diff --git a/src/ImageSharp/Processing/Extensions/Dithering/DitherExtensions.cs b/src/ImageSharp/Processing/Extensions/Dithering/DitherExtensions.cs
index f4664a5c0f..296ed71b72 100644
--- a/src/ImageSharp/Processing/Extensions/Dithering/DitherExtensions.cs
+++ b/src/ImageSharp/Processing/Extensions/Dithering/DitherExtensions.cs
@@ -21,7 +21,7 @@ namespace SixLabors.ImageSharp.Processing
             Dither(source, KnownDitherings.Bayer8x8);
 
         /// <summary>
-        /// Dithers the image reducing it to a web-safe palette using ordered dithering.
+        /// Dithers the image reducing it to a web-safe palette.
         /// </summary>
         /// <param name="source">The image this method extends.</param>
         /// <param name="dither">The ordered ditherer.</param>
@@ -32,7 +32,7 @@ namespace SixLabors.ImageSharp.Processing
             source.ApplyProcessor(new PaletteDitherProcessor(dither));
 
         /// <summary>
-        /// Dithers the image reducing it to a web-safe palette using ordered dithering.
+        /// Dithers the image reducing it to a web-safe palette.
         /// </summary>
         /// <param name="source">The image this method extends.</param>
         /// <param name="dither">The ordered ditherer.</param>
@@ -45,7 +45,7 @@ namespace SixLabors.ImageSharp.Processing
             source.ApplyProcessor(new PaletteDitherProcessor(dither, ditherScale));
 
         /// <summary>
-        /// Dithers the image reducing it to the given palette using ordered dithering.
+        /// Dithers the image reducing it to the given palette.
         /// </summary>
         /// <param name="source">The image this method extends.</param>
         /// <param name="dither">The ordered ditherer.</param>
@@ -58,7 +58,7 @@ namespace SixLabors.ImageSharp.Processing
             source.ApplyProcessor(new PaletteDitherProcessor(dither, palette));
 
         /// <summary>
-        /// Dithers the image reducing it to the given palette using ordered dithering.
+        /// Dithers the image reducing it to the given palette.
         /// </summary>
         /// <param name="source">The image this method extends.</param>
         /// <param name="dither">The ordered ditherer.</param>
@@ -84,7 +84,7 @@ namespace SixLabors.ImageSharp.Processing
             Dither(source, KnownDitherings.Bayer8x8, rectangle);
 
         /// <summary>
-        /// Dithers the image reducing it to a web-safe palette using ordered dithering.
+        /// Dithers the image reducing it to a web-safe palette.
         /// </summary>
         /// <param name="source">The image this method extends.</param>
         /// <param name="dither">The ordered ditherer.</param>
@@ -99,7 +99,7 @@ namespace SixLabors.ImageSharp.Processing
             source.ApplyProcessor(new PaletteDitherProcessor(dither), rectangle);
 
         /// <summary>
-        /// Dithers the image reducing it to a web-safe palette using ordered dithering.
+        /// Dithers the image reducing it to a web-safe palette.
         /// </summary>
         /// <param name="source">The image this method extends.</param>
         /// <param name="dither">The ordered ditherer.</param>
@@ -116,7 +116,7 @@ namespace SixLabors.ImageSharp.Processing
             source.ApplyProcessor(new PaletteDitherProcessor(dither, ditherScale), rectangle);
 
         /// <summary>
-        /// Dithers the image reducing it to the given palette using ordered dithering.
+        /// Dithers the image reducing it to the given palette.
         /// </summary>
         /// <param name="source">The image this method extends.</param>
         /// <param name="dither">The ordered ditherer.</param>
@@ -133,7 +133,7 @@ namespace SixLabors.ImageSharp.Processing
             source.ApplyProcessor(new PaletteDitherProcessor(dither, palette), rectangle);
 
         /// <summary>
-        /// Dithers the image reducing it to the given palette using ordered dithering.
+        /// Dithers the image reducing it to the given palette.
         /// </summary>
         /// <param name="source">The image this method extends.</param>
         /// <param name="dither">The ordered ditherer.</param>
diff --git a/src/ImageSharp/Processing/Processors/Quantization/EuclideanPixelMap{TPixel}.cs b/src/ImageSharp/Processing/Processors/Quantization/EuclideanPixelMap{TPixel}.cs
index dbd5194947..1342de9dc7 100644
--- a/src/ImageSharp/Processing/Processors/Quantization/EuclideanPixelMap{TPixel}.cs
+++ b/src/ImageSharp/Processing/Processors/Quantization/EuclideanPixelMap{TPixel}.cs
@@ -121,13 +121,11 @@ namespace SixLabors.ImageSharp.Processing.Processors.Quantization
         /// significantly negatively affect performance.
         /// </summary>
         /// <remarks>
-        /// The cache is limited to 2471625 entries at 4MB.
-        /// This could be halfed by reducing the alpha accuracy but this treats
-        /// gradients less well in gifs than our previous cache implementation.
+        /// The cache is limited to 646866 entries at 0.62MB.
         /// </remarks>
         private struct ColorDistanceCache
         {
-            private const int IndexBits = 6;
+            private const int IndexBits = 5;
             private const int IndexAlphaBits = 3;
             private const int IndexCount = (1 << IndexBits) + 1;
             private const int IndexAlphaCount = (1 << IndexAlphaBits) + 1;
diff --git a/src/ImageSharp/Processing/Processors/Quantization/OctreeQuantizer{TPixel}.cs b/src/ImageSharp/Processing/Processors/Quantization/OctreeQuantizer{TPixel}.cs
index aaf9a0cecc..fab462e2ef 100644
--- a/src/ImageSharp/Processing/Processors/Quantization/OctreeQuantizer{TPixel}.cs
+++ b/src/ImageSharp/Processing/Processors/Quantization/OctreeQuantizer{TPixel}.cs
@@ -20,6 +20,7 @@ namespace SixLabors.ImageSharp.Processing.Processors.Quantization
         where TPixel : unmanaged, IPixel<TPixel>
     {
         private readonly int maxColors;
+        private readonly int bitDepth;
         private readonly Octree octree;
         private IMemoryOwner<TPixel> paletteOwner;
         private ReadOnlyMemory<TPixel> palette;
@@ -41,9 +42,10 @@ namespace SixLabors.ImageSharp.Processing.Processors.Quantization
             this.Configuration = configuration;
             this.Options = options;
 
-            this.maxColors = Math.Min(byte.MaxValue, this.Options.MaxColors);
-            this.octree = new Octree(Numerics.Clamp(ColorNumerics.GetBitsNeededForColorDepth(this.maxColors), 1, 8));
-            this.paletteOwner = configuration.MemoryAllocator.Allocate<TPixel>(this.maxColors + 1, AllocationOptions.Clean);
+            this.maxColors = this.Options.MaxColors;
+            this.bitDepth = Numerics.Clamp(ColorNumerics.GetBitsNeededForColorDepth(this.maxColors), 1, 8);
+            this.octree = new Octree(this.bitDepth);
+            this.paletteOwner = configuration.MemoryAllocator.Allocate<TPixel>(this.maxColors, AllocationOptions.Clean);
             this.palette = default;
             this.pixelMap = default;
             this.isDithering = !(this.Options.Dither is null);
@@ -92,8 +94,19 @@ namespace SixLabors.ImageSharp.Processing.Processors.Quantization
 
             int paletteIndex = 0;
             Span<TPixel> paletteSpan = this.paletteOwner.GetSpan();
-            this.octree.Palletize(paletteSpan, this.maxColors, ref paletteIndex);
 
+            // On very rare occasions, (blur.png), the quantizer does not preserve a
+            // transparent entry when palletizing the captured colors.
+            // To workaround this we ensure the palette ends with the default color
+            // for higher bit depths. Lower bit depths will correctly reduce the palette.
+            // TODO: Investigate more evenly reduced palette reduction.
+            int max = this.maxColors;
+            if (this.bitDepth == 8)
+            {
+                max--;
+            }
+
+            this.octree.Palletize(paletteSpan, max, ref paletteIndex);
             ReadOnlyMemory<TPixel> result = this.paletteOwner.Memory.Slice(0, paletteSpan.Length);
             this.pixelMap = new EuclideanPixelMap<TPixel>(this.Configuration, result);
             this.palette = result;
diff --git a/src/ImageSharp/Processing/Processors/Quantization/WuQuantizer{TPixel}.cs b/src/ImageSharp/Processing/Processors/Quantization/WuQuantizer{TPixel}.cs
index 80b2c3ef4b..b5d840f9dd 100644
--- a/src/ImageSharp/Processing/Processors/Quantization/WuQuantizer{TPixel}.cs
+++ b/src/ImageSharp/Processing/Processors/Quantization/WuQuantizer{TPixel}.cs
@@ -126,9 +126,10 @@ namespace SixLabors.ImageSharp.Processing.Processors.Quantization
             this.Get3DMoments(this.memoryAllocator);
             this.BuildCube();
 
+            // Slice again since maxColors has been updated since the buffer was created.
+            Span<TPixel> paletteSpan = this.paletteOwner.GetSpan().Slice(0, this.maxColors);
             ReadOnlySpan<Moment> momentsSpan = this.momentsOwner.GetSpan();
-            Span<TPixel> paletteSpan = this.paletteOwner.GetSpan();
-            for (int k = 0; k < this.maxColors; k++)
+            for (int k = 0; k < paletteSpan.Length; k++)
             {
                 this.Mark(ref this.colorCube[k], (byte)k);