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Problem: The transparent background of images inserted into ArcMap appears as solid white

Description

When images with transparent backgrounds are added to an ArcMap document with the Insert > Picture menu option, the image appears with a solid white background obscuring the elements behind it.

Cause

This is a known issue when inserting images with transparent backgrounds into ArcMap.

Solution or Workaround

Open the image using Microsoft Word or PowerPoint, then paste the image into the ArcMap document.