diff --git a/src/ImageSharp/Formats/Png/PngEncoderCore.cs b/src/ImageSharp/Formats/Png/PngEncoderCore.cs
index 552673179..469c459fb 100644
--- a/src/ImageSharp/Formats/Png/PngEncoderCore.cs
+++ b/src/ImageSharp/Formats/Png/PngEncoderCore.cs
@@ -495,52 +495,54 @@ namespace ImageSharp.Formats
 
             // Grab the palette and write it to the stream.
             TColor[] palette = quantized.Palette;
-            int pixelCount = palette.Length;
-            List<byte> transparentPixels = new List<byte>();
+            byte pixelCount = palette.Length.ToByte();
 
             // Get max colors for bit depth.
             int colorTableLength = (int)Math.Pow(2, header.BitDepth) * 3;
             byte[] colorTable = ArrayPool<byte>.Shared.Rent(colorTableLength);
+            byte[] alphaTable = ArrayPool<byte>.Shared.Rent(pixelCount);
             byte[] bytes = ArrayPool<byte>.Shared.Rent(4);
-
+            bool anyAlpha = false;
             try
             {
-                for (int i = 0; i < pixelCount; i++)
+                for (byte i = 0; i < pixelCount; i++)
                 {
-                    int offset = i * 3;
-                    palette[i].ToXyzwBytes(bytes, 0);
+                    if (quantized.Pixels.Contains(i))
+                    {
+                        int offset = i * 3;
+                        palette[i].ToXyzwBytes(bytes, 0);
 
-                    int alpha = bytes[3];
+                        byte alpha = bytes[3];
 
-                    colorTable[offset] = bytes[0];
-                    colorTable[offset + 1] = bytes[1];
-                    colorTable[offset + 2] = bytes[2];
+                        colorTable[offset] = bytes[0];
+                        colorTable[offset + 1] = bytes[1];
+                        colorTable[offset + 2] = bytes[2];
 
-                    if (alpha < 255 && alpha <= this.options.Threshold)
-                    {
-                        // Ensure the index is actually being used in our array.
-                        // I'd like to find a faster way of doing this.
-                        if (quantized.Pixels.Contains((byte)i))
+                        if (alpha > this.options.Threshold)
                         {
-                            transparentPixels.Add((byte)i);
+                            alpha = 255;
                         }
+
+                        anyAlpha = anyAlpha || alpha < 255;
+                        alphaTable[i] = alpha;
                     }
                 }
 
                 this.WriteChunk(stream, PngChunkTypes.Palette, colorTable, 0, colorTableLength);
+
+                // Write the transparency data
+                if (anyAlpha)
+                {
+                    this.WriteChunk(stream, PngChunkTypes.PaletteAlpha, alphaTable, 0, pixelCount);
+                }
             }
             finally
             {
                 ArrayPool<byte>.Shared.Return(colorTable);
+                ArrayPool<byte>.Shared.Return(alphaTable);
                 ArrayPool<byte>.Shared.Return(bytes);
             }
 
-            // Write the transparency data
-            if (transparentPixels.Any())
-            {
-                this.WriteChunk(stream, PngChunkTypes.PaletteAlpha, transparentPixels.ToArray());
-            }
-
             return quantized;
         }
 
diff --git a/src/ImageSharp/Formats/Png/PngEncoderOptions.cs b/src/ImageSharp/Formats/Png/PngEncoderOptions.cs
index 2891f1974..90175c6d6 100644
--- a/src/ImageSharp/Formats/Png/PngEncoderOptions.cs
+++ b/src/ImageSharp/Formats/Png/PngEncoderOptions.cs
@@ -60,7 +60,7 @@ namespace ImageSharp.Formats
         /// <summary>
         /// Gets or sets the transparency threshold.
         /// </summary>
-        public byte Threshold { get; set; } = 0;
+        public byte Threshold { get; set; } = 255;
 
         /// <summary>
         /// Gets or sets a value indicating whether this instance should write
diff --git a/tests/ImageSharp.Tests/Formats/Png/PngSmokeTests.cs b/tests/ImageSharp.Tests/Formats/Png/PngSmokeTests.cs
index 882f903d6..2ba570453 100644
--- a/tests/ImageSharp.Tests/Formats/Png/PngSmokeTests.cs
+++ b/tests/ImageSharp.Tests/Formats/Png/PngSmokeTests.cs
@@ -13,6 +13,7 @@ namespace ImageSharp.Tests.Formats.Png
     using ImageSharp.Formats;
     using System.Linq;
     using ImageSharp.IO;
+    using System.Numerics;
 
     public class PngSmokeTests
     {
@@ -58,6 +59,48 @@ namespace ImageSharp.Tests.Formats.Png
             }
         }
 
+        [Theory]
+        [WithTestPatternImages(100, 100, PixelTypes.Color)]
+        public void CanSaveIndexedPngTwice<TColor>(TestImageProvider<TColor> provider)
+            where TColor : struct, IPixel<TColor>
+        {
+            // does saving a file then repoening mean both files are identical???
+            using (Image<TColor> source = provider.GetImage())
+            using (MemoryStream ms = new MemoryStream())
+            {
+                source.MetaData.Quality = 256;
+                source.Save(ms, new PngEncoder(), new PngEncoderOptions {
+                    Threshold = 200
+                });
+                ms.Position = 0;
+                using (Image img1 = Image.Load(ms, new PngDecoder()))
+                {
+                    using (MemoryStream ms2 = new MemoryStream())
+                    {
+                        img1.Save(ms2, new PngEncoder(), new PngEncoderOptions
+                        {
+                            Threshold = 200
+                        });
+                        ms2.Position = 0;
+                        using (Image img2 = Image.Load(ms2, new PngDecoder()))
+                        {
+                            using (PixelAccessor<Color> pixels1 = img1.Lock())
+                            using (PixelAccessor<Color> pixels2 = img2.Lock())
+                            {
+                                for (int y = 0; y < img1.Height; y++)
+                                {
+                                    for (int x = 0; x < img1.Width; x++)
+                                    {
+                                        Assert.Equal(pixels1[x, y], pixels2[x, y]);
+                                    }
+                                }
+                            }
+                        }
+                    }
+                }
+            }
+        }
+
         [Theory]
         [WithTestPatternImages(300, 300, PixelTypes.All)]
         public void Resize<TColor>(TestImageProvider<TColor> provider)