Kellman and Shipley (1991) recently advanced a new theory to explain the perception of partly occluded objects and illusory figures. The theory is a formalization of the Gestalt law of good continuation. In this paper we describe their account of occlusion when the contour of the occluder is completely specified by a display. Next, we outline some critical objections and present a number of counterexamples. Finally, we compare their theory with Wouterlood and Boselie's (in this issue) model of occlusion phenomena, which might also be considered as a formalization of the law of good continuation.