diff --git a/Libraries/Text/Text/RCTTextShadowView.m b/Libraries/Text/Text/RCTTextShadowView.m
index d1baf9ccb..a3b0b59c3 100644
--- a/Libraries/Text/Text/RCTTextShadowView.m
+++ b/Libraries/Text/Text/RCTTextShadowView.m
@@ -35,6 +35,19 @@
   return self;
 }
 
+- (void)didSetProps:(NSArray<NSString *> *)changedProps
+{
+  [super didSetProps:changedProps];
+
+  // When applying a semi-transparent background color to Text component
+  // we must set the root text nodes text attribute background color to nil
+  // because the background color is drawn on the RCTTextView itself, as well
+  // as on the glphy background draw step. By setting this to nil, we allow
+  // the RCTTextView backgroundColor to be used, without affecting nested Text
+  // components.
+  self.textAttributes.backgroundColor = nil;
+}
+
 - (BOOL)isYogaLeafNode
 {
   return YES;
diff --git a/RNTester/RNTesterIntegrationTests/ReferenceImages/RNTester-js-RNTesterApp.ios/testTextExample_1-iOS12@2x.png b/RNTester/RNTesterIntegrationTests/ReferenceImages/RNTester-js-RNTesterApp.ios/testTextExample_1-iOS12@2x.png
index 600673dc5..521fe7e3e 100644
Binary files a/RNTester/RNTesterIntegrationTests/ReferenceImages/RNTester-js-RNTesterApp.ios/testTextExample_1-iOS12@2x.png and b/RNTester/RNTesterIntegrationTests/ReferenceImages/RNTester-js-RNTesterApp.ios/testTextExample_1-iOS12@2x.png differ
diff --git a/RNTester/js/TextExample.ios.js b/RNTester/js/TextExample.ios.js
index c5a8c0aa9..076458989 100644
--- a/RNTester/js/TextExample.ios.js
+++ b/RNTester/js/TextExample.ios.js
@@ -434,6 +434,19 @@ exports.examples = [
       return <Text>{'test🙃'.substring(0, 5)}</Text>;
     },
   },
+  {
+    title: 'Transparent Background Color',
+    render: function() {
+      return (
+        <Text style={{backgroundColor: '#00000020', padding: 10}}>
+          Text in a gray box!
+          <Text style={{backgroundColor: 'red'}}>
+            Another text in a (inline) red box (which is inside the gray box).
+          </Text>
+        </Text>
+      );
+    },
+  },
   {
     title: 'Text metrics',
     render: function() {