diff --git a/file_entity.install b/file_entity.install
index 5aca7d8..5c542ee 100644
--- a/file_entity.install
+++ b/file_entity.install
@@ -240,6 +240,9 @@ function file_entity_install() {
   foreach ($roles as $rid => $role) {
     user_role_grant_permissions($rid, array('view files'));
   }
+
+  // Create the title and alt text fields
+  _file_entity_create_alt_title_fields();
 }
 
 /**
@@ -541,3 +544,239 @@ function file_entity_update_7203() {
       ->execute();
   }
 }
+
+
+/**
+ * Add title and alt text to image file types.
+ */
+function file_entity_update_7204() {
+  _file_entity_create_alt_title_fields();
+}
+
+/**
+ * Function to create the title and alt text fields
+ * and instances.
+ */
+function _file_entity_create_alt_title_fields() {
+  // Create the alt text field and instance.
+
+  // Define the alt text field.
+  $alt_text_field = array(
+    'active' => '1',
+    'cardinality' => '1',
+    'deleted' => '0',
+    'entity_types' => array(),
+    'field_name' => 'field_file_image_alt_text',
+    'foreign keys' => array(
+      'format' => array(
+        'columns' => array(
+          'format' => 'format',
+        ),
+        'table' => 'filter_format',
+      ),
+    ),
+    'indexes' => array(
+      'format' => array(
+        0 => 'format',
+      ),
+    ),
+    'module' => 'text',
+    'settings' => array(
+      'max_length' => '255',
+    ),
+    'translatable' => '0',
+    'type' => 'text',
+  );
+
+  // As long as the alt text field doesn't already exist create it.
+  if (!field_info_field($alt_text_field['field_name'])) {
+    field_create_field($alt_text_field);
+  }
+
+  // Define the alt text instance.
+  $alt_text_instance = array(
+    'bundle' => 'image',
+    'default_value' => NULL,
+    'deleted' => '0',
+    'description' => '',
+    'display' => array(
+      'default' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+      'full' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+      'preview' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+      'teaser' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+    ),
+    'entity_type' => 'file',
+    'field_name' => 'field_file_image_alt_text',
+    'label' => 'Alt Text',
+    'required' => 0,
+    'settings' => array(
+      'text_processing' => '0',
+      'user_register_form' => FALSE,
+    ),
+    'widget' => array(
+      'active' => 1,
+      'module' => 'text',
+      'settings' => array(
+        'size' => '60',
+      ),
+      'type' => 'text_textfield',
+      'weight' => '-4',
+    ),
+  );
+
+  // For sites that updated from Media 1.x, continue to provide these deprecated
+  // view modes.
+  // @see http://drupal.org/node/1051090
+  if (variable_get('media__show_deprecated_view_modes')) {
+    $alt_text_instance['display'] += array(
+      'media_link' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+      'media_original' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+    );
+  }
+
+  // As long as the alt text instance doesn't already exist create it.
+  if (!field_info_instance($alt_text_instance['entity_type'], $alt_text_instance['field_name'], $alt_text_instance['bundle'])) {
+    field_create_instance($alt_text_instance);
+  }
+
+  // Create the title text field and instance.
+
+  // Define the title text field.
+  $title_text_field = array(
+    'active' => '1',
+    'cardinality' => '1',
+    'deleted' => '0',
+    'entity_types' => array(),
+    'field_name' => 'field_file_image_title_text',
+    'foreign keys' => array(
+      'format' => array(
+        'columns' => array(
+          'format' => 'format',
+        ),
+        'table' => 'filter_format',
+      ),
+    ),
+    'indexes' => array(
+      'format' => array(
+        0 => 'format',
+      ),
+    ),
+    'module' => 'text',
+    'settings' => array(
+      'max_length' => '255',
+    ),
+    'translatable' => '0',
+    'type' => 'text',
+  );
+
+  // As long as the title text field doesn't exist create it.
+  if (!field_info_field($title_text_field['field_name'])) {
+    field_create_field($title_text_field);
+  }
+
+  // Define the title text instance.
+  $title_text_instance = array(
+    'bundle' => 'image',
+    'default_value' => NULL,
+    'deleted' => '0',
+    'description' => 'Title text attribute',
+    'display' => array(
+      'default' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 1,
+      ),
+      'full' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+      'preview' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+      'teaser' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+    ),
+    'entity_type' => 'file',
+    'field_name' => 'field_file_image_title_text',
+    'label' => 'Title Text',
+    'required' => 0,
+    'settings' => array(
+      'text_processing' => '0',
+      'user_register_form' => FALSE,
+    ),
+    'widget' => array(
+      'active' => 1,
+      'module' => 'text',
+      'settings' => array(
+        'size' => '60',
+      ),
+      'type' => 'text_textfield',
+      'weight' => '-3',
+    ),
+  );
+
+  // For sites that updated from Media 1.x, continue to provide these deprecated
+  // view modes.
+  // @see http://drupal.org/node/1051090
+  if (variable_get('media__show_deprecated_view_modes')) {
+    $title_text_instance['display'] += array(
+      'media_link' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+      'media_original' => array(
+        'label' => 'above',
+        'settings' => array(),
+        'type' => 'hidden',
+        'weight' => 0,
+      ),
+    );
+  }
+
+  // As long as the title text instance doesn't already exist create it.
+  if (!field_info_instance($title_text_instance['entity_type'], $title_text_instance['field_name'], $title_text_instance['bundle'])) {
+    field_create_instance($title_text_instance);
+  }
+}
diff --git a/file_entity.module b/file_entity.module
index 8989699..2adb16b 100644
--- a/file_entity.module
+++ b/file_entity.module
@@ -562,10 +562,23 @@ function file_entity_file_formatter_info() {
   if (module_exists('image')) {
     $formatters['file_image'] = array(
       'label' => t('Image'),
-      'default settings' => array('image_style' => ''),
+      'default settings' => array(
+        'image_style' => '',
+        'alt' => '',
+        'title' => ''
+      ),
       'view callback' => 'file_entity_file_formatter_file_image_view',
       'settings callback' => 'file_entity_file_formatter_file_image_settings',
     );
+    // Provide default token values.
+    if (module_exists('token')) {
+      $formatters['file_image']['default settings']['alt'] = '[file:field_file_image_alt_text]';
+      $formatters['file_image']['default settings']['title'] = '[file:field_file_image_title_text]';
+    }
+    elseif (module_exists('entity_token')) {
+      $formatters['file_image']['default settings']['alt'] = '[file:field-file-image-alt-text]';
+      $formatters['file_image']['default settings']['title'] = '[file:field-file-image-title-text]';
+    }
   }
 
   return $formatters;
@@ -666,6 +679,13 @@ function file_entity_file_formatter_file_image_view($file, $display, $langcode)
   }
 
   if (file_entity_file_is_local($file) && isset($file->image_dimensions)) {
+    // We don't sanitize here.
+    // @see http://drupal.org/node/1553094#comment-6257382
+    // Theme function will take care of escaping.
+    $replace_options = array(
+      'clear' => 1,
+      'sanitize' => 0,
+    );
     if (!empty($display['settings']['image_style'])) {
       $element = array(
         '#theme' => 'image_style',
@@ -673,6 +693,8 @@ function file_entity_file_formatter_file_image_view($file, $display, $langcode)
         '#path' => $file->uri,
         '#width' => $file->image_dimensions['width'],
         '#height' => $file->image_dimensions['height'],
+        '#alt' => token_replace($display['settings']['alt'], array('file' => $file), $replace_options),
+        '#title' => token_replace($display['settings']['title'], array('file' => $file), $replace_options),
       );
     }
     else {
@@ -681,6 +703,8 @@ function file_entity_file_formatter_file_image_view($file, $display, $langcode)
         '#path' => $file->uri,
         '#width' => $file->image_dimensions['width'],
         '#height' => $file->image_dimensions['height'],
+        '#alt' => token_replace($display['settings']['alt'], array('file' => $file), $replace_options),
+        '#title' => token_replace($display['settings']['title'], array('file' => $file), $replace_options),
       );
     }
     return $element;
@@ -701,6 +725,33 @@ function file_entity_file_formatter_file_image_settings($form, &$form_state, $se
     '#default_value' => $settings['image_style'],
     '#empty_option' => t('None (original image)'),
   );
+
+  // For image files we allow the alt attribute (required in HTML).
+  $element['alt'] = array(
+    '#title' => t('Alt attribute'),
+    '#description' => t('The text to use as value for the <em>img</em> tag <em>alt</em> attribute.'),
+    '#type' => 'textfield',
+    '#default_value' => $settings['alt'],
+  );
+
+  // Allow the setting of the title attribute.
+  $element['title'] = array(
+    '#title' => t('Title attribute'),
+    '#description' => t('The text to use as value for the <em>img</em> tag <em>title</em> attribute.'),
+    '#type' => 'textfield',
+    '#default_value' => $settings['title'],
+  );
+
+  if (module_exists('token')) {
+    $element['alt']['#description'] .= t('This field supports tokens.');
+    $element['title']['#description'] .= t('This field supports tokens.');
+    $element['tokens'] = array(
+      '#theme' => 'token_tree',
+      '#token_types' => array('file'),
+      '#dialog' => TRUE,
+    );
+  }
+
   return $element;
 }