This paper reviews the literature on texture segregation and texture transparency, and proposes a new account of texture transparency based on the theory of texture segregation. To date, it has been suggested that the perception of transparency might stem from perceptual grouping or spacing effects between texture elements. Based on recent data, this paper argues that texture transparency should be explained by a Filter-Rectify-Filter mechanism, which underlies texture segregation; the integration of collinear texture edges and the separation of orthogonal texture edges at texture-defined junctions are a critical factor in causing texture transparency. Moreover, outstanding problems with the theory of texture transparency were discussed in terms of the nature of second-order junctions, the time-course of overlaid texture surfaces, and synergetic effects by combining several visual attributes such as orientation and spatial frequency.