diff --git a/src/raster/quantization.cpp b/src/raster/quantization.cpp
index 131906701..d43c023f3 100644
--- a/src/raster/quantization.cpp
+++ b/src/raster/quantization.cpp
@@ -78,7 +78,8 @@ Palette* quantization::create_palette_from_rgb(const Sprite* sprite)
 Image* quantization::convert_imgtype(const Image* image, int imgtype,
 				     DitheringMethod ditheringMethod,
 				     const RgbMap* rgbmap,
-				     const Palette* palette)
+				     const Palette* palette,
+				     bool has_background_layer)
 {
   ase_uint32* rgb_address;
   ase_uint16* gray_address;
@@ -109,6 +110,7 @@ Image* quantization::convert_imgtype(const Image* image, int imgtype,
       rgb_address = (ase_uint32*)image->dat;
 
       switch (new_image->imgtype) {
+
 	// RGB -> Grayscale
 	case IMAGE_GRAYSCALE:
 	  gray_address = (ase_uint16*)new_image->dat;
@@ -124,6 +126,7 @@ Image* quantization::convert_imgtype(const Image* image, int imgtype,
 	    gray_address++;
 	  }
 	  break;
+
 	// RGB -> Indexed
 	case IMAGE_INDEXED:
 	  idx_address = new_image->dat;
@@ -147,6 +150,7 @@ Image* quantization::convert_imgtype(const Image* image, int imgtype,
       gray_address = (ase_uint16*)image->dat;
 
       switch (new_image->imgtype) {
+
 	// Grayscale -> RGB
 	case IMAGE_RGB:
 	  rgb_address = (ase_uint32*)new_image->dat;
@@ -158,6 +162,7 @@ Image* quantization::convert_imgtype(const Image* image, int imgtype,
 	    rgb_address++;
 	  }
 	  break;
+
 	// Grayscale -> Indexed
 	case IMAGE_INDEXED:
 	  idx_address = new_image->dat;
@@ -178,12 +183,14 @@ Image* quantization::convert_imgtype(const Image* image, int imgtype,
       idx_address = image->dat;
 
       switch (new_image->imgtype) {
+
 	// Indexed -> RGB
 	case IMAGE_RGB:
 	  rgb_address = (ase_uint32*)new_image->dat;
 	  for (i=0; i<size; i++) {
 	    c = *idx_address;
-	    if (c == 0)
+
+	    if (c == 0 && !has_background_layer)
 	      *rgb_address = 0;
 	    else
 	      *rgb_address = _rgba(_rgba_getr(palette->getEntry(c)),
@@ -193,12 +200,14 @@ Image* quantization::convert_imgtype(const Image* image, int imgtype,
 	    rgb_address++;
 	  }
 	  break;
+
 	// Indexed -> Grayscale
 	case IMAGE_GRAYSCALE:
 	  gray_address = (ase_uint16*)new_image->dat;
 	  for (i=0; i<size; i++) {
 	    c = *idx_address;
-	    if (c == 0)
+
+	    if (c == 0 && !has_background_layer)
 	      *gray_address = 0;
 	    else {
 	      r = _rgba_getr(palette->getEntry(c));
@@ -212,6 +221,7 @@ Image* quantization::convert_imgtype(const Image* image, int imgtype,
 	    gray_address++;
 	  }
 	  break;
+
       }
       break;
   }
diff --git a/src/raster/quantization.h b/src/raster/quantization.h
index 4e299de4b..34b9cd97e 100644
--- a/src/raster/quantization.h
+++ b/src/raster/quantization.h
@@ -37,7 +37,8 @@ namespace quantization {
   Image* convert_imgtype(const Image* image, int imgtype,
 			 DitheringMethod ditheringMethod,
 			 const RgbMap* rgbmap,
-			 const Palette* palette);
+			 const Palette* palette,
+			 bool has_background_layer);
 
 }
 
diff --git a/src/undoable.cpp b/src/undoable.cpp
index bcfea03d7..faf408f76 100644
--- a/src/undoable.cpp
+++ b/src/undoable.cpp
@@ -212,7 +212,8 @@ void Undoable::setImgType(int new_imgtype, DitheringMethod dithering_method)
 
     new_image = quantization::convert_imgtype(old_image, new_imgtype, dithering_method, rgbmap,
 					      // TODO check this out
-					      m_sprite->getCurrentPalette());
+					      m_sprite->getCurrentPalette(),
+					      m_sprite->getBackgroundLayer() != NULL);
     if (!new_image)
       return;		/* TODO error handling: not enough memory!
 			   we should undo all work done */
diff --git a/src/util/clipboard.cpp b/src/util/clipboard.cpp
index 9e4e253d0..e262da7bf 100644
--- a/src/util/clipboard.cpp
+++ b/src/util/clipboard.cpp
@@ -244,7 +244,8 @@ void clipboard::paste(SpriteWriter& sprite)
   else {
     RgbMap* rgbmap = sprite->getRgbMap();
     src_image = quantization::convert_imgtype(clipboard_image, sprite->getImgType(), DITHERING_NONE,
-					      rgbmap, sprite->getPalette(sprite->getCurrentFrame()));
+					      rgbmap, sprite->getPalette(sprite->getCurrentFrame()),
+					      false);
   }
 
   // Do the interactive-transform loop (where the user can move the floating image)