diff --git a/Cargo.lock b/Cargo.lock
index 6241423d4b..fc10fec9c4 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1943,6 +1943,7 @@ dependencies = [
  "anyhow",
  "axum",
  "axum-server",
+ "base64",
  "bitcoin",
  "boilerplate",
  "chrono",
diff --git a/Cargo.toml b/Cargo.toml
index caf1cc8e74..d0cc484531 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -15,6 +15,7 @@ members = [".", "test-bitcoincore-rpc"]
 anyhow = { version = "1.0.56", features = ["backtrace"] }
 axum = "0.5.6"
 axum-server = "0.4.0"
+base64 = "0.13.1"
 bitcoin = { version = "0.29.1", features = ["rand"] }
 boilerplate = { version = "0.2.1", features = ["axum"] }
 chrono = "0.4.19"
diff --git a/src/index.rs b/src/index.rs
index bc34a8b87b..3b31e9ab69 100644
--- a/src/index.rs
+++ b/src/index.rs
@@ -342,7 +342,10 @@ impl Index {
         .begin_read()?
         .open_table(ORDINAL_TO_INSCRIPTION)?
         .get(&ordinal.n())?
-        .map(|inscription| Inscription(inscription.to_owned())),
+        .map(|inscription| {
+          serde_json::from_str(inscription)
+            .expect("failed to deserialize inscription (JSON) from database")
+        }),
     )
   }
 
diff --git a/src/index/updater.rs b/src/index/updater.rs
index 54054eaa5e..dc14a45d77 100644
--- a/src/index/updater.rs
+++ b/src/index/updater.rs
@@ -295,7 +295,9 @@ impl Updater {
     if self.chain != Chain::Mainnet {
       if let Some((ordinal, inscription)) = Inscription::from_transaction(tx, input_ordinal_ranges)
       {
-        ordinal_to_inscription.insert(&ordinal.n(), &inscription.0)?;
+        let json = serde_json::to_string(&inscription)
+          .expect("Inscription serialization should always succeed");
+        ordinal_to_inscription.insert(&ordinal.n(), &json)?;
       }
     }
 
diff --git a/src/inscription.rs b/src/inscription.rs
index 79b41aeac1..2b82fbe37d 100644
--- a/src/inscription.rs
+++ b/src/inscription.rs
@@ -11,8 +11,11 @@ use {
   std::str::{self, Utf8Error},
 };
 
-#[derive(Debug, PartialEq)]
-pub(crate) struct Inscription(pub(crate) String);
+#[derive(Debug, PartialEq, Serialize, Deserialize)]
+pub(crate) enum Inscription {
+  Text(String),
+  Png(Vec<u8>),
+}
 
 impl Inscription {
   pub(crate) fn from_transaction(
@@ -25,6 +28,41 @@ impl Inscription {
 
     Some((Ordinal(*start), inscription))
   }
+
+  pub(crate) fn from_file(path: PathBuf) -> Result<Self, Error> {
+    let file = fs::read(&path).with_context(|| format!("io error reading {}", path.display()))?;
+
+    if file.len() > 520 {
+      bail!("file size exceeds 520 bytes");
+    }
+
+    match path
+      .extension()
+      .ok_or_else(|| anyhow!("file must have extension"))?
+      .to_str()
+      .ok_or_else(|| anyhow!("unrecognized extension"))?
+    {
+      "txt" => Ok(Inscription::Text(String::from_utf8(file)?)),
+      "png" => Ok(Inscription::Png(file)),
+      other => Err(anyhow!(
+        "unrecognized file extension `.{other}`, only .txt and .png accepted"
+      )),
+    }
+  }
+
+  pub(crate) fn media_type(&self) -> &str {
+    match self {
+      Inscription::Text(_) => "text/plain;charset=utf-8",
+      Inscription::Png(_) => "image/png",
+    }
+  }
+
+  pub(crate) fn content(&self) -> &[u8] {
+    match self {
+      Inscription::Text(text) => text.as_bytes(),
+      Inscription::Png(png) => png.as_ref(),
+    }
+  }
 }
 
 #[derive(Debug, PartialEq)]
@@ -99,19 +137,33 @@ impl<'a> InscriptionParser<'a> {
 
   fn parse_inscription(&mut self) -> Result<Option<Inscription>> {
     if self.advance()? == Instruction::Op(opcodes::all::OP_IF) {
-      let content = self.advance()?;
-
-      let content = if let Instruction::PushBytes(bytes) = content {
+      let media_type = if let Instruction::PushBytes(bytes) = self.advance()? {
         str::from_utf8(bytes).map_err(InscriptionError::Utf8Decode)?
       } else {
         return Err(InscriptionError::InvalidInscription);
       };
 
+      let content = if let Instruction::PushBytes(bytes) = self.advance()? {
+        bytes
+      } else {
+        return Err(InscriptionError::InvalidInscription);
+      };
+
+      let inscription = match media_type {
+        "text/plain;charset=utf-8" => Some(Inscription::Text(
+          str::from_utf8(content)
+            .map_err(InscriptionError::Utf8Decode)?
+            .into(),
+        )),
+        "image/png" => Some(Inscription::Png(content.to_vec())),
+        _ => None,
+      };
+
       if self.advance()? != Instruction::Op(opcodes::all::OP_ENDIF) {
         return Err(InscriptionError::InvalidInscription);
       }
 
-      return Ok(Some(Inscription(content.to_string())));
+      return Ok(inscription);
     }
 
     Ok(None)
@@ -167,13 +219,14 @@ mod tests {
     let script = script::Builder::new()
       .push_opcode(opcodes::OP_FALSE)
       .push_opcode(opcodes::all::OP_IF)
+      .push_slice("text/plain;charset=utf-8".as_bytes())
       .push_slice("ord".as_bytes())
       .push_opcode(opcodes::all::OP_ENDIF)
       .into_script();
 
     assert_eq!(
       InscriptionParser::parse(&Witness::from_vec(vec![script.into_bytes(), vec![]])),
-      Ok(Inscription("ord".into()))
+      Ok(Inscription::Text("ord".into()))
     );
   }
 
@@ -182,6 +235,7 @@ mod tests {
     let script = script::Builder::new()
       .push_opcode(opcodes::OP_FALSE)
       .push_opcode(opcodes::all::OP_IF)
+      .push_slice("text/plain;charset=utf-8".as_bytes())
       .push_slice("ord".as_bytes())
       .push_opcode(opcodes::all::OP_ENDIF)
       .push_opcode(opcodes::all::OP_CHECKSIG)
@@ -189,7 +243,7 @@ mod tests {
 
     assert_eq!(
       InscriptionParser::parse(&Witness::from_vec(vec![script.into_bytes(), vec![]])),
-      Ok(Inscription("ord".into()))
+      Ok(Inscription::Text("ord".into()))
     );
   }
 
@@ -199,13 +253,14 @@ mod tests {
       .push_opcode(opcodes::all::OP_CHECKSIG)
       .push_opcode(opcodes::OP_FALSE)
       .push_opcode(opcodes::all::OP_IF)
+      .push_slice("text/plain;charset=utf-8".as_bytes())
       .push_slice("ord".as_bytes())
       .push_opcode(opcodes::all::OP_ENDIF)
       .into_script();
 
     assert_eq!(
       InscriptionParser::parse(&Witness::from_vec(vec![script.into_bytes(), vec![]])),
-      Ok(Inscription("ord".into()))
+      Ok(Inscription::Text("ord".into()))
     );
   }
 
@@ -214,17 +269,19 @@ mod tests {
     let script = script::Builder::new()
       .push_opcode(opcodes::OP_FALSE)
       .push_opcode(opcodes::all::OP_IF)
+      .push_slice("text/plain;charset=utf-8".as_bytes())
       .push_slice("foo".as_bytes())
       .push_opcode(opcodes::all::OP_ENDIF)
       .push_opcode(opcodes::OP_FALSE)
       .push_opcode(opcodes::all::OP_IF)
+      .push_slice("text/plain;charset=utf-8".as_bytes())
       .push_slice("bar".as_bytes())
       .push_opcode(opcodes::all::OP_ENDIF)
       .into_script();
 
     assert_eq!(
       InscriptionParser::parse(&Witness::from_vec(vec![script.into_bytes(), vec![]])),
-      Ok(Inscription("foo".into()))
+      Ok(Inscription::Text("foo".into()))
     );
   }
 
@@ -233,6 +290,7 @@ mod tests {
     let script = script::Builder::new()
       .push_opcode(opcodes::OP_FALSE)
       .push_opcode(opcodes::all::OP_IF)
+      .push_slice("text/plain;charset=utf-8".as_bytes())
       .push_slice(&[0b10000000])
       .push_opcode(opcodes::all::OP_ENDIF)
       .into_script();
@@ -278,12 +336,13 @@ mod tests {
       .push_opcode(opcodes::all::OP_IF)
       .push_slice("ord".as_bytes())
       .push_slice("ord".as_bytes())
+      .push_slice("ord".as_bytes())
       .push_opcode(opcodes::all::OP_ENDIF)
       .into_script();
 
     assert_eq!(
       InscriptionParser::parse(&Witness::from_vec(vec![script.into_bytes(), vec![]])),
-      Err(InscriptionError::InvalidInscription)
+      Err(InscriptionError::InvalidInscription),
     );
   }
 
@@ -292,6 +351,7 @@ mod tests {
     let script = script::Builder::new()
       .push_opcode(opcodes::OP_FALSE)
       .push_opcode(opcodes::all::OP_IF)
+      .push_slice("text/plain;charset=utf-8".as_bytes())
       .push_slice("ord".as_bytes())
       .push_opcode(opcodes::all::OP_ENDIF)
       .into_script();
@@ -313,7 +373,7 @@ mod tests {
 
     assert_eq!(
       Inscription::from_transaction(&tx, &ranges),
-      Some((Ordinal(1), Inscription("ord".into())))
+      Some((Ordinal(1), Inscription::Text("ord".into())))
     );
   }
 
@@ -377,4 +437,20 @@ mod tests {
 
     assert_eq!(Inscription::from_transaction(&tx, &ranges), None,);
   }
+
+  #[test]
+  fn inscribe_png() {
+    let script = script::Builder::new()
+      .push_opcode(opcodes::OP_FALSE)
+      .push_opcode(opcodes::all::OP_IF)
+      .push_slice("image/png".as_bytes())
+      .push_slice(&[1; 100])
+      .push_opcode(opcodes::all::OP_ENDIF)
+      .into_script();
+
+    assert_eq!(
+      InscriptionParser::parse(&Witness::from_vec(vec![script.into_bytes(), vec![]])),
+      Ok(Inscription::Png(vec![1; 100]))
+    );
+  }
 }
diff --git a/src/subcommand/server/templates/ordinal.rs b/src/subcommand/server/templates/ordinal.rs
index b1d547ad50..ab991566e5 100644
--- a/src/subcommand/server/templates/ordinal.rs
+++ b/src/subcommand/server/templates/ordinal.rs
@@ -85,7 +85,7 @@ mod tests {
       OrdinalHtml {
         ordinal: Ordinal(0),
         blocktime: Blocktime::Confirmed(0),
-        inscription: Some(Inscription("HELLOWORLD".to_string())),
+        inscription: Some(Inscription::Text("HELLOWORLD".into())),
       }
       .to_string(),
       "
@@ -117,8 +117,8 @@ mod tests {
       OrdinalHtml {
         ordinal: Ordinal(0),
         blocktime: Blocktime::Confirmed(0),
-        inscription: Some(Inscription(
-          "<script>alert('HELLOWORLD');</script>".to_string()
+        inscription: Some(Inscription::Text(
+          "<script>alert('HELLOWORLD');</script>".into()
         )),
       }
       .to_string(),
diff --git a/src/subcommand/wallet/inscribe.rs b/src/subcommand/wallet/inscribe.rs
index 332fbc38ff..04d75e36e9 100644
--- a/src/subcommand/wallet/inscribe.rs
+++ b/src/subcommand/wallet/inscribe.rs
@@ -14,14 +14,18 @@ use {
 
 #[derive(Debug, Parser)]
 pub(crate) struct Inscribe {
+  #[clap(long, help = "Inscribe <ORDINAL>")]
   ordinal: Ordinal,
-  content: String,
+  #[clap(long, help = "Inscribe ordinal with contents of <FILE>")]
+  file: PathBuf,
 }
 
 impl Inscribe {
   pub(crate) fn run(self, options: Options) -> Result {
     let client = options.bitcoin_rpc_client_mainnet_forbidden("ord wallet inscribe")?;
 
+    let inscription = Inscription::from_file(self.file)?;
+
     let index = Index::open(&options)?;
     index.update()?;
 
@@ -33,7 +37,7 @@ impl Inscribe {
 
     let (unsigned_commit_tx, reveal_tx) = Inscribe::create_inscription_transactions(
       self.ordinal,
-      self.content.as_bytes(),
+      inscription,
       options.chain.network(),
       utxos,
       commit_tx_change,
@@ -59,7 +63,7 @@ impl Inscribe {
 
   fn create_inscription_transactions(
     ordinal: Ordinal,
-    content: &[u8],
+    inscription: Inscription,
     network: bitcoin::Network,
     utxos: Vec<(OutPoint, Vec<(u64, u64)>)>,
     change: Vec<Address>,
@@ -74,7 +78,8 @@ impl Inscribe {
       .push_opcode(opcodes::all::OP_CHECKSIG)
       .push_opcode(opcodes::OP_FALSE)
       .push_opcode(opcodes::all::OP_IF)
-      .push_slice(content)
+      .push_slice(inscription.media_type().as_bytes())
+      .push_slice(inscription.content())
       .push_opcode(opcodes::all::OP_ENDIF)
       .into_script();
 
@@ -180,14 +185,14 @@ mod tests {
   #[test]
   fn reveal_transaction_pays_fee() {
     let utxos = vec![(outpoint(1), vec![(10_000, 15_000)])];
-    let content = b"ord";
+    let inscription = Inscription::Text("ord".into());
     let ordinal = Ordinal(10_000);
     let commit_address = change(0);
     let reveal_address = recipient();
 
     let (commit_tx, reveal_tx) = Inscribe::create_inscription_transactions(
       ordinal,
-      content,
+      inscription,
       bitcoin::Network::Signet,
       utxos,
       vec![commit_address, change(1)],
@@ -206,14 +211,14 @@ mod tests {
   #[test]
   fn reveal_transaction_value_insufficient_to_pay_fee() {
     let utxos = vec![(outpoint(1), vec![(10_000, 11_000)])];
-    let content = [b'a'; 5000];
     let ordinal = Ordinal(10_000);
+    let inscription = Inscription::Png([1; 10_000].to_vec());
     let commit_address = change(0);
     let reveal_address = recipient();
 
     assert!(Inscribe::create_inscription_transactions(
       ordinal,
-      &content,
+      inscription,
       bitcoin::Network::Signet,
       utxos,
       vec![commit_address, change(1)],
@@ -227,14 +232,14 @@ mod tests {
   #[test]
   fn reveal_transaction_would_create_dust() {
     let utxos = vec![(outpoint(1), vec![(10_000, 10_600)])];
-    let content = [b'a'; 1];
+    let inscription = Inscription::Text("ord".into());
     let ordinal = Ordinal(10_000);
     let commit_address = change(0);
     let reveal_address = recipient();
 
     let error = Inscribe::create_inscription_transactions(
       ordinal,
-      &content,
+      inscription,
       bitcoin::Network::Signet,
       utxos,
       vec![commit_address, change(1)],
diff --git a/templates/ordinal.html b/templates/ordinal.html
index 14c4f052ab..a2841cad51 100644
--- a/templates/ordinal.html
+++ b/templates/ordinal.html
@@ -11,8 +11,15 @@ <h1>Ordinal {{ self.ordinal.n() }}</h1>
   <dt>offset</dt><dd>{{ self.ordinal.third() }}</dd>
   <dt>rarity</dt><dd><span class={{self.ordinal.rarity()}}>{{ self.ordinal.rarity() }}</span></dd>
   <dt>time</dt><dd>{{ self.blocktime }}</dd>
-%% if let Some(Inscription(inscription)) = &self.inscription {
-  <dt>inscription</dt><dd>{{inscription}}</dd>
+%% if let Some(inscription) = &self.inscription {
+%% match inscription {
+%%  Inscription::Text(content) => {
+  <dt>inscription</dt><dd>{{ content }}</dd>
+%% },
+%%  Inscription::Png(content) => {
+  <dt>inscription</dt><dd><img src="data:image/png;base64,{{ base64::encode(&content) }}"></dd>
+%% },
+%% }
 %% }
 </dl>
 %% if self.ordinal.n() > 0 {
diff --git a/tests/wallet.rs b/tests/wallet.rs
index fa3ee6b6a5..4029855871 100644
--- a/tests/wallet.rs
+++ b/tests/wallet.rs
@@ -165,7 +165,8 @@ fn inscribe() {
   let rpc_server = test_bitcoincore_rpc::spawn_with(Network::Regtest, "ord");
   rpc_server.mine_blocks(1);
 
-  CommandBuilder::new("--chain regtest wallet inscribe 5000000000 HELLOWORLD")
+  CommandBuilder::new("--chain regtest wallet inscribe --ordinal 5000000000 --file hello.txt")
+    .write("hello.txt", "HELLOWORLD")
     .rpc_server(&rpc_server)
     .stdout_regex("commit\t[[:xdigit:]]{64}\nreveal\t[[:xdigit:]]{64}\n")
     .run();
@@ -185,9 +186,56 @@ fn inscribe_forbidden_on_mainnet() {
   let rpc_server = test_bitcoincore_rpc::spawn_with(Network::Bitcoin, "ord");
   rpc_server.mine_blocks(1);
 
-  CommandBuilder::new("wallet inscribe 5000000000 HELLOWORLD")
+  CommandBuilder::new("wallet inscribe --ordinal 5000000000 --file hello.txt")
     .rpc_server(&rpc_server)
     .expected_exit_code(1)
     .expected_stderr("error: `ord wallet inscribe` is unstable and not yet supported on mainnet.\n")
     .run();
 }
+
+#[test]
+fn inscribe_unknown_file_extension() {
+  let rpc_server = test_bitcoincore_rpc::spawn_with(Network::Regtest, "ord");
+  rpc_server.mine_blocks(1);
+
+  CommandBuilder::new("--chain regtest wallet inscribe --ordinal 5000000000 --file pepe.jpg")
+    .write("pepe.jpg", [1; 520])
+    .rpc_server(&rpc_server)
+    .expected_exit_code(1)
+    .expected_stderr("error: unrecognized file extension `.jpg`, only .txt and .png accepted\n")
+    .run();
+}
+
+#[test]
+fn inscribe_png() {
+  let rpc_server = test_bitcoincore_rpc::spawn_with(Network::Regtest, "ord");
+  rpc_server.mine_blocks(1);
+
+  CommandBuilder::new("--chain regtest wallet inscribe --ordinal 5000000000 --file degenerate.png")
+    .write("degenerate.png", [1; 520])
+    .rpc_server(&rpc_server)
+    .stdout_regex("commit\t[[:xdigit:]]{64}\nreveal\t[[:xdigit:]]{64}\n")
+    .run();
+
+  rpc_server.mine_blocks(1);
+
+  let ord_server = TestServer::spawn(&rpc_server);
+
+  ord_server.assert_response_regex(
+    "/ordinal/5000000000",
+    ".*<dt>inscription</dt><dd><img src=.*",
+  )
+}
+
+#[test]
+fn inscribe_exceeds_push_byte_limit() {
+  let rpc_server = test_bitcoincore_rpc::spawn_with(Network::Regtest, "ord");
+  rpc_server.mine_blocks(1);
+
+  CommandBuilder::new("--chain regtest wallet inscribe --ordinal 5000000000 --file degenerate.png")
+    .write("degenerate.png", [1; 521])
+    .rpc_server(&rpc_server)
+    .expected_exit_code(1)
+    .expected_stderr("error: file size exceeds 520 bytes\n")
+    .run();
+}