Perceived contrast of a grating varies with its background (or mean) luminance: of the two gratings with the same photometric contrast the one on higher luminance background appears to have higher contrast. Does perceived contrast also vary with context-dependent background lightness even when the luminance remains constant? We investigated this question using a stimulus in which two equiluminant patches ("context squares", CSs) appear different in lightness. First we measured the lightness effect in a behavioral experiment. After ensuring that it was present for all participants, we conducted perceived contrast experiments, where participants judged the contrast of rectified incremental and decremental square-wave gratings superimposed on the CSs. For the incremental gratings participants' settings were significantly different for the two CSs. Specifically, perceived contrast was higher when the gratings were placed on the context square that was perceived lighter. In a follow-up experiment we measured perceived contrast of rectified gratings on isolated patches that differed in luminance. The pattern of results of the two experiments was consistent, demonstrating that possibly shared mechanisms underpin the effects of background luminance and context-dependent lightness on perceived contrast. © 2016 Elsevier Ltd.