diff --git a/README.md b/README.md
index 165777a..9ae7763 100644
--- a/README.md
+++ b/README.md
@@ -405,6 +405,7 @@ tinycolor("#f00").complement().toHexString(); // "#00ffff"
 ```js
 tinycolor.equals(color1, color2)
 tinycolor.mix(color1, color2, amount = 50)
+tinycolor.alphaBlend('#f008', '#0f08') // #ae5100
 ```
 ### random
 
diff --git a/test/test.js b/test/test.js
index d5bd787..0622807 100644
--- a/test/test.js
+++ b/test/test.js
@@ -634,6 +634,12 @@ test("isReadable", function() {
   ok(tinycolor.isReadable("#db91b8", "#2e0c3a",{level:"AA",size:"large"}), "readable - AA large");
   ok(tinycolor.isReadable("#db91b8", "#2e0c3a",{level:"AAA",size:"small"}), "readable - AAA small");
   ok(tinycolor.isReadable("#db91b8", "#2e0c3a",{level:"AAA",size:"large"}), "readable - AAA large");
+
+  // transparency
+  // "#0009" as foreground:  contrast ratio 5.74
+  // "#0009" as background:  contrast ration between 5.74 and 21
+  ok(!tinycolor.isReadable("#fff", "#0009",{level:"AAA",size:"small"}), "not readable - transparency");
+  ok(tinycolor.isReadable("#fff", "#0009",{level:"AA",size:"small"}), "readable - transparency");
 });
 
 test("readability", function() {
@@ -750,6 +756,14 @@ test("Mix", function () {
     }
 });
 
+test("AlphaBlend", function () {
+    equal(tinycolor.alphaBlend('#fff', '#000').toHex(), 'ffffff', "Blending with solid foreground returns foreground");
+    equal(tinycolor.alphaBlend('#fff0', '#000').toHex(), '000000', "Blending with full transparent foreground returns background");
+    equal(tinycolor.alphaBlend('#f008', '#0f0').toHex(), '887700', "Blending with solid background works");
+    equal(tinycolor.alphaBlend('#f008', '#0f08').toHex(), 'ae5100', "Blending works");
+    equal(tinycolor.alphaBlend('#fff0', '#0000').toHex(), '000000', "Blending returns background if both are fully transparent");
+});
+
 // The combination tests need to be expanded further
 module("Combinations");
 
diff --git a/tinycolor.js b/tinycolor.js
index 9580299..0443d5d 100644
--- a/tinycolor.js
+++ b/tinycolor.js
@@ -716,17 +716,59 @@ tinycolor.mix = function(color1, color2, amount) {
     return tinycolor(rgba);
 };
 
+tinycolor.alphaBlend = function(foreground, background) {
+    var c1 = tinycolor(foreground);
+    var a1 = c1.getAlpha();
+    var rgb1 = c1.toRgb();
+
+    var c2 = tinycolor(background);
+    var a2 = c2.getAlpha();
+    var rgb2 = c2.toRgb();
+
+    if (a1 === 0 && a2 === 0) {
+        return c2;
+    }
+
+    var alpha = a1 + (1 - a1) * a2;
+
+    return tinycolor({
+        r: (a1 * rgb1.r + (1 - a1) * a2 * rgb2.r) / alpha,
+        g: (a1 * rgb1.g + (1 - a1) * a2 * rgb2.g) / alpha,
+        b: (a1 * rgb1.b + (1 - a1) * a2 * rgb2.b) / alpha,
+        a: alpha
+    });
+};
 
 // Readability Functions
 // ---------------------
 // <http://www.w3.org/TR/2008/REC-WCAG20-20081211/#contrast-ratiodef (WCAG Version 2)
 
+function _readability (foreground, background) {
+    var c1 = tinycolor.alphaBlend(foreground, background);
+    var c2 = tinycolor(background);
+    return (Math.max(c1.getLuminance(),c2.getLuminance())+0.05) / (Math.min(c1.getLuminance(),c2.getLuminance())+0.05);
+}
+
+function _readability_minimal (foreground, background) {
+    var fg = tinycolor(foreground);
+    var bgOnBlack = tinycolor.alphaBlend(background, '#000');
+    var bgOnWhite = tinycolor.alphaBlend(background, '#fff');
+
+    if (bgOnWhite.getLuminance() < fg.getLuminance()) {
+      return _readability(foreground, bgOnWhite);
+    } else if (bgOnBlack.getLuminance() > fg.getLuminance()) {
+      return _readability(foreground, bgOnBlack);
+    } else {
+      return 1;
+    }
+}
+
 // `contrast`
 // Analyze the 2 colors and returns the color contrast defined by (WCAG Version 2)
 tinycolor.readability = function(color1, color2) {
-    var c1 = tinycolor(color1);
-    var c2 = tinycolor(color2);
-    return (Math.max(c1.getLuminance(),c2.getLuminance())+0.05) / (Math.min(c1.getLuminance(),c2.getLuminance())+0.05);
+    var r1 = _readability_minimal(color1, color2);
+    var r2 = _readability_minimal(color2, color1);
+    return (r1 + r2) / 2;
 };
 
 // `isReadable`