In cycles you don't need to do anything special, just set your material to use the image's alpha channel to control the mix of a diffuse (or other shader) and a transparent shader. The light will pass right through the transparent areas: [![enter image description here][1]][1] *click on the image to enlarge* To get volumetrics you need to change the world texture to have some volume absortion (and increase the intensity of your lights a bit): [![enter image description here][2]][2] For Blender Internal it's a bit trickier: Set the transparency for the material by enabling the transparency box and moving the Alpha value to 0: On the texture settings enable the **Use Alpha** option for the image and on Infulence settings enable **Alpha** That will let the light pass through the texture, but other objects will receive the shadow of the mesh, not the transparency of the texture. [![enter image description here][3]][3] [![enter image description here][4]][4] For other objects to receive the shadow cast by the transparency, you have edit their manterial and on the Shadow section enable **Receive Transparent** [![enter image description here][5]][5] Now... as far as creating a volumetric light that uses that transparency... It just doesn't seem possible. The buffer shadows on the lamp seem to be follow only the mesh... [![enter image description here][6]][6] When you are expecting for something like this: [![enter image description here][7]][7] To create such image you need to have a mesh with the form you need to create the correct shadows. [1]: https://i.sstatic.net/3j8oD.png [2]: https://i.sstatic.net/FQcJD.png [3]: https://i.sstatic.net/1U1xd.png [4]: https://i.sstatic.net/UMphU.png [5]: https://i.sstatic.net/5AkY1.png [6]: https://i.sstatic.net/Ov5wI.png [7]: https://i.sstatic.net/emYLg.png