diff --git a/packages/react-native-web/src/exports/Image/__tests__/index-test.js b/packages/react-native-web/src/exports/Image/__tests__/index-test.js
index 5aa8d334..b9dfa9ae 100644
--- a/packages/react-native-web/src/exports/Image/__tests__/index-test.js
+++ b/packages/react-native-web/src/exports/Image/__tests__/index-test.js
@@ -5,8 +5,8 @@ import Image from '../';
 import ImageLoader from '../../../modules/ImageLoader';
 import ImageUriCache from '../ImageUriCache';
 import React from 'react';
+import { shallow } from 'enzyme';
 import StyleSheet from '../../StyleSheet';
-import { mount, shallow } from 'enzyme';
 
 const originalImage = window.Image;
 
@@ -121,22 +121,18 @@ describe('components/Image', () => {
     });
 
     test('is called on update if "uri" is different', () => {
-      jest.useFakeTimers();
       const onLoadStub = jest.fn();
       const uri = 'https://test.com/img.jpg';
-      const component = mount(<Image onLoad={onLoadStub} source={uri} />);
+      const component = shallow(<Image onLoad={onLoadStub} source={uri} />);
       component.setProps({ source: 'https://blah.com/img.png' });
-      jest.runOnlyPendingTimers();
       expect(onLoadStub.mock.calls.length).toBe(2);
     });
 
     test('is not called on update if "uri" is the same', () => {
-      jest.useFakeTimers();
       const onLoadStub = jest.fn();
       const uri = 'https://test.com/img.jpg';
-      const component = mount(<Image onLoad={onLoadStub} source={uri} />);
+      const component = shallow(<Image onLoad={onLoadStub} source={uri} />);
       component.setProps({ resizeMode: 'stretch' });
-      jest.runOnlyPendingTimers();
       expect(onLoadStub.mock.calls.length).toBe(1);
     });
   });
@@ -185,7 +181,7 @@ describe('components/Image', () => {
       ImageUriCache.add(uriTwo);
 
       // initial render
-      const component = mount(<Image source={{ uri: uriOne }} />);
+      const component = shallow(<Image source={{ uri: uriOne }} />);
       ImageUriCache.remove(uriOne);
       expect(
         component
@@ -206,11 +202,9 @@ describe('components/Image', () => {
     });
 
     test('is correctly updated when missing in initial render', () => {
-      jest.useFakeTimers();
       const uri = 'https://testing.com/img.jpg';
-      const component = mount(<Image />);
+      const component = shallow(<Image />);
       component.setProps({ source: { uri } });
-      jest.runOnlyPendingTimers();
       expect(
         component
           .render()
@@ -218,6 +212,19 @@ describe('components/Image', () => {
           .attr('src')
       ).toBe(uri);
     });
+
+    test('is correctly updated only when loaded if defaultSource provided', () => {
+      const defaultUri = 'https://testing.com/preview.jpg';
+      const uri = 'https://testing.com/fullSize.jpg';
+      let loadCallback;
+      ImageLoader.load = jest.fn().mockImplementationOnce((_, onLoad, onError) => {
+        loadCallback = onLoad;
+      });
+      const component = shallow(<Image defaultSource={{ uri: defaultUri }} source={{ uri }} />);
+      expect(component.find('img').prop('src')).toBe(defaultUri);
+      loadCallback();
+      expect(component.find('img').prop('src')).toBe(uri);
+    });
   });
 
   describe('prop "style"', () => {
diff --git a/packages/react-native-web/src/exports/Image/index.js b/packages/react-native-web/src/exports/Image/index.js
index 5695ecd9..2262a68e 100644
--- a/packages/react-native-web/src/exports/Image/index.js
+++ b/packages/react-native-web/src/exports/Image/index.js
@@ -177,11 +177,14 @@ class Image extends Component<*, State> {
   componentDidUpdate(prevProps) {
     const prevUri = resolveAssetUri(prevProps.source);
     const uri = resolveAssetUri(this.props.source);
+    const hasDefaultSource = this.props.defaultSource != null;
     if (prevUri !== uri) {
       ImageUriCache.remove(prevUri);
       const isPreviouslyLoaded = ImageUriCache.has(uri);
       isPreviouslyLoaded && ImageUriCache.add(uri);
-      this._updateImageState(getImageState(uri, isPreviouslyLoaded));
+      this._updateImageState(getImageState(uri, isPreviouslyLoaded), hasDefaultSource);
+    } else if (hasDefaultSource && prevProps.defaultSource !== this.props.defaultSource) {
+      this._updateImageState(this._imageState, hasDefaultSource);
     }
     if (this._imageState === STATUS_PENDING) {
       this._createImageLoader();
@@ -379,8 +382,8 @@ class Image extends Component<*, State> {
   }
 
   _onLoadStart() {
-    const { onLoadStart } = this.props;
-    this._updateImageState(STATUS_LOADING);
+    const { defaultSource, onLoadStart } = this.props;
+    this._updateImageState(STATUS_LOADING, defaultSource != null);
     if (onLoadStart) {
       onLoadStart();
     }
@@ -390,11 +393,12 @@ class Image extends Component<*, State> {
     this._imageRef = ref;
   };
 
-  _updateImageState(status) {
+  _updateImageState(status: ?string, hasDefaultSource: ?boolean = false) {
     this._imageState = status;
     const shouldDisplaySource =
-      this._imageState === STATUS_LOADED || this._imageState === STATUS_LOADING;
-    // only triggers a re-render when the image is loading (to support PJEG), loaded, or failed
+      this._imageState === STATUS_LOADED ||
+      (this._imageState === STATUS_LOADING && !hasDefaultSource);
+    // only triggers a re-render when the image is loading and has no default image (to support PJPEG), loaded, or failed
     if (shouldDisplaySource !== this.state.shouldDisplaySource) {
       if (this._isMounted) {
         this.setState(() => ({ shouldDisplaySource }));