistantTokens = { input: 100, output: 40, reasoning: 7, cache: { read: 11, write: 13 } }
     await using acp = await startSession({