diff --git a/io_scene_fbx/__init__.py b/io_scene_fbx/__init__.py
index 39e8e7a9b779ce3588582d4704d7db6fb6932276..c97478b60309d6f88502edfb7efebdb5f6551e93 100644
--- a/io_scene_fbx/__init__.py
+++ b/io_scene_fbx/__init__.py
@@ -21,7 +21,7 @@
 bl_info = {
     "name": "FBX format",
     "author": "Campbell Barton, Bastien Montagne, Jens Restemeier",
-    "version": (3, 7, 2),
+    "version": (3, 7, 3),
     "blender": (2, 77, 0),
     "location": "File > Import-Export",
     "description": "FBX IO meshes, UV's, vertex colors, materials, textures, cameras, lamps and actions",
diff --git a/io_scene_fbx/import_fbx.py b/io_scene_fbx/import_fbx.py
index b8429071aad9942ec0c1f5d763c776fb3497a6e7..ca3a06e1115a22c8cc7a797b6869991dfa9aa4ed 100644
--- a/io_scene_fbx/import_fbx.py
+++ b/io_scene_fbx/import_fbx.py
@@ -1305,6 +1305,9 @@ def blen_read_material(fbx_tmpl, fbx_obj, settings):
         ma.diffuse_color = ma_diff
         ma.specular_color = ma_spec
         ma.alpha = ma_alpha
+        if ma_alpha < 1.0:
+            ma.use_transparency = True
+            ma.transparency_method = 'RAYTRACE'
         ma.specular_intensity = ma_spec_intensity
         ma.specular_hardness = ma_spec_hardness * 5.10 + 1.0