diff --git a/blocks/edit/prose/plugins/imageDrop.js b/blocks/edit/prose/plugins/imageDrop.js
index c0afa3ebb..cd649277e 100644
--- a/blocks/edit/prose/plugins/imageDrop.js
+++ b/blocks/edit/prose/plugins/imageDrop.js
@@ -23,7 +23,7 @@ export async function uploadImageFile(view, file) {
   view.dispatch(view.state.tr.replaceSelectionWith(fpo));
 
   const { source } = await getNx2Api();
-  const resp = await source.save(path, { body: file });
+  const resp = await source.uploadMedia(path, { body: file });
   if (!resp.ok) {
     // eslint-disable-next-line no-console
     console.error(`Failed to upload image "${file.name}": ${resp.status} ${resp.statusText}`);
@@ -45,23 +45,33 @@ export async function uploadImageFile(view, file) {
     return;
   }
   const json = await resp.json();
+  const imgSrc = json.source.contentUrl;
 
-  // Create a doc image to pre-download the image before showing it.
-  const docImg = document.createElement('img');
-  docImg.addEventListener('load', () => {
+  let replaced = false;
+  function injectImage() {
     // Find the placeholder by its unique src rather than a stale position so
     // concurrent uploads and collab updates cannot cause the wrong node to be
     // replaced.
-    let replaced = false;
     view.state.doc.descendants((node, pos) => {
       if (!replaced && node.type.name === 'image' && node.attrs.src === fpoSrc) {
         replaced = true;
-        const img = schema.nodes.image.create({ src: json.source.contentUrl });
+        const img = schema.nodes.image.create({ src: imgSrc });
         view.dispatch(view.state.tr.replaceWith(pos, pos + node.nodeSize, img));
       }
     });
-  });
-  docImg.src = json.source.contentUrl;
+  }
+
+  // Create a doc image to pre-download the image before showing it.
+  const docImg = document.createElement('img');
+  docImg.src = imgSrc;
+
+  if (imgSrc.startsWith('./media_')) {
+    // for relative media images, always replace the placeholder (for now)
+    injectImage();
+  } else {
+    // otherwise, wait until the image was loaded
+    docImg.addEventListener('load', injectImage);
+  }
 }
 
 export default function imageDrop() {
diff --git a/test/fixtures/nx2/utils/api.js b/test/fixtures/nx2/utils/api.js
index f46c2a3f2..fee1868a0 100644
--- a/test/fixtures/nx2/utils/api.js
+++ b/test/fixtures/nx2/utils/api.js
@@ -242,6 +242,11 @@ export const source = {
     return daFetch({ url, opts });
   }),
 
+  uploadMedia: withArgs(async ({ org, site, path, body }) => {
+    const url = await getDaApiPath(SOURCE, org, site, path);
+    return daFetch({ url, opts: { method: 'POST', body } });
+  }),
+
   // HEAD request — the value is in the response headers (doc-id, last-modified, etc.).
   getMetadata: withArgs(async ({ org, site, path }) => {
     const url = await getDaApiPath(SOURCE, org, site, path);
diff --git a/test/unit/blocks/edit/prose/plugins/imageDrop.test.js b/test/unit/blocks/edit/prose/plugins/imageDrop.test.js
index 08e5bf8ed..eb71fc94f 100644
--- a/test/unit/blocks/edit/prose/plugins/imageDrop.test.js
+++ b/test/unit/blocks/edit/prose/plugins/imageDrop.test.js
@@ -168,6 +168,51 @@ describe('imageDrop plugin', () => {
     }
   });
 
+  it('uploadImageFile uploads via source.uploadMedia (not source.save)', async () => {
+    const savedFetch = window.fetch;
+    let requestUrl = null;
+    let requestMethod = null;
+    window.fetch = (url, opts) => {
+      requestUrl = url;
+      requestMethod = opts?.method;
+      return Promise.resolve(new Response(
+        JSON.stringify({ source: { contentUrl: '/path/uploaded.png' } }),
+        { status: 200 },
+      ));
+    };
+    try {
+      const file = new File(['x'], 'pic.png', { type: 'image/png' });
+      await uploadImageFile(editor.view, file);
+      expect(requestUrl).to.be.a('string');
+      expect(requestUrl).to.include('/pic.png');
+      expect(requestMethod).to.equal('POST');
+    } finally {
+      window.fetch = savedFetch;
+    }
+  });
+
+  it('uploadImageFile replaces the FPO immediately for relative media URLs, without waiting for load', async () => {
+    const mediaUrl = './media_abc123.png?width=750&format=webply';
+    const savedFetch = window.fetch;
+    window.fetch = () => Promise.resolve(new Response(
+      JSON.stringify({ source: { contentUrl: mediaUrl } }),
+      { status: 200 },
+    ));
+    try {
+      const file = new File(['x'], 'pic.png', { type: 'image/png' });
+      await uploadImageFile(editor.view, file);
+      // No extra wait for the img "load" event — the relative media src
+      // should already have replaced the FPO by the time upload resolves.
+      let finalSrc = null;
+      editor.view.state.doc.descendants((node) => {
+        if (node.type.name === 'image') finalSrc = node.attrs.src;
+      });
+      expect(finalSrc).to.equal(mediaUrl);
+    } finally {
+      window.fetch = savedFetch;
+    }
+  });
+
   it('uploadImageFile replaces FPO with the real image URL after upload completes', async () => {
     // Use a data URL so the browser fires the img load event in the test environment.
     const dataUrl = 'data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAADUlEQVR42mNk+M9QDwADhgGAWjR9awAAAABJRU5ErkJggg==';