Previous studies have proposed two cognitive mechanisms responsible for the Ebbinghaus illusion effect, i.e., contour interaction and size contrast. However, the neural underpinnings of these two mechanisms are largely unexplored. The present study introduced binocular depth to the Ebbinghaus illusion configuration and made the central target appear either in front of or behind the surrounding inducers in order to disturb size contrast instead of contour interaction. The results showed that the illusion effect, though persisted, was significantly reduced under the binocular depth conditions. Notably, the target with a larger perceived size reduced early alpha-band power (8-13 Hz, 0-100 ms after stimulus onset) at centroparietal sites irrespective of the relative depth of the target and the inducers, with the parietal alpha power negatively correlated with the illusion effect. Moreover, the target with a larger perceived size increased the occipito-parietal beta-band power (14-25 Hz, 200-300 ms after stimulus onset) under the no-depth condition, and the beta power was positively correlated with the illusion effect when the depth conditions were subtracted from the no-depth condition. The findings provided neurophysiological evidence in favor of the two cognitive mechanisms of the Ebbinghaus illusion by revealing that early alpha power is associated with low-level contour interaction and late beta power is linked to high-level size contrast, supporting the claim that neural oscillations at distinct frequency bands dynamically support different aspects of visual processing.