diff --git a/src/plugins/files/public/components/image/image.tsx b/src/plugins/files/public/components/image/image.tsx
index dc0ffe6cf0e51..d538ad2308040 100644
--- a/src/plugins/files/public/components/image/image.tsx
+++ b/src/plugins/files/public/components/image/image.tsx
@@ -9,6 +9,8 @@
 import React from 'react';
 import { useState } from 'react';
 import { EuiImage, EuiImageProps } from '@elastic/eui';
+import classNames from 'classnames';
+import { css } from '@emotion/react';
 import type { FileImageMetadata } from '../../../common';
 import { getBlurhashSrc } from '../util';
 
@@ -28,10 +30,19 @@ export const Image = ({ src, url, alt, onLoad, onError, meta, ...rest }: Props)
 
   const [isBlurHashLoaded, setIsBlurHashLoaded] = useState<boolean>(false);
   const { blurhash, width, height } = meta ?? {};
-  const blurhashSrc = React.useMemo(
-    () => (blurhash && width && height ? getBlurhashSrc({ hash: blurhash, width, height }) : null),
-    [blurhash, width, height]
-  );
+  const blurhashSrc = React.useMemo(() => {
+    if (blurhash && width && height) {
+      try {
+        return getBlurhashSrc({ hash: blurhash, width, height });
+      } catch (e) {
+        // eslint-disable-next-line no-console
+        console.warn(`Failed to generate image src from blurhash`, e);
+        return null;
+      }
+    } else {
+      return null;
+    }
+  }, [blurhash, width, height]);
 
   // prettier-ignore
   const currentSrc = (isBlurHashLoaded || !blurhashSrc) ? imageSrc : blurhashSrc
@@ -41,6 +52,26 @@ export const Image = ({ src, url, alt, onLoad, onError, meta, ...rest }: Props)
       alt=""
       loading={'lazy'}
       {...rest}
+      className={classNames(rest.className, { blurhash: currentSrc === blurhashSrc })}
+      css={css`
+        &.blurhash {
+          // Makes blurhash image visually appear after the .9s delay with a .1s transition duration.
+          // This is needed for a nicer UX when the original image loads fast.
+          animation-name: imageBlurhashFadeIn;
+          animation-duration: 1s;
+          @keyframes imageBlurhashFadeIn {
+            0% {
+              opacity: 0;
+            }
+            90% {
+              opacity: 0;
+            }
+            100% {
+              opacity: 1;
+            }
+          }
+        }
+      `}
       src={currentSrc}
       onLoad={(ev) => {
         // if the `meta.blurhash` is passed, then the component first renders the blurhash and the `onLoad` event fires for the first time,
@@ -62,7 +93,14 @@ export const Image = ({ src, url, alt, onLoad, onError, meta, ...rest }: Props)
         }
       }}
       onError={(ev) => {
-        onError?.(ev);
+        if (currentSrc === imageSrc) {
+          onError?.(ev);
+        } else {
+          // blurhash failed to load, consider it is loaded to start loading the full image
+          // eslint-disable-next-line no-console
+          console.warn(`Failed to load blurhash src`);
+          setIsBlurHashLoaded(true);
+        }
       }}
     />
   );