diff --git a/stepmania/src/RageBitmapTexture.cpp b/stepmania/src/RageBitmapTexture.cpp
index d47313ecac..35c55128bb 100644
--- a/stepmania/src/RageBitmapTexture.cpp
+++ b/stepmania/src/RageBitmapTexture.cpp
@@ -211,7 +211,7 @@ apply_color_key:
 		img = dst;
 	}
 	
-	if( img->format->BitsPerPixel == 8 && actualID.iGrayscaleBits == -1 )
+	if( img->format->BitsPerPixel == 8 && actualID.iGrayscaleBits == -1 && !(img->unused1 & ALPHA_PALETTE) )
 	{
 		/* Unless we set up the palette ourself, assume the "unused" bit is undefined,
 		 * and set it to 255.  We use it for alpha. */
diff --git a/stepmania/src/SDL_utils.cpp b/stepmania/src/SDL_utils.cpp
index 6b8e6b1b6b..33e935b3cd 100644
--- a/stepmania/src/SDL_utils.cpp
+++ b/stepmania/src/SDL_utils.cpp
@@ -430,6 +430,18 @@ int FindSurfaceTraits( const SDL_Surface *img )
 	const int NEEDS_NO_ALPHA=0, NEEDS_BOOL_ALPHA=1, NEEDS_FULL_ALPHA=2;
 	int alpha_type = NEEDS_NO_ALPHA;
 
+	/* If 8bpp and neither SDL_SRCCOLORKEY nor ALPHA_PALETTE, there is no transparency
+	 * to search for. */
+	if( img->format->BitsPerPixel == 8 &&
+		!(img->flags & SDL_SRCCOLORKEY) && !(img->unused1 & ALPHA_PALETTE) )
+		return TRAIT_NO_TRANSPARENCY;
+
+	Uint32 max_alpha;
+	if( img->format->BitsPerPixel == 8 )
+		max_alpha = 0xFF;
+	else
+		max_alpha = img->format->Amask;
+
 	for(int y = 0; y < img->h; ++y)
 	{
 		Uint8 *row = (Uint8 *)img->pixels + img->pitch*y;
@@ -438,16 +450,18 @@ int FindSurfaceTraits( const SDL_Surface *img )
 		{
 			Uint32 val = decodepixel(row, img->format->BytesPerPixel);
 
-			if( img->format->BitsPerPixel == 8 ) {
-				if(img->flags & SDL_SRCCOLORKEY && val == img->format->colorkey )
-					alpha_type = max( alpha_type, NEEDS_BOOL_ALPHA );
-			} else if(img->format->Amask) {
-				Uint32 masked_alpha = val & img->format->Amask;
-				if(masked_alpha == 0) 
-					alpha_type = max( alpha_type, NEEDS_BOOL_ALPHA );
-				else if(masked_alpha != img->format->Amask)
-					alpha_type = max( alpha_type, NEEDS_FULL_ALPHA );
-			}
+			Uint32 alpha;
+			if( img->flags & SDL_SRCCOLORKEY )
+				alpha = (val == img->format->colorkey)? 0x00:0xFF;
+			if( img->unused1 & ALPHA_PALETTE )
+				alpha = img->format->palette->colors[val].unused;
+			else
+				alpha = (val & img->format->Amask);
+
+			if( alpha == 0 )
+				alpha_type = max( alpha_type, NEEDS_BOOL_ALPHA );
+			else if( alpha != max_alpha )
+				alpha_type = max( alpha_type, NEEDS_FULL_ALPHA );
 
 			row += img->format->BytesPerPixel;
 		}
diff --git a/stepmania/src/SDL_utils.h b/stepmania/src/SDL_utils.h
index 03a657b9d8..a5f133988f 100644
--- a/stepmania/src/SDL_utils.h
+++ b/stepmania/src/SDL_utils.h
@@ -76,6 +76,10 @@ void mySDL_BlitTransform( const SDL_Surface *src, SDL_Surface *dst,
 void mySDL_BlitSurface( 
 	SDL_Surface *src, SDL_Surface *dst, int width, int height, bool ckey);
 
+/* Use the "unused1" field in surfaces to mark surfaces that store alpha values
+ * in the palette.  (SDL proper does not support this.) */
+enum { ALPHA_PALETTE = 0x1 };
+
 SDL_Surface *mySDL_Palettize( SDL_Surface *src_surf, int GrayBits, int AlphaBits );
 
 SDL_Surface *SDL_LoadImage( const CString &sPath );