diff --git a/docs/reference/core.rst b/docs/reference/core.rst
index 19aba89606..2da385b222 100644
--- a/docs/reference/core.rst
+++ b/docs/reference/core.rst
@@ -65,6 +65,10 @@ Schema classes used to serialize domain models to JSON-LD.
    :members:
    :show-inheritance:
 
+.. automodule:: renku.command.schema.image
+   :members:
+   :show-inheritance:
+
 .. automodule:: renku.command.schema.parameter
    :members:
    :show-inheritance:
@@ -105,10 +109,6 @@ Datasets
    :members:
    :show-inheritance:
 
-.. automodule:: renku.core.dataset.request_model
-   :members:
-   :show-inheritance:
-
 .. automodule:: renku.core.dataset.tag
    :members:
    :show-inheritance:
@@ -237,6 +237,17 @@ Errors that can be raised by ``renku.core``.
    :members:
    :show-inheritance:
 
+Project/Dataset Images
+----------------------
+
+.. automodule:: renku.core.image
+   :members:
+   :show-inheritance:
+
+.. automodule:: renku.domain_model.image
+   :members:
+
+
 Utilities
 ---------
 
diff --git a/renku/command/project.py b/renku/command/project.py
index d38c9bbb30..82ee538e20 100644
--- a/renku/command/project.py
+++ b/renku/command/project.py
@@ -17,14 +17,14 @@
 """Project management."""
 
 from renku.command.command_builder.command import Command
-from renku.core.constant import DATABASE_METADATA_PATH
+from renku.core.constant import PROJECT_METADATA_PATH
 from renku.core.project import edit_project, show_project
 
 
 def edit_project_command():
     """Command for editing project metadata."""
     command = Command().command(edit_project).lock_project().with_database(write=True)
-    return command.require_migration().with_commit(commit_only=DATABASE_METADATA_PATH)
+    return command.require_migration().with_commit(commit_only=PROJECT_METADATA_PATH)
 
 
 def show_project_command():
diff --git a/renku/command/schema/dataset.py b/renku/command/schema/dataset.py
index 6987f58b14..e70811d453 100644
--- a/renku/command/schema/dataset.py
+++ b/renku/command/schema/dataset.py
@@ -21,7 +21,8 @@
 from renku.command.schema.annotation import AnnotationSchema
 from renku.command.schema.calamus import DateTimeList, JsonLDSchema, Nested, Uri, fields, oa, prov, renku, schema
 from renku.command.schema.entity import CollectionSchema, EntitySchema
-from renku.domain_model.dataset import Dataset, DatasetFile, DatasetTag, ImageObject, Language, RemoteEntity, Url
+from renku.command.schema.image import ImageObjectSchema
+from renku.domain_model.dataset import Dataset, DatasetFile, DatasetTag, Language, RemoteEntity, Url
 
 
 def dump_dataset_as_jsonld(dataset: Dataset) -> dict:
@@ -104,21 +105,6 @@ class Meta:
     name = fields.String(schema.name)
 
 
-class ImageObjectSchema(JsonLDSchema):
-    """ImageObject schema."""
-
-    class Meta:
-        """Meta class."""
-
-        rdf_type = schema.ImageObject
-        model = ImageObject
-        unknown = EXCLUDE
-
-    content_url = fields.String(schema.contentUrl)
-    id = fields.Id(load_default=None)
-    position = fields.Integer(schema.position)
-
-
 class RemoteEntitySchema(JsonLDSchema):
     """RemoteEntity schema."""
 
diff --git a/renku/command/schema/image.py b/renku/command/schema/image.py
new file mode 100644
index 0000000000..a8f38d9a34
--- /dev/null
+++ b/renku/command/schema/image.py
@@ -0,0 +1,36 @@
+# Copyright Swiss Data Science Center (SDSC). A partnership between
+# École Polytechnique Fédérale de Lausanne (EPFL) and
+# Eidgenössische Technische Hochschule Zürich (ETHZ).
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+"""Image JSON-LD schema."""
+
+from marshmallow import EXCLUDE
+
+from renku.command.schema.calamus import JsonLDSchema, fields, schema
+from renku.domain_model.image import ImageObject
+
+
+class ImageObjectSchema(JsonLDSchema):
+    """ImageObject schema."""
+
+    class Meta:
+        """Meta class."""
+
+        rdf_type = schema.ImageObject
+        model = ImageObject
+        unknown = EXCLUDE
+
+    content_url = fields.String(schema.contentUrl)
+    id = fields.Id(load_default=None)
+    position = fields.Integer(schema.position)
diff --git a/renku/command/schema/project.py b/renku/command/schema/project.py
index e7833e8a93..4d34cf9838 100644
--- a/renku/command/schema/project.py
+++ b/renku/command/schema/project.py
@@ -20,6 +20,7 @@
 from renku.command.schema.agent import PersonSchema
 from renku.command.schema.annotation import AnnotationSchema
 from renku.command.schema.calamus import DateTimeList, JsonLDSchema, Nested, StringList, fields, oa, prov, renku, schema
+from renku.command.schema.image import ImageObjectSchema
 from renku.domain_model.project import Project
 
 
@@ -39,6 +40,7 @@ class Meta:
     date_created = DateTimeList(schema.dateCreated, load_default=None, format="iso", extra_formats=("%Y-%m-%d",))
     description = fields.String(schema.description, load_default=None)
     id = fields.Id(load_default=None)
+    image = fields.Nested(schema.image, ImageObjectSchema, load_default=None)
     immutable_template_files = fields.List(
         renku.immutableTemplateFiles,
         fields.String(),
diff --git a/renku/core/constant.py b/renku/core/constant.py
index bde8581c07..3cd4b634bc 100644
--- a/renku/core/constant.py
+++ b/renku/core/constant.py
@@ -19,6 +19,9 @@
 from enum import IntEnum
 from pathlib import Path
 
+FILESYSTEM_ROOT = os.path.abspath(os.sep)
+"""Path to the root of the filesystem."""
+
 APP_NAME = "Renku"
 """Application name for storing configuration."""
 
@@ -41,6 +44,9 @@
 DATASET_IMAGES = "dataset_images"
 """Directory for dataset images."""
 
+IMAGES = "images"
+"""Path for images/icons."""
+
 DEFAULT_DATA_DIR = "data"
 
 DOCKERFILE = "Dockerfile"
@@ -79,6 +85,11 @@
     Path(RENKU_HOME) / DATABASE_PATH,
 ]
 
+PROJECT_METADATA_PATH = [
+    Path(RENKU_HOME) / DATABASE_PATH,
+    Path(RENKU_HOME) / IMAGES,
+]
+
 DATASET_METADATA_PATHS = [
     Path(RENKU_HOME) / DATABASE_PATH,
     Path(RENKU_HOME) / DATASET_IMAGES,
diff --git a/renku/core/dataset/dataset.py b/renku/core/dataset/dataset.py
index c8456ee8e8..1115db9792 100644
--- a/renku/core/dataset/dataset.py
+++ b/renku/core/dataset/dataset.py
@@ -15,6 +15,7 @@
 # limitations under the License.
 """Dataset business logic."""
 
+import imghdr
 import os
 import shutil
 import urllib
@@ -35,8 +36,8 @@
 from renku.core.dataset.providers.factory import ProviderFactory
 from renku.core.dataset.providers.git import GitProvider
 from renku.core.dataset.providers.models import DatasetUpdateAction, ProviderDataset
-from renku.core.dataset.request_model import ImageRequestModel
 from renku.core.dataset.tag import get_dataset_by_tag, prompt_access_token, prompt_tag_selection
+from renku.core.image import ImageObjectRequest
 from renku.core.interface.dataset_gateway import IDatasetGateway
 from renku.core.storage import check_external_storage, track_paths_in_storage
 from renku.core.util import communication
@@ -50,6 +51,7 @@
     get_absolute_path,
     get_file_size,
     get_files,
+    get_relative_path,
     get_safe_relative_path,
     hash_file,
     is_path_empty,
@@ -109,7 +111,7 @@ def create_dataset(
     description: Optional[str] = None,
     creators: Optional[List[Person]] = None,
     keywords: Optional[List[str]] = None,
-    images: Optional[List[ImageRequestModel]] = None,
+    images: Optional[List[ImageObjectRequest]] = None,
     update_provenance: bool = True,
     custom_metadata: Optional[Dict[str, Any]] = None,
     storage: Optional[str] = None,
@@ -123,7 +125,7 @@ def create_dataset(
         description(Optional[str], optional): Dataset description (Default value = None).
         creators(Optional[List[Person]], optional): Dataset creators (Default value = None).
         keywords(Optional[List[str]], optional): Dataset keywords (Default value = None).
-        images(Optional[List[ImageRequestModel]], optional): Dataset images (Default value = None).
+        images(Optional[List[ImageObjectRequest]], optional): Dataset images (Default value = None).
         update_provenance(bool, optional): Whether to add this dataset to dataset provenance
             (Default value = True).
         custom_metadata(Optional[Dict[str, Any]], optional): Custom JSON-LD metadata (Default value = None).
@@ -199,7 +201,7 @@ def edit_dataset(
     description: Optional[Union[str, NoValueType]],
     creators: Optional[Union[List[Person], NoValueType]],
     keywords: Optional[Union[List[str], NoValueType]] = NO_VALUE,
-    images: Optional[Union[List[ImageRequestModel], NoValueType]] = NO_VALUE,
+    images: Optional[Union[List[ImageObjectRequest], NoValueType]] = NO_VALUE,
     custom_metadata: Optional[Union[Dict, List[Dict], NoValueType]] = NO_VALUE,
     custom_metadata_source: Optional[Union[str, NoValueType]] = NO_VALUE,
 ):
@@ -211,7 +213,7 @@ def edit_dataset(
         description(Optional[Union[str, NoValueType]]): New description for the dataset.
         creators(Optional[Union[List[Person], NoValueType]]): New creators for the dataset.
         keywords(Optional[Union[List[str], NoValueType]]): New keywords for dataset (Default value = ``NO_VALUE``).
-        images(Optional[Union[List[ImageRequestModel], NoValueType]]): New images for dataset
+        images(Optional[Union[List[ImageObjectRequest], NoValueType]]): New images for dataset
             (Default value = ``NO_VALUE``).
         custom_metadata(Optional[Union[Dict, List[Dict], NoValueType]]): Custom JSON-LD metadata
             (Default value = ``NO_VALUE``).
@@ -248,7 +250,7 @@ def edit_dataset(
     if images == NO_VALUE:
         images_updated = False
     else:
-        images_updated = set_dataset_images(dataset=dataset, images=cast(Optional[List[ImageRequestModel]], images))
+        images_updated = set_dataset_images(dataset=dataset, images=cast(Optional[List[ImageObjectRequest]], images))
 
     if images_updated:
         updated["images"] = (
@@ -855,12 +857,12 @@ def add_datadir_files_to_dataset(dataset: Dataset) -> None:
         dataset.add_or_update_files(dataset_files)
 
 
-def set_dataset_images(dataset: Dataset, images: Optional[List[ImageRequestModel]]):
+def set_dataset_images(dataset: Dataset, images: Optional[List[ImageObjectRequest]]):
     """Set a dataset's images.
 
     Args:
         dataset(Dataset): The dataset to set images on.
-        images(List[ImageRequestModel]): The images to set.
+        images(List[ImageObjectRequest]): The images to set.
 
     Returns:
         True if images were set/modified.
@@ -875,10 +877,30 @@ def set_dataset_images(dataset: Dataset, images: Optional[List[ImageRequestModel
     dataset.images = []
     images_updated = False
     for img in images:
-        img_object = img.to_image_object(dataset)
+        image_folder = project_context.dataset_images_path / dataset.initial_identifier
+        try:
+            img_object = img.to_image_object(owner_id=dataset.id)
+        except errors.ImageError as e:
+            raise errors.DatasetImageError(e) from e
+
+        path = img_object.content_url
+
+        if not img_object.is_remote:
+            # NOTE: only copy dataset image if it's not in .renku/datasets/<id>/images/ already
+            if not path.startswith(str(image_folder)):
+                image_type = imghdr.what(path)
+                if image_type:
+                    ext = f".{image_type}"
+                else:
+                    _, ext = os.path.splitext(path)
+                target_image_path: Union[Path, str] = image_folder / f"{img_object.position}{ext}"
 
-        if not img_object:
-            continue
+                image_folder.parent.mkdir(parents=True, exist_ok=True)
+                shutil.copy(path, target_image_path)
+            else:
+                target_image_path = path
+
+            img_object.content_url = get_relative_path(target_image_path, base=project_context.path)  # type: ignore
 
         if any(i.position == img_object.position for i in dataset.images):
             raise errors.DatasetImageError(f"Duplicate dataset image specified for position {img_object.position}")
diff --git a/renku/core/dataset/request_model.py b/renku/core/dataset/request_model.py
deleted file mode 100644
index 1b27c8d72b..0000000000
--- a/renku/core/dataset/request_model.py
+++ /dev/null
@@ -1,102 +0,0 @@
-# Copyright Swiss Data Science Center (SDSC). A partnership between
-# École Polytechnique Fédérale de Lausanne (EPFL) and
-# Eidgenössische Technische Hochschule Zürich (ETHZ).
-#
-# Licensed under the Apache License, Version 2.0 (the "License");
-# you may not use this file except in compliance with the License.
-# You may obtain a copy of the License at
-#
-#     http://www.apache.org/licenses/LICENSE-2.0
-#
-# Unless required by applicable law or agreed to in writing, software
-# distributed under the License is distributed on an "AS IS" BASIS,
-# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-# See the License for the specific language governing permissions and
-# limitations under the License.
-"""Renku management dataset request models."""
-
-import imghdr
-import os
-import shutil
-import urllib
-from pathlib import Path
-from typing import List, Optional, Union, cast
-from urllib.request import urlretrieve
-
-from renku.core import errors
-from renku.domain_model.dataset import Dataset, ImageObject
-from renku.domain_model.project_context import project_context
-
-
-class ImageRequestModel:
-    """Model for passing image information to dataset use-cases."""
-
-    def __init__(
-        self,
-        content_url: str,
-        position: int,
-        mirror_locally: bool = False,
-        safe_image_paths: Optional[List[str]] = None,
-    ) -> None:
-        self.content_url = content_url
-        self.position = position
-        self.mirror_locally = mirror_locally
-        self.safe_image_paths: List[Union[str, Path]] = cast(List[Union[str, Path]], safe_image_paths) or []
-
-    def to_image_object(self, dataset: Dataset) -> ImageObject:
-        """Convert request model to ``ImageObject``."""
-        image_type = None
-        self.safe_image_paths.append(project_context.path)
-
-        image_folder = project_context.dataset_images_path / dataset.initial_identifier
-        image_folder.mkdir(exist_ok=True, parents=True)
-
-        if urllib.parse.urlparse(self.content_url).netloc:
-            # NOTE: absolute url
-            if not self.mirror_locally:
-                return ImageObject(
-                    content_url=self.content_url,
-                    position=self.position,
-                    id=ImageObject.generate_id(dataset_id=dataset.id, position=self.position),
-                )
-
-            # NOTE: mirror the image locally
-            try:
-                path, _ = urlretrieve(self.content_url)
-            except urllib.error.URLError as e:
-                raise errors.DatasetImageError(f"Dataset image with url {self.content_url} couldn't be mirrored") from e
-
-            image_type = imghdr.what(path)
-            if image_type:
-                image_type = f".{image_type}"
-
-            self.content_url = path
-            self.safe_image_paths.append(Path(path).parent)
-
-        path = self.content_url
-        if not os.path.isabs(path):
-            path = os.path.normpath(os.path.join(project_context.path, path))
-
-        if not os.path.exists(path) or not any(
-            os.path.commonprefix([path, p]) == str(p) for p in self.safe_image_paths
-        ):
-            # NOTE: make sure files exists and prevent path traversal
-            raise errors.DatasetImageError(f"Dataset image with relative path {self.content_url} not found")
-
-        if not path.startswith(str(image_folder)):
-            # NOTE: only copy dataset image if it's not in .renku/datasets/<id>/images/ already
-            if image_type:
-                ext = image_type
-            else:
-                _, ext = os.path.splitext(self.content_url)
-
-            img_path = image_folder / f"{self.position}{ext}"
-            shutil.copy(path, img_path)
-        else:
-            img_path = Path(path)
-
-        return ImageObject(
-            content_url=str(img_path.relative_to(project_context.path)),
-            position=self.position,
-            id=ImageObject.generate_id(dataset_id=dataset.id, position=self.position),
-        )
diff --git a/renku/core/errors.py b/renku/core/errors.py
index 0da28254c1..dae89f752f 100644
--- a/renku/core/errors.py
+++ b/renku/core/errors.py
@@ -512,7 +512,11 @@ class RenkuSaveError(RenkuException):
     """Raised when renku save doesn't work."""
 
 
-class DatasetImageError(DatasetException):
+class ImageError(RenkuException):
+    """Raised when an image for a project/dataset is not accessible."""
+
+
+class DatasetImageError(DatasetException, ImageError):
     """Raised when a local dataset image is not accessible."""
 
 
diff --git a/renku/core/image.py b/renku/core/image.py
new file mode 100644
index 0000000000..6e875912f1
--- /dev/null
+++ b/renku/core/image.py
@@ -0,0 +1,82 @@
+# Copyright Swiss Data Science Center (SDSC). A partnership between
+# École Polytechnique Fédérale de Lausanne (EPFL) and
+# Eidgenössische Technische Hochschule Zürich (ETHZ).
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+"""Renku project/dataset image management."""
+
+import imghdr
+import os
+import urllib
+from pathlib import Path
+from typing import List, Optional, Union, cast
+from urllib.request import urlretrieve
+
+from renku.core import errors
+from renku.core.constant import FILESYSTEM_ROOT
+from renku.core.util.os import is_subpath
+from renku.core.util.urls import is_remote
+from renku.domain_model.image import ImageObject
+from renku.domain_model.project_context import project_context
+
+
+class ImageObjectRequest:
+    """Model for passing image information."""
+
+    def __init__(
+        self,
+        content_url: str,
+        position: int = 0,
+        mirror_locally: bool = True,
+        safe_image_paths: Optional[List[str]] = None,
+    ) -> None:
+        self.content_url = content_url
+        self.position = position
+        self.mirror_locally = mirror_locally
+        self.safe_image_paths: List[Union[str, Path]] = cast(List[Union[str, Path]], safe_image_paths) or []
+
+    def to_image_object(self, owner_id: str) -> ImageObject:
+        """Convert request model to ``ImageObject`` and download the image if requested and return its path."""
+        self.safe_image_paths.append(project_context.path)
+
+        if is_remote(self.content_url):
+            if not self.mirror_locally:
+                return ImageObject(
+                    content_url=self.content_url,
+                    position=self.position,
+                    id=ImageObject.generate_id(owner_id=owner_id, position=self.position),
+                )
+
+            # NOTE: Download the image
+            try:
+                tmp_path, _ = urlretrieve(self.content_url)
+            except urllib.error.URLError as e:
+                raise errors.ImageError(f"Cannot download image with url {self.content_url}: {e}") from e
+
+            path = Path(tmp_path)
+        else:
+            path = Path(self.content_url).resolve()
+
+            if not os.path.exists(path):
+                raise errors.ImageError(f"Image with local path '{self.content_url}' not found")
+            # NOTE: Prevent path traversal or usage of non-image files
+            elif (FILESYSTEM_ROOT in self.safe_image_paths and imghdr.what(path) is None) or not any(
+                is_subpath(path, base=p) for p in self.safe_image_paths
+            ):
+                raise errors.ImageError(f"'{self.content_url}' isn't a valid image file")
+
+        return ImageObject(
+            content_url=path.as_posix(),
+            position=self.position,
+            id=ImageObject.generate_id(owner_id=owner_id, position=self.position),
+        )
diff --git a/renku/core/init.py b/renku/core/init.py
index 18f12ef560..f62cd4cc27 100644
--- a/renku/core/init.py
+++ b/renku/core/init.py
@@ -30,8 +30,10 @@
 from renku.core.constant import DATA_DIR_CONFIG_KEY, RENKU_HOME
 from renku.core.git import with_worktree
 from renku.core.githooks import install_githooks
+from renku.core.image import ImageObjectRequest
 from renku.core.interface.database_gateway import IDatabaseGateway
 from renku.core.migration.utils import OLD_METADATA_PATH
+from renku.core.project import set_project_image
 from renku.core.storage import init_external_storage, storage_installed
 from renku.core.template.template import (
     FileAction,
@@ -101,6 +103,7 @@ def init_project(
     name: Optional[str],
     description: Optional[str],
     keywords: Optional[List[str]],
+    image_request: Optional[ImageObjectRequest],
     template_id: Optional[str],
     template_source: Optional[str],
     template_ref: Optional[str],
@@ -114,11 +117,12 @@ def init_project(
     """Initialize a renku project.
 
     Args:
-        external_storage_requested: Whether or not external storage should be used.
+        external_storage_requested: Whether external storage should be used.
         path: Path to initialize repository at.
         name: Name of the project.
         description: Description of the project.
         keywords: keywords for the project.
+        image_request(Optional[ImageObjectRequest]): Project's image.
         template_id: id of the template to use.
         template_source: Source to get the template from.
         template_ref: Reference to use to get the template.
@@ -211,6 +215,7 @@ def init_project(
                 description=description,
                 keywords=keywords,
                 install_mergetool=install_mergetool,
+                image_request=image_request,
             )
         except FileExistsError as e:
             raise errors.InvalidFileOperation(e)
@@ -264,6 +269,7 @@ def create_from_template(
     commit_message: Optional[str] = None,
     description: Optional[str] = None,
     keywords: Optional[List[str]] = None,
+    image_request: Optional[ImageObjectRequest] = None,
     install_mergetool: bool = False,
 ):
     """Initialize a new project from a template.
@@ -278,7 +284,8 @@ def create_from_template(
         commit_message(Optional[str]): Message for initial commit (Default value = None).
         description(Optional[str]): Description of the project (Default value = None).
         keywords(Optional[List[str]]): Keywords for project (Default value = None).
-        install_mergetool(bool): Whether to setup renku metadata mergetool (Default value = False).
+        image_request(Optional[ImageObjectRequest]): Project's image (Default value = None).
+        install_mergetool(bool): Whether to set up renku metadata mergetool (Default value = False).
     """
     commit_only = [f"{RENKU_HOME}/", str(project_context.template_checksums_path)] + list(rendered_template.get_files())
 
@@ -312,6 +319,9 @@ def create_from_template(
         ) as project:
             copy_template_to_project(rendered_template=rendered_template, project=project, actions=actions)
 
+            # NOTE: Copy image to project
+            set_project_image(image_request=image_request)
+
         if install_mergetool:
             setup_mergetool()
 
@@ -337,6 +347,7 @@ def create_from_template_local(
     keywords: Optional[List[str]] = None,
     data_dir: Optional[str] = None,
     ssh_supported: bool = False,
+    image_request: Optional[ImageObjectRequest] = None,
 ):
     """Initialize a new project from a template.
 
@@ -356,6 +367,7 @@ def create_from_template_local(
         description(Optional[str]): Project description (Default value = None).
         keywords(Optional[List[str]]): Project keywords (Default value = None).
         data_dir(Optional[str]): Project base data directory (Default value = None).
+        image_request(Optional[ImageObjectRequest]): Project's image (Default value = None).
     """
     metadata = metadata or {}
     default_metadata = default_metadata or {}
@@ -410,4 +422,5 @@ def create_from_template_local(
         description=description,
         keywords=keywords,
         data_dir=data_dir,
+        image_request=image_request,
     )
diff --git a/renku/core/migration/m_0010__metadata_fixes.py b/renku/core/migration/m_0010__metadata_fixes.py
index 11f7d49035..3cbc04a9bb 100644
--- a/renku/core/migration/m_0010__metadata_fixes.py
+++ b/renku/core/migration/m_0010__metadata_fixes.py
@@ -238,7 +238,7 @@ def migrate_project_template_data(project_gateway: IProjectGateway):
 
 @inject.autoparams("plan_gateway")
 def fix_plan_times(plan_gateway: IPlanGateway):
-    """Add timezone to plan invalidations."""
+    """Rename plan's date-related attributes and add timezone to invalidation time."""
     plans: List[AbstractPlan] = plan_gateway.get_all_plans()
 
     for plan in plans:
@@ -248,6 +248,8 @@ def fix_plan_times(plan_gateway: IPlanGateway):
             del plan.invalidated_at
         elif not hasattr(plan, "date_removed"):
             plan.date_removed = None
+        if not hasattr(plan, "date_created"):
+            plan.date_created = getattr(plan, "date_modified", None) or plan.date_removed or local_now()
 
         if plan.date_removed is not None:
             if plan.date_removed.tzinfo is None:
diff --git a/renku/core/migration/utils/conversion.py b/renku/core/migration/utils/conversion.py
index 7e86e261aa..13c5f0490d 100644
--- a/renku/core/migration/utils/conversion.py
+++ b/renku/core/migration/utils/conversion.py
@@ -28,12 +28,12 @@
     Dataset,
     DatasetFile,
     DatasetTag,
-    ImageObject,
     Language,
     RemoteEntity,
     Url,
     is_dataset_name_valid,
 )
+from renku.domain_model.image import ImageObject
 from renku.domain_model.project_context import project_context
 from renku.domain_model.provenance import agent as new_agents
 
@@ -65,7 +65,7 @@ def _convert_image_object(image_object: Optional[old_datasets.ImageObject], data
     """Create from old ImageObject instance."""
     if not image_object:
         return
-    id = ImageObject.generate_id(dataset_id=dataset_id, position=image_object.position)
+    id = ImageObject.generate_id(owner_id=dataset_id, position=image_object.position)
     return ImageObject(content_url=image_object.content_url, position=image_object.position, id=id)
 
 
diff --git a/renku/core/project.py b/renku/core/project.py
index c852a31ecf..8c50a5ef66 100644
--- a/renku/core/project.py
+++ b/renku/core/project.py
@@ -15,15 +15,21 @@
 # limitations under the License.
 """Project business logic."""
 
+import os
+import shutil
 from typing import Dict, List, Optional, Union, cast
 
 from pydantic import validate_arguments
 
 from renku.command.command_builder import inject
 from renku.command.view_model.project import ProjectViewModel
+from renku.core import errors
+from renku.core.image import ImageObjectRequest
 from renku.core.interface.project_gateway import IProjectGateway
 from renku.core.util.metadata import construct_creator
+from renku.core.util.os import get_relative_path
 from renku.domain_model.constant import NO_VALUE, NoValueType
+from renku.domain_model.dataset import ImageObjectRequestJson
 from renku.domain_model.project_context import project_context
 from renku.domain_model.provenance.agent import Person
 
@@ -36,6 +42,7 @@ def edit_project(
     keywords: Optional[Union[List[str], NoValueType]],
     custom_metadata: Optional[Union[Dict, List[Dict], NoValueType]],
     custom_metadata_source: Optional[Union[str, NoValueType]],
+    image_request: Optional[Union[ImageObjectRequest, NoValueType]],
     project_gateway: IProjectGateway,
 ):
     """Edit dataset metadata.
@@ -47,6 +54,7 @@ def edit_project(
         custom_metadata(Union[Optional[Dict, List[Dict]]): Custom JSON-LD metadata.
         custom_metadata_source(Optional[str]): Custom metadata source.
         project_gateway(IProjectGateway): Injected project gateway.
+        image_request(Optional[ImageObjectRequest]): Project's image.
 
     Returns:
         Tuple of fields that were updated and dictionary of warnings.
@@ -56,6 +64,11 @@ def edit_project(
         "description": description,
         "keywords": keywords,
         "custom_metadata": custom_metadata,
+        "image": NO_VALUE
+        if image_request is NO_VALUE
+        else None
+        if image_request is None
+        else ImageObjectRequestJson().dump(image_request),
     }
 
     no_email_warnings: Optional[Union[Dict, str]] = None
@@ -64,10 +77,16 @@ def edit_project(
     if creator is not NO_VALUE:
         parsed_creator, no_email_warnings = construct_creator(cast(Union[Dict, str], creator), ignore_email=True)
 
+    if image_request is None:
+        delete_project_image()
+    elif image_request is not NO_VALUE:
+        set_project_image(image_request=image_request)  # type: ignore
+
     updated = {k: v for k, v in possible_updates.items() if v is not NO_VALUE}
 
     if updated:
         project = project_gateway.get_project()
+        # NOTE: No need to pass ``image`` here since we already copied/deleted the file and updated the project
         project.update_metadata(
             creator=parsed_creator,
             description=description,
@@ -87,3 +106,47 @@ def show_project() -> ProjectViewModel:
         Project view model.
     """
     return ProjectViewModel.from_project(project_context.project)
+
+
+def set_project_image(image_request: Optional[ImageObjectRequest]) -> None:
+    """Download and set a project's images.
+
+    Args:
+        image_request(Optional[ImageObjectRequest]): The image to set.
+    """
+    if image_request is None:
+        return
+
+    # NOTE: Projects can have maximum one image
+    image_request.position = 0
+
+    image_object = image_request.to_image_object(owner_id=project_context.project.id)
+
+    project_image = project_context.project_image_pathname
+
+    # NOTE: Do nothing if the new path is the same as the old one
+    if project_image.resolve() != image_object.content_url:
+        # NOTE: Always delete the old image
+        delete_project_image()
+
+        if not image_object.is_remote:
+            project_image.parent.mkdir(parents=True, exist_ok=True)
+            shutil.copy(image_object.content_url, project_context.project_image_pathname)
+
+            image_object.content_url = get_relative_path(project_image, base=project_context.path)  # type: ignore
+
+    image_object.position = 0
+
+    project_context.project.image = image_object
+
+
+def delete_project_image() -> None:
+    """Delete project image in a project."""
+    try:
+        os.remove(project_context.project_image_pathname)
+    except FileNotFoundError:
+        pass
+    except OSError as e:
+        raise errors.ImageError(f"Cannot delete project image '{project_context.project_image_pathname}': {e}") from e
+    else:
+        project_context.project.image = None
diff --git a/renku/core/util/contexts.py b/renku/core/util/contexts.py
index d9cdf8a7c3..9f3599c4cf 100644
--- a/renku/core/util/contexts.py
+++ b/renku/core/util/contexts.py
@@ -162,10 +162,14 @@ def with_project_metadata(
             custom_metadata=custom_metadata,
         )
 
-    yield project
-
-    if not read_only:
+    if read_only:
+        yield project
+    else:
+        # NOTE: Set project so that ``project_context`` can be used inside the code
         project_gateway.update_project(project)
+
+        yield project
+
         database_gateway.commit()
 
 
diff --git a/renku/core/util/urls.py b/renku/core/util/urls.py
index 9a491d58af..a5bacdb404 100644
--- a/renku/core/util/urls.py
+++ b/renku/core/util/urls.py
@@ -167,3 +167,9 @@ def check_url(url: str) -> Tuple[bool, bool]:
     is_git = is_remote and (u.path.lower().endswith(".git") or scheme in ("git+https", "git+ssh") or starts_with_git)
 
     return is_remote, is_git
+
+
+def is_remote(uri: str) -> bool:
+    """Returns True if a given URI is remote."""
+    is_remote, _ = check_url(uri)
+    return is_remote
diff --git a/renku/data/shacl_shape.json b/renku/data/shacl_shape.json
index f52cc3f4fb..fb2f78c9d5 100644
--- a/renku/data/shacl_shape.json
+++ b/renku/data/shacl_shape.json
@@ -159,6 +159,14 @@
                   }
                ]
             },
+            {
+               "path": "schema:image",
+               "sh:class": {
+                  "@id": "schema:ImageObject"
+               },
+               "sh:pattern": "http(s)?://[^/]+/projects/.+/images/0",
+               "maxCount": 1
+            },
             {
                "nodeKind": "sh:Literal",
                "path": "renku:templateSource",
diff --git a/renku/domain_model/dataset.py b/renku/domain_model/dataset.py
index 8d234241ff..8b68d056ff 100644
--- a/renku/domain_model/dataset.py
+++ b/renku/domain_model/dataset.py
@@ -32,8 +32,9 @@
 from renku.core.util.git import get_entity_from_revision
 from renku.core.util.metadata import is_linked_file
 from renku.core.util.os import get_absolute_path
-from renku.core.util.urls import get_path, get_slug
+from renku.core.util.urls import get_slug
 from renku.domain_model.constant import NO_VALUE, NON_EXISTING_ENTITY_CHECKSUM
+from renku.domain_model.image import ImageObject
 from renku.domain_model.project_context import project_context
 from renku.infrastructure.immutable import Immutable, Slots
 from renku.infrastructure.persistent import Persistent
@@ -173,30 +174,6 @@ def generate_id(name: str) -> str:
         return f"/languages/{name}"
 
 
-class ImageObject(Slots):
-    """Represents a schema.org `ImageObject`."""
-
-    __slots__ = ("content_url", "id", "position")
-
-    id: str
-    content_url: str
-    position: int
-
-    def __init__(self, *, content_url: str, id: str, position: int):
-        id = get_path(id)
-        super().__init__(content_url=content_url, position=position, id=id)
-
-    @staticmethod
-    def generate_id(dataset_id: str, position: int) -> str:
-        """Generate @id field."""
-        return f"{dataset_id}/images/{position}"
-
-    @property
-    def is_absolute(self):
-        """Whether content_url is an absolute or relative url."""
-        return bool(urlparse(self.content_url).netloc)
-
-
 class RemoteEntity(Slots):
     """Reference to an Entity in a remote repository."""
 
@@ -790,8 +767,8 @@ class ImageObjectRequestJson(marshmallow.Schema):
 
     file_id = marshmallow.fields.String()
     content_url = marshmallow.fields.String()
-    position = marshmallow.fields.Integer()
-    mirror_locally = marshmallow.fields.Bool(dump_default=False)
+    position = marshmallow.fields.Integer(load_default=0)
+    mirror_locally = marshmallow.fields.Bool(load_default=False)
 
 
 def get_file_path_in_dataset(dataset: Dataset, dataset_file: DatasetFile) -> Path:
diff --git a/renku/domain_model/image.py b/renku/domain_model/image.py
new file mode 100644
index 0000000000..87b0483113
--- /dev/null
+++ b/renku/domain_model/image.py
@@ -0,0 +1,52 @@
+# Copyright Swiss Data Science Center (SDSC). A partnership between
+# École Polytechnique Fédérale de Lausanne (EPFL) and
+# Eidgenössische Technische Hochschule Zürich (ETHZ).
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+"""Image model."""
+
+from pathlib import Path
+from typing import Union
+from urllib.parse import urlparse
+
+from renku.core.util.urls import get_path, is_remote
+from renku.infrastructure.immutable import Slots
+
+
+class ImageObject(Slots):
+    """Represents a schema.org ``ImageObject``."""
+
+    __slots__ = ("content_url", "id", "position")
+
+    id: str
+    content_url: str
+    position: int
+
+    def __init__(self, *, content_url: Union[str, Path], id: str, position: int):
+        id = get_path(id)
+        super().__init__(content_url=str(content_url), position=position, id=id)
+
+    @staticmethod
+    def generate_id(owner_id: str, position: int) -> str:
+        """Generate @id field."""
+        return f"{owner_id}/images/{position}"
+
+    @property
+    def is_absolute(self):
+        """Whether content_url is an absolute or relative url."""
+        return bool(urlparse(self.content_url).netloc)
+
+    @property
+    def is_remote(self) -> bool:
+        """Return True if the URI isn't on the local filesystem."""
+        return is_remote(self.content_url)
diff --git a/renku/domain_model/project.py b/renku/domain_model/project.py
index 397fadda22..52b3ddd697 100644
--- a/renku/domain_model/project.py
+++ b/renku/domain_model/project.py
@@ -27,6 +27,7 @@
 from renku.core.util.git import get_git_user
 from renku.core.util.os import normalize_to_ascii
 from renku.domain_model.constant import NO_VALUE
+from renku.domain_model.image import ImageObject
 from renku.domain_model.provenance.agent import Person
 from renku.domain_model.provenance.annotation import Annotation
 from renku.version import __minimum_project_version__
@@ -53,6 +54,7 @@ class Project(persistent.Persistent):
     """Represent a project."""
 
     keywords: List[str] = list()
+    image: Optional[ImageObject] = None
 
     # NOTE: the minimum version of renku to needed to work with a project
     # This should be bumped on metadata version changes and when we do not forward-compatible on-the-fly migrations
@@ -71,6 +73,7 @@ def __init__(
         template_metadata: Optional[ProjectTemplateMetadata] = None,
         version: Optional[str] = None,
         keywords: Optional[List[str]] = None,
+        image: Optional[ImageObject] = None,
     ):
         from renku.core.migration.migrate import SUPPORTED_PROJECT_VERSION
 
@@ -91,6 +94,7 @@ def __init__(
         self.id: str = id
         self.version: str = version
         self.keywords = keywords or []
+        self.image = image
 
         self.template_metadata: ProjectTemplateMetadata = template_metadata or ProjectTemplateMetadata()
 
@@ -107,6 +111,7 @@ def from_project_context(
         keywords: Optional[List[str]] = None,
         custom_metadata: Optional[Dict] = None,
         creator: Optional[Person] = None,
+        image: Optional[ImageObject] = None,
     ) -> "Project":
         """Create an instance from a path.
 
@@ -119,6 +124,7 @@ def from_project_context(
             custom_metadata(Optional[Dict]): Custom JSON-LD metadata (when creating a new project)
                 (Default value = None).
             creator(Optional[Person]): The project creator.
+            image(Optional[ImageObject]): Project's image/avatar.
         """
         creator = creator or get_git_user(repository=project_context.repository)
 
@@ -141,7 +147,13 @@ def from_project_context(
 
         id = cls.generate_id(namespace=namespace, name=name)
         return cls(
-            creator=creator, id=id, name=name, description=description, keywords=keywords, annotations=annotations
+            annotations=annotations,
+            creator=creator,
+            description=description,
+            id=id,
+            image=image,
+            keywords=keywords,
+            name=name,
         )
 
     @staticmethod
diff --git a/renku/domain_model/project_context.py b/renku/domain_model/project_context.py
index c545b40752..bc862b7409 100644
--- a/renku/domain_model/project_context.py
+++ b/renku/domain_model/project_context.py
@@ -31,6 +31,7 @@
     DATASET_IMAGES,
     DEFAULT_DATA_DIR,
     DOCKERFILE,
+    IMAGES,
     LOCK_SUFFIX,
     POINTERS,
     RENKU_HOME,
@@ -92,6 +93,11 @@ def dataset_images_path(self) -> Path:
         """Return a ``Path`` instance of Renku dataset metadata folder."""
         return self.path / RENKU_HOME / DATASET_IMAGES
 
+    @property
+    def project_image_pathname(self) -> Path:
+        """Return the path to the project's image file."""
+        return self.path / RENKU_HOME / IMAGES / "project" / "0.png"
+
     @property
     def dockerfile_path(self) -> Path:
         """Path to the Dockerfile."""
diff --git a/renku/domain_model/sort.py b/renku/domain_model/sort.py
deleted file mode 100644
index 85203083ac..0000000000
--- a/renku/domain_model/sort.py
+++ /dev/null
@@ -1,46 +0,0 @@
-# Copyright Swiss Data Science Center (SDSC). A partnership between
-# École Polytechnique Fédérale de Lausanne (EPFL) and
-# Eidgenössische Technische Hochschule Zürich (ETHZ).
-#
-# Licensed under the Apache License, Version 2.0 (the "License");
-# you may not use this file except in compliance with the License.
-# You may obtain a copy of the License at
-#
-#     http://www.apache.org/licenses/LICENSE-2.0
-#
-# Unless required by applicable law or agreed to in writing, software
-# distributed under the License is distributed on an "AS IS" BASIS,
-# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-# See the License for the specific language governing permissions and
-# limitations under the License.
-"""Process Git repository."""
-
-from collections import deque
-from typing import Any, Deque
-
-GRAY, BLACK = 0, 1
-
-
-def topological(nodes):
-    """Return nodes in a topological order."""
-    order: Deque[Any]
-    order, enter, state = deque(), set(nodes), {}
-
-    def dfs(node):
-        """Visit nodes in depth-first order."""
-        state[node] = GRAY
-        for parent in nodes.get(node, ()):
-            color = state.get(parent, None)
-            if color == GRAY:
-                raise ValueError("cycle")
-            if color == BLACK:
-                continue
-            enter.discard(parent)
-            dfs(parent)
-        order.appendleft(node)
-        state[node] = BLACK
-
-    while enter:
-        dfs(enter.pop())
-
-    return order
diff --git a/renku/domain_model/workflow/plan.py b/renku/domain_model/workflow/plan.py
index a115b5be5f..95b179f200 100644
--- a/renku/domain_model/workflow/plan.py
+++ b/renku/domain_model/workflow/plan.py
@@ -374,7 +374,7 @@ def set_parameters_from_strings(self, params_strings: List[str]) -> None:
     def copy(self):
         """Create a copy of this plan.
 
-        Required where a plan is used several times in a workflow but we need to set different values on them.
+        Required where a plan is used several times in a workflow, but we need to set different values on them.
         """
         return copy.deepcopy(self)
 
diff --git a/renku/ui/cli/init.py b/renku/ui/cli/init.py
index 01d8ffcf6c..3dffea2d52 100644
--- a/renku/ui/cli/init.py
+++ b/renku/ui/cli/init.py
@@ -231,6 +231,7 @@ def resolve_data_directory(data_dir, path):
     type=click.Path(writable=True, file_okay=False),
     help="Data directory within the project",
 )
+@click.option("-i", "--image", default=None, type=str, help="Path or URL to project's avatar/image.")
 @click.option("-t", "--template-id", help="Provide the id of the template to use.")
 @click.option("-s", "--template-source", help="Provide the templates repository url or path.")
 @click.option(
@@ -268,6 +269,7 @@ def init(
     path,
     name,
     description,
+    image,
     keyword,
     template_id,
     template_source,
@@ -282,6 +284,8 @@ def init(
 ):
     """Initialize a project in PATH. Default is the current path."""
     from renku.command.init import init_project_command
+    from renku.core.constant import FILESYSTEM_ROOT
+    from renku.core.image import ImageObjectRequest
     from renku.core.util.git import check_global_git_user_is_configured
     from renku.ui.cli.utils.callback import ClickCallback
 
@@ -300,6 +304,8 @@ def init(
     if metadata:
         custom_metadata = json.loads(Path(metadata).read_text())
 
+    image_request = ImageObjectRequest(content_url=image, safe_image_paths=[FILESYSTEM_ROOT]) if image else None
+
     communicator = ClickCallback()
     init_project_command().with_communicator(communicator).build().execute(
         external_storage_requested=external_storage_requested,
@@ -307,6 +313,7 @@ def init(
         name=name,
         description=description,
         keywords=keyword,
+        image_request=image_request,
         template_id=template_id,
         template_source=template_source,
         template_ref=template_ref,
diff --git a/renku/ui/cli/project.py b/renku/ui/cli/project.py
index 695f9e6447..7e4834bea8 100644
--- a/renku/ui/cli/project.py
+++ b/renku/ui/cli/project.py
@@ -33,11 +33,12 @@
 
 import json
 from pathlib import Path
+from typing import Optional, Union
 
 import click
 
 import renku.ui.cli.utils.color as color
-from renku.domain_model.constant import NO_VALUE
+from renku.domain_model.constant import NO_VALUE, NoValueType
 from renku.ui.cli.utils.callback import ClickCallback
 
 
@@ -59,6 +60,7 @@ def project():
     type=click.UNPROCESSED,
     help="Creator's name, email, and affiliation. Accepted format is 'Forename Surname <email> [affiliation]'.",
 )
+@click.option("-i", "--image", default=NO_VALUE, type=click.UNPROCESSED, help="Path or URL to project's avatar/image.")
 @click.option(
     "-m",
     "--metadata",
@@ -71,8 +73,8 @@ def project():
     "--unset",
     default=[],
     multiple=True,
-    type=click.Choice(["keywords", "k", "metadata", "m"]),
-    help="Remove keywords from dataset.",
+    type=click.Choice(["keywords", "k", "metadata", "m", "description", "d", "image", "i"]),
+    help="Remove keywords, metadata, description, or image from project.",
 )
 @click.option(
     "--metadata-source",
@@ -80,9 +82,11 @@ def project():
     default=NO_VALUE,
     help="Set the source field in the metadata when editing it if not provided, then the default is 'renku'.",
 )
-def edit(description, keywords, creators, metadata, unset, metadata_source):
+def edit(description, keywords, creators, image, metadata, unset, metadata_source):
     """Edit project metadata."""
     from renku.command.project import edit_project_command
+    from renku.core.constant import FILESYSTEM_ROOT
+    from renku.core.image import ImageObjectRequest
 
     if list(creators) == [NO_VALUE]:
         creators = NO_VALUE
@@ -100,6 +104,20 @@ def edit(description, keywords, creators, metadata, unset, metadata_source):
             raise click.UsageError("Cant use '--metadata' together with unsetting metadata")
         metadata = None
 
+    if "d" in unset or "description" in unset:
+        if description is not NO_VALUE:
+            raise click.UsageError("Cant use '--description' together with unsetting description")
+        description = None
+
+    if "i" in unset or "image" in unset:
+        if image is not NO_VALUE:
+            raise click.UsageError("Cant use '--image' together with unsetting image")
+        image_request: Optional[Union[ImageObjectRequest, NoValueType]] = None
+    elif image is not NO_VALUE:
+        image_request = ImageObjectRequest(content_url=image, safe_image_paths=[FILESYSTEM_ROOT])
+    else:
+        image_request = NO_VALUE
+
     if metadata_source is not NO_VALUE and metadata is NO_VALUE:
         raise click.UsageError("The '--metadata-source' option can only be used with the '--metadata' flag")
 
@@ -122,6 +140,7 @@ def edit(description, keywords, creators, metadata, unset, metadata_source):
             description=description,
             creator=creators,
             keywords=keywords,
+            image_request=image_request,
             custom_metadata=custom_metadata,
             custom_metadata_source=metadata_source,
         )
diff --git a/renku/ui/service/controllers/datasets_create.py b/renku/ui/service/controllers/datasets_create.py
index aaa47a5cb1..694282a699 100644
--- a/renku/ui/service/controllers/datasets_create.py
+++ b/renku/ui/service/controllers/datasets_create.py
@@ -16,7 +16,7 @@
 # limitations under the License.
 """Renku service datasets create controller."""
 from renku.command.dataset import create_dataset_command
-from renku.core.dataset.request_model import ImageRequestModel
+from renku.core.image import ImageObjectRequest
 from renku.core.util.metadata import construct_creators
 from renku.ui.service.cache.models.job import Job
 from renku.ui.service.config import CACHE_UPLOADS_PATH, MESSAGE_PREFIX
@@ -53,7 +53,7 @@ def renku_op(self):
             set_url_for_uploaded_images(images=images, cache=self.cache, user=self.user)
 
             images = [
-                ImageRequestModel(
+                ImageObjectRequest(
                     content_url=img["content_url"],
                     position=img["position"],
                     mirror_locally=img.get("mirror_locally", False),
diff --git a/renku/ui/service/controllers/datasets_edit.py b/renku/ui/service/controllers/datasets_edit.py
index ed50999b7b..e751352da4 100644
--- a/renku/ui/service/controllers/datasets_edit.py
+++ b/renku/ui/service/controllers/datasets_edit.py
@@ -18,7 +18,7 @@
 from typing import Dict, List, Union, cast
 
 from renku.command.dataset import edit_dataset_command
-from renku.core.dataset.request_model import ImageRequestModel
+from renku.core.image import ImageObjectRequest
 from renku.core.util.metadata import construct_creators
 from renku.domain_model.constant import NO_VALUE, NoValueType
 from renku.domain_model.provenance.agent import Person
@@ -61,7 +61,7 @@ def renku_op(self):
             set_url_for_uploaded_images(images=images, cache=self.cache, user=self.user)
 
             images = [
-                ImageRequestModel(
+                ImageObjectRequest(
                     content_url=img["content_url"],
                     position=img["position"],
                     mirror_locally=img.get("mirror_locally", False),
diff --git a/renku/ui/service/controllers/project_edit.py b/renku/ui/service/controllers/project_edit.py
index a07a14e9b7..897a353465 100644
--- a/renku/ui/service/controllers/project_edit.py
+++ b/renku/ui/service/controllers/project_edit.py
@@ -15,13 +15,17 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 """Renku service project edit controller."""
-from typing import Dict, cast
+
+from typing import Dict, Optional, Union, cast
 
 from renku.command.project import edit_project_command
-from renku.domain_model.constant import NO_VALUE
+from renku.core.image import ImageObjectRequest
+from renku.domain_model.constant import NO_VALUE, NoValueType
 from renku.ui.service.cache.models.job import Job
+from renku.ui.service.config import CACHE_UPLOADS_PATH
 from renku.ui.service.controllers.api.abstract import ServiceCtrl
 from renku.ui.service.controllers.api.mixins import RenkuOpSyncMixin
+from renku.ui.service.controllers.utils.datasets import set_url_for_uploaded_images
 from renku.ui.service.serializers.project import ProjectEditRequest, ProjectEditResponseRPC
 from renku.ui.service.views import result_response
 
@@ -76,6 +80,24 @@ def renku_op(self):
         else:
             keywords = NO_VALUE
 
+        if "image" not in self.ctx:
+            image_request: Optional[Union[ImageObjectRequest, NoValueType]] = NO_VALUE
+        elif self.ctx["image"] is None:
+            image_request = None
+        else:
+            image: Dict = self.ctx.get("image")  # type: ignore
+
+            user_cache_dir = CACHE_UPLOADS_PATH / self.user.user_id
+
+            set_url_for_uploaded_images(images=[image], cache=self.cache, user=self.user)
+
+            image_request = ImageObjectRequest(
+                content_url=image["content_url"],
+                position=0,
+                mirror_locally=image.get("mirror_locally", False),
+                safe_image_paths=[user_cache_dir],
+            )
+
         result = (
             edit_project_command()
             .with_commit_message(self.ctx["commit_message"])
@@ -86,6 +108,7 @@ def renku_op(self):
                 custom_metadata=custom_metadata,
                 custom_metadata_source=custom_metadata_source,
                 keywords=keywords,
+                image_request=image_request,
             )
         )
 
diff --git a/renku/ui/service/controllers/templates_create_project.py b/renku/ui/service/controllers/templates_create_project.py
index b3dc30e753..23712fecff 100644
--- a/renku/ui/service/controllers/templates_create_project.py
+++ b/renku/ui/service/controllers/templates_create_project.py
@@ -23,13 +23,15 @@
 
 from renku.command.init import create_from_template_local_command
 from renku.core import errors
+from renku.core.image import ImageObjectRequest
 from renku.core.template.template import fetch_templates_source
 from renku.core.util.contexts import renku_project_context
 from renku.domain_model.template import Template
 from renku.infrastructure.repository import Repository
-from renku.ui.service.config import MESSAGE_PREFIX
+from renku.ui.service.config import CACHE_UPLOADS_PATH, MESSAGE_PREFIX
 from renku.ui.service.controllers.api.abstract import ServiceCtrl
 from renku.ui.service.controllers.api.mixins import RenkuOperationMixin
+from renku.ui.service.controllers.utils.datasets import set_url_for_uploaded_images
 from renku.ui.service.errors import UserProjectCreationError, UserTemplateInvalidError
 from renku.ui.service.serializers.templates import ProjectTemplateRequest, ProjectTemplateResponseRPC
 from renku.ui.service.utils import new_repo_push
@@ -102,6 +104,7 @@ def setup_new_project(self):
             "owner": self.ctx["project_namespace"],
             "token": self.ctx["token"],
             "initialized": True,
+            "image": self.ctx["image"],
         }
         project = self.cache.make_project(self.user, new_project_data)
 
@@ -150,6 +153,18 @@ def new_project(self):
         new_project = self.setup_new_project()
         new_project_path = new_project.abs_path
 
+        image = self.ctx.get("image")
+        if image:
+            user_cache_dir = CACHE_UPLOADS_PATH / self.user.user_id
+            set_url_for_uploaded_images(images=[image], cache=self.cache, user=self.user)
+
+            image = ImageObjectRequest(
+                content_url=image["content_url"],
+                position=0,
+                mirror_locally=image.get("mirror_locally", False),
+                safe_image_paths=[user_cache_dir],
+            )
+
         with renku_project_context(new_project_path):
             create_from_template_local_command().build().execute(
                 self.template.path,
@@ -167,6 +182,7 @@ def new_project(self):
                 description=self.ctx["project_description"],
                 data_dir=self.ctx.get("data_directory"),
                 ssh_supported=self.template.ssh_supported,
+                image_request=image,
             )
 
         self.new_project_push(new_project_path)
diff --git a/renku/ui/service/serializers/datasets.py b/renku/ui/service/serializers/datasets.py
index a75569ae6a..c25537ec6f 100644
--- a/renku/ui/service/serializers/datasets.py
+++ b/renku/ui/service/serializers/datasets.py
@@ -20,7 +20,7 @@
 from renku.domain_model.dataset import DatasetCreatorsJson as DatasetCreators
 from renku.domain_model.dataset import DatasetDetailsJson as DatasetDetails
 from renku.domain_model.dataset import ImageObjectJson as ImageObject
-from renku.domain_model.dataset import ImageObjectRequestJson as ImageObjectRequest
+from renku.domain_model.dataset import ImageObjectRequestJson
 from renku.ui.service.serializers.common import (
     AsyncSchema,
     JobDetailsResponse,
@@ -40,7 +40,7 @@ class DatasetNameSchema(Schema):
 class DatasetDetailsRequest(DatasetDetails):
     """Request schema with dataset image information."""
 
-    images = fields.List(fields.Nested(ImageObjectRequest))
+    images = fields.List(fields.Nested(ImageObjectRequestJson))
 
     custom_metadata: fields.Field = fields.Dict()
 
@@ -200,7 +200,7 @@ class DatasetEditRequest(
     creators = fields.List(fields.Nested(DatasetCreators), metadata={"description": "New creators of the dataset"})
     keywords = fields.List(fields.String(), allow_none=True, metadata={"description": "New keywords for the dataset"})
     images = fields.List(
-        fields.Nested(ImageObjectRequest), allow_none=True, metadata={"description": "New dataset images"}
+        fields.Nested(ImageObjectRequestJson), allow_none=True, metadata={"description": "New dataset images"}
     )
     custom_metadata = fields.List(
         fields.Dict(), metadata={"description": "New custom metadata for the dataset"}, allow_none=True
diff --git a/renku/ui/service/serializers/project.py b/renku/ui/service/serializers/project.py
index e93fa1a41d..62e167ebcf 100644
--- a/renku/ui/service/serializers/project.py
+++ b/renku/ui/service/serializers/project.py
@@ -19,6 +19,7 @@
 from marshmallow.schema import Schema
 
 from renku.domain_model.dataset import DatasetCreatorsJson as DatasetCreators
+from renku.domain_model.dataset import ImageObjectRequestJson
 from renku.ui.service.serializers.common import (
     AsyncSchema,
     MigrateSchema,
@@ -78,6 +79,7 @@ class ProjectEditRequest(AsyncSchema, RemoteRepositorySchema, MigrateSchema):
         metadata={"description": "The source for the JSON-LD metadata"},
     )
     keywords = fields.List(fields.String(), allow_none=True, metadata={"description": "New keyword(s) for the project"})
+    image = fields.Nested(ImageObjectRequestJson, allow_none=True, metadata={"description": "Image for the project"})
 
 
 class ProjectEditResponse(RenkuSyncSchema):
diff --git a/renku/ui/service/serializers/templates.py b/renku/ui/service/serializers/templates.py
index 783f5ca519..3dd7096ac3 100644
--- a/renku/ui/service/serializers/templates.py
+++ b/renku/ui/service/serializers/templates.py
@@ -23,6 +23,7 @@
 from yagup.exceptions import InvalidURL
 
 from renku.core.util.os import normalize_to_ascii
+from renku.domain_model.dataset import ImageObjectRequestJson
 from renku.ui.service.config import TEMPLATE_CLONE_DEPTH_DEFAULT
 from renku.ui.service.serializers.cache import ProjectCloneContext, RepositoryCloneRequest
 from renku.ui.service.serializers.rpc import JsonRPCResponse
@@ -70,6 +71,7 @@ class ProjectTemplateRequest(ProjectCloneContext, ManifestTemplatesRequest):
     data_directory = fields.String(
         load_default=None, metadata={"description": "Base dataset data directory in project. Defaults to 'data/'"}
     )
+    image = fields.Nested(ImageObjectRequestJson, load_default=None)
 
     @post_load()
     def add_required_fields(self, data, **kwargs):
diff --git a/renku/ui/service/views/error_handlers.py b/renku/ui/service/views/error_handlers.py
index 0e828d6f0c..5babc2d8ad 100644
--- a/renku/ui/service/views/error_handlers.py
+++ b/renku/ui/service/views/error_handlers.py
@@ -360,7 +360,7 @@ def decorated_function(*args, **kwargs):
             error_message = str(e)
             if "Duplicate dataset image" in error_message:
                 raise UserDatasetsMultipleImagesError(e)
-            elif "couldn't be mirrored" in error_message:
+            elif "Cannot download image with url" in error_message:
                 raise UserDatasetsUnreachableImageError(e)
             raise
         except ValidationError as e:
diff --git a/tests/cli/test_init.py b/tests/cli/test_init.py
index 12538aeeee..6ccb7257a9 100644
--- a/tests/cli/test_init.py
+++ b/tests/cli/test_init.py
@@ -471,3 +471,45 @@ def test_init_with_description(isolated_runner, template):
     result = isolated_runner.invoke(cli, ["graph", "export", "--strict"])
     assert 0 == result.exit_code, format_result_exception(result)
     assert "my project description" in result.output
+
+
+@pytest.mark.parametrize(
+    "image",
+    [Path(__file__).parent / ".." / "data" / "renku.png", "https://en.wikipedia.org/static/images/icons/wikipedia.png"],
+)
+def test_init_with_image(isolated_runner, template, image):
+    """Test project initialization with image."""
+    result = isolated_runner.invoke(cli, ["init", "--image", image, "new-project", "-t", template["id"]])
+
+    assert 0 == result.exit_code, format_result_exception(result)
+
+    project = Database.from_path(Path("new-project") / ".renku" / "metadata").get("project")
+
+    assert (Path("new-project") / ".renku" / "images" / "project" / "0.png").exists()
+    assert ".renku/images/project/0.png" == project.image.content_url
+    assert 0 == project.image.position
+
+
+@pytest.mark.parametrize(
+    "image, error",
+    [
+        ("non-existing.png", "Image with local path"),
+        ("/non-existing", "Image with local path"),
+        ("https://example.com/non-existing.png", "Cannot download image with url"),
+    ],
+)
+def test_init_with_non_existing_image(isolated_runner, template, image, error):
+    """Test project initialization fails when the image doesn't exist."""
+    result = isolated_runner.invoke(cli, ["init", "--image", image, "new-project", "-t", template["id"]])
+
+    assert 1 == result.exit_code, format_result_exception(result)
+    assert error in result.output
+
+
+@pytest.mark.parametrize("image", [Path(__file__).parent / ".." / "data" / "workflow-file.yml", "/etc/passwd"])
+def test_init_with_non_image_files(isolated_runner, template, image):
+    """Test project initialization fails when the file isn't an image format."""
+    result = isolated_runner.invoke(cli, ["init", "--image", image, "new-project", "-t", template["id"]])
+
+    assert 1 == result.exit_code, format_result_exception(result)
+    assert "isn't a valid image file" in result.output
diff --git a/tests/cli/test_integration_datasets.py b/tests/cli/test_integration_datasets.py
index c6974d81c9..191eabaee5 100644
--- a/tests/cli/test_integration_datasets.py
+++ b/tests/cli/test_integration_datasets.py
@@ -208,7 +208,7 @@ def test_dataset_import_real_doi_warnings(runner, project, sleep_after):
 
     result = runner.invoke(cli, ["dataset", "ls"])
     assert 0 == result.exit_code, format_result_exception(result) + str(result.stderr_bytes)
-    assert "pyndl_naive_discr_v1.1.1" in result.output
+    assert "pyndl_naive_discr_v1.1.2" in result.output
 
 
 @pytest.mark.parametrize(
diff --git a/tests/cli/test_migrate.py b/tests/cli/test_migrate.py
index 3ba1158662..16243fc9fd 100644
--- a/tests/cli/test_migrate.py
+++ b/tests/cli/test_migrate.py
@@ -371,7 +371,7 @@ def test_commands_fail_on_old_repository(isolated_runner, old_repository_with_su
         ["doctor"],
         ["githooks", "install"],
         ["help"],
-        ["init", "-i", "1", "--force"],
+        ["init", "-t", "python-minimal", "--force"],
         ["storage", "check"],
     ],
 )
diff --git a/tests/cli/test_project.py b/tests/cli/test_project.py
index 25a46f6b99..9aecff17d9 100644
--- a/tests/cli/test_project.py
+++ b/tests/cli/test_project.py
@@ -17,6 +17,7 @@
 """Test ``project`` command."""
 
 import json
+from pathlib import Path
 
 import pytest
 
@@ -68,17 +69,21 @@ def test_project_edit(runner, project, subdirectory, with_injection):
             "keyword1",
             "-k",
             "keyword2",
+            "--image",
+            Path(__file__).parent / ".." / "data" / "renku.png",
         ],
     )
 
     assert 0 == result.exit_code, format_result_exception(result)
-    assert "Successfully updated: creator, description, keywords, custom_metadata." in result.output
+    assert "Successfully updated: creator, description, keywords, custom_metadata, image." in result.output
     assert "Warning: No email or wrong format for: Forename Surname" in result.output
 
     assert project.repository.is_dirty()
     commit_sha_after = project.repository.head.commit.hexsha
     assert commit_sha_before != commit_sha_after
 
+    assert (project.path / ".renku" / "images" / "project" / "0.png").exists()
+
     with with_injection():
         project_gateway = ProjectGateway()
         project = project_gateway.get_project()
@@ -99,6 +104,9 @@ def test_project_edit(runner, project, subdirectory, with_injection):
     assert "Renku Version:" in result.output
     assert "Keywords:" in result.output
 
+    assert ".renku/images/project/0.png" == project.image.content_url
+    assert 0 == project.image.position
+
     result = runner.invoke(cli, ["graph", "export", "--format", "json-ld", "--strict"])
     assert 0 == result.exit_code, format_result_exception(result)
 
@@ -148,27 +156,33 @@ def test_project_edit_unset(runner, project, subdirectory, with_injection):
             "keyword1",
             "-k",
             "keyword2",
+            "--image",
+            Path(__file__).parent / ".." / "data" / "renku.png",
         ],
     )
 
     assert 0 == result.exit_code, format_result_exception(result)
-    assert "Successfully updated: creator, description, keywords, custom_metadata." in result.output
+    assert "Successfully updated: creator, description, keywords, custom_metadata, image." in result.output
     assert "Warning: No email or wrong format for: Forename Surname" in result.output
 
     commit_sha_before = project.repository.head.commit.hexsha
 
+    assert (project.path / ".renku" / "images" / "project" / "0.png").exists()
+
     result = runner.invoke(
         cli,
-        ["project", "edit", "-u", "keywords", "-u", "metadata"],
+        ["project", "edit", "-u", "keywords", "-u", "metadata", "-u", "image"],
     )
 
     assert 0 == result.exit_code, format_result_exception(result)
-    assert "Successfully updated: keywords, custom_metadata." in result.output
+    assert "Successfully updated: keywords, custom_metadata, image." in result.output
 
     assert project.repository.is_dirty()
     commit_sha_after = project.repository.head.commit.hexsha
     assert commit_sha_before != commit_sha_after
 
+    assert not (project.path / ".renku" / "images" / "project" / "0.png").exists()
+
     with with_injection():
         project_gateway = ProjectGateway()
         project = project_gateway.get_project()
@@ -185,6 +199,8 @@ def test_project_edit_unset(runner, project, subdirectory, with_injection):
     assert "Renku Version:" in result.output
     assert "Keywords:" in result.output
 
+    assert project.image is None
+
     result = runner.invoke(cli, ["graph", "export", "--format", "json-ld", "--strict"])
     assert 0 == result.exit_code, format_result_exception(result)
 
diff --git a/tests/core/commands/test_graph.py b/tests/core/commands/test_graph.py
index 65ca13a124..1149d5003d 100644
--- a/tests/core/commands/test_graph.py
+++ b/tests/core/commands/test_graph.py
@@ -336,7 +336,10 @@ def test_graph_export_full():
 
     project_gateway = MagicMock(spec=IProjectGateway)
     project_gateway.get_project.return_value = MagicMock(
-        spec=Project, id="/projects/my-project", date_created=datetime.fromisoformat("2022-07-12T16:29:14+02:00")
+        spec=Project,
+        id="/projects/my-project",
+        date_created=datetime.fromisoformat("2022-07-12T16:29:14+02:00"),
+        image=None,
     )
 
     result = get_graph_for_all_objects(
diff --git a/tests/core/fixtures/core_database.py b/tests/core/fixtures/core_database.py
index 95036003a4..6ad79180a0 100644
--- a/tests/core/fixtures/core_database.py
+++ b/tests/core/fixtures/core_database.py
@@ -78,7 +78,7 @@ def database() -> Iterator[Tuple["Database", DummyStorage]]:
 
 @pytest.fixture
 def with_injection():
-    """Factory fixture for test injections manager."""
+    """Factory fixture for test injection manager."""
     from renku.command.command_builder.command import inject, remove_injector
     from renku.domain_model.project_context import project_context
 
diff --git a/tests/data/renku.png b/tests/data/renku.png
new file mode 100644
index 0000000000..b3518b1a18
Binary files /dev/null and b/tests/data/renku.png differ
diff --git a/tests/service/views/test_exceptions.py b/tests/service/views/test_exceptions.py
index e6f96822da..868bd780b0 100644
--- a/tests/service/views/test_exceptions.py
+++ b/tests/service/views/test_exceptions.py
@@ -184,7 +184,7 @@ def test_project_no_commits(svc_client, it_no_commit_repo_url, identity_headers)
 
 @pytest.mark.service
 @pytest.mark.integration
-# @retry_failed
+@retry_failed
 @pytest.mark.parametrize(
     "git_url",
     [
diff --git a/tests/service/views/test_project_views.py b/tests/service/views/test_project_views.py
index 5c256220ee..8bb0177b13 100644
--- a/tests/service/views/test_project_views.py
+++ b/tests/service/views/test_project_views.py
@@ -92,6 +92,7 @@ def test_edit_project_view(svc_client_with_repo, custom_metadata, custom_metadat
         "description": "my new title",
         "creator": {"name": "name123", "email": "name123@ethz.ch", "affiliation": "ethz"},
         "custom_metadata": custom_metadata,
+        "image": {"content_url": "https://en.wikipedia.org/static/images/icons/wikipedia.png"},
     }
     if custom_metadata_source is not None:
         edit_payload["custom_metadata_source"] = custom_metadata_source
@@ -103,6 +104,11 @@ def test_edit_project_view(svc_client_with_repo, custom_metadata, custom_metadat
         "description": "my new title",
         "creator": {"name": "name123", "email": "name123@ethz.ch", "affiliation": "ethz"},
         "custom_metadata": custom_metadata,
+        "image": {
+            "content_url": "https://en.wikipedia.org/static/images/icons/wikipedia.png",
+            "mirror_locally": False,
+            "position": 0,
+        },
     } == response.json["result"]["edited"]
 
     edit_payload = {
@@ -112,7 +118,7 @@ def test_edit_project_view(svc_client_with_repo, custom_metadata, custom_metadat
 
     assert_rpc_response(response)
     assert {"warning", "edited", "remote_branch"} == set(response.json["result"])
-    assert 0 == len(response.json["result"]["edited"])
+    assert 0 == len(response.json["result"]["edited"]), response.json["result"]["edited"]
 
 
 @pytest.mark.service
@@ -135,10 +141,11 @@ def test_edit_project_view_unset(svc_client_with_repo):
                 "https://schema.org/property2": "test",
             }
         ],
+        "image": {"content_url": "https://en.wikipedia.org/static/images/icons/wikipedia.png"},
     }
-    response = svc_client.post("/project.edit", data=json.dumps(edit_payload), headers=headers)
+    svc_client.post("/project.edit", data=json.dumps(edit_payload), headers=headers)
 
-    edit_payload = {"git_url": url_components.href, "custom_metadata": None, "keywords": None}
+    edit_payload = {"git_url": url_components.href, "custom_metadata": None, "keywords": None, "image": None}
     response = svc_client.post("/project.edit", data=json.dumps(edit_payload), headers=headers)
 
     assert_rpc_response(response)
@@ -146,6 +153,7 @@ def test_edit_project_view_unset(svc_client_with_repo):
     assert {
         "keywords": None,
         "custom_metadata": None,
+        "image": None,
     } == response.json[
         "result"
     ]["edited"]
diff --git a/tests/service/views/test_templates_views.py b/tests/service/views/test_templates_views.py
index 3e26292fc5..e066b8a889 100644
--- a/tests/service/views/test_templates_views.py
+++ b/tests/service/views/test_templates_views.py
@@ -131,6 +131,10 @@ def test_create_project_from_template(svc_client_templates_creation, with_inject
     svc_client, headers, payload, rm_remote = svc_client_templates_creation
 
     payload["data_directory"] = "my-folder/"
+    payload["image"] = {
+        "content_url": "https://en.wikipedia.org/static/images/icons/wikipedia.png",
+        "mirror_locally": True,
+    }
 
     response = svc_client.post("/templates.create_project", data=json.dumps(payload), headers=headers)
 
@@ -163,6 +167,8 @@ def test_create_project_from_template(svc_client_templates_creation, with_inject
     assert old_metadata_path.exists()
     assert "'http://schema.org/schemaVersion': '9'" in old_metadata_path.read_text()
 
+    assert (project_path / ".renku" / "images" / "project" / "0.png").exists()
+
     # NOTE:  successfully re-use old name after cleanup
     assert rm_remote() is True
     sleep(1)  # NOTE: sleep to make sure remote isn't locked