Vernier acuity is susceptible to degradation by image motion. The purpose of this study was to determine to what extent vernier thresholds are elevated in the presence of image motion because of reduced stimulus visibility, due to contrast smearing, or to a shift in the spatial scale of analysis. To test the visibility hypothesis, we measured vernier thresholds as a function of stimulus velocity (0-6 deg/sec), for various levels of stimulus visibility, each normalized to the detection threshold at the respective velocity. Contrary to the prediction of the visibility hypothesis, vernier thresholds worsen as the velocity increases, even when the stimuli are equally visible. To test the shift in spatial scale hypothesis, we determined spatial frequency tuning functions for vernier discrimination and line detection tasks, using a masking paradigm. We measured vernier and line detection thresholds as a function of spatial frequency of a sine-wave mask (0.5-32 c/deg), and for stimulus and mask velocities ranging from 0 to 4 deg/sec. Peak masking for both vernier discrimination and line detection, which indicates the most sensitive band of spatial frequencies for each task, shifts systematically toward lower spatial frequencies as the velocity increases. The progressive increase in spatial scale largely accounts for the worsening of vernier thresholds for moving stimuli. Differences between peak masking for vernier discrimination and line detection were found at 0 and 1 deg/sec, suggesting that different mechanisms mediate the two tasks, at least at low velocities. The masking results are consistent with previous findings that directionally selective motion detectors mediate detection of moving stimuli, but suggest that these detectors do not analyze vernier offsets. We conclude that the elevation of vernier threshold for a moving stimulus is accounted for primarily by a shift of sensitivity to mechanisms of lower spatial frequency, and not by decreased stimulus visibility.