diff --git a/IPython/html/static/notebook/js/outputarea.js b/IPython/html/static/notebook/js/outputarea.js
index 3e67352..763493f 100644
--- a/IPython/html/static/notebook/js/outputarea.js
+++ b/IPython/html/static/notebook/js/outputarea.js
@@ -613,19 +613,20 @@ var IPython = (function (IPython) {
             });
         }, 250);
     };
-
-
+    
+    var set_width_height = function (img, md, mime) {
+        // set width and height of an img element from metadata
+        var height = _get_metadata_key(md, 'height', mime);
+        if (height !== undefined) img.attr('height', height);
+        var width = _get_metadata_key(md, 'width', mime);
+        if (width !== undefined) img.attr('width', width);
+    };
+    
     OutputArea.prototype.append_png = function (png, md, element) {
         var type = 'image/png';
         var toinsert = this.create_output_subarea(md, "output_png", type);
-        var img = $("<img/>");
-        img[0].setAttribute('src','data:image/png;base64,'+png);
-        if (md['height']) {
-            img[0].setAttribute('height', md['height']);
-        }
-        if (md['width']) {
-            img[0].setAttribute('width', md['width']);
-        }
+        var img = $("<img/>").attr('src','data:image/png;base64,'+png);
+        set_width_height(img, md, 'image/png');
         this._dblclick_to_reset_size(img);
         toinsert.append(img);
         element.append(toinsert);
@@ -636,12 +637,7 @@ var IPython = (function (IPython) {
         var type = 'image/jpeg';
         var toinsert = this.create_output_subarea(md, "output_jpeg", type);
         var img = $("<img/>").attr('src','data:image/jpeg;base64,'+jpeg);
-        if (md['height']) {
-            img.attr('height', md['height']);
-        }
-        if (md['width']) {
-            img.attr('width', md['width']);
-        }
+        set_width_height(img, md, 'image/jpeg');
         this._dblclick_to_reset_size(img);
         toinsert.append(img);
         element.append(toinsert);
diff --git a/IPython/html/tests/casperjs/test_cases/display_image.js b/IPython/html/tests/casperjs/test_cases/display_image.js
new file mode 100644
index 0000000..86b9319
--- /dev/null
+++ b/IPython/html/tests/casperjs/test_cases/display_image.js
@@ -0,0 +1,64 @@
+//
+// Test display of images
+//
+// The effect of shape metadata is validated,
+// using Image(retina=True)
+//
+
+
+// 2x2 black square in b64 jpeg and png
+b64_image_data = {
+    "image/png" : "b'iVBORw0KGgoAAAANSUhEUgAAAAIAAAACCAIAAAD91JpzAAAAC0lEQVR4nGNgQAYAAA4AAamRc7EA\\nAAAASUVORK5CYII='",
+    "image/jpeg" : "b'/9j/4AAQSkZJRgABAQAAAQABAAD/2wBDAAgGBgcGBQgHBwcJCQgKDBQNDAsLDBkSEw8UHRofHh0a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\\noA//2Q=='"
+}
+
+
+casper.notebook_test(function () {
+    // this.printLog();
+    this.test_img_shape = function(fmt, retina) {
+        this.thenEvaluate(function (b64data, retina) {
+            IPython.notebook.get_cell(0).clear_output();
+            var cell = IPython.notebook.get_cell(0);
+            cell.set_text([
+                "import base64",
+                "from IPython.display import display, Image",
+                "data = base64.decodestring(" + b64data + ")",
+                "retina = bool(" + retina + ")",
+                "display(Image(data, retina=retina))"
+            ].join("\n"));
+            cell.execute();
+        }, {b64data : b64_image_data[fmt], retina : retina ? 1:0 });
+        
+        this.wait_for_output(0);
+        
+        this.then(function() {
+            var img = this.evaluate(function() {
+                // get a summary of the image that was just displayed
+                var cell = IPython.notebook.get_cell(0);
+                var img = $(cell.output_area.element.find("img")[0]);
+                return {
+                    src : img.attr("src"),
+                    width : img.width(),
+                    height : img.height(),
+                    width_attr : img.attr("width"),
+                    height_attr : img.attr("height")
+                };
+            });
+            var prefix = "Image('" + fmt + "', retina=" + retina + ") ";
+            this.test.assertType(img, "object", prefix + "img was displayed");
+            this.test.assertEquals(img.src.split(',')[0], "data:" + fmt + ";base64",
+                prefix + "data-uri prefix"
+            );
+            var sz = retina ? 1 : 2;
+            var sz_attr = retina ? "1" : undefined;
+            this.test.assertEquals(img.height, sz, prefix + "measured height");
+            this.test.assertEquals(img.width, sz, prefix + "measured width");
+            this.test.assertEquals(img.height_attr, sz_attr, prefix + "height attr");
+            this.test.assertEquals(img.width_attr, sz_attr, prefix + "width attr");
+        });
+    };
+    this.test_img_shape("image/png", false);
+    this.test_img_shape("image/png", true);
+    this.test_img_shape("image/jpeg", false);
+    this.test_img_shape("image/jpeg", true);
+});