diff --git a/wysiwyg.module b/wysiwyg.module
index 000cab5..36c2acd 100644
--- a/wysiwyg.module
+++ b/wysiwyg.module
@@ -142,6 +142,12 @@ function wysiwyg_form_alter(&$form, &$form_state) {
  */
 function wysiwyg_element_info_alter(&$types) {
   $types['text_format']['#pre_render'][] = 'wysiwyg_pre_render_text_format';
+
+  // Register input preprocessor to handle embedded files.
+  if (!isset($types['text_format']['#element_validate'])) {
+    $types['text_format']['#element_validate'] = array();
+  }
+  array_unshift($types['text_format']['#element_validate'], 'wysiwyg_preprocess_input');
 }
 
 /**
@@ -272,6 +278,76 @@ function wysiwyg_pre_render_text_format($element) {
 }
 
 /**
+ * Preprocesses the input to do some cleanup.
+ *
+ * E.g. filter embedded files.
+ */
+function wysiwyg_preprocess_input(&$element, &$form_state, $form) {
+  $created_file_cache = &drupal_static(__FUNCTION__);
+
+  // For now - only go with images.
+  $allowed_mime_types = variable_get('wysiwyg_allowed_embedded_mime_types', array(
+    'image/gif' => 'gif',
+    'image/jpeg' => 'jpg',
+    'image/png ' => 'png',
+  ));
+
+  // Handle embedded files.
+  if (isset($element['#value'])) {
+    if(($count = preg_match_all('/(data:([^;]+?);base64,([+=\\w\\s\\d\\/]+))/imu', $element['#value'], $matches))) {
+      foreach ($matches[0] as $index => $embedded_file) {
+        $matches[2][$index] = trim(strtolower($matches[2][$index]));
+        if (!isset($allowed_mime_types[$matches[2][$index]])) {
+          form_error($element, t('Only the following file types are allowed to embed: %mime_types', array('%mimy_types' => implode(', ', $allowed_mime_types))));
+          continue;
+        }
+        // Create an unique filename - hashing the content helps to reuse files
+        // that are used several times.
+        $tmp_file_uri = 'public://wysiwyg_embedded_' . md5($matches[3][$index]) . '.' . $allowed_mime_types[$matches[2][$index]];
+
+        // Prepare regex pattern for replacement.
+        // The data have to be split to make sure we dont get a
+        // "regular expression is too large" error.
+        $data_start = preg_quote(substr($matches[1][$index], 0, 100), '/');
+        $data_end = preg_quote(substr($matches[1][$index], -100), '/');
+        $replacement_regexp = '/' . $data_start . '[+=\\w\\s\\d\\/]+' . $data_end . '/';
+
+        if (isset($created_file_cache[$tmp_file_uri])) {
+          if ($created_file_cache[$tmp_file_uri]) {
+            // If it's a valid file, replace with uri.
+            $element['#value'] = preg_replace($replacement_regexp, file_create_url($created_file_cache[$tmp_file_uri]->uri), $element['#value']);
+          }
+          continue;
+        }
+        $created_file_cache[$tmp_file_uri] = FALSE;
+        if (!($file = file_save_data(base64_decode($matches[3][$index]), $tmp_file_uri, FILE_EXISTS_REPLACE))) {
+          form_error($element, t('Unable to import embeded file, please use the regular file handling to manage files'));
+          continue;
+        }
+
+        // We're picky here! Do our best to ensure nothing evil is uploaded.
+        if (file_get_mimetype($file->uri) != $matches[2][$index]) {
+          file_delete($file, TRUE);
+          form_error($element, t('Unable to validate embedded image. Upload denied!'));
+          continue;
+        }
+        $created_file_cache[$tmp_file_uri] = $file;
+
+        // If file creation was successful replace the embedded file by a normal uri.
+        $element['#value'] = preg_replace($replacement_regexp, file_create_url($created_file_cache[$tmp_file_uri]->uri), $element['#value']);
+      }
+      // Also change the $form_state['values'] to keep the values consistent.
+      // @TODO Should $form_state['input'] also contain the handled code?
+      drupal_array_set_nested_value(
+        $form_state['values'],
+        $element['#array_parents'],
+        $element['#value']
+      );
+    }
+  }
+}
+
+/**
  * Determine the profile to use for a given input format id.
  *
  * This function also performs sanity checks for the configured editor in a