diff --git a/src/modules/previewpane/SvgThumbnailProvider/SvgThumbnailProvider.cs b/src/modules/previewpane/SvgThumbnailProvider/SvgThumbnailProvider.cs
index 2a5a8f2eae..7c305d2c3e 100644
--- a/src/modules/previewpane/SvgThumbnailProvider/SvgThumbnailProvider.cs
+++ b/src/modules/previewpane/SvgThumbnailProvider/SvgThumbnailProvider.cs
@@ -2,6 +2,7 @@
 // The Microsoft Corporation licenses this file to you under the MIT license.
 // See the LICENSE file in the project root for more information.
 using System.Drawing.Drawing2D;
+using System.Drawing.Imaging;
 using System.Globalization;
 using System.Reflection;
 using System.Runtime.CompilerServices;
@@ -116,6 +117,7 @@ namespace Microsoft.PowerToys.ThumbnailHandler.Svg
             _browser.Visible = true;
             _browser.Width = (int)cx;
             _browser.Height = (int)cx;
+            _browser.DefaultBackgroundColor = Color.Transparent;
             _browser.NavigationCompleted += async (object sender, CoreWebView2NavigationCompletedEventArgs args) =>
             {
                 var a = await _browser.ExecuteScriptAsync($"document.getElementsByTagName('svg')[0].viewBox;");
@@ -258,7 +260,7 @@ namespace Microsoft.PowerToys.ThumbnailHandler.Svg
                 return null;
             }
 
-            Bitmap destImage = new Bitmap(width, height);
+            Bitmap destImage = new Bitmap(width, height, PixelFormat.Format32bppArgb);
 
             destImage.SetResolution(image.HorizontalResolution, image.VerticalResolution);
 
@@ -270,10 +272,11 @@ namespace Microsoft.PowerToys.ThumbnailHandler.Svg
                 graphics.SmoothingMode = SmoothingMode.HighQuality;
                 graphics.PixelOffsetMode = PixelOffsetMode.HighQuality;
 
-                graphics.Clear(Color.White);
                 graphics.DrawImage(image, 0, 0, width, height);
             }
 
+            image.Dispose();
+
             return destImage;
         }
 
diff --git a/src/modules/previewpane/UnitTests-SvgThumbnailProvider/SvgThumbnailProviderTests.cs b/src/modules/previewpane/UnitTests-SvgThumbnailProvider/SvgThumbnailProviderTests.cs
index 2154585cfd..bb742a14e7 100644
--- a/src/modules/previewpane/UnitTests-SvgThumbnailProvider/SvgThumbnailProviderTests.cs
+++ b/src/modules/previewpane/UnitTests-SvgThumbnailProvider/SvgThumbnailProviderTests.cs
@@ -4,6 +4,7 @@
 
 using System;
 using System.Drawing;
+using System.Drawing.Drawing2D;
 using System.Drawing.Imaging;
 using System.Runtime.InteropServices;
 using System.Text;
@@ -221,5 +222,44 @@ namespace SvgThumbnailProviderUnitTests
 
             Assert.IsTrue(bitmap != null);
         }
+
+        [TestMethod]
+        public void ResizeImageShouldPreserveAlphaChannel()
+        {
+            Bitmap source = new Bitmap(64, 64, PixelFormat.Format32bppArgb);
+            using (var graphics = Graphics.FromImage(source))
+            {
+                graphics.CompositingMode = CompositingMode.SourceCopy;
+                graphics.Clear(Color.FromArgb(128, 255, 0, 0));
+            }
+
+            using Bitmap resized = SvgThumbnailProvider.ResizeImage(source, 32, 32);
+
+            Assert.IsNotNull(resized);
+            Assert.AreEqual(PixelFormat.Format32bppArgb, resized.PixelFormat);
+
+            Color center = resized.GetPixel(resized.Width / 2, resized.Height / 2);
+            Assert.AreEqual(128, center.A, "Resizing must not force the output to be opaque.");
+        }
+
+        [TestMethod]
+        public void GetThumbnailShouldPreserveTransparentBackground()
+        {
+            var svgBuilder = new StringBuilder();
+            svgBuilder.AppendLine("<svg viewBox=\"0 0 100 100\" xmlns=\"http://www.w3.org/2000/svg\">");
+            svgBuilder.AppendLine("\t<circle cx=\"50\" cy=\"50\" r=\"25\" fill=\"red\">");
+            svgBuilder.AppendLine("\t</circle>");
+            svgBuilder.AppendLine("</svg>");
+
+            SvgThumbnailProvider svgThumbnailProvider = new SvgThumbnailProvider(null);
+            svgThumbnailProvider.SvgContents = svgBuilder.ToString();
+            svgThumbnailProvider.SvgContentsReady.Set();
+
+            using Bitmap thumbnail = svgThumbnailProvider.GetThumbnail(256);
+
+            Assert.IsNotNull(thumbnail);
+            Assert.AreEqual(PixelFormat.Format32bppArgb, thumbnail.PixelFormat);
+            Assert.AreEqual(0, thumbnail.GetPixel(0, 0).A, "The thumbnail background must stay transparent.");
+        }
     }
 }