The neural mechanisms underlying motion segregation and integration still remain unclear to a large extent. Local motion estimates often are ambiguous in the lack of form features, such as corners or junctions. Furthermore, even in the presence of such features, local motion estimates may be wrong if they were generated near occlusions or from transparent objects. Here, a neural model of visual motion processing is presented that involves early stages of the cortical dorsal and ventral pathways. We investigate the computational mechanisms of V1-MT feedforward and feedback processing in the perception of coherent shape motion. In particular, we demonstrate how modulatory MT-V1 feedback helps to stabilize localized feature signals at, e.g. corners, and to disambiguate initial flow estimates that signal ambiguous movement due to the aperture problem for single shapes. In cluttered environments with multiple moving objects partial occlusions may occur which, in turn, generate erroneous mo...