diff --git a/fixtures/react-router-docker/app/constants.mjs b/fixtures/react-router-docker/app/constants.mjs
index dedee9f093f9..4e6c11eb8ce6 100644
--- a/fixtures/react-router-docker/app/constants.mjs
+++ b/fixtures/react-router-docker/app/constants.mjs
@@ -24,6 +24,10 @@ export const imageLoader = (props) => {
   if (props.format === "raw") {
     return props.src;
   }
+  // IPX (sharp) does not support ico
+  if (props.src.endsWith(".ico")) {
+    return props.src;
+  }
   // handle absolute urls
   const path = UrlCanParse(props.src) ? `/${props.src}` : props.src;
   // https://github.com/unjs/ipx?tab=readme-ov-file#modifiers
diff --git a/packages/cli/templates/react-router-docker/app/constants.mjs b/packages/cli/templates/react-router-docker/app/constants.mjs
index dedee9f093f9..8df4d9ec2475 100644
--- a/packages/cli/templates/react-router-docker/app/constants.mjs
+++ b/packages/cli/templates/react-router-docker/app/constants.mjs
@@ -24,6 +24,10 @@ export const imageLoader = (props) => {
   if (props.format === "raw") {
     return props.src;
   }
+  // IPX (sharp) does not support ico
+  if (props.src.endsWith('.ico')) {
+    return props.src;
+  }
   // handle absolute urls
   const path = UrlCanParse(props.src) ? `/${props.src}` : props.src;
   // https://github.com/unjs/ipx?tab=readme-ov-file#modifiers