Hi, Is there a way to replace an image within an instance of a component? I have a master component of a modal window with a placeholder for an image, but I’m not sure how to replace that placeholder with the image I want. Pasting or dragging the new image in the layers panel doesn’t work.

In this case you shouldn’t use images (since the object isn’t even an image). Use components: Figma Tutorial: Components - Swapping and States - YouTube