diff --git a/src/nsimage.m b/src/nsimage.m
index e76a7db..a2e0618 100644
--- a/src/nsimage.m
+++ b/src/nsimage.m
@@ -206,6 +206,7 @@ ns_set_alpha (void *img, int x, int y, unsigned char a)
            fg: (unsigned long)fg bg: (unsigned long)bg
 {
   unsigned char *planes[5];
+  unsigned char bg_alpha = 0xff;
 
   [self initWithSize: NSMakeSize (w, h)];
 
@@ -219,7 +220,10 @@ ns_set_alpha (void *img, int x, int y, unsigned char a)
   [bmRep getBitmapDataPlanes: planes];
 
   if (fg == 0 && bg == 0)
-    bg = 0xffffff;
+    {
+      bg = 0xffffff;
+      bg_alpha = 0;
+    }
 
   {
     /* pull bits out to set the (bytewise) alpha mask */
@@ -244,21 +248,22 @@ ns_set_alpha (void *img, int x, int y, unsigned char a)
           c = *s++;
           for (k = 0; i < w && k < 8; ++k, ++i)
             {
-              *alpha++ = 0xff;
-              if (c & 1)
+              if (c & 0x80)
                 {
                   *rr++ = fgr;
                   *gg++ = fgg;
                   *bb++ = fgb;
+                  *alpha++ = 0xff;
                 }
               else
                 {
                   *rr++ = bgr;
                   *gg++ = bgg;
                   *bb++ = bgb;
+                  *alpha++ = bg_alpha;
                 }
               idx++;
-              c >>= 1;
+              c <<= 1;
             }
         }
   }
diff --git a/src/nsterm.h b/src/nsterm.h
index 3fb8cfc..2e3076d 100644
--- a/src/nsterm.m
+++ b/src/nsterm.m
@@ -2461,6 +2461,10 @@ ns_draw_fringe_bitmap (struct window *w, struct glyph_row *row,
   static EmacsImage **bimgs = NULL;
   static int nBimgs = 0;
 
+  // NSTRACE ("ns_draw_fringe_bitmap");
+  // NSTRACE_MSG ("which:%d cursor:%d overlay:%d",
+  //              p->which, p->cursor_p, p->overlay_p);
+
   /* grow bimgs if needed */
   if (nBimgs < max_used_fringe_bitmap)
     {
@@ -2499,13 +2503,15 @@ ns_draw_fringe_bitmap (struct window *w, struct glyph_row *row,
           unsigned char *cbits = xmalloc (len);
 
           for (i = 0; i < len; i++)
-            cbits[i] = ~(bits[i] & 0xff);
+            cbits[i] = bits[i];
           img = [[EmacsImage alloc] initFromXBM: cbits width: 8 height: p->h
                                              fg: 0 bg: 0];
           bimgs[p->which - 1] = img;
           xfree (cbits);
         }
 
+      // NSTRACE_RECT ("r", r);
+
       NSRectClip (r);
       /* Since we composite the bitmap instead of just blitting it, we need
          to erase the whole background. */