diff --git a/src/ImageSharp/Formats/Webp/AlphaEncoder.cs b/src/ImageSharp/Formats/Webp/AlphaEncoder.cs
index 06c114c71f..571da5bb24 100644
--- a/src/ImageSharp/Formats/Webp/AlphaEncoder.cs
+++ b/src/ImageSharp/Formats/Webp/AlphaEncoder.cs
@@ -3,18 +3,98 @@
 
 using System;
 using System.Buffers;
+using SixLabors.ImageSharp.Advanced;
+using SixLabors.ImageSharp.Formats.Webp.Lossless;
 using SixLabors.ImageSharp.Memory;
 using SixLabors.ImageSharp.PixelFormats;
 
 namespace SixLabors.ImageSharp.Formats.Webp
 {
     /// <summary>
-    /// Encodes the alpha channel data.
-    /// Data is either compressed as lossless webp image or uncompressed.
+    /// Methods for encoding the alpha data of a VP8 image.
     /// </summary>
     internal static class AlphaEncoder
     {
-        public static byte[] EncodeAlpha<TPixel>(Image<TPixel> image, Configuration configuration, MemoryAllocator memoryAllocator)
+        /// <summary>
+        /// Encodes the alpha channel data.
+        /// Data is either compressed as lossless webp image or uncompressed.
+        /// </summary>
+        /// <typeparam name="TPixel">The pixel format.</typeparam>
+        /// <param name="image">The <see cref="ImageFrame{TPixel}"/> to encode from.</param>
+        /// <param name="configuration">The global configuration.</param>
+        /// <param name="memoryAllocator">The memory manager.</param>
+        /// <param name="compress">Indicates, if the data should be compressed with the lossless webp compression.</param>
+        /// <returns>The alpha data.</returns>
+        public static byte[] EncodeAlpha<TPixel>(Image<TPixel> image, Configuration configuration, MemoryAllocator memoryAllocator, bool compress)
+            where TPixel : unmanaged, IPixel<TPixel>
+        {
+            byte[] alphaData = ExtractAlphaChannel(image, configuration, memoryAllocator);
+            int width = image.Width;
+            int height = image.Height;
+            if (compress)
+            {
+                WebpEncodingMethod effort = WebpEncodingMethod.Default;
+                int quality = 8 * (int)effort;
+                using var lossLessEncoder = new Vp8LEncoder(
+                    memoryAllocator,
+                    configuration,
+                    width,
+                    height,
+                    quality,
+                    effort,
+                    WebpTransparentColorMode.Preserve,
+                    false,
+                    0);
+
+                // The transparency information will be stored in the green channel of the ARGB quadruplet.
+                // The green channel is allowed extra transformation steps in the specification -- unlike the other channels,
+                // that can improve compression.
+                using Image<Rgba32> alphaAsImage = DispatchAlphaToGreen(image, alphaData);
+
+                return lossLessEncoder.EncodeAlphaImageData(alphaAsImage);
+            }
+
+            return alphaData;
+        }
+
+        /// <summary>
+        /// Store the transparency in the green channel.
+        /// </summary>
+        /// <typeparam name="TPixel">The pixel format.</typeparam>
+        /// <param name="image">The <see cref="ImageFrame{TPixel}"/> to encode from.</param>
+        /// <param name="alphaData">A byte sequence of length width * height, containing all the 8-bit transparency values in scan order.</param>
+        /// <returns>The transparency image.</returns>
+        private static Image<Rgba32> DispatchAlphaToGreen<TPixel>(Image<TPixel> image, byte[] alphaData)
+            where TPixel : unmanaged, IPixel<TPixel>
+        {
+            int width = image.Width;
+            int height = image.Height;
+            var alphaAsImage = new Image<Rgba32>(width, height);
+
+            for (int y = 0; y < height; y++)
+            {
+                Memory<Rgba32> rowBuffer = alphaAsImage.DangerousGetPixelRowMemory(y);
+                Span<Rgba32> pixelRow = rowBuffer.Span;
+                Span<byte> alphaRow = alphaData.AsSpan(y * width, width);
+                for (int x = 0; x < width; x++)
+                {
+                    // Leave A/R/B channels zero'd.
+                    pixelRow[x] = new Rgba32(0, alphaRow[x], 0, 0);
+                }
+            }
+
+            return alphaAsImage;
+        }
+
+        /// <summary>
+        /// Extract the alpha data of the image.
+        /// </summary>
+        /// <typeparam name="TPixel">The pixel format.</typeparam>
+        /// <param name="image">The <see cref="ImageFrame{TPixel}"/> to encode from.</param>
+        /// <param name="configuration">The global configuration.</param>
+        /// <param name="memoryAllocator">The memory manager.</param>
+        /// <returns>A byte sequence of length width * height, containing all the 8-bit transparency values in scan order.</returns>
+        private static byte[] ExtractAlphaChannel<TPixel>(Image<TPixel> image, Configuration configuration, MemoryAllocator memoryAllocator)
             where TPixel : unmanaged, IPixel<TPixel>
         {
             Buffer2D<TPixel> imageBuffer = image.Frames.RootFrame.PixelBuffer;
diff --git a/src/ImageSharp/Formats/Webp/BitWriter/BitWriterBase.cs b/src/ImageSharp/Formats/Webp/BitWriter/BitWriterBase.cs
index b33f7987c1..84c9d3f133 100644
--- a/src/ImageSharp/Formats/Webp/BitWriter/BitWriterBase.cs
+++ b/src/ImageSharp/Formats/Webp/BitWriter/BitWriterBase.cs
@@ -146,7 +146,8 @@ namespace SixLabors.ImageSharp.Formats.Webp.BitWriter
         /// </summary>
         /// <param name="stream">The stream to write to.</param>
         /// <param name="dataBytes">The alpha channel data bytes.</param>
-        protected void WriteAlphaChunk(Stream stream, byte[] dataBytes)
+        /// <param name="alphaDataIsCompressed">Indicates, if the alpha channel data is compressed.</param>
+        protected void WriteAlphaChunk(Stream stream, byte[] dataBytes, bool alphaDataIsCompressed)
         {
             DebugGuard.NotNull(dataBytes, nameof(dataBytes));
 
@@ -157,9 +158,13 @@ namespace SixLabors.ImageSharp.Formats.Webp.BitWriter
             BinaryPrimitives.WriteUInt32LittleEndian(buf, size);
             stream.Write(buf);
 
-            // Write flags, all zero for now.
-            stream.WriteByte(0);
+            byte flags = 0;
+            if (alphaDataIsCompressed)
+            {
+                flags |= 1;
+            }
 
+            stream.WriteByte(flags);
             stream.Write(dataBytes);
 
             // Add padding byte if needed.
diff --git a/src/ImageSharp/Formats/Webp/BitWriter/Vp8BitWriter.cs b/src/ImageSharp/Formats/Webp/BitWriter/Vp8BitWriter.cs
index 3f16fc89bc..577a87e6a1 100644
--- a/src/ImageSharp/Formats/Webp/BitWriter/Vp8BitWriter.cs
+++ b/src/ImageSharp/Formats/Webp/BitWriter/Vp8BitWriter.cs
@@ -410,7 +410,8 @@ namespace SixLabors.ImageSharp.Formats.Webp.BitWriter
         /// <param name="height">The height of the image.</param>
         /// <param name="hasAlpha">Flag indicating, if a alpha channel is present.</param>
         /// <param name="alphaData">The alpha channel data.</param>
-        public void WriteEncodedImageToStream(Stream stream, ExifProfile exifProfile, XmpProfile xmpProfile, uint width, uint height, bool hasAlpha, byte[] alphaData)
+        /// <param name="alphaDataIsCompressed">Indicates, if the alpha data is compressed.</param>
+        public void WriteEncodedImageToStream(Stream stream, ExifProfile exifProfile, XmpProfile xmpProfile, uint width, uint height, bool hasAlpha, byte[] alphaData, bool alphaDataIsCompressed)
         {
             bool isVp8X = false;
             byte[] exifBytes = null;
@@ -461,7 +462,7 @@ namespace SixLabors.ImageSharp.Formats.Webp.BitWriter
             riffSize += WebpConstants.TagSize + WebpConstants.ChunkHeaderSize + vp8Size;
 
             // Emit headers and partition #0
-            this.WriteWebpHeaders(stream, size0, vp8Size, riffSize, isVp8X, width, height, exifProfile, xmpProfile, hasAlpha, alphaData);
+            this.WriteWebpHeaders(stream, size0, vp8Size, riffSize, isVp8X, width, height, exifProfile, xmpProfile, hasAlpha, alphaData, alphaDataIsCompressed);
             bitWriterPartZero.WriteToStream(stream);
 
             // Write the encoded image to the stream.
@@ -660,7 +661,8 @@ namespace SixLabors.ImageSharp.Formats.Webp.BitWriter
             ExifProfile exifProfile,
             XmpProfile xmpProfile,
             bool hasAlpha,
-            byte[] alphaData)
+            byte[] alphaData,
+            bool alphaDataIsCompressed)
         {
             this.WriteRiffHeader(stream, riffSize);
 
@@ -670,7 +672,7 @@ namespace SixLabors.ImageSharp.Formats.Webp.BitWriter
                 this.WriteVp8XHeader(stream, exifProfile, xmpProfile, width, height, hasAlpha);
                 if (hasAlpha)
                 {
-                    this.WriteAlphaChunk(stream, alphaData);
+                    this.WriteAlphaChunk(stream, alphaData, alphaDataIsCompressed);
                 }
             }
 
diff --git a/src/ImageSharp/Formats/Webp/Lossless/Vp8LEncoder.cs b/src/ImageSharp/Formats/Webp/Lossless/Vp8LEncoder.cs
index e9dce913a3..797d0794f9 100644
--- a/src/ImageSharp/Formats/Webp/Lossless/Vp8LEncoder.cs
+++ b/src/ImageSharp/Formats/Webp/Lossless/Vp8LEncoder.cs
@@ -228,7 +228,7 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossless
         public Vp8LHashChain HashChain { get; }
 
         /// <summary>
-        /// Encodes the image to the specified stream from the <see cref="Image{TPixel}"/>.
+        /// Encodes the image as lossless webp to the specified stream.
         /// </summary>
         /// <typeparam name="TPixel">The pixel format.</typeparam>
         /// <param name="image">The <see cref="Image{TPixel}"/> to encode from.</param>
@@ -236,10 +236,12 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossless
         public void Encode<TPixel>(Image<TPixel> image, Stream stream)
             where TPixel : unmanaged, IPixel<TPixel>
         {
-            image.Metadata.SyncProfiles();
             int width = image.Width;
             int height = image.Height;
 
+            ImageMetadata metadata = image.Metadata;
+            metadata.SyncProfiles();
+
             // Convert image pixels to bgra array.
             bool hasAlpha = this.ConvertPixelsToBgra(image, width, height);
 
@@ -253,11 +255,32 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossless
             this.EncodeStream(image);
 
             // Write bytes from the bitwriter buffer to the stream.
-            ImageMetadata metadata = image.Metadata;
-            metadata.SyncProfiles();
             this.bitWriter.WriteEncodedImageToStream(stream, metadata.ExifProfile, metadata.XmpProfile, (uint)width, (uint)height, hasAlpha);
         }
 
+        /// <summary>
+        /// Encodes the alpha image data using the webp lossless compression.
+        /// </summary>
+        /// <typeparam name="TPixel">The type of the pixel.</typeparam>
+        /// <param name="image">The <see cref="Image{TPixel}"/> to encode from.</param>
+        /// <returns>The encoded alpha stream.</returns>
+        public byte[] EncodeAlphaImageData<TPixel>(Image<TPixel> image)
+            where TPixel : unmanaged, IPixel<TPixel>
+        {
+            int width = image.Width;
+            int height = image.Height;
+
+            // Convert image pixels to bgra array.
+            this.ConvertPixelsToBgra(image, width, height);
+
+            // The image-stream does NOT contain any headers describing the image dimension, the dimension is already known.
+            this.EncodeStream(image);
+            this.bitWriter.Finish();
+            using var ms = new MemoryStream();
+            this.bitWriter.WriteToStream(ms);
+            return ms.ToArray();
+        }
+
         /// <summary>
         /// Writes the image size to the bitwriter buffer.
         /// </summary>
diff --git a/src/ImageSharp/Formats/Webp/Lossy/Vp8Encoder.cs b/src/ImageSharp/Formats/Webp/Lossy/Vp8Encoder.cs
index 48af53960c..d8bd8f759c 100644
--- a/src/ImageSharp/Formats/Webp/Lossy/Vp8Encoder.cs
+++ b/src/ImageSharp/Formats/Webp/Lossy/Vp8Encoder.cs
@@ -71,10 +71,7 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossy
         /// </summary>
         private int uvAlpha;
 
-        /// <summary>
-        /// Scratch buffer to reduce allocations.
-        /// </summary>
-        private readonly int[] scratch = new int[16];
+        private readonly bool alphaCompression;
 
         private readonly byte[] averageBytesPerMb = { 50, 24, 16, 9, 7, 5, 3, 2 };
 
@@ -105,6 +102,7 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossy
         /// <param name="entropyPasses">Number of entropy-analysis passes (in [1..10]).</param>
         /// <param name="filterStrength">The filter the strength of the deblocking filter, between 0 (no filtering) and 100 (maximum filtering).</param>
         /// <param name="spatialNoiseShaping">The spatial noise shaping. 0=off, 100=maximum.</param>
+        /// <param name="alphaCompression">If true, the alpha channel will be compressed with the lossless compression.</param>
         public Vp8Encoder(
             MemoryAllocator memoryAllocator,
             Configuration configuration,
@@ -114,7 +112,8 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossy
             WebpEncodingMethod method,
             int entropyPasses,
             int filterStrength,
-            int spatialNoiseShaping)
+            int spatialNoiseShaping,
+            bool alphaCompression)
         {
             this.memoryAllocator = memoryAllocator;
             this.configuration = configuration;
@@ -125,6 +124,7 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossy
             this.entropyPasses = Numerics.Clamp(entropyPasses, 1, 10);
             this.filterStrength = Numerics.Clamp(filterStrength, 0, 100);
             this.spatialNoiseShaping = Numerics.Clamp(spatialNoiseShaping, 0, 100);
+            this.alphaCompression = alphaCompression;
             this.rdOptLevel = method is WebpEncodingMethod.BestQuality ? Vp8RdLevel.RdOptTrellisAll
                 : method >= WebpEncodingMethod.Level5 ? Vp8RdLevel.RdOptTrellis
                 : method >= WebpEncodingMethod.Level3 ? Vp8RdLevel.RdOptBasic
@@ -327,7 +327,7 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossy
             if (hasAlpha)
             {
                 // TODO: This can potentially run in an separate task.
-                alphaData = AlphaEncoder.EncodeAlpha(image, this.configuration, this.memoryAllocator);
+                alphaData = AlphaEncoder.EncodeAlpha(image, this.configuration, this.memoryAllocator, this.alphaCompression);
             }
 
             // Stats-collection loop.
@@ -363,7 +363,7 @@ namespace SixLabors.ImageSharp.Formats.Webp.Lossy
             // Write bytes from the bitwriter buffer to the stream.
             ImageMetadata metadata = image.Metadata;
             metadata.SyncProfiles();
-            this.bitWriter.WriteEncodedImageToStream(stream, metadata.ExifProfile, metadata.XmpProfile, (uint)width, (uint)height, hasAlpha, alphaData);
+            this.bitWriter.WriteEncodedImageToStream(stream, metadata.ExifProfile, metadata.XmpProfile, (uint)width, (uint)height, hasAlpha, alphaData, this.alphaCompression);
         }
 
         /// <inheritdoc/>
diff --git a/src/ImageSharp/Formats/Webp/WebpEncoderCore.cs b/src/ImageSharp/Formats/Webp/WebpEncoderCore.cs
index 195fa62bdc..deed08b729 100644
--- a/src/ImageSharp/Formats/Webp/WebpEncoderCore.cs
+++ b/src/ImageSharp/Formats/Webp/WebpEncoderCore.cs
@@ -22,7 +22,6 @@ namespace SixLabors.ImageSharp.Formats.Webp
         private readonly MemoryAllocator memoryAllocator;
 
         /// <summary>
-        /// TODO: not used at the moment.
         /// Indicating whether the alpha plane should be compressed with Webp lossless format.
         /// </summary>
         private readonly bool alphaCompression;
@@ -100,7 +99,7 @@ namespace SixLabors.ImageSharp.Formats.Webp
         }
 
         /// <summary>
-        /// Encodes the image to the specified stream from the <see cref="ImageFrame{TPixel}"/>.
+        /// Encodes the image as webp to the specified stream.
         /// </summary>
         /// <typeparam name="TPixel">The pixel format.</typeparam>
         /// <param name="image">The <see cref="ImageFrame{TPixel}"/> to encode from.</param>
@@ -149,7 +148,8 @@ namespace SixLabors.ImageSharp.Formats.Webp
                     this.method,
                     this.entropyPasses,
                     this.filterStrength,
-                    this.spatialNoiseShaping);
+                    this.spatialNoiseShaping,
+                    this.alphaCompression);
                 enc.Encode(image, stream);
             }
         }