diff --git a/CHANGELOG.md b/CHANGELOG.md
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,14 @@
 `jira-wiki-markup` uses [PVP Versioning][1].
 The changelog is available [on GitHub][2].
 
+1.1.4
+-----
+
+Released 2020-03-27
+
+* Fix parsing of image parameters. Thumbnails and images with
+  parameters were previously not recognized as images.
+
 1.1.3
 -----
 
diff --git a/jira-wiki-markup.cabal b/jira-wiki-markup.cabal
--- a/jira-wiki-markup.cabal
+++ b/jira-wiki-markup.cabal
@@ -1,6 +1,6 @@
 cabal-version:       2.0
 name:                jira-wiki-markup
-version:             1.1.3
+version:             1.1.4
 synopsis:            Handle Jira wiki markup
 description:         Parse jira wiki text into an abstract syntax tree for easy
                      transformation to other formats.
diff --git a/src/Text/Jira/Parser/Inline.hs b/src/Text/Jira/Parser/Inline.hs
--- a/src/Text/Jira/Parser/Inline.hs
+++ b/src/Text/Jira/Parser/Inline.hs
@@ -11,7 +11,6 @@
 
 Parse Jira wiki inline markup.
 -}
-
 module Text.Jira.Parser.Inline
   ( inline
     -- * Inline component parsers
@@ -147,9 +146,15 @@
 image = try $ do
   -- does not use @url@, as is may contain relative locations.
   src <- char '!' *> (URL . pack <$> many1 (noneOf "\r\t\n|]!"))
-  (_, params) <- option (Nothing, []) (char '|' *> parameters)
+  params <- option [] (char '|' *> (thumbnail <|> imgParams `sepBy` comma))
   _ <- char '!'
   return $ Image params src
+  where
+    thumbnail = [Parameter "thumbnail" ""] <$ try (string "thumbnail")
+    imgParams = try (Parameter <$> key <*> (char '=' *> value))
+    key       = pack <$> many1 (noneOf ",\"'\t\n\r |{}=!")
+    value     = pack <$> many1 (noneOf ",\"'\n\r|{}=!")
+    comma     = char ',' *> skipSpaces
 
 -- | Parse link into a @Link@ element.
 link :: JiraParser Inline
diff --git a/test/Text/Jira/Parser/InlineTests.hs b/test/Text/Jira/Parser/InlineTests.hs
--- a/test/Text/Jira/Parser/InlineTests.hs
+++ b/test/Text/Jira/Parser/InlineTests.hs
@@ -252,6 +252,17 @@
       , testCase "no newlines" $
         isLeft (parseJira image "!hello\nworld.png!") @?
         "no newlines in image names"
+
+      , testCase "thumbnail" $
+        parseJira image "!image.png|thumbnail!" @?=
+        Right (Image [Parameter "thumbnail" ""] (URL "image.png"))
+
+      , testCase "parameters" $
+        parseJira image "!image.gif|align=right, vspace=4!" @?=
+        let params = [ Parameter "align" "right"
+                     , Parameter "vspace" "4"
+                     ]
+        in Right (Image params (URL "image.gif"))
       ]
 
     , testGroup "color"