Individuals with autism spectrum disorder (ASD) exhibit superior performance on tasks that rely on local details in an image, and they exhibit deficits in tasks that require integration of local elements into a unified whole. These perceptual abnormalities have been proposed to underlie many of the characteristic features of ASD, but the underlying neural mechanisms are poorly understood. Here, we investigated the degree to which orientation-specific surround suppression, a well-known form of contextual modulation in visual cortex, is associated with autistic tendency in neurotypical (NT) individuals. Surround suppression refers to the phenomenon that the response to a stimulus in the receptive field of a neuron is suppressed when it is surrounded by stimuli just outside the receptive field. The suppression is greatest when the center and surrounding stimuli share perceptual features such as orientation. Surround suppression underlies a number of fundamental perceptual processes that are known to be atypical in individuals with ASD, including perceptual grouping and perceptual pop-out. However, whether surround suppression in the primary visual cortex (V1) is related to autistic traits has not been directly tested before. We used fMRI to measure the neural response to a center Gabor when it was surrounded by Gabors having the same or orthogonal orientation, and calculated a suppression index (SI) for each participant that denoted the magnitude of suppression in the same vs. orthogonal conditions. SI was positively correlated with degree of autistic tendency in each individual, as measured by the Autism Quotient (AQ) scale, a questionnaire designed to assess autistic traits in the general population. Age also correlated with SI and with autistic tendency in our sample, but did not account for the correlation between SI and autistic tendency. These results suggest a reduction in orientation-specific surround suppression in V1 with increasing autistic tendency.