In the present study, we examine the relation between neon color spreading (Redies & Spillmann, 1981) and illusory contours. In Experiment 1, the effects of misalignment between the line elements on the illusory contours in the Ehrenstein figure and in the Redies-Spillmann figure were examined. The remarkable overlap of the two curves for the likelihood of perceiving illusory contours in the Ehrenstein figure and in the Redies-Spillmann figure suggests that the illusory contours surrounding brightness enhancement (Ehrenstein, 1941) and those surrounding neon color spreading are caused by the same mechanism. We further examined both the effects of the interposed grids seen either in front of or behind the figures (Experiment 2) and the effects of misalignment (Experiment 3) on the illusory contours and range of color spreading, and found a high correlation between the appearance/disappearance of illusory contours and global/local color spreading. In Experiment 4, we added new lines to induce illusory contours to the line elements inducing local color spreading. We found that global color spreading was seen to cover the area surrounded by the illusory contours. On the basis of these findings, we suggest that there is an interaction between illusory contours and local color spreading.