diff --git a/apps/web/core/components/common/cover-image.tsx b/apps/web/core/components/common/cover-image.tsx
new file mode 100644
index 0000000000..d0b410bfc3
--- /dev/null
+++ b/apps/web/core/components/common/cover-image.tsx
@@ -0,0 +1,44 @@
+import { cn } from "@plane/utils";
+// helpers
+import { getCoverImageDisplayURL, DEFAULT_COVER_IMAGE_URL } from "@/helpers/cover-image.helper";
+
+type TCoverImageProps = {
+  /** The cover image URL - can be static, uploaded, or external */
+  src: string | null | undefined;
+  /** Alt text for the image */
+  alt?: string;
+  /** Additional className for the image or skeleton */
+  className?: string;
+  /** Whether to show default image when src is null/undefined. If false, shows loading skeleton */
+  showDefaultWhenEmpty?: boolean;
+  /** Custom fallback URL to use instead of DEFAULT_COVER_IMAGE_URL */
+  fallbackUrl?: string;
+} & React.ComponentProps<"img">;
+
+/**
+ * A reusable cover image component that handles:
+ * - Loading states with skeleton
+ * - Static images (local assets)
+ * - Uploaded images (processed through getFileURL)
+ * - External URLs
+ * - Fallback to default cover image
+ */
+export function CoverImage(props: TCoverImageProps) {
+  const {
+    src,
+    alt = "Cover image",
+    className,
+    showDefaultWhenEmpty = false,
+    fallbackUrl = DEFAULT_COVER_IMAGE_URL,
+    ...restProps
+  } = props;
+
+  // Show loading skeleton when src is undefined/null and we don't want to show default
+  if (!src && !showDefaultWhenEmpty) {
+    return <div className={cn("bg-layer-2 animate-pulse", className)} />;
+  }
+
+  const displayUrl = getCoverImageDisplayURL(src, fallbackUrl);
+
+  return <img src={displayUrl} alt={alt} className={cn("object-cover", className)} {...restProps} />;
+}
diff --git a/apps/web/core/components/profile/form.tsx b/apps/web/core/components/profile/form.tsx
index bafd3935f7..f39cd7fcc7 100644
--- a/apps/web/core/components/profile/form.tsx
+++ b/apps/web/core/components/profile/form.tsx
@@ -20,8 +20,9 @@ import { DeactivateAccountModal } from "@/components/account/deactivate-account-
 import { ImagePickerPopover } from "@/components/core/image-picker-popover";
 import { ChangeEmailModal } from "@/components/core/modals/change-email-modal";
 import { UserImageUploadModal } from "@/components/core/modals/user-image-upload-modal";
+import { CoverImage } from "@/components/common/cover-image";
 // helpers
-import { DEFAULT_COVER_IMAGE_URL, getCoverImageDisplayURL, handleCoverImageChange } from "@/helpers/cover-image.helper";
+import { handleCoverImageChange } from "@/helpers/cover-image.helper";
 import { captureSuccess, captureError } from "@/helpers/event-tracker.helper";
 // hooks
 import { useInstance } from "@/hooks/store/use-instance";
@@ -210,9 +211,9 @@ export const ProfileForm = observer(function ProfileForm(props: TProfileFormProp
       <form onSubmit={handleSubmit(onSubmit)} className="w-full">
         <div className="flex w-full flex-col gap-6">
           <div className="relative h-44 w-full">
-            <img
-              src={getCoverImageDisplayURL(userCover, DEFAULT_COVER_IMAGE_URL)}
-              className="h-44 w-full rounded-lg object-cover"
+            <CoverImage
+              src={userCover}
+              className="h-44 w-full rounded-lg"
               alt={currentUser?.first_name ?? "Cover image"}
             />
             <div className="absolute -bottom-6 left-6 flex items-end justify-between">
diff --git a/apps/web/core/components/profile/sidebar.tsx b/apps/web/core/components/profile/sidebar.tsx
index 5d987cd557..aa332b6313 100644
--- a/apps/web/core/components/profile/sidebar.tsx
+++ b/apps/web/core/components/profile/sidebar.tsx
@@ -17,8 +17,8 @@ import type { IUserProfileProjectSegregation } from "@plane/types";
 // plane ui
 import { Loader } from "@plane/ui";
 import { cn, renderFormattedDate, getFileURL } from "@plane/utils";
-// helpers
-import { getCoverImageDisplayURL } from "@/helpers/cover-image.helper";
+// components
+import { CoverImage } from "@/components/common/cover-image";
 // hooks
 import { useAppTheme } from "@/hooks/store/use-app-theme";
 import { useProject } from "@/hooks/store/use-project";
@@ -101,13 +101,11 @@ export const ProfileSidebar = observer(function ProfileSidebar(props: TProfileSi
                 </Link>
               </div>
             )}
-            <img
-              src={
-                getCoverImageDisplayURL(userData?.cover_image_url, "/users/user-profile-cover-default-img.png") ||
-                "/users/user-profile-cover-default-img.png"
-              }
+            <CoverImage
+              src={userData?.cover_image_url ?? undefined}
               alt={userData?.display_name}
-              className="h-[110px] w-full object-cover"
+              className="h-[110px] w-full"
+              showDefaultWhenEmpty
             />
             <div className="absolute -bottom-[26px] left-5 h-[52px] w-[52px] rounded-sm">
               {userData?.avatar_url && userData?.avatar_url !== "" ? (
diff --git a/apps/web/core/components/project/card.tsx b/apps/web/core/components/project/card.tsx
index c1fe9b7a33..379bb66268 100644
--- a/apps/web/core/components/project/card.tsx
+++ b/apps/web/core/components/project/card.tsx
@@ -22,10 +22,10 @@ import { useUserPermissions } from "@/hooks/store/user";
 import { useAppRouter } from "@/hooks/use-app-router";
 import { usePlatformOS } from "@/hooks/use-platform-os";
 // local imports
+import { CoverImage } from "@/components/common/cover-image";
 import { DeleteProjectModal } from "./delete-project-modal";
 import { JoinProjectModal } from "./join-project-modal";
 import { ArchiveRestoreProjectModal } from "./settings/archive-project/archive-restore-modal";
-import { DEFAULT_COVER_IMAGE_URL, getCoverImageDisplayURL } from "@/helpers/cover-image.helper";
 
 type Props = {
   project: IProject;
@@ -206,10 +206,10 @@ export const ProjectCard = observer(function ProjectCard(props: Props) {
         <div className="relative h-[118px] w-full rounded-t ">
           <div className="absolute inset-0 z-[1] bg-gradient-to-t from-black/60 to-transparent" />
 
-          <img
-            src={getCoverImageDisplayURL(project.cover_image_url, DEFAULT_COVER_IMAGE_URL)}
+          <CoverImage
+            src={project.cover_image_url}
             alt={project.name}
-            className="absolute left-0 top-0 h-full w-full rounded-t object-cover"
+            className="absolute left-0 top-0 h-full w-full rounded-t"
           />
 
           <div className="absolute bottom-4 z-[1] flex h-10 w-full items-center justify-between gap-3 px-4">
diff --git a/apps/web/core/components/project/create/header.tsx b/apps/web/core/components/project/create/header.tsx
index 0e3a627b69..b201be4fd0 100644
--- a/apps/web/core/components/project/create/header.tsx
+++ b/apps/web/core/components/project/create/header.tsx
@@ -10,9 +10,8 @@ import type { IProject } from "@plane/types";
 // plane ui
 import { getTabIndex } from "@plane/utils";
 // components
+import { CoverImage } from "@/components/common/cover-image";
 import { ImagePickerPopover } from "@/components/core/image-picker-popover";
-// helpers
-import { DEFAULT_COVER_IMAGE_URL, getCoverImageDisplayURL } from "@/helpers/cover-image.helper";
 // plane web imports
 import { ProjectTemplateSelect } from "@/plane-web/components/projects/create/template-select";
 
@@ -33,13 +32,11 @@ function ProjectCreateHeader(props: Props) {
 
   return (
     <div className="group relative h-44 w-full rounded-lg">
-      {coverImage && (
-        <img
-          src={getCoverImageDisplayURL(coverImage, DEFAULT_COVER_IMAGE_URL)}
-          className="absolute left-0 top-0 h-full w-full rounded-lg object-cover"
-          alt={t("project_cover_image_alt")}
-        />
-      )}
+      <CoverImage
+        src={coverImage}
+        alt={t("project_cover_image_alt")}
+        className="absolute left-0 top-0 h-full w-full rounded-lg"
+      />
       <div className="absolute left-2.5 top-2.5">
         <ProjectTemplateSelect handleModalClose={handleClose} />
       </div>
diff --git a/apps/web/core/components/project/form.tsx b/apps/web/core/components/project/form.tsx
index 3deb5f66d6..0fd4ad6b51 100644
--- a/apps/web/core/components/project/form.tsx
+++ b/apps/web/core/components/project/form.tsx
@@ -12,10 +12,11 @@ import { EFileAssetType } from "@plane/types";
 import type { IProject, IWorkspace } from "@plane/types";
 import { CustomSelect, Input, TextArea } from "@plane/ui";
 import { renderFormattedDate } from "@plane/utils";
+import { CoverImage } from "@/components/common/cover-image";
 import { ImagePickerPopover } from "@/components/core/image-picker-popover";
 import { TimezoneSelect } from "@/components/global";
 // helpers
-import { DEFAULT_COVER_IMAGE_URL, getCoverImageDisplayURL, handleCoverImageChange } from "@/helpers/cover-image.helper";
+import { handleCoverImageChange } from "@/helpers/cover-image.helper";
 import { captureError, captureSuccess } from "@/helpers/event-tracker.helper";
 // hooks
 import { useProject } from "@/hooks/store/use-project";
@@ -200,11 +201,7 @@ export function ProjectDetailsForm(props: IProjectDetailsForm) {
     <form onSubmit={handleSubmit(onSubmit)}>
       <div className="relative h-44 w-full">
         <div className="absolute inset-0 bg-gradient-to-t from-black/50 to-transparent" />
-        <img
-          src={getCoverImageDisplayURL(coverImage, DEFAULT_COVER_IMAGE_URL)}
-          alt="Project cover image"
-          className="h-44 w-full rounded-md object-cover"
-        />
+        <CoverImage src={coverImage} alt="Project cover image" className="h-44 w-full rounded-md" />
         <div className="z-5 absolute bottom-4 flex w-full items-end justify-between gap-3 px-4">
           <div className="flex flex-grow gap-3 truncate">
             <Controller