FAQ: Is It Possible to Rotate Images Inserted in ArcMap?

It is not possible to rotate an image which was inserted into ArcMap using the function Insert > Picture. If the desired rotation is a simple angle, for example 90 degrees, it is recommended to rotate the image before inserting it into ArcMap.

However, in a case where the required rotation is at a specific angle to match an existing project, the workaround is to add the image as data instead of a picture, and use the Rotate tool in the Georeferencing toolbar. For more information about adding data, refer to the following web help document, ArcGIS for Desktop Help: Adding data to your map. Use the following steps to add the image as data and to rotate it.

Open ArcMap.
Click Add Data
Select the desired image file to be added to the map, and click Add.
Click OK on the next dialog box.
If the Georeferencing toolbar is not enabled, enable the toolbar; Customize > Toolbar > Georeferencing. Ensure the desired image is selected in the drop-down list.
Select the Rotate tool . The images can be rotated as desired using the pointer. For more information about the Rotate tool, refer to the following web help document, ArcGIS for Desktop Help: Using the Rotate tool.