Hi @appleianer - I know this thread is a year old but as I still miss being able to drag and drop an image file into a Macro's Icon Image Well, I've been using the Macro idea we came up with above (first opens the selected image in Preview, selects all, closes Preview etc). But suddenly today I realised a much simpler one Action solution to get the image from the Finder's Selected Image File (for example a .png file) into the clipboard ready to paste into Keyboard Maestro:
Your solution is really better than the detour via the preview app. I have extended your macro a bit. The prerequisite is that you select the macro in the KM Editor before starting it (blue).