diff --git a/Plugins/LexicalInlineImagePlugin/LexicalInlineImagePluginTests/InlineImageTests.swift b/Plugins/LexicalInlineImagePlugin/LexicalInlineImagePluginTests/InlineImageTests.swift
new file mode 100644
index 0000000..433890d
--- /dev/null
+++ b/Plugins/LexicalInlineImagePlugin/LexicalInlineImagePluginTests/InlineImageTests.swift
@@ -0,0 +1,64 @@
+/*
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+@testable import Lexical
+@testable import LexicalInlineImagePlugin
+import XCTest
+
+class InlineImageTests: XCTestCase {
+  var view: LexicalView?
+  var editor: Editor {
+    get {
+      guard let editor = view?.editor else {
+        XCTFail("Editor unexpectedly nil")
+        fatalError()
+      }
+      return editor
+    }
+  }
+
+  override func setUp() {
+    view = LexicalView(editorConfig: EditorConfig(theme: Theme(), plugins: [InlineImagePlugin()]), featureFlags: FeatureFlags())
+  }
+
+  override func tearDown() {
+    view = nil
+  }
+
+  func testNewParaAfterImage() throws {
+    try editor.update {
+      let imageNode = ImageNode(url: "https://example.com/image.png", size: CGSize(width: 300, height: 300), sourceID: "")
+      let textNode1 = TextNode(text: "123")
+      let textNode2 = TextNode(text: "456")
+      if let selection = try getSelection() {
+        _ = try selection.insertNodes(nodes: [textNode1, imageNode, textNode2], selectStart: false)
+      }
+
+      guard let root = getRoot() else {
+        XCTFail()
+        return
+      }
+      XCTAssertEqual(root.getChildrenSize(), 1, "Root should have 1 child (paragraph)")
+
+      let newSelection = RangeSelection(anchor: Point(key: textNode2.getKey(), offset: 0, type: .text), focus: Point(key: textNode2.getKey(), offset: 0, type: .text), format: TextFormat())
+      try newSelection.insertParagraph()
+
+      XCTAssertEqual(root.getChildrenSize(), 2, "Root should now have 2 paragraphs")
+
+      let firstPara = root.getChildren()[0] as? ParagraphNode
+      let secondPara = root.getChildren()[1] as? ParagraphNode
+
+      guard let firstPara, let secondPara else {
+        XCTFail()
+        return
+      }
+
+      XCTAssertEqual(firstPara.getChildrenSize(), 2, "First para should contain 1 text node and 1 image node")
+      XCTAssertEqual(secondPara.getChildrenSize(), 1, "Second para should contain 1 text node")
+    }
+  }
+}