diff --git a/server/templaterenderer/issue_test.go b/server/templaterenderer/issue_test.go
index 1d30416..0ac8931 100644
--- a/server/templaterenderer/issue_test.go
+++ b/server/templaterenderer/issue_test.go
@@ -100,4 +100,18 @@ func TestIssueTemplates(t *testing.T) {
 		require.NoError(t, err)
 		require.Equal(t, expected, actual)
 	})
+
+	t.Run("RenderIssueCreatedEventNotificationForSubscribedChannels_WithImage", func(t *testing.T) {
+		// Test that images in issue descriptions are properly converted to markdown
+		// and don't leave orphan '>' blockquote characters
+		expected := "\n#### Bug with image attachment" +
+			"\n##### [\\[mattermost-plugin-bitbucket#2\\]](https://bitbucket.org/mattermost/mattermost-plugin-bitbucket/issues/2/bug-with-image)" +
+			"\n#new-issue by @testMmUser:" +
+			"\n>Here is a screenshot:![screenshot](https://bitbucket.org/repo/attachments/image.png)\n"
+
+		actual, err := tr.RenderIssueCreatedEventNotificationForSubscribedChannels(getTestIssueCreatedPayloadWithImage())
+
+		require.NoError(t, err)
+		require.Equal(t, expected, actual)
+	})
 }
diff --git a/server/templaterenderer/template.go b/server/templaterenderer/template.go
index e48572b..bd7242c 100644
--- a/server/templaterenderer/template.go
+++ b/server/templaterenderer/template.go
@@ -113,7 +113,23 @@ func (tr *templateRenderer) init() {
 			selection.SetText(bitbucketNickname)
 		})
 
+		// Convert img tags to markdown image syntax to preserve images in the output
+		// This fixes the issue where images in descriptions cause '>' to appear in posts
+		doc.Find("img").Each(func(i int, selection *goquery.Selection) {
+			src := selection.AttrOr("src", "")
+			alt := selection.AttrOr("alt", "image")
+			if src != "" {
+				// Replace the img tag with markdown image syntax as plain text
+				markdownImg := "![" + alt + "](" + src + ")"
+				selection.ReplaceWithHtml(markdownImg)
+			} else {
+				// Remove img tags without src to prevent empty lines
+				selection.Remove()
+			}
+		})
+
 		// Text() returns only text, without HTML attributes or tags
+		// The markdown image syntax we inserted will be preserved since it's plain text
 		return doc.Text()
 	}
 
diff --git a/server/templaterenderer/template_fixture_test.go b/server/templaterenderer/template_fixture_test.go
index 99bc830..1f692b0 100644
--- a/server/templaterenderer/template_fixture_test.go
+++ b/server/templaterenderer/template_fixture_test.go
@@ -56,6 +56,16 @@ func getTestIssue() webhookpayload.Issue {
 	return issue
 }
 
+func getTestIssueWithImage() webhookpayload.Issue {
+	issue := webhookpayload.Issue{}
+	issue.ID = 2
+	issue.Title = "Bug with image attachment"
+	issue.Content.HTML = "<p>Here is a screenshot:</p><p><img src=\"https://bitbucket.org/repo/attachments/image.png\" alt=\"screenshot\"></p>"
+	issue.Links.HTML.Href = "https://bitbucket.org/mattermost/mattermost-plugin-bitbucket/issues/2/bug-with-image"
+
+	return issue
+}
+
 func getTestIssueCreatedPayload() webhookpayload.IssueCreatedPayload {
 	return webhookpayload.IssueCreatedPayload{
 		Repository: getTestRepository(),
@@ -64,6 +74,14 @@ func getTestIssueCreatedPayload() webhookpayload.IssueCreatedPayload {
 	}
 }
 
+func getTestIssueCreatedPayloadWithImage() webhookpayload.IssueCreatedPayload {
+	return webhookpayload.IssueCreatedPayload{
+		Repository: getTestRepository(),
+		Actor:      getTestOwnerThatHasMmAccount(),
+		Issue:      getTestIssueWithImage(),
+	}
+}
+
 func getTestIssueUpdatedPayload() webhookpayload.IssueUpdatedPayload {
 	return webhookpayload.IssueUpdatedPayload{
 		Repository: getTestRepository(),