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The representation of pattern motion in visual cortex has been extensively studied, yet its underlying neural circuitry remains unknown. Using high-density recordings in macaque area MT, we show that selectivity to pattern motion emerges from a functionally and anatomically distinct cortical circuit. We demonstrate that neurons specialized for encoding component and pattern motion comprise distinct cell types arranged in a hierarchical circuit in which pattern neurons integrate inputs from a range of component neurons. Furthermore, we show that component and pattern neurons are spatially segregated into modules arranged systematically across cortical columns encoding direction of motion. 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