Yup. It has a couple of different ways of doing img2img work. The most basic img2img just uses an existing image as a "starting point" and creates whole new images based on it. You can also do targeted "inpainting", which lets you paint a mask onto the image and then it only regenerates that bit, trying to keep it blended seamlessly into the unchanged parts of the image around it. And then there's ControlNet, which is an additional layer of processing that takes an input image and analyzes it, trying to create outputs that match what it "understands" to be there rather than just what the visual appearance of the source image is. So for example you could take a photo of someone in a particular pose and then generate new images of completely different characters who are also in that same pose.

Automatic1111 takes some technical fiddling to get set up, and you'll need to download models for it that match your needs (Civitai is a good source), but it's really neat how I can play around with stuff. A few days back I made this image of a naga for a D&D campaign by crudely splicing together photos of two different snakes, a woman's face, and some sheep horns in Gimp and then doing repeated passes through inpainting to clean everything up and get each bit exactly right. Took hours but this is the best example I've done yet of picturing something in my mind and then generating an image that matches it almost exactly. I'm rather proud of it.

Ahhh, thanks! I somehow missed that.