diff --git a/src/routes/filesystem.routes.ts b/src/routes/filesystem.routes.ts
index ac2196ad..de81adb9 100644
--- a/src/routes/filesystem.routes.ts
+++ b/src/routes/filesystem.routes.ts
@@ -1,4 +1,9 @@
 import { Router, Request } from 'express';
+import multer from 'multer';
+import fs from 'fs';
+import path from 'path';
+import os from 'os';
+import crypto from 'crypto';
 import { 
   CUIError,
   FileSystemListQuery,
@@ -10,6 +15,22 @@ import { RequestWithRequestId } from '@/types/express.js';
 import { FileSystemService } from '@/services/file-system-service.js';
 import { createLogger } from '@/services/logger.js';
 
+// Configure multer for image uploads
+const imageUpload = multer({
+  storage: multer.memoryStorage(),
+  limits: {
+    fileSize: 10 * 1024 * 1024, // 10MB limit
+  },
+  fileFilter: (req, file, cb) => {
+    // Accept image files
+    if (file.mimetype.startsWith('image/')) {
+      cb(null, true);
+    } else {
+      cb(new Error('Only image files are allowed'));
+    }
+  }
+});
+
 export function createFileSystemRoutes(
   fileSystemService: FileSystemService
 ): Router {
@@ -104,5 +125,66 @@ export function createFileSystemRoutes(
     }
   });
 
+  // Upload temporary image
+  router.post('/upload-temp-image', imageUpload.single('image'), async (req: RequestWithRequestId, res, next) => {
+    const requestId = req.requestId;
+    logger.debug('Upload temp image request', { requestId });
+    
+    try {
+      if (!req.file) {
+        throw new CUIError('NO_FILE', 'No image file provided', 400);
+      }
+      
+      // Get file extension from mimetype
+      const getExtension = (mimeType: string): string => {
+        const extensions: Record<string, string> = {
+          'image/jpeg': 'jpg',
+          'image/jpg': 'jpg', 
+          'image/png': 'png',
+          'image/gif': 'gif',
+          'image/webp': 'webp',
+          'image/bmp': 'bmp',
+          'image/svg+xml': 'svg'
+        };
+        return extensions[mimeType] || 'png';
+      };
+      
+      // Create temp images directory in .cui folder
+      const tempImagesDir = path.join(os.homedir(), '.cui', 'tempimages');
+      if (!fs.existsSync(tempImagesDir)) {
+        fs.mkdirSync(tempImagesDir, { recursive: true });
+      }
+      
+      // Generate unique filename
+      const timestamp = Date.now();
+      const randomString = crypto.randomBytes(8).toString('hex');
+      const extension = getExtension(req.file.mimetype);
+      const filename = `image_${timestamp}_${randomString}.${extension}`;
+      const filePath = path.join(tempImagesDir, filename);
+      
+      // Write file to disk
+      fs.writeFileSync(filePath, req.file.buffer);
+      
+      logger.debug('Temp image saved successfully', {
+        requestId,
+        filePath,
+        size: req.file.size,
+        mimeType: req.file.mimetype
+      });
+      
+      res.json({ 
+        success: true, 
+        filePath: filePath,
+        filename: filename 
+      });
+    } catch (error) {
+      logger.debug('Upload temp image failed', {
+        requestId,
+        error: error instanceof Error ? error.message : String(error)
+      });
+      next(error);
+    }
+  });
+
   return router;
 }
\ No newline at end of file
diff --git a/src/web/chat/components/Composer/Composer.tsx b/src/web/chat/components/Composer/Composer.tsx
index 7e302b10..3595c4a5 100644
--- a/src/web/chat/components/Composer/Composer.tsx
+++ b/src/web/chat/components/Composer/Composer.tsx
@@ -668,6 +668,67 @@ export const Composer = forwardRef<ComposerRef, ComposerProps>(function Composer
     resetAutocomplete();
   };
 
+  const handlePaste = async (e: React.ClipboardEvent<HTMLTextAreaElement>) => {
+    const clipboardData = e.clipboardData;
+    if (!clipboardData) return;
+
+    // Check if clipboard contains image data
+    const imageItems = Array.from(clipboardData.items).filter(item => item.type.startsWith('image/'));
+    
+    if (imageItems.length === 0) {
+      // No images, let default paste behavior handle text
+      return;
+    }
+
+    // Prevent default paste behavior for images
+    e.preventDefault();
+
+    try {
+      // Process the first image found
+      const imageItem = imageItems[0];
+      const imageFile = imageItem.getAsFile();
+      
+      if (!imageFile) {
+        console.warn('Could not get image file from clipboard');
+        return;
+      }
+
+      // Upload the image to temp storage
+      const uploadResult = await api.uploadTempImage(imageFile);
+      
+      if (uploadResult.success && uploadResult.filePath) {
+        // Insert the file path at the current cursor position
+        const textarea = textareaRef.current;
+        if (textarea) {
+          const cursorPos = textarea.selectionStart;
+          const textBefore = value.substring(0, cursorPos);
+          const textAfter = value.substring(cursorPos);
+          
+          // Add space before if needed
+          const needsSpaceBefore = textBefore.length > 0 && !textBefore.endsWith(' ') && !textBefore.endsWith('\n');
+          const imageReference = `@${uploadResult.filePath}`;
+          const finalText = (needsSpaceBefore ? ' ' : '') + imageReference;
+          
+          const newText = textBefore + finalText + textAfter;
+          setValue(newText);
+          
+          // Set cursor position after inserted text
+          setTimeout(() => {
+            if (textareaRef.current) {
+              const newCursorPos = cursorPos + finalText.length;
+              textareaRef.current.setSelectionRange(newCursorPos, newCursorPos);
+              textareaRef.current.focus();
+              adjustTextareaHeight();
+            }
+          }, 0);
+        }
+      }
+    } catch (error) {
+      console.error('Failed to upload pasted image:', error);
+      // Could show a toast notification here
+    }
+  };
+
   const handleSubmit = (permissionMode: string) => {
     const trimmedValue = value.trim();
     if (!trimmedValue || isLoading) return;
@@ -870,6 +931,7 @@ export const Composer = forwardRef<ComposerRef, ComposerProps>(function Composer
                 value={value}
                 onChange={handleTextChange}
                 onKeyDown={handleKeyDown}
+                onPaste={handlePaste}
                 rows={1}
                 disabled={(isLoading || disabled) && !(permissionRequest && showPermissionUI)}
               />
diff --git a/src/web/chat/services/api.ts b/src/web/chat/services/api.ts
index b161cba6..664a1913 100644
--- a/src/web/chat/services/api.ts
+++ b/src/web/chat/services/api.ts
@@ -201,6 +201,49 @@ class ApiService {
     });
   }
 
+  async uploadTempImage(imageFile: File): Promise<{ success: boolean; filePath: string; filename: string }> {
+    const formData = new FormData();
+    formData.append('image', imageFile);
+
+    const fullUrl = `${this.baseUrl}/api/filesystem/upload-temp-image`;
+    
+    // Log request
+    console.log(`[API] POST ${fullUrl}`, { fileName: imageFile.name, fileSize: imageFile.size });
+    
+    // Get auth token for Bearer authorization
+    const authToken = getAuthToken();
+    const headers = new Headers();
+    
+    // Add Bearer token if available
+    if (authToken) {
+      headers.set('Authorization', `Bearer ${authToken}`);
+    }
+    
+    try {
+      const response = await fetch(fullUrl, {
+        method: 'POST',
+        headers,
+        body: formData,
+      });
+
+      const data = await response.json();
+      
+      // Log response
+      console.log(`[API Response] ${fullUrl}:`, data);
+
+      if (!response.ok) {
+        if (response.status === 401) {
+          throw new Error('Unauthorized');
+        }
+        throw new Error((data as ApiError).error || `HTTP ${response.status}`);
+      }
+
+      return data;
+    } catch (error) {
+      throw error;
+    }
+  }
+
   async getGeminiHealth(): Promise<GeminiHealthResponse> {
     return this.apiCall<GeminiHealthResponse>('/api/gemini/health');
   }