diff --git a/checkin_notes b/checkin_notes
index 8013db04a5..873c3017eb 100644
--- a/checkin_notes
+++ b/checkin_notes
@@ -9006,3 +9006,10 @@ Rom    12 Dec 2011
     win_build/installerv2/redist/Windows/x64/
         boinccas.dll
         boinccas95.dll
+
+Charlie 7 Dec 2011
+    - MGR: If CSkinIcon PNG file has an alpha channel, use it as mask and 
+        ignore any <transparency_mask> tag.
+        
+    clientgui/
+        SkinManager.cpp
diff --git a/clientgui/SkinManager.cpp b/clientgui/SkinManager.cpp
index 5e29c56d60..59da0fca3b 100644
--- a/clientgui/SkinManager.cpp
+++ b/clientgui/SkinManager.cpp
@@ -238,8 +238,10 @@ bool CSkinIcon::Validate() {
     if (!m_icoIcon.Ok()) {
         if (!m_strDesiredIcon.IsEmpty()) {
             // Configure bitmap object with optional transparency mask
-            wxBitmap bmp = wxBitmap(wxImage(m_strDesiredIcon, wxBITMAP_TYPE_ANY));
-            if (!m_strDesiredTransparencyMask.IsEmpty()) {
+            wxImage img = wxImage(m_strDesiredIcon, wxBITMAP_TYPE_ANY);
+            wxBitmap bmp = wxBitmap(img);
+            // If PNG file has alpha channel use it as mask & ignore <transparency_mask> tag 
+            if (!(m_strDesiredTransparencyMask.IsEmpty() || img.HasAlpha())) {
                 bmp.SetMask(new wxMask(bmp, ParseColor(m_strDesiredTransparencyMask)));
             }
             // Now set the icon object using the newly created bitmap with optional transparency mask