texture with alpha works in wpf (it works for me!). are you sure your png alpha is ok
a png with alpha in DiffuseMaterial il is all you need. here is a piece of xaml with a camera over two textured flat meshes.
replace the png path, put it in the xaml file and run. you should be able to see material2 behind alpha1 of material1.
<Grid xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation" xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml" Width="640.0" Height="480.0" > <Grid.Resources> <MeshGeometry3D x:Key="Mesh" Positions="-4.999,-4.999,0.001 5.001,-4.999,0.001 -4.999,5.001,0.001 5.001,5.001,0.001 " TriangleIndices="2 0 3 1 3 0 " TextureCoordinates="0,0 1,0 0,1 1,1 " /> <DiffuseMaterial x:Key="material1" > <DiffuseMaterial.Brush> <ImageBrush ImageSource="C:\mypng.png" Transform="1,0,0,-1,0,1" /> </DiffuseMaterial.Brush> </DiffuseMaterial> <DiffuseMaterial x:Key="material2" > <DiffuseMaterial.Brush> <ImageBrush ImageSource="C:\image_4.png" Transform="1,0,0,-1,0,1" /> </DiffuseMaterial.Brush> </DiffuseMaterial> </Grid.Resources> <Viewport3D Width="640.0" Height="480.0" > <Viewport3D.Camera> <PerspectiveCamera Position="0,0,20"/> </Viewport3D.Camera> <ModelVisual3D> <ModelVisual3D.Content> <Model3DGroup > <AmbientLight /> <GeometryModel3D Geometry="{StaticResource Mesh}" Material="{StaticResource material2}"> <GeometryModel3D.Transform> <MatrixTransform3D Matrix="1.0,0.0,0.0,0,0.0,1.0,0.0,0,0.0,0.0,1.0,0,0.0,0.0,-5.0,1" /> </GeometryModel3D.Transform> </GeometryModel3D> <GeometryModel3D Geometry="{StaticResource Mesh}" Material="{StaticResource material1}"> <GeometryModel3D.Transform> <MatrixTransform3D Matrix="1.0,0.0,0.0,0,0.0,1.0,0.0,0,0.0,0.0,1.0,0,0.0,0.0,0.0,1" /> </GeometryModel3D.Transform> </GeometryModel3D> </Model3DGroup> </ModelVisual3D.Content> </ModelVisual3D> </Viewport3D> </Grid>