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The tutorial demonstrates how to create a markdown project and add an image to the file. To do this, start by creating a markdown file and then upload a picture into the folder. Use basic markdown syntax to add the image by starting with an exclamation point, with the alt text in brackets and the file path in parentheses. Make sure the file path is correct and doesn't require a folder reference. Running the markdown file will display the image. Regular markdown syntax is used to add the image effectively to your markdown file.