diff --git a/src/tile.js b/src/tile.js
index 9abb14b6..1144d797 100644
--- a/src/tile.js
+++ b/src/tile.js
@@ -193,6 +193,11 @@ $.Tile.prototype = {
         return this.level + "/" + this.x + "_" + this.y;
     },
 
+    // private
+    _hasTransparencyChannel: function() {
+        return this.context2D || this.url.match('.png');
+    },
+
     /**
      * Renders the tile in an html container.
      * @function
@@ -284,8 +289,7 @@ $.Tile.prototype = {
         //ie its done fading or fading is turned off, and if we are drawing
         //an image with an alpha channel, then the only way
         //to avoid seeing the tile underneath is to clear the rectangle
-        if (context.globalAlpha === 1 &&
-                (this.context2D || this.url.match('.png'))) {
+        if (context.globalAlpha === 1 && this._hasTransparencyChannel()) {
             //clearing only the inside of the rectangle occupied
             //by the png prevents edge flikering
             context.clearRect(
@@ -294,7 +298,6 @@ $.Tile.prototype = {
                 size.x - 2,
                 size.y - 2
             );
-
         }
 
         // This gives the application a chance to make image manipulation
diff --git a/src/tiledimage.js b/src/tiledimage.js
index 7ad9d7f2..562f1f92 100644
--- a/src/tiledimage.js
+++ b/src/tiledimage.js
@@ -650,6 +650,11 @@ $.extend($.TiledImage.prototype, $.EventSource.prototype, /** @lends OpenSeadrag
          * @property {?Object} userData - Arbitrary subscriber-defined object.
          */
         this.raiseEvent('bounds-change');
+    },
+
+    // private
+    _isBottomItem: function() {
+        return this.viewer.world.getItemAt(0) === this;
     }
 });
 
@@ -1332,7 +1337,9 @@ function drawTiles( tiledImage, lastDrawn ) {
         return;
     }
     var useSketch = tiledImage.opacity < 1 ||
-          (tiledImage.compositeOperation && tiledImage.compositeOperation !== 'source-over');
+        (tiledImage.compositeOperation &&
+            tiledImage.compositeOperation !== 'source-over') ||
+        (!tiledImage._isBottomItem() && tile._hasTransparencyChannel);
 
     var sketchScale;
     var sketchTranslate;
diff --git a/test/modules/multi-image.js b/test/modules/multi-image.js
index f3710429..cee7867f 100644
--- a/test/modules/multi-image.js
+++ b/test/modules/multi-image.js
@@ -5,12 +5,12 @@
 
     module( 'Multi-Image', {
         setup: function() {
-            $( '<div id="itemsexample"></div>' ).appendTo( "#qunit-fixture" );
+            $( '<div id="example"></div>' ).appendTo( "#qunit-fixture" );
 
             testLog.reset();
 
             viewer = OpenSeadragon( {
-                id: 'itemsexample',
+                id: 'example',
                 prefixUrl: '/build/openseadragon/images/',
                 springStiffness: 100 // Faster animation = faster tests
             });
@@ -21,7 +21,7 @@
             }
 
             viewer = null;
-            $( "#itemsexample" ).remove();
+            $("#example").remove();
         }
     } );
 
@@ -208,4 +208,45 @@
         viewer.open('/test/data/testpattern.dzi');
     });
 
+    asyncTest('Transparent image on top of others', function() {
+        viewer.open('/test/data/testpattern.dzi');
+
+        // TODO: replace with fully-loaded event listener when available.
+        setTimeout(function() {
+            var imageData = viewer.drawer.context.getImageData(0, 0, 500, 500);
+            var expectedVal = getPixelValue(imageData, 333, 250);
+
+            viewer.addSimpleImage({
+                url: '/test/data/A.png'
+            });
+
+            // TODO: replace with fully-loaded event listener when available.
+            setTimeout(function() {
+                var imageData = viewer.drawer.context.getImageData(0, 0, 500, 500);
+                var actualVal = getPixelValue(imageData, 333, 250);
+
+                equal(actualVal.r, expectedVal.r,
+                    'Red channel should not change when stacking a transparent image');
+                equal(actualVal.g, expectedVal.g,
+                    'Green channel should not change when stacking a transparent image');
+                equal(actualVal.b, expectedVal.b,
+                    'Blue channel should not change when stacking a transparent image');
+                equal(actualVal.a, expectedVal.a,
+                    'Alpha channel should not change when stacking a transparent image');
+
+                start();
+            }, 1000);
+        }, 1000);
+
+        function getPixelValue(imageData, x, y) {
+            var offset = x * imageData.width + y;
+            return {
+                r: imageData.data[offset],
+                g: imageData.data[offset + 1],
+                b: imageData.data[offset + 2],
+                a: imageData.data[offset + 3]
+            };
+        }
+    });
+
 })();