diff --git a/libcaja-private/caja-icon-canvas-item.c b/libcaja-private/caja-icon-canvas-item.c
index 3bb2db11e..942f71475 100644
--- a/libcaja-private/caja-icon-canvas-item.c
+++ b/libcaja-private/caja-icon-canvas-item.c
@@ -48,6 +48,7 @@
 #include "caja-file-utilities.h"
 #include "caja-global-preferences.h"
 #include "caja-icon-private.h"
+#include "caja-file.h"
 
 #define EMBLEM_SPACING 2
 
@@ -1912,6 +1913,7 @@ caja_icon_canvas_item_draw (EelCanvasItem *item,
     GdkPixbuf *emblem_pixbuf;
     cairo_surface_t *temp_surface;
     GtkStyleContext *context;
+    gboolean render_as_hidden = FALSE;
 
     container = CAJA_ICON_CONTAINER (item->canvas);
     gboolean is_rtl;
@@ -1933,9 +1935,34 @@ caja_icon_canvas_item_draw (EelCanvasItem *item,
 
     temp_surface = map_surface (icon_item);
 
-    gtk_render_icon_surface (context, cr,
-                             temp_surface,
-                             icon_rect.x0, icon_rect.y0);
+    /* Check if we should render hidden files as transparent */
+    if (!details->is_highlighted_for_selection && !details->is_highlighted_for_drop)
+    {
+        CajaIcon *icon = (CajaIcon *) icon_item->user_data;
+        if (icon != NULL && icon->data != NULL)
+        {
+            CajaFile *file = CAJA_FILE (icon->data);
+            if (caja_file_is_hidden_file (file))
+            {
+                render_as_hidden = TRUE;
+            }
+        }
+    }
+
+    if (render_as_hidden)
+    {
+        /* Render with 55% opacity for hidden files */
+        cairo_save (cr);
+        cairo_set_source_surface (cr, temp_surface, icon_rect.x0, icon_rect.y0);
+        cairo_paint_with_alpha (cr, 0.55);
+        cairo_restore (cr);
+    }
+    else
+    {
+        gtk_render_icon_surface (context, cr,
+                                 temp_surface,
+                                 icon_rect.x0, icon_rect.y0);
+    }
     cairo_surface_destroy (temp_surface);
 
     draw_embedded_text (icon_item, cr, icon_rect.x0, icon_rect.y0);
diff --git a/src/file-manager/fm-list-view.c b/src/file-manager/fm-list-view.c
index 57b5862c5..9ad06db8f 100644
--- a/src/file-manager/fm-list-view.c
+++ b/src/file-manager/fm-list-view.c
@@ -1584,6 +1584,66 @@ apply_columns_settings (FMListView *list_view,
     g_list_free (view_columns);
 }
 
+static void
+pixbuf_cell_data_func (GtkTreeViewColumn *column,
+                       GtkCellRenderer   *renderer,
+                       GtkTreeModel      *model,
+                       GtkTreeIter       *iter,
+                       FMListView        *view)
+{
+    CajaFile *file;
+    cairo_surface_t *surface;
+
+    gtk_tree_model_get (model, iter,
+                        FM_LIST_MODEL_FILE_COLUMN, &file,
+                        FM_LIST_MODEL_SMALLEST_ICON_COLUMN, &surface,
+                        -1);
+
+    /* Apply transparency to hidden files */
+    if (file != NULL && surface != NULL && caja_file_is_hidden_file (file))
+    {
+        cairo_surface_t *original_surface;
+        cairo_t *cr;
+        int width, height;
+        cairo_format_t format;
+        double scale_x, scale_y;
+
+        width = cairo_image_surface_get_width (surface);
+        height = cairo_image_surface_get_height (surface);
+        format = cairo_image_surface_get_format (surface);
+        cairo_surface_get_device_scale (surface, &scale_x, &scale_y);
+
+        /* Keep reference to original */
+        original_surface = surface;
+
+        /* Create a new transparent surface */
+        surface = cairo_surface_create_similar_image (original_surface, format, width, height);
+        cairo_surface_set_device_scale (surface, scale_x, scale_y);
+
+        cr = cairo_create (surface);
+
+        /* Paint the original surface with 55% opacity */
+        cairo_set_source_surface (cr, original_surface, 0, 0);
+        cairo_paint_with_alpha (cr, 0.55);
+
+        cairo_destroy (cr);
+        cairo_surface_destroy (original_surface);
+    }
+
+    /* Set the surface and clean up */
+    g_object_set (renderer, "surface", surface, NULL);
+
+    if (surface != NULL)
+    {
+        cairo_surface_destroy (surface);
+    }
+
+    if (file != NULL)
+    {
+        caja_file_unref (file);
+    }
+}
+
 static void
 filename_cell_data_func (GtkTreeViewColumn *column,
                          GtkCellRenderer   *renderer,
@@ -1863,10 +1923,9 @@ create_and_set_up_tree_view (FMListView *view)
             gtk_tree_view_column_set_resizable (view->details->file_name_column, TRUE);
 
             gtk_tree_view_column_pack_start (view->details->file_name_column, cell, FALSE);
-            gtk_tree_view_column_set_attributes (view->details->file_name_column,
-                                                 cell,
-                                                 "surface", FM_LIST_MODEL_SMALLEST_ICON_COLUMN,
-                                                 NULL);
+            gtk_tree_view_column_set_cell_data_func (view->details->file_name_column, cell,
+                                                     (GtkTreeCellDataFunc) pixbuf_cell_data_func,
+                                                     view, NULL);
 
             cell = gtk_cell_renderer_text_new ();
             g_object_set (cell,