diff --git a/pygmt/figure.py b/pygmt/figure.py
index 0b2faea00d0..4163ab52eb1 100644
--- a/pygmt/figure.py
+++ b/pygmt/figure.py
@@ -135,7 +135,7 @@ def region(self) -> np.ndarray:
             wesn = lib.extract_region()
         return wesn
 
-    def savefig(  # noqa: PLR0912
+    def savefig(
         self,
         fname: str | PurePath,
         transparent: bool = False,
@@ -177,7 +177,8 @@ def savefig(  # noqa: PLR0912
             The desired figure file name, including the extension. See the list of
             supported formats and their extensions above.
         transparent
-            Use a transparent background for the figure. Only valid for PNG format.
+            Use a transparent background for the figure. Only valid for PNG format and
+            the PNG file asscoiated with KML format.
         crop
             Crop the figure canvas (page) to the plot area.
         anti_alias
@@ -203,9 +204,9 @@ def savefig(  # noqa: PLR0912
             "bmp": "b",
             "eps": "e",
             "jpg": "j",
-            "kml": "g",
+            "kml": "G" if transparent is True else "g",
             "pdf": "f",
-            "png": "g",
+            "png": "G" if transparent is True else "g",
             "ppm": "m",
             "tif": "t",
             "tiff": None,  # GeoTIFF doesn't need the -T option
@@ -226,14 +227,12 @@ def savefig(  # noqa: PLR0912
                 msg = "Extension '.ps' is not supported. Use '.eps' or '.pdf' instead."
                 raise GMTInvalidInput(msg)
             case ext if ext not in fmts:
-                raise GMTInvalidInput(f"Unknown extension '.{ext}'.")
-
-        fmt = fmts[ext]
-        if transparent:
-            if fmt != "g":
-                msg = f"Transparency unavailable for '{ext}', only for png."
+                msg = f"Unknown extension '.{ext}'."
                 raise GMTInvalidInput(msg)
-            fmt = fmt.upper()
+
+        if transparent and ext not in {"kml", "png"}:
+            msg = f"Transparency unavailable for '{ext}', only for png and kml."
+            raise GMTInvalidInput(msg)
         if anti_alias:
             kwargs["Qt"] = 2
             kwargs["Qg"] = 2
@@ -244,18 +243,17 @@ def savefig(  # noqa: PLR0912
                 raise GMTInvalidInput(msg)
             kwargs["W"] = True
 
-        # pytest-mpl v0.17.0 added the "metadata" parameter to Figure.savefig, which
-        # is not recognized. So remove it before calling Figure.psconvert.
+        # pytest-mpl v0.17.0 added the "metadata" parameter to Figure.savefig, which is
+        # not recognized. So remove it before calling Figure.psconvert.
         kwargs.pop("metadata", None)
-        self.psconvert(prefix=prefix, fmt=fmt, crop=crop, **kwargs)
+        self.psconvert(prefix=prefix, fmt=fmts[ext], crop=crop, **kwargs)
 
-        # Remove the .pgw world file if exists.
-        # Not necessary after GMT 6.5.0.
+        # Remove the .pgw world file if exists. Not necessary after GMT 6.5.0.
         # See upstream fix https://github.com/GenericMappingTools/gmt/pull/7865
         if ext == "tiff":
             fname.with_suffix(".pgw").unlink(missing_ok=True)
 
-        # Rename if file extension doesn't match the input file suffix
+        # Rename if file extension doesn't match the input file suffix.
         if ext != suffix[1:]:
             fname.with_suffix("." + ext).rename(fname)
 
diff --git a/pygmt/tests/test_figure.py b/pygmt/tests/test_figure.py
index 10076b69437..1831961ced4 100644
--- a/pygmt/tests/test_figure.py
+++ b/pygmt/tests/test_figure.py
@@ -196,12 +196,21 @@ def test_figure_savefig_transparent():
         fname = f"{prefix}.{fmt}"
         with pytest.raises(GMTInvalidInput):
             fig.savefig(fname, transparent=True)
-    # png should not raise an error
+
+    # PNG should support transparency and should not raise an error.
     fname = Path(f"{prefix}.png")
     fig.savefig(fname, transparent=True)
     assert fname.exists()
     fname.unlink()
 
+    # The companion PNG file with KML format should also support transparency.
+    fname = Path(f"{prefix}.kml")
+    fig.savefig(fname, transparent=True)
+    assert fname.exists()
+    fname.unlink()
+    assert fname.with_suffix(".png").exists()
+    fname.with_suffix(".png").unlink()
+
 
 def test_figure_savefig_filename_with_spaces():
     """