IMAGE: You may need an appropriate loader to handle this file type

You can use file-loader. You need to install it first using npm and then edit your webpack config like this

module: {

    // apply loaders to files that meet given conditions
    loaders: [{
      test: /\.jsx?$/,
      include: path.join(__dirname, '/client/src'),
      loader: 'babel-loader',
      query: {
        presets: ["react", "es2015", "stage-1"]
      }
    },
    {
      test: /\.(gif|svg|jpg|png)$/,
      loader: "file-loader",
    }],
  },

I also encountered this problem too and I've found a workaround.

First, you need to install the two loaders(file-loader, url-loader). e.g. $ npm install --save file-loader url-loader

If you want to support the css. Make sure you install the style loaders. e.g., $ npm install --save style-loader css-loader

Next, you update the webpack config, kindly check below my sample configurations. Hope it helps.

  module: {
    loaders: [{
      test: /.jsx?$/,
      loader: 'babel-loader',
      exclude: /node_modules/
    }, {
      test: /\.css$/,
      loader: "style-loader!css-loader"
    }, {
      test: /\.(jpe?g|png|gif|woff|woff2|eot|ttf|svg)(\?[a-z0-9=.]+)?$/,
      loader: 'url-loader?limit=100000' }]
  },

With Webpack 3, you can use url-loader as follow:

Install url-loader:

npm install --save url-loader

Then, in your Webpack config:

module.exports = {
  module: {
    rules: [
      {
        test: /\.(png|jpg|gif)$/i,
        use: [
          {
            loader: 'url-loader',
            options: {
              limit: 8192
            }
          }
        ]
      }
    ]
  }
}

Finally, in your code:

<img src={require('./path/to/image.png')} />