diff --git a/gfx/video_driver.c b/gfx/video_driver.c
index 3315c3f25b..2bb8e0c289 100644
--- a/gfx/video_driver.c
+++ b/gfx/video_driver.c
@@ -1063,8 +1063,7 @@ static bool video_driver_init_internal(bool *video_is_threaded)
    command_event(CMD_EVENT_OVERLAY_DEINIT, NULL);
    command_event(CMD_EVENT_OVERLAY_INIT, NULL);
 
-   if (!frame_cache_data)
-      video_driver_cached_frame_set(&dummy_pixels, 4, 4, 8);
+   video_driver_cached_frame_set(&dummy_pixels, 4, 4, 8);
 
 #if defined(PSP)
    video_driver_set_texture_frame(&dummy_pixels, false, 1, 1, 1.0f);
@@ -2503,7 +2502,9 @@ void video_driver_build_info(video_frame_info_t *video_info)
    video_info->xmb_alpha_factor       = settings->uints.menu_xmb_alpha_factor;
    video_info->menu_wallpaper_opacity = settings->floats.menu_wallpaper_opacity;
 
-   video_info->libretro_running       = core_is_game_loaded();
+   if (!settings->bools.menu_pause_libretro)
+      video_info->libretro_running    = (rarch_ctl(RARCH_CTL_IS_INITED, NULL)
+            && !rarch_ctl(RARCH_CTL_IS_DUMMY_CORE, NULL));
 #else
    video_info->menu_is_alive          = false;
    video_info->menu_footer_opacity    = 0.0f;
diff --git a/menu/drivers/xmb.c b/menu/drivers/xmb.c
index f326c5d001..0abea01a11 100644
--- a/menu/drivers/xmb.c
+++ b/menu/drivers/xmb.c
@@ -2582,7 +2582,7 @@ static void xmb_draw_bg(
          if (!running && draw.texture)
             draw.color = &coord_white[0];
 
-         if (running || video_info->xmb_color_theme == XMB_THEME_WALLPAPER)
+         if (video_info->xmb_color_theme == XMB_THEME_WALLPAPER)
             add_opacity = true;
 
          menu_display_draw_bg(&draw, video_info, add_opacity);
diff --git a/menu/menu_driver.c b/menu/menu_driver.c
index 2c20a6fd63..a7d1fad1cf 100644
--- a/menu/menu_driver.c
+++ b/menu/menu_driver.c
@@ -543,7 +543,7 @@ void menu_display_draw_bg(menu_display_ctx_draw_t *draw,
 
    draw->coords      = &coords;
 
-   if (draw->texture)
+   if (!video_info->libretro_running && !draw->pipeline.active)
       add_opacity_to_wallpaper = true;
 
    if (add_opacity_to_wallpaper)