diff --git a/docs/basic-features/image-optimization.md b/docs/basic-features/image-optimization.md
index 551622ff0f359..e6b76877c54f9 100644
--- a/docs/basic-features/image-optimization.md
+++ b/docs/basic-features/image-optimization.md
@@ -88,6 +88,7 @@ The following Image Optimization cloud providers are supported:
 - [Imgix](https://www.imgix.com): `loader: 'imgix'`
 - [Cloudinary](https://cloudinary.com): `loader: 'cloudinary'`
 - [Akamai](https://www.akamai.com): `loader: 'akamai'`
+- [Aliyun](https://www.aliyun.com): `loader: 'aliyun'`
 - Default: Works automatically with `next dev`, `next start`, or a custom server
 
 ## Caching
diff --git a/errors/invalid-images-config.md b/errors/invalid-images-config.md
index c060c62728da3..a4f6b886d8b04 100644
--- a/errors/invalid-images-config.md
+++ b/errors/invalid-images-config.md
@@ -18,7 +18,7 @@ module.exports = {
     // limit of 50 domains values
     domains: [],
     path: '/_next/image',
-    // loader can be 'default', 'imgix', 'cloudinary', or 'akamai'
+    // loader can be 'default', 'imgix', 'cloudinary', 'akamai', or 'aliyun
     loader: 'default',
   },
 }
diff --git a/packages/next/client/image.tsx b/packages/next/client/image.tsx
index fb5e5dc95bf38..c6c16bffdb3e3 100644
--- a/packages/next/client/image.tsx
+++ b/packages/next/client/image.tsx
@@ -10,10 +10,11 @@ const loaders = new Map<LoaderKey, (props: LoaderProps) => string>([
   ['imgix', imgixLoader],
   ['cloudinary', cloudinaryLoader],
   ['akamai', akamaiLoader],
+  ['aliyun', aliyunLoader],
   ['default', defaultLoader],
 ])
 
-type LoaderKey = 'imgix' | 'cloudinary' | 'akamai' | 'default'
+type LoaderKey = 'imgix' | 'cloudinary' | 'akamai' | 'aliyun' | 'default'
 
 const VALID_LAYOUT_VALUES = [
   'fill',
@@ -493,6 +494,21 @@ function cloudinaryLoader({ root, src, width, quality }: LoaderProps): string {
   return `${root}${paramsString}${normalizeSrc(src)}`
 }
 
+function aliyunLoader({ root, src, width, quality }: LoaderProps): string {
+  // Demo: http://image-demo.oss-cn-hangzhou.aliyuncs.com/example.jpg?x-oss-process=image/resize,w_300/quality,q_90
+  const params = ['image']
+  if (width) {
+    params.push(`resize,w_${width}`)
+  }
+  if (quality) {
+    params.push(`quality,q_${quality}`)
+  }
+
+  const paramString =
+    params.length > 1 ? `?x-oss-process=${params.join('/')},` : ''
+  return `${root}${normalizeSrc(src)}${paramString}`
+}
+
 function defaultLoader({ root, src, width, quality }: LoaderProps): string {
   if (process.env.NODE_ENV !== 'production') {
     const missingValues = []