To include an image in a LaTeX document, the graphicx package is essential. The correct command to insert an image is \includegraphics, specifying the image's dimensions and file name. If the image is not in the same directory as the LaTeX file, it is necessary to move the image file to that directory. This can typically be done through file management operations on the user's operating system, such as drag-and-drop or copy-paste functions. For Windows users, navigating through Windows Explorer is recommended to manage files. The discussion highlights the importance of understanding basic file management alongside LaTeX usage, especially for beginners.