To add an image in markdown, use a link preceded by an exclamation mark: :

The alt text in the brackets is what screen readers announce and what shows if the image fails to load — describe the image, don't leave it empty.
How do you use a local image file?
Use a relative path from the markdown file's location:

In a GitHub README, paths resolve within the repo. In GitHub issues and PRs you don't write paths at all — drag the image in and GitHub uploads it and inserts the URL for you.
How do you resize an image?
Pure markdown can't — there's no width syntax. Where HTML is allowed (GitHub included), swap the markdown for an <img> tag:
<img src="./logo.png" alt="Logo" width="300">
Use width (in pixels) alone so the height scales proportionally. GitHub strips style= attributes, so CSS sizing won't work there.
How do you make an image a clickable link?
Nest the image syntax inside a link's square brackets:
[](https://docs-md.com)
That's exactly how README badge rows work — each badge is an image wrapped in a link.
Can you add a caption?
Markdown has no caption syntax. The common conventions are an italic line directly under the image, or where HTML is allowed the semantic version:
<figure>
<img src="chart.png" alt="Revenue by quarter">
<figcaption>Revenue grew 40% in Q3.</figcaption>
</figure>