diff --git a/.changeset/old-islands-invite.md b/.changeset/old-islands-invite.md
new file mode 100644
index 00000000..0a4b5586
--- /dev/null
+++ b/.changeset/old-islands-invite.md
@@ -0,0 +1,5 @@
+---
+"open-next": patch
+---
+
+Fix Image Optimization Support for Next@14.1.1
diff --git a/examples/app-pages-router/app/image-optimization/page.tsx b/examples/app-pages-router/app/image-optimization/page.tsx
new file mode 100644
index 00000000..f43655af
--- /dev/null
+++ b/examples/app-pages-router/app/image-optimization/page.tsx
@@ -0,0 +1,14 @@
+import Image from "next/image";
+
+export default function ImageOptimization() {
+  return (
+    <div>
+      <Image
+        src="/static/corporate_holiday_card.jpg"
+        alt="Corporate Holiday Card"
+        width={300}
+        height={300}
+      />
+    </div>
+  );
+}
diff --git a/examples/app-pages-router/app/page.tsx b/examples/app-pages-router/app/page.tsx
index 0fd02970..1b32a5c3 100644
--- a/examples/app-pages-router/app/page.tsx
+++ b/examples/app-pages-router/app/page.tsx
@@ -33,6 +33,9 @@ export default function Home() {
         <Nav href={"/parallel"} title="Parallel">
           Parallel routing
         </Nav>
+        <Nav href={"/image-optimization"} title="Image Optimization">
+          Image Optimization with next/image
+        </Nav>
       </main>
       <h1>Pages Router</h1>
       <main className="grid grid-cols-2 gap-4 p-10 [&>a]:border">
diff --git a/examples/app-pages-router/public/static/corporate_holiday_card.jpg b/examples/app-pages-router/public/static/corporate_holiday_card.jpg
new file mode 100644
index 00000000..0df96ae2
Binary files /dev/null and b/examples/app-pages-router/public/static/corporate_holiday_card.jpg differ
diff --git a/examples/app-router/app/image-optimization/page.tsx b/examples/app-router/app/image-optimization/page.tsx
new file mode 100644
index 00000000..baba473b
--- /dev/null
+++ b/examples/app-router/app/image-optimization/page.tsx
@@ -0,0 +1,14 @@
+import Image from "next/image";
+
+export default function ImageOptimization() {
+  return (
+    <div>
+      <Image
+        src="https://open-next.js.org/architecture.png"
+        alt="Open Next architecture"
+        width={300}
+        height={300}
+      />
+    </div>
+  );
+}
diff --git a/examples/app-router/app/page.tsx b/examples/app-router/app/page.tsx
index 66da3ac8..f2084c5d 100644
--- a/examples/app-router/app/page.tsx
+++ b/examples/app-router/app/page.tsx
@@ -44,6 +44,9 @@ export default function Home() {
         <Nav href={"/sse"} title="Server Sent Events">
           Server Sent Events via Streaming
         </Nav>
+        <Nav href={"/image-optimization"} title="Image Optimization">
+          Image Optimization with next/image
+        </Nav>
       </main>
     </>
   );
diff --git a/examples/app-router/next.config.js b/examples/app-router/next.config.js
index 44797914..ce0565a8 100644
--- a/examples/app-router/next.config.js
+++ b/examples/app-router/next.config.js
@@ -8,6 +8,14 @@ const nextConfig = {
   experimental: {
     serverActions: true,
   },
+  images: {
+    remotePatterns: [
+      {
+        protocol: "https",
+        hostname: "open-next.js.org",
+      },
+    ],
+  },
   redirects: () => {
     return [
       {
diff --git a/examples/app-router/public/static/corporate_holiday_card.jpg b/examples/app-router/public/static/corporate_holiday_card.jpg
new file mode 100644
index 00000000..0df96ae2
Binary files /dev/null and b/examples/app-router/public/static/corporate_holiday_card.jpg differ
diff --git a/packages/open-next/src/adapters/image-optimization-adapter.ts b/packages/open-next/src/adapters/image-optimization-adapter.ts
index f5fbb26b..dc7b920e 100644
--- a/packages/open-next/src/adapters/image-optimization-adapter.ts
+++ b/packages/open-next/src/adapters/image-optimization-adapter.ts
@@ -14,7 +14,6 @@ import type {
 // @ts-ignore
 import { defaultConfig } from "next/dist/server/config-shared";
 import {
-  imageOptimizer,
   ImageOptimizerCache,
   // @ts-ignore
 } from "next/dist/server/image-optimizer";
@@ -23,6 +22,7 @@ import type { NextUrlWithParsedQuery } from "next/dist/server/request-meta";
 
 import { loadConfig } from "./config/util.js";
 import { awsLogger, debug, error } from "./logger.js";
+import { optimizeImage } from "./plugins/image-optimization.js";
 import { setNodeEnv } from "./util.js";
 
 // Expected environment variables
@@ -64,7 +64,12 @@ export async function handler(
       headers,
       queryString === null ? undefined : queryString,
     );
-    const result = await optimizeImage(headers, imageParams);
+    const result = await optimizeImage(
+      headers,
+      imageParams,
+      nextConfig,
+      downloadHandler,
+    );
 
     return buildSuccessResponse(result);
   } catch (e: any) {
@@ -110,23 +115,6 @@ function validateImageParams(
   return imageParams;
 }
 
-async function optimizeImage(
-  headers: APIGatewayProxyEventHeaders,
-  imageParams: any,
-) {
-  const result = await imageOptimizer(
-    // @ts-ignore
-    { headers },
-    {}, // res object is not necessary as it's not actually used.
-    imageParams,
-    nextConfig,
-    false, // not in dev mode
-    downloadHandler,
-  );
-  debug("optimized result", result);
-  return result;
-}
-
 function buildSuccessResponse(result: any) {
   return {
     statusCode: 200,
diff --git a/packages/open-next/src/adapters/plugins/image-optimization.replacement.ts b/packages/open-next/src/adapters/plugins/image-optimization.replacement.ts
new file mode 100644
index 00000000..c041f370
--- /dev/null
+++ b/packages/open-next/src/adapters/plugins/image-optimization.replacement.ts
@@ -0,0 +1,51 @@
+import type { IncomingMessage, ServerResponse } from "node:http";
+
+import type { APIGatewayProxyEventHeaders } from "aws-lambda";
+import type { NextConfig } from "next/dist/server/config-shared";
+//#override imports
+import {
+  // @ts-ignore
+  fetchExternalImage,
+  // @ts-ignore
+  fetchInternalImage,
+  imageOptimizer,
+} from "next/dist/server/image-optimizer";
+//#endOverride
+import type { NextUrlWithParsedQuery } from "next/dist/server/request-meta";
+
+import { debug } from "../logger.js";
+
+//#override optimizeImage
+export async function optimizeImage(
+  headers: APIGatewayProxyEventHeaders,
+  imageParams: any,
+  nextConfig: NextConfig,
+  handleRequest: (
+    newReq: IncomingMessage,
+    newRes: ServerResponse,
+    newParsedUrl?: NextUrlWithParsedQuery,
+  ) => Promise<void>,
+) {
+  const { isAbsolute, href } = imageParams;
+
+  const imageUpstream = isAbsolute
+    ? await fetchExternalImage(href)
+    : await fetchInternalImage(
+        href,
+        // @ts-ignore
+        { headers },
+        {}, // res object is not necessary as it's not actually used.
+        handleRequest,
+      );
+
+  // @ts-ignore
+  const result = await imageOptimizer(
+    imageUpstream,
+    imageParams,
+    nextConfig,
+    false, // not in dev mode
+  );
+  debug("optimized result", result);
+  return result;
+}
+//#endOverride
diff --git a/packages/open-next/src/adapters/plugins/image-optimization.ts b/packages/open-next/src/adapters/plugins/image-optimization.ts
new file mode 100644
index 00000000..8cbedbd0
--- /dev/null
+++ b/packages/open-next/src/adapters/plugins/image-optimization.ts
@@ -0,0 +1,35 @@
+import { IncomingMessage, ServerResponse } from "node:http";
+
+import { APIGatewayProxyEventHeaders } from "aws-lambda";
+import { NextConfig } from "next/dist/server/config-shared";
+//#override imports
+import { imageOptimizer } from "next/dist/server/image-optimizer";
+//#endOverride
+import { NextUrlWithParsedQuery } from "next/dist/server/request-meta";
+
+import { debug } from "../logger.js";
+
+//#override optimizeImage
+export async function optimizeImage(
+  headers: APIGatewayProxyEventHeaders,
+  imageParams: any,
+  nextConfig: NextConfig,
+  handleRequest: (
+    newReq: IncomingMessage,
+    newRes: ServerResponse,
+    newParsedUrl: NextUrlWithParsedQuery,
+  ) => Promise<void>,
+) {
+  const result = await imageOptimizer(
+    // @ts-ignore
+    { headers },
+    {}, // res object is not necessary as it's not actually used.
+    imageParams,
+    nextConfig,
+    false, // not in dev mode
+    handleRequest,
+  );
+  debug("optimized result", result);
+  return result;
+}
+//#endOverride
diff --git a/packages/open-next/src/build.ts b/packages/open-next/src/build.ts
index 63da181e..4453d5ed 100755
--- a/packages/open-next/src/build.ts
+++ b/packages/open-next/src/build.ts
@@ -112,7 +112,7 @@ export async function build(opts: BuildOptions = {}) {
   }
   await createServerBundle(monorepoRoot, options.streaming);
   createRevalidationBundle();
-  createImageOptimizationBundle();
+  await createImageOptimizationBundle();
   createWarmerBundle();
   if (options.minify) {
     await minifyServerBundle();
@@ -315,7 +315,7 @@ function createRevalidationBundle() {
   );
 }
 
-function createImageOptimizationBundle() {
+async function createImageOptimizationBundle() {
   logger.info(`Bundling image optimization function...`);
 
   const { appPath, appBuildOutputPath, outputDir } = options;
@@ -324,16 +324,36 @@ function createImageOptimizationBundle() {
   const outputPath = path.join(outputDir, "image-optimization-function");
   fs.mkdirSync(outputPath, { recursive: true });
 
+  const plugins =
+    compareSemver(options.nextVersion, "14.1.1") >= 0
+      ? [
+          openNextPlugin({
+            name: "opennext-14.1.1-image-optimization",
+            target: /plugins\/image-optimization\.js/g,
+            replacements: ["./image-optimization.replacement.js"],
+          }),
+        ]
+      : undefined;
+
+  if (plugins && plugins.length > 0) {
+    logger.debug(
+      `Applying plugins:: [${plugins
+        .map(({ name }) => name)
+        .join(",")}] for Next version: ${options.nextVersion}`,
+    );
+  }
+
   // Build Lambda code (1st pass)
   // note: bundle in OpenNext package b/c the adapter relies on the
   //       "@aws-sdk/client-s3" package which is not a dependency in user's
   //       Next.js app.
-  esbuildSync({
+  await esbuildAsync({
     entryPoints: [
       path.join(__dirname, "adapters", "image-optimization-adapter.js"),
     ],
     external: ["sharp", "next"],
     outfile: path.join(outputPath, "index.mjs"),
+    plugins,
   });
 
   // Build Lambda code (2nd pass)
@@ -367,7 +387,7 @@ function createImageOptimizationBundle() {
   // For SHARP_IGNORE_GLOBAL_LIBVIPS see: https://github.com/lovell/sharp/blob/main/docs/install.md#aws-lambda
 
   const nodeOutputPath = path.resolve(outputPath);
-  const sharpVersion = process.env.SHARP_VERSION ?? "0.33.2";
+  const sharpVersion = process.env.SHARP_VERSION ?? "0.32.6";
 
   //check if we are running in Windows environment then set env variables accordingly.
   try {
diff --git a/packages/tests-e2e/tests/appPagesRouter/image-optimization.test.ts b/packages/tests-e2e/tests/appPagesRouter/image-optimization.test.ts
new file mode 100644
index 00000000..c26cfe6e
--- /dev/null
+++ b/packages/tests-e2e/tests/appPagesRouter/image-optimization.test.ts
@@ -0,0 +1,20 @@
+import { expect, test } from "@playwright/test";
+
+test("Image Optimization", async ({ page }) => {
+  await page.goto("/");
+
+  const imageResponsePromise = page.waitForResponse(
+    /corporate_holiday_card.jpg/,
+  );
+  await page.locator('[href="/image-optimization"]').click();
+  const imageResponse = await imageResponsePromise;
+
+  await page.waitForURL("/image-optimization");
+
+  const imageContentType = imageResponse.headers()["content-type"];
+  expect(imageContentType).toBe("image/webp");
+
+  let el = page.locator("img");
+  await expect(el).toHaveJSProperty("complete", true);
+  await expect(el).not.toHaveJSProperty("naturalWidth", 0);
+});
diff --git a/packages/tests-e2e/tests/appRouter/image-optimization.test.ts b/packages/tests-e2e/tests/appRouter/image-optimization.test.ts
new file mode 100644
index 00000000..66eb64ad
--- /dev/null
+++ b/packages/tests-e2e/tests/appRouter/image-optimization.test.ts
@@ -0,0 +1,20 @@
+import { expect, test } from "@playwright/test";
+
+test("Image Optimization", async ({ page }) => {
+  await page.goto("/");
+
+  const imageResponsePromise = page.waitForResponse(
+    /https%3A%2F%2Fopen-next.js.org%2Farchitecture.png/,
+  );
+  await page.locator('[href="/image-optimization"]').click();
+  const imageResponse = await imageResponsePromise;
+
+  await page.waitForURL("/image-optimization");
+
+  const imageContentType = imageResponse.headers()["content-type"];
+  expect(imageContentType).toBe("image/webp");
+
+  let el = page.locator("img");
+  await expect(el).toHaveJSProperty("complete", true);
+  await expect(el).not.toHaveJSProperty("naturalWidth", 0);
+});