diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0c2d8e02c..4c1f6f521 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -60,6 +60,11 @@
   - *image viewer* now displays image metadata
   - *themes* improve on-the-fly switching
   - *log monitor* flag server warnings/errors and overall improve display
+- **Watermarking**
+  - SD.Next disables all known watermarks in models, but does allow user to set custom watermark  
+  - See *settings -> image options -> watermarking*  
+  - Invisible watermark: using steganogephy  
+  - Image watermark: overlaid on top of image  
 - **Fixes**
   - improve *model cpu offload* compatibility
   - improve *model sequential offload* compatibility
diff --git a/html/logo-wm.png b/html/logo-wm.png
new file mode 100644
index 000000000..1bfdbf53a
Binary files /dev/null and b/html/logo-wm.png differ
diff --git a/modules/images.py b/modules/images.py
index a9060da06..5dc300363 100644
--- a/modules/images.py
+++ b/modules/images.py
@@ -7,6 +7,7 @@ import json
 import uuid
 import queue
 import string
+import random
 import hashlib
 import datetime
 import threading
@@ -534,9 +535,9 @@ def atomically_save_image():
         try:
             image_format = Image.registered_extensions()[extension]
         except Exception:
-            shared.log.warning(f'Unknown image format: {extension}')
+            shared.log.warning(f'Saving: unknown image format: {extension}')
             image_format = 'JPEG'
-        if shared.opts.image_watermark_enabled:
+        if shared.opts.image_watermark_enabled or (shared.opts.image_watermark_position != 'none' and shared.opts.image_watermark_image != ''):
             image = set_watermark(image, shared.opts.image_watermark)
         size = os.path.getsize(fn) if os.path.exists(fn) else 0
         shared.log.info(f'Saving: image="{fn}" type={image_format} resolution={image.width}x{image.height} size={size}')
@@ -547,42 +548,33 @@ def atomically_save_image():
                     file.write(f"{exifinfo}\n")
                 shared.log.info(f'Saving: text="{filename_txt}" len={len(exifinfo)}')
             except Exception as e:
-                shared.log.warning(f'Image description save failed: {filename_txt} {e}')
+                shared.log.warning(f'Saving failed: description={filename_txt} {e}')
         # actual save
         exifinfo = (exifinfo or "") if shared.opts.image_metadata else ""
         if image_format == 'PNG':
             pnginfo_data = PngImagePlugin.PngInfo()
             for k, v in params.pnginfo.items():
                 pnginfo_data.add_text(k, str(v))
-            try:
-                image.save(fn, format=image_format, compress_level=6, pnginfo=pnginfo_data if shared.opts.image_metadata else None)
-            except Exception as e:
-                shared.log.error(f'Image save failed: file="{fn}" {e}')
+            save_args = { 'compress_level': 6, 'pnginfo': pnginfo_data if shared.opts.image_metadata else None }
         elif image_format == 'JPEG':
             if image.mode == 'RGBA':
-                shared.log.warning('Saving RGBA image as JPEG: Alpha channel will be lost')
+                shared.log.warning('Saving: removing alpha channel')
                 image = image.convert("RGB")
             elif image.mode == 'I;16':
                 image = image.point(lambda p: p * 0.0038910505836576).convert("L")
             exif_bytes = piexif.dump({ "Exif": { piexif.ExifIFD.UserComment: piexif.helper.UserComment.dump(exifinfo, encoding="unicode") } })
-            try:
-                image.save(fn, format=image_format, optimize=True, quality=shared.opts.jpeg_quality, exif=exif_bytes)
-            except Exception as e:
-                shared.log.error(f'Image save failed: file="{fn}" {e}')
+            save_args = { 'optimize': True, 'quality': shared.opts.jpeg_quality, 'exif': exif_bytes if shared.opts.image_metadata else None }
         elif image_format == 'WEBP':
             if image.mode == 'I;16':
                 image = image.point(lambda p: p * 0.0038910505836576).convert("RGB")
             exif_bytes = piexif.dump({ "Exif": { piexif.ExifIFD.UserComment: piexif.helper.UserComment.dump(exifinfo, encoding="unicode") } })
-            try:
-                image.save(fn, format=image_format, quality=shared.opts.jpeg_quality, lossless=shared.opts.webp_lossless, exif=exif_bytes)
-            except Exception as e:
-                shared.log.error(f'Image save failed: file="{fn}" {e}')
+            save_args = { 'optimize': True, 'quality': shared.opts.jpeg_quality, 'exif': exif_bytes if shared.opts.image_metadata else None, 'lossless': shared.opts.webp_lossless }
         else:
-            # shared.log.warning(f'Unrecognized image format: {extension} attempting save as {image_format}')
-            try:
-                image.save(fn, format=image_format, quality=shared.opts.jpeg_quality)
-            except Exception as e:
-                shared.log.error(f'Image save failed: file="{fn}" {e}')
+            save_args = { 'quality': shared.opts.jpeg_quality }
+        try:
+            image.save(fn, format=image_format, **save_args)
+        except Exception as e:
+            shared.log.error(f'Saving failed: file="{fn}" format={image_format} {e}')
         if shared.opts.save_log_fn != '' and len(exifinfo) > 0:
             fn = os.path.join(paths.data_path, shared.opts.save_log_fn)
             if not fn.endswith('.json'):
@@ -839,24 +831,55 @@ def flatten(img, bgcolor):
 
 
 def set_watermark(image, watermark):
-    from imwatermark import WatermarkEncoder
-    wm_type = 'bytes'
-    wm_method = 'dwtDctSvd'
-    wm_length = 32
-    length = wm_length // 8
-    info = image.info
-    data = np.asarray(image)
-    encoder = WatermarkEncoder()
-    text = f"{watermark:<{length}}"[:length]
-    bytearr = text.encode(encoding='ascii', errors='ignore')
-    try:
-        encoder.set_watermark(wm_type, bytearr)
-        encoded = encoder.encode(data, wm_method)
-        image = Image.fromarray(encoded)
-        image.info = info
-        shared.log.debug(f'Set watermark: {watermark} method={wm_method} bits={wm_length}')
-    except Exception as e:
-        shared.log.warning(f'Set watermark error: {watermark} method={wm_method} bits={wm_length} {e}')
+    if shared.opts.image_watermark_position != 'none': # visible watermark
+        wm_image = None
+        try:
+            wm_image = Image.open(shared.opts.image_watermark_image)
+        except Exception as e:
+            shared.log.warning(f'Set image watermark: fn="{shared.opts.image_watermark_image}" {e}')
+        if wm_image is not None:
+            if shared.opts.image_watermark_position == 'top/left':
+                position = (0, 0)
+            elif shared.opts.image_watermark_position == 'top/right':
+                position = (image.width - wm_image.width, 0)
+            elif shared.opts.image_watermark_position == 'bottom/left':
+                position = (0, image.height - wm_image.height)
+            elif shared.opts.image_watermark_position == 'bottom/right':
+                position = (image.width - wm_image.width, image.height - wm_image.height)
+            elif shared.opts.image_watermark_position == 'center':
+                position = ((image.width - wm_image.width) // 2, (image.height - wm_image.height) // 2)
+            else:
+                position = (random.randint(0, image.width - wm_image.width), random.randint(0, image.height - wm_image.height))
+            try:
+                for x in range(wm_image.width):
+                    for y in range(wm_image.height):
+                        r, g, b, _a = wm_image.getpixel((x, y))
+                        if not (r == 0 and g == 0 and b == 0):
+                            image.putpixel((x+position[0], y+position[1]), (r, g, b))
+                shared.log.debug(f'Set image watermark: fn="{shared.opts.image_watermark_image}" image={wm_image} position={position}')
+            except Exception as e:
+                shared.log.warning(f'Set image watermark: image={wm_image} {e}')
+
+    if shared.opts.image_watermark_enabled: # invisible watermark
+        from imwatermark import WatermarkEncoder
+        wm_type = 'bytes'
+        wm_method = 'dwtDctSvd'
+        wm_length = 32
+        length = wm_length // 8
+        info = image.info
+        data = np.asarray(image)
+        encoder = WatermarkEncoder()
+        text = f"{watermark:<{length}}"[:length]
+        bytearr = text.encode(encoding='ascii', errors='ignore')
+        try:
+            encoder.set_watermark(wm_type, bytearr)
+            encoded = encoder.encode(data, wm_method)
+            image = Image.fromarray(encoded)
+            image.info = info
+            shared.log.debug(f'Set invisible watermark: {watermark} method={wm_method} bits={wm_length}')
+        except Exception as e:
+            shared.log.warning(f'Set invisible watermark error: {watermark} method={wm_method} bits={wm_length} {e}')
+
     return image
 
 
diff --git a/modules/shared.py b/modules/shared.py
index fd85dcc38..d7afc75fd 100644
--- a/modules/shared.py
+++ b/modules/shared.py
@@ -514,8 +514,6 @@ options_templates.update(options_section(('saving-images', "Image Options"), {
     "image_metadata": OptionInfo(True, "Include metadata"),
     "save_txt": OptionInfo(False, "Create info file per image"),
     "save_log_fn": OptionInfo("", "Update JSON log file per image", component_args=hide_dirs),
-    "image_watermark_enabled": OptionInfo(False, "Include watermark"),
-    "image_watermark": OptionInfo('', "Watermark string"),
     "image_sep_grid": OptionInfo("<h2>Grid Options</h2>", "", gr.HTML),
     "grid_save": OptionInfo(True, "Save all generated image grids"),
     "grid_format": OptionInfo('jpg', 'File format', gr.Dropdown, {"choices": ["jpg", "png", "webp", "tiff", "jp2"]}),
@@ -532,6 +530,12 @@ options_templates.update(options_section(('saving-images', "Image Options"), {
     "save_images_before_color_correction": OptionInfo(False, "Save image before color correction"),
     "save_mask": OptionInfo(False, "Save inpainting mask"),
     "save_mask_composite": OptionInfo(False, "Save inpainting masked composite"),
+
+    "image_sep_watermark": OptionInfo("<h2>Watermarking</h2>", "", gr.HTML),
+    "image_watermark_enabled": OptionInfo(False, "Include invisible watermark"),
+    "image_watermark": OptionInfo('', "Invisible watermark string"),
+    "image_watermark_position": OptionInfo('none', 'Image watermark position', gr.Dropdown, {"choices": ["none", "top/left", "top/right", "bottom/left", "bottom/right", "center", "random"]}),
+    "image_watermark_image": OptionInfo('', "Image watermark file"),
 }))
 
 options_templates.update(options_section(('saving-paths', "Image Naming & Paths"), {