diff --git a/lv_conf_template.h b/lv_conf_template.h
index e3c340025..8ee14a1c4 100644
--- a/lv_conf_template.h
+++ b/lv_conf_template.h
@@ -43,6 +43,9 @@
 /*Images pixels with this color will not be drawn (with chroma keying)*/
 #define LV_COLOR_TRANSP    LV_COLOR_LIME         /*LV_COLOR_LIME: pure green*/
 
+/* Enable chroma keying for indexed images. */
+#define LV_INDEXED_CHROMA    1
+
 /* Enable anti-aliasing (lines, and radiuses will be smoothed) */
 #define LV_ANTIALIAS        1
 
diff --git a/src/lv_conf_checker.h b/src/lv_conf_checker.h
index f78fbfaa0..9bc2b1a3b 100644
--- a/src/lv_conf_checker.h
+++ b/src/lv_conf_checker.h
@@ -50,6 +50,11 @@
 #define LV_COLOR_TRANSP    LV_COLOR_LIME         /*LV_COLOR_LIME: pure green*/
 #endif
 
+/* Enable chroma keying for indexed images. */
+#ifndef LV_INDEXED_CHROMA
+#define LV_INDEXED_CHROMA    1
+#endif
+
 /* Enable anti-aliasing (lines, and radiuses will be smoothed) */
 #ifndef LV_ANTIALIAS
 #define LV_ANTIALIAS        1
diff --git a/src/lv_draw/lv_draw_img.c b/src/lv_draw/lv_draw_img.c
index 6a03d9d74..65d54703d 100644
--- a/src/lv_draw/lv_draw_img.c
+++ b/src/lv_draw/lv_draw_img.c
@@ -401,11 +401,7 @@ bool lv_img_color_format_is_chroma_keyed(lv_img_cf_t cf)
 
     switch(cf) {
         case LV_IMG_CF_TRUE_COLOR_CHROMA_KEYED:
-        case LV_IMG_CF_RAW_CHROMA_KEYED:
-        case LV_IMG_CF_INDEXED_1BIT:
-        case LV_IMG_CF_INDEXED_2BIT:
-        case LV_IMG_CF_INDEXED_4BIT:
-        case LV_IMG_CF_INDEXED_8BIT: is_chroma_keyed = true; break;
+        case LV_IMG_CF_RAW_CHROMA_KEYED: is_chroma_keyed = true; break;
         default: is_chroma_keyed = false; break;
     }
 
@@ -424,6 +420,10 @@ bool lv_img_color_format_has_alpha(lv_img_cf_t cf)
     switch(cf) {
         case LV_IMG_CF_TRUE_COLOR_ALPHA:
         case LV_IMG_CF_RAW_ALPHA:
+        case LV_IMG_CF_INDEXED_1BIT:
+        case LV_IMG_CF_INDEXED_2BIT:
+        case LV_IMG_CF_INDEXED_4BIT:
+        case LV_IMG_CF_INDEXED_8BIT:
         case LV_IMG_CF_ALPHA_1BIT:
         case LV_IMG_CF_ALPHA_2BIT:
         case LV_IMG_CF_ALPHA_4BIT:
diff --git a/src/lv_draw/lv_img_decoder.c b/src/lv_draw/lv_img_decoder.c
index 730739c16..f6445cf55 100644
--- a/src/lv_draw/lv_img_decoder.c
+++ b/src/lv_draw/lv_img_decoder.c
@@ -7,6 +7,7 @@
  *      INCLUDES
  *********************/
 #include "lv_img_decoder.h"
+#include "../lv_core/lv_refr.h"
 #include "../lv_draw/lv_draw_img.h"
 #include "../lv_misc/lv_ll.h"
 #include "../lv_misc/lv_color.h"
@@ -31,6 +32,7 @@ typedef struct
     lv_fs_file_t * f;
 #endif
     lv_color_t * palette;
+    lv_opa_t * opa;
 } lv_img_decoder_built_in_data_t;
 
 /**********************
@@ -375,7 +377,8 @@ lv_res_t lv_img_decoder_built_in_open(lv_img_decoder_t * decoder, lv_img_decoder
 
         lv_img_decoder_built_in_data_t * user_data = dsc->user_data;
         user_data->palette                         = lv_mem_alloc(palette_size * sizeof(lv_color_t));
-        if(user_data->palette == NULL) {
+        user_data->opa                             = lv_mem_alloc(palette_size * sizeof(lv_opa_t));
+        if(user_data->palette == NULL || user_data->opa == NULL) {
             LV_LOG_ERROR("img_decoder_built_in_open: out of memory");
 #if LV_USE_FILESYSTEM
             lv_mem_assert(user_data->f);
@@ -386,7 +389,13 @@ lv_res_t lv_img_decoder_built_in_open(lv_img_decoder_t * decoder, lv_img_decoder
             /*Read the palette from file*/
 #if LV_USE_FILESYSTEM
             lv_fs_seek(user_data->f, 4); /*Skip the header*/
-            lv_fs_read(user_data->f, user_data->palette, palette_size * sizeof(lv_color_t), NULL);
+            lv_color32_t cur_color;
+            uint32_t i;
+            for(i = 0; i < palette_size; i++) {
+                lv_fs_read(user_data->f, &cur_color, sizeof(lv_color32_t), NULL);
+                user_data->palette[i] = lv_color_make(cur_color.ch.red, cur_color.ch.green, cur_color.ch.blue);
+                user_data->opa[i]     = cur_color.ch.alpha;
+            }
 #else
             LV_LOG_WARN("Image built-in decoder can read the palette because LV_USE_FILESYSTEM = 0");
             return LV_RES_INV;
@@ -398,9 +407,21 @@ lv_res_t lv_img_decoder_built_in_open(lv_img_decoder_t * decoder, lv_img_decoder
             uint32_t i;
             for(i = 0; i < palette_size; i++) {
                 user_data->palette[i] = lv_color_make(palette_p[i].ch.red, palette_p[i].ch.green, palette_p[i].ch.blue);
+                user_data->opa[i]     = palette_p[i].ch.alpha;
             }
         }
 
+#if LV_INDEXED_CHROMA
+        /* Set the chroma color to transparent. */
+        lv_disp_t * disp = lv_refr_get_disp_refreshing();
+        uint32_t i;
+        for(i = 0; i < palette_size; i++) {
+            if(user_data->palette[i].full == disp->driver.color_chroma_key.full) {
+                user_data->opa[i] = 0;
+            }
+        }
+#endif
+
         dsc->img_data = NULL;
         return LV_RES_OK;
 #else
@@ -705,7 +726,20 @@ static lv_res_t lv_img_decoder_built_in_line_indexed(lv_img_decoder_dsc_t * dsc,
     lv_color_t * cbuf = (lv_color_t *)buf;
     for(i = 0; i < len; i++) {
         val_act = (data_tmp[byte_act] & (mask << pos)) >> pos;
-        cbuf[i] = user_data->palette[val_act];
+
+        lv_color_t color = user_data->palette[val_act];
+#if LV_COLOR_DEPTH == 8 || LV_COLOR_DEPTH == 1
+        buf[i * LV_IMG_PX_SIZE_ALPHA_BYTE] = color.full;
+#elif LV_COLOR_DEPTH == 16
+        /*Because of Alpha byte 16 bit color can start on odd address which can cause crash*/
+        buf[i * LV_IMG_PX_SIZE_ALPHA_BYTE] = color.full & 0xFF;
+        buf[i * LV_IMG_PX_SIZE_ALPHA_BYTE + 1] = (color.full >> 8) & 0xFF;
+#elif LV_COLOR_DEPTH == 32
+        *((uint32_t *)&buf[i * LV_IMG_PX_SIZE_ALPHA_BYTE]) = color.full;
+#else
+#error "Invalid LV_COLOR_DEPTH. Check it in lv_conf.h"
+#endif
+        buf[i * LV_IMG_PX_SIZE_ALPHA_BYTE + LV_IMG_PX_SIZE_ALPHA_BYTE - 1] = user_data->opa[val_act];
 
         pos -= px_size;
         if(pos < 0) {