The human visual system sees an illusory contour where there is a fault line across a regular striped pattern. We demonstrate that bees respond as if they see the same illusory contour. There is also a type of neuron in the lobula of the dragonfly optic lobe which responds directionally to motion of the illusory contour as if to an edge or line. Apparently insects have a mechanism that sees illusory contours and therefore assists in the demarcation of edges and objects at places where local contrast falls to zero at an edge, or where one textured object partially obscures another. These results suggest that insect vision, although spatially crude and low in processing power, sees separate objects by similar mechanisms to our own.