diff --git a/src/add-ons/translators/psd/PSDLoader.cpp b/src/add-ons/translators/psd/PSDLoader.cpp
index b08bc20cac..4cfbab4d3c 100644
--- a/src/add-ons/translators/psd/PSDLoader.cpp
+++ b/src/add-ons/translators/psd/PSDLoader.cpp
@@ -23,7 +23,7 @@ PSDLoader::PSDLoader(BPositionIO *src)
 	fStream->Seek(0, SEEK_SET);
 
 	fSignature = _GetInt32FromStream(fStream);
-	if (fSignature != 0x38425053)
+	if (fSignature != 0x38425053) // 8BPS
 		return;
 
 	fVersion = _GetInt16FromStream(fStream);
@@ -41,9 +41,11 @@ PSDLoader::PSDLoader(BPositionIO *src)
 	fColorModeDataPos = fStream->Position();
 	_SkipStreamBlock(fStream, fColorModeDataSize);
 
-	// Skip image resources
-	_SkipStreamBlock(fStream, _GetInt32FromStream(fStream));
-	// Skip reserved data
+	fImageResourceSectionSize = _GetInt32FromStream(fStream);
+	fImageResourceSectionPos = fStream->Position();
+	_SkipStreamBlock(fStream, fImageResourceSectionSize);
+
+	// Skip [layer and mask] block
 	_SkipStreamBlock(fStream, _GetInt32FromStream(fStream));
 
 	fCompression = _GetInt16FromStream(fStream);
@@ -288,6 +290,9 @@ PSDLoader::Decode(BPositionIO *target)
 			uint8 *colorData = new uint8[fColorModeDataSize];
 			fStream->Seek(fColorModeDataPos, SEEK_SET);
 			fStream->Read(colorData, fColorModeDataSize);
+			
+			if (_ParseImageResources() != B_OK)
+				fTransparentIndex = 256;
 
 			uint8 *redPalette = colorData;
 			uint8 *greenPalette = colorData + paletteSize;
@@ -300,7 +305,7 @@ PSDLoader::Decode(BPositionIO *target)
 					*ptr++ = bluePalette[c];
 					*ptr++ = greenPalette[c];
 					*ptr++ = redPalette[c];
-					*ptr++ = 255;
+					*ptr++ = c == fTransparentIndex ? 0 : 255;
 				}
 				target->Write(lineData, fWidth * sizeof(uint32));
 			}
@@ -481,3 +486,55 @@ PSDLoader::_SkipStreamBlock(BPositionIO *in, size_t count)
 {	
 	in->Seek(count, SEEK_CUR);
 }
+
+
+status_t
+PSDLoader::_ParseImageResources(void)
+{
+	if (!fLoaded && fImageResourceSectionSize == 0)
+		return B_ERROR;
+
+	size_t currentPos = fStream->Position();
+	fStream->Seek(fImageResourceSectionPos, SEEK_SET);
+	
+	while (fStream->Position() < currentPos + fImageResourceSectionSize) {
+		int32 resBlockSignature = _GetInt32FromStream(fStream);		
+		if (resBlockSignature != 0x3842494D) // 8BIM
+			return B_ERROR;
+	
+		uint16 resID = _GetInt16FromStream(fStream);	
+			
+		BString resName, name;		
+		int nameLength = 0;
+		while (true) {
+			int charData = _GetUInt8FromStream(fStream);
+			nameLength++;
+			if (charData == 0) {
+				if (nameLength % 2 == 1) {
+					_GetUInt8FromStream(fStream);
+					nameLength++;
+				}
+				break;
+			} else
+				name += charData;
+			resName = name;
+		}
+
+		uint32 resSize = _GetInt32FromStream(fStream);
+
+		if (resSize % 2 == 1)
+			resSize++;
+
+		switch (resID) {
+			case 0x0417:
+				fTransparentIndex = _GetInt16FromStream(fStream);
+				break;
+			default:
+				_SkipStreamBlock(fStream, resSize);
+		}
+	}
+
+	fStream->Seek(currentPos, SEEK_SET);
+	
+	return B_OK;
+}
diff --git a/src/add-ons/translators/psd/PSDLoader.h b/src/add-ons/translators/psd/PSDLoader.h
index 76f2d672a5..e7dcb2568a 100644
--- a/src/add-ons/translators/psd/PSDLoader.h
+++ b/src/add-ons/translators/psd/PSDLoader.h
@@ -75,6 +75,8 @@ private:
 	uint8			_GetUInt8FromStream(BPositionIO *in);
 	int8			_GetInt8FromStream(BPositionIO *in);
 	void			_SkipStreamBlock(BPositionIO *in, size_t count);
+	
+	status_t		_ParseImageResources(void);
 
 	psd_color_format _ColorFormat(void);
 
@@ -85,7 +87,10 @@ private:
 
 	size_t			fColorModeDataSize;
 	size_t			fColorModeDataPos;
-
+	
+	size_t			fImageResourceSectionSize;
+	size_t			fImageResourceSectionPos;
+	
 	int32 			fSignature;
 	int16 			fVersion;
 	int16 			fChannels;
@@ -95,6 +100,8 @@ private:
 	int16			fColorFormat;
 	int16			fCompression;
 
+	uint16			fTransparentIndex;
+
 	bool			fLoaded;
 };
 
diff --git a/src/add-ons/translators/psd/PSDTranslator.h b/src/add-ons/translators/psd/PSDTranslator.h
index 59f708ec7f..6b45838836 100644
--- a/src/add-ons/translators/psd/PSDTranslator.h
+++ b/src/add-ons/translators/psd/PSDTranslator.h
@@ -21,7 +21,7 @@
 #define DOCUMENT_COUNT "/documentCount"
 #define DOCUMENT_INDEX "/documentIndex"
 
-#define PSD_TRANSLATOR_VERSION B_TRANSLATION_MAKE_VERSION(1, 1, 2)
+#define PSD_TRANSLATOR_VERSION B_TRANSLATION_MAKE_VERSION(1, 1, 3)
 #define PSD_IMAGE_FORMAT	'PSD '
 
 #define PSD_IN_QUALITY		0.5
diff --git a/src/add-ons/translators/psd/PSDTranslator.rdef b/src/add-ons/translators/psd/PSDTranslator.rdef
index 5c500f6792..3b8d4c7ea7 100644
--- a/src/add-ons/translators/psd/PSDTranslator.rdef
+++ b/src/add-ons/translators/psd/PSDTranslator.rdef
@@ -7,9 +7,9 @@ resource app_signature "application/x-vnd.Haiku-PSDTranslator";
 resource app_version {
 	major  = 1,
 	middle = 1,
-	minor  = 2,
+	minor  = 3,
 	variety = 0,
 	internal = 0,
-	short_info = "1.1.2",
+	short_info = "1.1.3",
 	long_info = "Haiku PSDTranslator Add-Ons."
 };