diff --git a/docs/servers/icons.mdx b/docs/servers/icons.mdx
index f14b4d6f5..838dd8739 100644
--- a/docs/servers/icons.mdx
+++ b/docs/servers/icons.mdx
@@ -115,6 +115,7 @@ For small icons or when you want to embed the icon directly, use data URIs:
 
 ```python
 from mcp.types import Icon
+from fastmcp.utilities.types import Image
 
 # SVG icon as data URI
 svg_icon = Icon(
@@ -126,4 +127,13 @@ svg_icon = Icon(
 def my_tool() -> str:
     """A tool with an embedded SVG icon."""
     return "result"
+
+# Generating a data URI from a local image file.
+img = Image(path="./assets/brand/favicon.png")
+icon = Icon(src=img.to_data_uri())
+
+@mcp.tool(icons=[icon])
+def file_icon_tool() -> str:
+    """A tool with an icon generated from a local file."""
+    return "result"
 ```
diff --git a/src/fastmcp/utilities/types.py b/src/fastmcp/utilities/types.py
index a41ce6ccc..6bbdab6fc 100644
--- a/src/fastmcp/utilities/types.py
+++ b/src/fastmcp/utilities/types.py
@@ -190,34 +190,33 @@ class Image:
         if path is not None and data is not None:
             raise ValueError("Only one of path or data can be provided")
 
-        self.path = Path(os.path.expandvars(str(path))).expanduser() if path else None
+        self.path = self._get_expanded_path(path)
         self.data = data
         self._format = format
         self._mime_type = self._get_mime_type()
         self.annotations = annotations
 
+    @staticmethod
+    def _get_expanded_path(path: str | Path | None) -> Path | None:
+        """Expand environment variables and user home in path."""
+        return Path(os.path.expandvars(str(path))).expanduser() if path else None
+
     def _get_mime_type(self) -> str:
         """Get MIME type from format or guess from file extension."""
         if self._format:
             return f"image/{self._format.lower()}"
 
         if self.path:
-            suffix = self.path.suffix.lower()
-            return {
-                ".png": "image/png",
-                ".jpg": "image/jpeg",
-                ".jpeg": "image/jpeg",
-                ".gif": "image/gif",
-                ".webp": "image/webp",
-            }.get(suffix, "application/octet-stream")
+            # Workaround for WEBP in Py3.10
+            mimetypes.add_type("image/webp", ".webp")
+            resp = mimetypes.guess_type(self.path, strict=False)
+            if resp and resp[0] is not None:
+                return resp[0]
+            return "application/octet-stream"
         return "image/png"  # default for raw binary data
 
-    def to_image_content(
-        self,
-        mime_type: str | None = None,
-        annotations: Annotations | None = None,
-    ) -> mcp.types.ImageContent:
-        """Convert to MCP ImageContent."""
+    def _get_data(self) -> str:
+        """Get raw image data as base64-encoded string."""
         if self.path:
             with open(self.path, "rb") as f:
                 data = base64.b64encode(f.read()).decode()
@@ -225,6 +224,15 @@ class Image:
             data = base64.b64encode(self.data).decode()
         else:
             raise ValueError("No image data available")
+        return data
+
+    def to_image_content(
+        self,
+        mime_type: str | None = None,
+        annotations: Annotations | None = None,
+    ) -> mcp.types.ImageContent:
+        """Convert to MCP ImageContent."""
+        data = self._get_data()
 
         return mcp.types.ImageContent(
             type="image",
@@ -233,6 +241,11 @@ class Image:
             annotations=annotations or self.annotations,
         )
 
+    def to_data_uri(self, mime_type: str | None = None) -> str:
+        """Get image as a data URI."""
+        data = self._get_data()
+        return f"data:{mime_type or self._mime_type};base64,{data}"
+
 
 class Audio:
     """Helper class for returning audio from tools."""
diff --git a/tests/utilities/test_types.py b/tests/utilities/test_types.py
index 926848b53..0758a1dbe 100644
--- a/tests/utilities/test_types.py
+++ b/tests/utilities/test_types.py
@@ -177,22 +177,23 @@ class TestImage:
         ):
             Image(path="test.png", data=b"test")
 
-    def test_get_mime_type_from_path(self, tmp_path):
+    @pytest.mark.parametrize(
+        "extension,mime_type",
+        [
+            (".png", "image/png"),
+            (".jpg", "image/jpeg"),
+            (".jpeg", "image/jpeg"),
+            (".gif", "image/gif"),
+            (".webp", "image/webp"),
+            (".unknown", "application/octet-stream"),
+        ],
+    )
+    def test_get_mime_type_from_path(self, tmp_path, extension, mime_type):
         """Test MIME type detection from file extension."""
-        extensions = {
-            ".png": "image/png",
-            ".jpg": "image/jpeg",
-            ".jpeg": "image/jpeg",
-            ".gif": "image/gif",
-            ".webp": "image/webp",
-            ".unknown": "application/octet-stream",
-        }
-
-        for ext, mime in extensions.items():
-            path = tmp_path / f"test{ext}"
-            path.write_bytes(b"fake image data")
-            img = Image(path=path)
-            assert img._mime_type == mime
+        path = tmp_path / f"test{extension}"
+        path.write_bytes(b"fake image data")
+        img = Image(path=path)
+        assert img._mime_type == mime_type
 
     def test_to_image_content(self, tmp_path, monkeypatch):
         """Test conversion to ImageContent."""
@@ -227,6 +228,27 @@ class TestImage:
         with pytest.raises(ValueError, match="No image data available"):
             img.to_image_content()
 
+    @pytest.mark.parametrize(
+        "mime_type,fname,expected_mime",
+        [
+            (None, "test.png", "image/png"),
+            ("image/jpeg", "test.unknown", "image/jpeg"),
+        ],
+    )
+    def test_to_data_uri(self, tmp_path, mime_type, fname, expected_mime):
+        """Test conversion to data URI."""
+        img_path = tmp_path / fname
+        test_data = b"fake image data"
+        img_path.write_bytes(test_data)
+
+        img = Image(path=img_path)
+        data_uri = img.to_data_uri(mime_type=mime_type)
+
+        expected_data_uri = (
+            f"data:{expected_mime};base64,{base64.b64encode(test_data).decode()}"
+        )
+        assert data_uri == expected_data_uri
+
 
 class TestAudio:
     def test_audio_initialization_with_path(self):