Contextual effects are ubiquitous in vision and reveal fundamental principles of sensory coding. Here, we demonstrate that an oriented surround grating can affect the perceived orientation of a central test grating even when backward masking of the surround prevents its orientation from being consciously perceived. The effect survives introduction of a gap between test and surround of over a degree even under masking, suggesting either that contextual information can effectively propagate across early visual cortex in the absence of awareness of the signaled context or that it can proceed undetected to higher processing levels at which such horizontal propagation may not be necessary. The effect under masking also shows partial interocular transfer, demonstrating processing of orientation by binocular neurons in visual cortex in the absence of conscious orientation perception. This pattern of results is consistent with the suggestion that simultaneous orientation contrast is mediated at multiple levels of the visual processing hierarchy, and it supports the view that propagation of signals to and, possibly, back from higher visual areas is necessary for conscious perception.