Visual disappearance illusions, such as motion-induced blindness, are commonly used to study the neural correlates of visual perception. In such illusions a salient visual target becomes perceptually invisible. Previous studies are inconsistent regarding the role of early visual areas in these illusions. Here we provide physiological and psychophysical evidence suggesting a role for early visual areas in generating motion-induced blindness, and we provide a conceptual model by which different brain areas might contribute to the perceptual disappearance in this illusion.