diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8967a752..c27cd77f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,6 @@
+**Version 0.14.4**
+ - Fix bug when reducing RGBA to Indexed if image has 256 colors plus a background color
+
 **Version 0.14.3**
  - Fix multiple bugs when reducing transparency palettes
 
diff --git a/Cargo.lock b/Cargo.lock
index 5e0a4b22..0f7f4682 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1,6 +1,6 @@
 [root]
 name = "oxipng"
-version = "0.14.3"
+version = "0.14.4"
 dependencies = [
  "bit-vec 0.4.3 (registry+https://github.com/rust-lang/crates.io-index)",
  "byteorder 1.0.0 (registry+https://github.com/rust-lang/crates.io-index)",
@@ -65,8 +65,8 @@ name = "cargo_metadata"
 version = "0.1.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 dependencies = [
- "serde 0.9.8 (registry+https://github.com/rust-lang/crates.io-index)",
- "serde_derive 0.9.8 (registry+https://github.com/rust-lang/crates.io-index)",
+ "serde 0.9.9 (registry+https://github.com/rust-lang/crates.io-index)",
+ "serde_derive 0.9.9 (registry+https://github.com/rust-lang/crates.io-index)",
  "serde_json 0.9.8 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
 
@@ -147,7 +147,7 @@ name = "enum_primitive"
 version = "0.1.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 dependencies = [
- "num-traits 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-traits 0.1.37 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
 
 [[package]]
@@ -168,9 +168,9 @@ dependencies = [
  "byteorder 1.0.0 (registry+https://github.com/rust-lang/crates.io-index)",
  "enum_primitive 0.1.1 (registry+https://github.com/rust-lang/crates.io-index)",
  "glob 0.2.11 (registry+https://github.com/rust-lang/crates.io-index)",
- "num-iter 0.1.32 (registry+https://github.com/rust-lang/crates.io-index)",
- "num-rational 0.1.35 (registry+https://github.com/rust-lang/crates.io-index)",
- "num-traits 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-iter 0.1.33 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-rational 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-traits 0.1.37 (registry+https://github.com/rust-lang/crates.io-index)",
  "png 0.6.2 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
 
@@ -240,33 +240,33 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 
 [[package]]
 name = "num-integer"
-version = "0.1.32"
+version = "0.1.33"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 dependencies = [
- "num-traits 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-traits 0.1.37 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
 
 [[package]]
 name = "num-iter"
-version = "0.1.32"
+version = "0.1.33"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 dependencies = [
- "num-integer 0.1.32 (registry+https://github.com/rust-lang/crates.io-index)",
- "num-traits 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-integer 0.1.33 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-traits 0.1.37 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
 
 [[package]]
 name = "num-rational"
-version = "0.1.35"
+version = "0.1.36"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 dependencies = [
- "num-integer 0.1.32 (registry+https://github.com/rust-lang/crates.io-index)",
- "num-traits 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-integer 0.1.33 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-traits 0.1.37 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
 
 [[package]]
 name = "num-traits"
-version = "0.1.36"
+version = "0.1.37"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 
 [[package]]
@@ -285,7 +285,7 @@ dependencies = [
  "bitflags 0.7.0 (registry+https://github.com/rust-lang/crates.io-index)",
  "deflate 0.7.4 (registry+https://github.com/rust-lang/crates.io-index)",
  "inflate 0.1.1 (registry+https://github.com/rust-lang/crates.io-index)",
- "num-iter 0.1.32 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-iter 0.1.33 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
 
 [[package]]
@@ -350,7 +350,7 @@ dependencies = [
 
 [[package]]
 name = "serde"
-version = "0.9.8"
+version = "0.9.9"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 
 [[package]]
@@ -363,7 +363,7 @@ dependencies = [
 
 [[package]]
 name = "serde_derive"
-version = "0.9.8"
+version = "0.9.9"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 dependencies = [
  "quote 0.3.13 (registry+https://github.com/rust-lang/crates.io-index)",
@@ -378,8 +378,8 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 dependencies = [
  "dtoa 0.4.1 (registry+https://github.com/rust-lang/crates.io-index)",
  "itoa 0.3.1 (registry+https://github.com/rust-lang/crates.io-index)",
- "num-traits 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)",
- "serde 0.9.8 (registry+https://github.com/rust-lang/crates.io-index)",
+ "num-traits 0.1.37 (registry+https://github.com/rust-lang/crates.io-index)",
+ "serde 0.9.9 (registry+https://github.com/rust-lang/crates.io-index)",
 ]
 
 [[package]]
@@ -541,10 +541,10 @@ dependencies = [
 "checksum memchr 1.0.1 (registry+https://github.com/rust-lang/crates.io-index)" = "1dbccc0e46f1ea47b9f17e6d67c5a96bd27030519c519c9c91327e31275a47b4"
 "checksum miniz-sys 0.1.9 (registry+https://github.com/rust-lang/crates.io-index)" = "28eaee17666671fa872e567547e8428e83308ebe5808cdf6a0e28397dbe2c726"
 "checksum nom 1.2.4 (registry+https://github.com/rust-lang/crates.io-index)" = "a5b8c256fd9471521bcb84c3cdba98921497f1a331cbc15b8030fc63b82050ce"
-"checksum num-integer 0.1.32 (registry+https://github.com/rust-lang/crates.io-index)" = "fb24d9bfb3f222010df27995441ded1e954f8f69cd35021f6bef02ca9552fb92"
-"checksum num-iter 0.1.32 (registry+https://github.com/rust-lang/crates.io-index)" = "287a1c9969a847055e1122ec0ea7a5c5d6f72aad97934e131c83d5c08ab4e45c"
-"checksum num-rational 0.1.35 (registry+https://github.com/rust-lang/crates.io-index)" = "54ff603b8334a72fbb27fe66948aac0abaaa40231b3cecd189e76162f6f38aaf"
-"checksum num-traits 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)" = "a16a42856a256b39c6d3484f097f6713e14feacd9bfb02290917904fae46c81c"
+"checksum num-integer 0.1.33 (registry+https://github.com/rust-lang/crates.io-index)" = "21e4df1098d1d797d27ef0c69c178c3fab64941559b290fcae198e0825c9c8b5"
+"checksum num-iter 0.1.33 (registry+https://github.com/rust-lang/crates.io-index)" = "f7d1891bd7b936f12349b7d1403761c8a0b85a18b148e9da4429d5d102c1a41e"
+"checksum num-rational 0.1.36 (registry+https://github.com/rust-lang/crates.io-index)" = "c2dc5ea04020a8f18318ae485c751f8cfa1c0e69dcf465c29ddaaa64a313cc44"
+"checksum num-traits 0.1.37 (registry+https://github.com/rust-lang/crates.io-index)" = "e1cbfa3781f3fe73dc05321bed52a06d2d491eaa764c52335cf4399f046ece99"
 "checksum num_cpus 1.2.1 (registry+https://github.com/rust-lang/crates.io-index)" = "a225d1e2717567599c24f88e49f00856c6e825a12125181ee42c4257e3688d39"
 "checksum png 0.6.2 (registry+https://github.com/rust-lang/crates.io-index)" = "3cb773e9a557edb568ce9935cf783e3cdcabe06a9449d41b3e5506d88e582c82"
 "checksum quine-mc_cluskey 0.2.4 (registry+https://github.com/rust-lang/crates.io-index)" = "07589615d719a60c8dd8a4622e7946465dfef20d1a428f969e3443e7386d5f45"
@@ -555,9 +555,9 @@ dependencies = [
 "checksum regex-syntax 0.4.0 (registry+https://github.com/rust-lang/crates.io-index)" = "2f9191b1f57603095f105d317e375d19b1c9c5c3185ea9633a99a6dcbed04457"
 "checksum rustc-serialize 0.3.22 (registry+https://github.com/rust-lang/crates.io-index)" = "237546c689f20bb44980270c73c3b9edd0891c1be49cc1274406134a66d3957b"
 "checksum semver 0.2.3 (registry+https://github.com/rust-lang/crates.io-index)" = "2d5b7638a1f03815d94e88cb3b3c08e87f0db4d683ef499d1836aaf70a45623f"
-"checksum serde 0.9.8 (registry+https://github.com/rust-lang/crates.io-index)" = "204db0f2a5335be7313fd4453132fd56d2085aed081c673140a256772903e116"
+"checksum serde 0.9.9 (registry+https://github.com/rust-lang/crates.io-index)" = "05a67b8a53f885f4b6e3ed183806035819f9862474e747fe4488a6d63bcbfcb7"
 "checksum serde_codegen_internals 0.14.0 (registry+https://github.com/rust-lang/crates.io-index)" = "a5113d5bd16471b183803b374f0fe4877ad9658b95e33b11f4a004d73aacc74a"
-"checksum serde_derive 0.9.8 (registry+https://github.com/rust-lang/crates.io-index)" = "e88ec062a02cbebfd6276044a305d665a9919b497aa6acb2e12c070d1a50d32d"
+"checksum serde_derive 0.9.9 (registry+https://github.com/rust-lang/crates.io-index)" = "a85017d774504173e5f908f69790ad7616f535f4ea91d0cdc65676ea3c933709"
 "checksum serde_json 0.9.8 (registry+https://github.com/rust-lang/crates.io-index)" = "6501ac6f8b74f9b1033f7ddf79a08edfa0f58d6f8e3190cb8dc97736afa257a8"
 "checksum simd 0.1.1 (registry+https://github.com/rust-lang/crates.io-index)" = "63b5847c2d766ca7ce7227672850955802fabd779ba616aeabead4c2c3877023"
 "checksum strsim 0.6.0 (registry+https://github.com/rust-lang/crates.io-index)" = "b4d15c810519a91cf877e7e36e63fe068815c678181439f2f29e2562147c3694"
diff --git a/Cargo.toml b/Cargo.toml
index 7b533cec..d6e79dbd 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -8,7 +8,7 @@ homepage = "https://github.com/shssoichiro/oxipng"
 license = "MIT"
 name = "oxipng"
 repository = "https://github.com/shssoichiro/oxipng"
-version = "0.14.3"
+version = "0.14.4"
 
 [lib]
 name = "oxipng"
diff --git a/src/reduction.rs b/src/reduction.rs
index 9df4bbc7..61964126 100644
--- a/src/reduction.rs
+++ b/src/reduction.rs
@@ -134,7 +134,13 @@ pub fn reduce_rgba_to_palette(png: &mut PngData) -> bool {
         }
     }
 
-    let mut color_palette = Vec::with_capacity(palette.len() * 3);
+    let mut color_palette = Vec::with_capacity(palette.len() * 3 +
+                                               if png.aux_headers
+        .contains_key(&"bKGD".to_string()) {
+        6
+    } else {
+        0
+    });
     let mut trans_palette = Vec::with_capacity(palette.len());
     for color in &palette {
         for (i, byte) in color.iter().enumerate() {
@@ -151,7 +157,7 @@ pub fn reduce_rgba_to_palette(png: &mut PngData) -> bool {
         let header_pixels = bkgd_header.iter().skip(1).step(2).cloned().collect::<Vec<u8>>();
         if let Some(entry) = color_palette.chunks(3).position(|x| x == header_pixels.as_slice()) {
             *bkgd_header = vec![entry as u8];
-        } else if color_palette.len() == 255 {
+        } else if color_palette.len() / 3 == 256 {
             return false;
         } else {
             let entry = color_palette.len() / 3;
@@ -167,6 +173,9 @@ pub fn reduce_rgba_to_palette(png: &mut PngData) -> bool {
     png.raw_data = reduced;
     png.palette = Some(color_palette);
     if trans_palette.iter().any(|x| *x != 255) {
+        while let Some(255) = trans_palette.last().cloned() {
+            trans_palette.pop();
+        }
         png.transparency_palette = Some(trans_palette);
     } else {
         png.transparency_palette = None;
diff --git a/tests/files/issue-59.png b/tests/files/issue-59.png
new file mode 100644
index 00000000..f2101164
Binary files /dev/null and b/tests/files/issue-59.png differ
diff --git a/tests/regression.rs b/tests/regression.rs
index d8a7f267..3a248cec 100644
--- a/tests/regression.rs
+++ b/tests/regression.rs
@@ -237,3 +237,18 @@ fn issue_58() {
                      ColorType::Indexed,
                      BitDepth::Four);
 }
+
+#[test]
+fn issue_59() {
+    let input = PathBuf::from("tests/files/issue-59.png");
+    let opts = get_opts(&input);
+    let output = opts.out_file.clone();
+
+    test_it_converts(&input,
+                     &output,
+                     &opts,
+                     ColorType::RGBA,
+                     BitDepth::Eight,
+                     ColorType::RGBA,
+                     BitDepth::Eight);
+}