diff --git a/daemon/containerd/image_import.go b/daemon/containerd/image_import.go
index 38f3df7d9c..288c7202bf 100644
--- a/daemon/containerd/image_import.go
+++ b/daemon/containerd/image_import.go
@@ -1,18 +1,400 @@
 package containerd
 
 import (
+	"bufio"
+	"bytes"
 	"context"
-	"errors"
+	"encoding/json"
 	"io"
+	"time"
 
+	"github.com/containerd/containerd"
+	"github.com/containerd/containerd/content"
+	cerrdefs "github.com/containerd/containerd/errdefs"
+	"github.com/containerd/containerd/images"
+	"github.com/containerd/containerd/platforms"
+	"github.com/docker/distribution/reference"
+	"github.com/docker/docker/api/types/container"
+	"github.com/docker/docker/builder/dockerfile"
 	"github.com/docker/docker/errdefs"
-	specs "github.com/opencontainers/image-spec/specs-go/v1"
+	"github.com/docker/docker/image"
+	"github.com/docker/docker/pkg/archive"
+	"github.com/docker/docker/pkg/pools"
+	"github.com/google/uuid"
+	"github.com/opencontainers/go-digest"
+	"github.com/opencontainers/image-spec/specs-go"
+	ocispec "github.com/opencontainers/image-spec/specs-go/v1"
+	"github.com/pkg/errors"
+	"github.com/sirupsen/logrus"
 )
 
-// ImportImage imports an image, getting the archived layer data either from
-// inConfig (if src is "-"), or from a URI specified in src. Progress output is
-// written to outStream. Repository and tag names can optionally be given in
-// the repo and tag arguments, respectively.
-func (i *ImageService) ImportImage(ctx context.Context, src string, repository string, platform *specs.Platform, tag string, msg string, inConfig io.ReadCloser, outStream io.Writer, changes []string) error {
-	return errdefs.NotImplemented(errors.New("not implemented"))
+// ImportImage imports an image, getting the archived layer data from layerReader.
+// Layer archive is imported as-is if the compression is gzip or zstd.
+// Uncompressed, xz and bzip2 archives are recompressed into gzip.
+// The image is tagged with the given reference.
+// If the platform is nil, the default host platform is used.
+// The message is used as the history comment.
+// Image configuration is derived from the dockerfile instructions in changes.
+func (i *ImageService) ImportImage(ctx context.Context, ref reference.Named, platform *ocispec.Platform, msg string, layerReader io.Reader, changes []string) (image.ID, error) {
+	refString := ""
+	if ref != nil {
+		refString = ref.String()
+	}
+	logger := logrus.WithField("ref", refString)
+
+	ctx, release, err := i.client.WithLease(ctx)
+	if err != nil {
+		return "", errdefs.System(err)
+	}
+	defer release(ctx)
+
+	if platform == nil {
+		def := platforms.DefaultSpec()
+		platform = &def
+	}
+
+	imageConfig, err := dockerfile.BuildFromConfig(ctx, &container.Config{}, changes, platform.OS)
+	if err != nil {
+		logger.WithError(err).Debug("failed to process changes")
+		return "", errdefs.InvalidParameter(err)
+	}
+
+	cs := i.client.ContentStore()
+
+	compressedDigest, uncompressedDigest, mt, err := saveArchive(ctx, cs, layerReader)
+	if err != nil {
+		logger.WithError(err).Debug("failed to write layer blob")
+		return "", err
+	}
+	logger = logger.WithFields(logrus.Fields{
+		"compressedDigest":   compressedDigest,
+		"uncompressedDigest": uncompressedDigest,
+	})
+
+	size, err := fillUncompressedLabel(ctx, cs, compressedDigest, uncompressedDigest)
+	if err != nil {
+		logger.WithError(err).Debug("failed to set uncompressed label on the compressed blob")
+		return "", err
+	}
+
+	compressedRootfsDesc := ocispec.Descriptor{
+		MediaType: mt,
+		Digest:    compressedDigest,
+		Size:      size,
+	}
+
+	ociCfg := containerConfigToOciImageConfig(imageConfig)
+	createdAt := time.Now()
+	config := ocispec.Image{
+		Architecture: platform.Architecture,
+		OS:           platform.OS,
+		Created:      &createdAt,
+		Author:       "",
+		Config:       ociCfg,
+		RootFS: ocispec.RootFS{
+			Type:    "layers",
+			DiffIDs: []digest.Digest{uncompressedDigest},
+		},
+		History: []ocispec.History{
+			{
+				Created:    &createdAt,
+				CreatedBy:  "",
+				Author:     "",
+				Comment:    msg,
+				EmptyLayer: false,
+			},
+		},
+	}
+	configDesc, err := storeJson(ctx, cs, ocispec.MediaTypeImageConfig, config, nil)
+	if err != nil {
+		return "", err
+	}
+
+	manifest := ocispec.Manifest{
+		MediaType: ocispec.MediaTypeImageManifest,
+		Versioned: specs.Versioned{
+			SchemaVersion: 2,
+		},
+		Config: configDesc,
+		Layers: []ocispec.Descriptor{
+			compressedRootfsDesc,
+		},
+	}
+	manifestDesc, err := storeJson(ctx, cs, ocispec.MediaTypeImageManifest, manifest, map[string]string{
+		"containerd.io/gc.ref.content.config": configDesc.Digest.String(),
+		"containerd.io/gc.ref.content.l.0":    compressedDigest.String(),
+	})
+	if err != nil {
+		return "", err
+	}
+
+	id := image.ID(manifestDesc.Digest.String())
+	img := images.Image{
+		Name:      refString,
+		Target:    manifestDesc,
+		CreatedAt: createdAt,
+	}
+	if img.Name == "" {
+		// TODO(vvoland): danglingImageName(manifestDesc.Digest)
+		img.Name = "dangling@" + manifestDesc.Digest.String()
+
+	}
+
+	err = i.saveImage(ctx, img)
+	if err != nil {
+		logger.WithError(err).Debug("failed to save image")
+		return "", err
+	}
+	err = i.unpackImage(ctx, img, *platform)
+	if err != nil {
+		logger.WithError(err).Debug("failed to unpack image")
+	}
+
+	return id, err
+}
+
+// saveArchive saves the archive from bufRd to the content store, compressing it if necessary.
+// Returns compressed blob digest, digest of the uncompressed data and media type of the stored blob.
+func saveArchive(ctx context.Context, cs content.Store, layerReader io.Reader) (digest.Digest, digest.Digest, string, error) {
+	// Wrap the reader in buffered reader to allow peeks.
+	p := pools.BufioReader32KPool
+	bufRd := p.Get(layerReader)
+	defer p.Put(bufRd)
+
+	compression, err := detectCompression(bufRd)
+	if err != nil {
+		return "", "", "", err
+	}
+
+	var uncompressedReader io.Reader = bufRd
+	switch compression {
+	case archive.Gzip, archive.Zstd:
+		// If the input is already a compressed layer, just save it as is.
+		mediaType := ocispec.MediaTypeImageLayerGzip
+		if compression == archive.Zstd {
+			mediaType = ocispec.MediaTypeImageLayerZstd
+		}
+
+		compressedDigest, uncompressedDigest, err := writeCompressedBlob(ctx, cs, mediaType, bufRd)
+		if err != nil {
+			return "", "", "", err
+		}
+
+		return compressedDigest, uncompressedDigest, mediaType, nil
+	case archive.Bzip2, archive.Xz:
+		r, err := archive.DecompressStream(bufRd)
+		if err != nil {
+			return "", "", "", errdefs.InvalidParameter(err)
+		}
+		defer r.Close()
+		uncompressedReader = r
+		fallthrough
+	case archive.Uncompressed:
+		mediaType := ocispec.MediaTypeImageLayerGzip
+		compression := archive.Gzip
+
+		compressedDigest, uncompressedDigest, err := compressAndWriteBlob(ctx, cs, compression, mediaType, uncompressedReader)
+		if err != nil {
+			return "", "", "", err
+		}
+
+		return compressedDigest, uncompressedDigest, mediaType, nil
+	}
+
+	return "", "", "", errdefs.InvalidParameter(errors.New("unsupported archive compression"))
+}
+
+// writeCompressedBlob writes the blob and simultaneously computes the digest of the uncompressed data.
+func writeCompressedBlob(ctx context.Context, cs content.Store, mediaType string, bufRd *bufio.Reader) (digest.Digest, digest.Digest, error) {
+	pr, pw := io.Pipe()
+	defer pw.Close()
+	defer pr.Close()
+
+	c := make(chan digest.Digest)
+	// Start copying the blob to the content store from the pipe and tee it to the pipe.
+	go func() {
+		compressedDigest, err := writeBlobAndReturnDigest(ctx, cs, mediaType, io.TeeReader(bufRd, pw))
+		pw.CloseWithError(err)
+		c <- compressedDigest
+	}()
+
+	digester := digest.Canonical.Digester()
+
+	// Decompress the piped blob.
+	decompressedStream, err := archive.DecompressStream(pr)
+	if err == nil {
+		// Feed the digester with decompressed data.
+		_, err = io.Copy(digester.Hash(), decompressedStream)
+		decompressedStream.Close()
+	}
+	pr.CloseWithError(err)
+
+	compressedDigest := <-c
+	if err != nil {
+		if errors.Is(err, context.Canceled) || errors.Is(err, context.DeadlineExceeded) {
+			return "", "", errdefs.Cancelled(err)
+		}
+		return "", "", errdefs.System(err)
+	}
+
+	uncompressedDigest := digester.Digest()
+	return compressedDigest, uncompressedDigest, nil
+}
+
+// compressAndWriteBlob compresses the uncompressedReader and stores it in the content store.
+func compressAndWriteBlob(ctx context.Context, cs content.Store, compression archive.Compression, mediaType string, uncompressedLayerReader io.Reader) (digest.Digest, digest.Digest, error) {
+	pr, pw := io.Pipe()
+	defer pr.Close()
+	defer pw.Close()
+
+	compressor, err := archive.CompressStream(pw, compression)
+	if err != nil {
+		return "", "", errdefs.InvalidParameter(err)
+	}
+	defer compressor.Close()
+
+	writeChan := make(chan digest.Digest)
+	// Start copying the blob to the content store from the pipe.
+	go func() {
+		digest, err := writeBlobAndReturnDigest(ctx, cs, mediaType, pr)
+		pr.CloseWithError(err)
+		writeChan <- digest
+	}()
+
+	// Copy archive to the pipe and tee it to a digester.
+	// This will feed the pipe the above goroutine is reading from.
+	uncompressedDigester := digest.Canonical.Digester()
+	readFromInputAndDigest := io.TeeReader(uncompressedLayerReader, uncompressedDigester.Hash())
+	_, err = io.Copy(compressor, readFromInputAndDigest)
+	compressor.Close()
+	pw.CloseWithError(err)
+
+	compressedDigest := <-writeChan
+	if err != nil {
+		if errors.Is(err, context.Canceled) || errors.Is(err, context.DeadlineExceeded) {
+			return "", "", errdefs.Cancelled(err)
+		}
+		return "", "", errdefs.System(err)
+	}
+
+	return compressedDigest, uncompressedDigester.Digest(), err
+}
+
+// writeBlobAndReturnDigest writes a blob to the content store and returns the digest.
+func writeBlobAndReturnDigest(ctx context.Context, cs content.Store, mt string, reader io.Reader) (digest.Digest, error) {
+	digester := digest.Canonical.Digester()
+	if err := content.WriteBlob(ctx, cs, uuid.New().String(), io.TeeReader(reader, digester.Hash()), ocispec.Descriptor{MediaType: mt}); err != nil {
+		return "", errdefs.System(err)
+	}
+	return digester.Digest(), nil
+}
+
+// saveImage creates an image in the ImageService or updates it if it exists.
+func (i *ImageService) saveImage(ctx context.Context, img images.Image) error {
+	is := i.client.ImageService()
+
+	if _, err := is.Update(ctx, img); err != nil {
+		if cerrdefs.IsNotFound(err) {
+			if _, err := is.Create(ctx, img); err != nil {
+				return errdefs.Unknown(err)
+			}
+		} else {
+			return errdefs.Unknown(err)
+		}
+	}
+
+	return nil
+}
+
+// unpackImage unpacks the image into the snapshotter.
+func (i *ImageService) unpackImage(ctx context.Context, img images.Image, platform ocispec.Platform) error {
+	c8dImg := containerd.NewImageWithPlatform(i.client, img, platforms.Only(platform))
+	unpacked, err := c8dImg.IsUnpacked(ctx, i.snapshotter)
+	if err != nil {
+		return err
+	}
+	if !unpacked {
+		err = c8dImg.Unpack(ctx, i.snapshotter)
+	}
+
+	return err
+}
+
+// detectCompression dectects the reader compression type.
+func detectCompression(bufRd *bufio.Reader) (archive.Compression, error) {
+	bs, err := bufRd.Peek(10)
+	if err != nil && err != io.EOF {
+		// Note: we'll ignore any io.EOF error because there are some odd
+		// cases where the layer.tar file will be empty (zero bytes) and
+		// that results in an io.EOF from the Peek() call. So, in those
+		// cases we'll just treat it as a non-compressed stream and
+		// that means just create an empty layer.
+		// See Issue 18170
+		return archive.Uncompressed, errdefs.Unknown(err)
+	}
+
+	return archive.DetectCompression(bs), nil
+}
+
+// fillUncompressedLabel sets the uncompressed digest label on the compressed blob metadata
+// and returns the compressed blob size.
+func fillUncompressedLabel(ctx context.Context, cs content.Store, compressedDigest digest.Digest, uncompressedDigest digest.Digest) (int64, error) {
+	info, err := cs.Info(ctx, compressedDigest)
+	if err != nil {
+		return 0, errdefs.Unknown(errors.Wrapf(err, "couldn't open previously written blob"))
+	}
+	size := info.Size
+	info.Labels = map[string]string{"containerd.io/uncompressed": uncompressedDigest.String()}
+
+	_, err = cs.Update(ctx, info, "labels.*")
+	if err != nil {
+		return 0, errdefs.System(errors.Wrapf(err, "couldn't set uncompressed label"))
+	}
+	return size, nil
+}
+
+// storeJson marshals the provided object as json and stores it.
+func storeJson(ctx context.Context, cs content.Ingester, mt string, obj interface{}, labels map[string]string) (ocispec.Descriptor, error) {
+	configData, err := json.Marshal(obj)
+	if err != nil {
+		return ocispec.Descriptor{}, errdefs.InvalidParameter(err)
+	}
+	configDigest := digest.FromBytes(configData)
+	if err != nil {
+		return ocispec.Descriptor{}, errdefs.InvalidParameter(err)
+	}
+	desc := ocispec.Descriptor{
+		MediaType: mt,
+		Digest:    configDigest,
+		Size:      int64(len(configData)),
+	}
+
+	var opts []content.Opt
+	if labels != nil {
+		opts = append(opts, content.WithLabels(labels))
+	}
+
+	err = content.WriteBlob(ctx, cs, configDigest.String(), bytes.NewReader(configData), desc, opts...)
+	if err != nil {
+		return ocispec.Descriptor{}, errdefs.System(err)
+	}
+	return desc, nil
+}
+
+func containerConfigToOciImageConfig(cfg *container.Config) ocispec.ImageConfig {
+	ociCfg := ocispec.ImageConfig{
+		User:       cfg.User,
+		Env:        cfg.Env,
+		Entrypoint: cfg.Entrypoint,
+		Cmd:        cfg.Cmd,
+		Volumes:    cfg.Volumes,
+		WorkingDir: cfg.WorkingDir,
+		Labels:     cfg.Labels,
+		StopSignal: cfg.StopSignal,
+	}
+	for k, v := range cfg.ExposedPorts {
+		ociCfg.ExposedPorts[string(k)] = v
+	}
+
+	return ociCfg
 }