diff --git a/CHANGELOG.md b/CHANGELOG.md
index 56a91248..3ceefcc1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+# 4.39.0
+
+* Adds generating transparent images
+
 # 4.38.0
 
 * Add waitress / db metrics to heartbeat
diff --git a/horde/apis/models/stable_v2.py b/horde/apis/models/stable_v2.py
index 9951fc84..69a3a262 100644
--- a/horde/apis/models/stable_v2.py
+++ b/horde/apis/models/stable_v2.py
@@ -405,6 +405,10 @@ def __init__(self, api):
                     enum=list(KNOWN_WORKFLOWS),
                     description="Explicitly specify the horde-engine workflow to use.",
                 ),
+                "transparent": fields.Boolean(
+                    default=False,
+                    description="Set to True to generate the image using Layer Diffuse, creating an image with a transparent background.",
+                ),
             },
         )
         self.response_model_generation_payload = api.inherit(
diff --git a/horde/apis/v2/stable.py b/horde/apis/v2/stable.py
index 150128c2..ce78bf8c 100644
--- a/horde/apis/v2/stable.py
+++ b/horde/apis/v2/stable.py
@@ -178,6 +178,13 @@ def validate(self):
                     raise e.BadRequest("explicit LoRa version requests have to be a version ID (i.e integer).", rc="BadLoraVersion")
         if "tis" in self.params and len(self.params["tis"]) > 20:
             raise e.BadRequest("You cannot request more than 20 Textual Inversions per generation.", rc="TooManyTIs")
+        if self.params.get("transparent", False) is True and any(
+            model_reference.get_model_baseline(model_name) not in ["stable_diffusion_xl", "stable diffusion 1"]
+            for model_name in self.args.models
+        ):
+            raise e.BadRequest(
+                "Generating Transparent images is is only possible for Stable Diffusion 1.5 and XL models.", rc="InvalidTransparency",
+            )
         if self.args.source_processing == "remix" and any(
             not model_reference.get_model_baseline(model_name).startswith("stable_cascade") for model_name in self.args.models
         ):
@@ -573,7 +580,7 @@ def post(self):
             if "blacklist" in post_ret.get("skipped", {}):
                 db_skipped["blacklist"] = post_ret["skipped"]["blacklist"]
             post_ret["skipped"] = db_skipped
-
+        # logger.debug(post_ret)
         return post_ret, retcode
 
     def check_in(self):
diff --git a/horde/bridge_reference.py b/horde/bridge_reference.py
index b842761e..b7c098c6 100644
--- a/horde/bridge_reference.py
+++ b/horde/bridge_reference.py
@@ -5,6 +5,7 @@
 
 BRIDGE_CAPABILITIES = {
     "AI Horde Worker reGen": {
+        8: {"layer_diffuse"},
         7: {"qr_code", "extra_texts", "workflow"},
         6: {"stable_cascade_2pass"},
         5: {"extra_source_images"},
diff --git a/horde/consts.py b/horde/consts.py
index 0af26183..83735f71 100644
--- a/horde/consts.py
+++ b/horde/consts.py
@@ -1,4 +1,4 @@
-HORDE_VERSION = "4.38.1"
+HORDE_VERSION = "4.39.0"
 
 WHITELISTED_SERVICE_IPS = {
     "212.227.227.178",  # Turing Bot
diff --git a/horde/database/functions.py b/horde/database/functions.py
index 301bc4a1..e74c2675 100644
--- a/horde/database/functions.py
+++ b/horde/database/functions.py
@@ -836,6 +836,13 @@ def get_sorted_wp_filtered_to_worker(worker, models_list=None, blacklist=None, p
                 worker.speed >= 500000,  # 0.5 MPS/s
                 ImageWaitingPrompt.slow_workers == True,  # noqa E712
             ),
+            or_(
+                ImageWaitingPrompt.params["transparent"].astext.cast(Boolean).is_(False),
+                and_(
+                    check_bridge_capability("layer_diffuse", worker.bridge_agent),
+                    worker.allow_sdxl_controlnet == True,  # noqa E712
+                )
+            ),
         )
     )
     # logger.debug(final_wp_list)
@@ -1067,6 +1074,10 @@ def count_skipped_image_wp(worker, models_list=None, blacklist=None, priority_us
                 not check_bridge_capability("tiling", worker.bridge_agent),
                 ImageWaitingPrompt.params["tiling"].astext.cast(Boolean).is_(True),
             ),
+            and_(
+                not check_bridge_capability("layer_diffuse", worker.bridge_agent),
+                ImageWaitingPrompt.params["transparent"].astext.cast(Boolean).is_(True),
+            ),
         ),
     ).count()
     if skipped_bv > 0:
diff --git a/horde/exceptions.py b/horde/exceptions.py
index 4e318fe9..d2a14b00 100644
--- a/horde/exceptions.py
+++ b/horde/exceptions.py
@@ -143,6 +143,7 @@
     "MoreThanMinExtraSourceImage",
     "InvalidExtraTexts",
     "MissingExtraTexts",
+    "InvalidTransparency",
 ]