diff --git a/packages/core/integration-tests/test/integration/markdown/100x100.png b/packages/core/integration-tests/test/integration/markdown/100x100.png
new file mode 100644
index 00000000000..8a1daa0121d
Binary files /dev/null and b/packages/core/integration-tests/test/integration/markdown/100x100.png differ
diff --git a/packages/core/integration-tests/test/integration/markdown/index.md b/packages/core/integration-tests/test/integration/markdown/index.md
index c641f4265c9..d1d6628f15c 100644
--- a/packages/core/integration-tests/test/integration/markdown/index.md
+++ b/packages/core/integration-tests/test/integration/markdown/index.md
@@ -1,3 +1,5 @@
 # heading1
 
 content content content
+
+[image](./100x100.png)
diff --git a/packages/core/integration-tests/test/markdown.js b/packages/core/integration-tests/test/markdown.js
new file mode 100644
index 00000000000..017e8fe9d33
--- /dev/null
+++ b/packages/core/integration-tests/test/markdown.js
@@ -0,0 +1,33 @@
+const assert = require('assert');
+const path = require('path');
+const fs = require('@parcel/fs');
+const {bundle, run, assertBundleTree} = require('./utils');
+
+describe('markdown', function() {
+  it('should support bundling Markdown', async function() {
+    let b = await bundle(
+      path.join(__dirname, '/integration/markdown/index.md')
+    );
+
+    await assertBundleTree(b, {
+      name: 'index.html',
+      assets: ['index.md'],
+      childBundles: [
+        {
+          type: 'png',
+          assets: ['100x100.png'],
+          childBundles: []
+        }
+      ]
+    });
+
+    let files = await fs.readdir(path.join(__dirname, '/dist'));
+    let html = await fs.readFile(path.join(__dirname, '/dist/index.html'));
+    for (let file of files) {
+      let ext = file.match(/\.([0-9a-z]+)(?:[?#]|$)/i)[0];
+      if (file !== 'index.html' && ext !== '.map') {
+        assert(html.includes(file));
+      }
+    }
+  });
+});