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To add an image to a webpage, first, download or locate your desired image (e.g., a picture of Shrek). Place the image in the same folder as your index.html file. In the body element of your HTML, create an image element using the self-closing tag <img>. Set the source attribute (src) within double quotes to the image file name (e.g., "shrek.png") and save the changes. For better organization, you may want to create a separate folder for your images. If the image is in a different folder, ensure you specify the relative file path from your index.html when setting the src attribute.