For the past several days, Google’s reverse image search feature has not properly worked for many searchers. Google has finally tracked down the issue and pushed out a fix just several hours ago. It seems based on the feedback in the ongoing Google Web Search Help there are many who have confirmed the fix is indeed working.

A Google top contributor posted in the thread:

This is how it should look:

I am not sure how popular search by image is but it is a nifty feature in my opinion.

Forum discussion at Google Web Search Help.