diff --git a/app/api/generate-image/route.ts b/app/api/generate-image/route.ts
new file mode 100644
index 0000000..4ef5efd
--- /dev/null
+++ b/app/api/generate-image/route.ts
@@ -0,0 +1,27 @@
+import { NextResponse } from 'next/server'
+import OpenAI from 'openai'
+
+const openai = new OpenAI({
+  apiKey: process.env.OPENAI_API_KEY,
+})
+
+export async function POST(req: Request) {
+  try {
+    const { prompt } = await req.json()
+
+    const response = await openai.images.generate({
+      model: "dall-e-3",
+      prompt: prompt,
+      n: 1,
+      size: "1024x1024",
+    })
+
+    return NextResponse.json({ url: response.data[0].url })
+  } catch (error) {
+    console.error('Error generating image:', error)
+    return NextResponse.json(
+      { error: 'Failed to generate image' },
+      { status: 500 }
+    )
+  }
+}
diff --git a/components/chat/chat-interface.tsx b/components/chat/chat-interface.tsx
index 857c2c0..a46e9ad 100644
--- a/components/chat/chat-interface.tsx
+++ b/components/chat/chat-interface.tsx
@@ -2,6 +2,7 @@
 
 import { useState } from 'react'
 import { MessageList } from './message-list'
+import { ImageGeneration } from './image-generation'
 import { Message, Conversation, TokenUsage } from '@/lib/chat'
 import { Button } from "@/components/ui/button"
 import { Textarea } from "@/components/ui/textarea"
@@ -32,6 +33,7 @@ export function ChatInterface({ conversation, onNewMessage }: ChatInterfaceProps
   const [topP, setTopP] = useState(1.0)
   const [frequencyPenalty, setFrequencyPenalty] = useState(0)
   const [presencePenalty, setPresencePenalty] = useState(0)
+  const [isImageMode, setIsImageMode] = useState(false);
 
   const handleSubmit = async () => {
     if (!inputMessage.trim() || isLoading) return
@@ -108,9 +110,13 @@ export function ChatInterface({ conversation, onNewMessage }: ChatInterfaceProps
               <span className="mr-2">💬</span>
               Chat
             </Button>
-            <Button variant="ghost" className="w-full justify-start">
+            <Button 
+              variant="ghost" 
+              className="w-full justify-start"
+              onClick={() => setIsImageMode(!isImageMode)}
+            >
               <span className="mr-2">⚡</span>
-              Realtime
+              {isImageMode ? 'Text Chat' : 'Image Generation'}
             </Button>
           </div>
         </div>
@@ -120,7 +126,9 @@ export function ChatInterface({ conversation, onNewMessage }: ChatInterfaceProps
       <div className="flex-1 flex flex-col">
         {/* Top Bar */}
         <div className="border-b p-4 flex justify-between items-center">
-          <h1 className="text-xl font-semibold">Chat</h1>
+          <h2 className="text-lg font-semibold">
+            {isImageMode ? 'Image Generation' : 'Chat'}
+          </h2>
           <div className="flex gap-2">
             <Button variant="outline" size="sm">Clear</Button>
             <Button variant="outline" size="sm">Code</Button>            
@@ -128,30 +136,33 @@ export function ChatInterface({ conversation, onNewMessage }: ChatInterfaceProps
           </div>
         </div>
 
-        {/* Messages Area */}
-        <ScrollArea className="flex-1 p-4">
-          <MessageList messages={conversation?.messages || []} isLoading={isLoading} />
-        </ScrollArea>
-
-        {/* Input Area */}
-        <div className="border-t p-4">
-          <div className="flex gap-2">
-            <Textarea
-              placeholder="Enter user message..."
-              value={inputMessage}
-              onChange={(e) => setInputMessage(e.target.value)}
-              onKeyDown={handleKeyPress}
-              className="min-h-[44px] max-h-[200px]"
-            />
-            <Button 
-              onClick={handleSubmit}
-              disabled={isLoading || !inputMessage.trim()}
-              className="px-8"
-            >
-              {isLoading ? 'Sending...' : 'Send'}
-            </Button>
-          </div>
-        </div>
+        {isImageMode ? (
+          <ImageGeneration />
+        ) : (
+          <>
+            <ScrollArea className="flex-1 p-4">
+              <MessageList messages={conversation?.messages || []} isLoading={isLoading} />
+            </ScrollArea>
+            <div className="border-t p-4">
+              <div className="flex gap-2">
+                <Textarea
+                  placeholder="Enter user message..."
+                  value={inputMessage}
+                  onChange={(e) => setInputMessage(e.target.value)}
+                  onKeyDown={handleKeyPress}
+                  className="min-h-[44px] max-h-[200px]"
+                />
+                <Button 
+                  onClick={handleSubmit}
+                  disabled={isLoading || !inputMessage.trim()}
+                  className="px-8"
+                >
+                  {isLoading ? 'Sending...' : 'Send'}
+                </Button>
+              </div>
+            </div>
+          </>
+        )}
       </div>
 
       {/* Right Configuration Panel Toggle */}
diff --git a/components/chat/image-generation.tsx b/components/chat/image-generation.tsx
new file mode 100644
index 0000000..f4b4f57
--- /dev/null
+++ b/components/chat/image-generation.tsx
@@ -0,0 +1,70 @@
+'use client'
+
+import { useState } from 'react'
+import { Button } from '@/components/ui/button'
+import { Input } from '@/components/ui/input'
+import { Card } from '@/components/ui/card'
+import Image from 'next/image'
+
+export function ImageGeneration() {
+  const [prompt, setPrompt] = useState('')
+  const [isLoading, setIsLoading] = useState(false)
+  const [generatedImage, setGeneratedImage] = useState<string | null>(null)
+
+  const generateImage = async () => {
+    if (!prompt.trim() || isLoading) return
+
+    setIsLoading(true)
+    try {
+      const response = await fetch('/api/generate-image', {
+        method: 'POST',
+        headers: {
+          'Content-Type': 'application/json',
+        },
+        body: JSON.stringify({ prompt }),
+      })
+
+      const data = await response.json()
+      if (data.url) {
+        setGeneratedImage(data.url)
+      }
+    } catch (error) {
+      console.error('Error generating image:', error)
+    } finally {
+      setIsLoading(false)
+    }
+  }
+
+  return (
+    <div className="flex flex-col space-y-4 p-4">
+      <div className="flex space-x-2">
+        <Input
+          value={prompt}
+          onChange={(e) => setPrompt(e.target.value)}
+          placeholder="Describe the image you want to generate..."
+          className="flex-1"
+          onKeyPress={(e) => e.key === 'Enter' && generateImage()}
+        />
+        <Button 
+          onClick={generateImage}
+          disabled={isLoading}
+        >
+          {isLoading ? 'Generating...' : 'Generate'}
+        </Button>
+      </div>
+
+      {generatedImage && (
+        <Card className="p-4">
+          <div className="relative w-full aspect-square">
+            <Image
+              src={generatedImage}
+              alt="Generated image"
+              fill
+              className="object-contain"
+            />
+          </div>
+        </Card>
+      )}
+    </div>
+  )
+}
diff --git a/next.config.js b/next.config.js
index c4a26c2..9a017b8 100644
--- a/next.config.js
+++ b/next.config.js
@@ -10,6 +10,12 @@ const nextConfig = {
         port: '',
         pathname: '/**',
       },
+      {
+        protocol: 'https',
+        hostname: 'oaidalleapiprodscus.blob.core.windows.net',
+        port: '',
+        pathname: '/**',
+      },
     ],
   },
   webpack: (config, { isServer }) => {