diff --git a/src/rail_cmd.cpp b/src/rail_cmd.cpp
--- a/src/rail_cmd.cpp
+++ b/src/rail_cmd.cpp
@@ -1526,10 +1526,7 @@ default_waypoint:
 				image += relocation;
 			}
 
-			if (HASBIT(_transparent_opt, TO_BUILDINGS)) {
-				SETBIT(image, PALETTE_MODIFIER_TRANSPARENT);
-				pal = PALETTE_TO_TRANSPARENT;
-			} else if (HASBIT(image, PALETTE_MODIFIER_COLOR)) {
+			if (!HASBIT(_transparent_opt, TO_BUILDINGS) && HASBIT(image, PALETTE_MODIFIER_COLOR)) {
 				pal = _drawtile_track_palette;
 			} else {
 				pal = dtss->pal;
@@ -1540,7 +1537,8 @@ default_waypoint:
 					image, pal,
 					ti->x + dtss->delta_x, ti->y + dtss->delta_y,
 					dtss->size_x, dtss->size_y,
-					dtss->size_z, ti->z + dtss->delta_z
+					dtss->size_z, ti->z + dtss->delta_z,
+					HASBIT(_transparent_opt, TO_BUILDINGS)
 				);
 			} else {
 				AddChildSpriteScreen(image, pal, dtss->delta_x, dtss->delta_y);