diff --git a/backend/app/api/static/docs/docs.go b/backend/app/api/static/docs/docs.go
index 2059e884..aaa52f11 100644
--- a/backend/app/api/static/docs/docs.go
+++ b/backend/app/api/static/docs/docs.go
@@ -3578,6 +3578,9 @@ const docTemplate = `{
         "repo.LabelOut": {
             "type": "object",
             "properties": {
+                "color": {
+                    "type": "string"
+                },
                 "createdAt": {
                     "type": "string"
                 },
@@ -3598,6 +3601,9 @@ const docTemplate = `{
         "repo.LabelSummary": {
             "type": "object",
             "properties": {
+                "color": {
+                    "type": "string"
+                },
                 "createdAt": {
                     "type": "string"
                 },
diff --git a/backend/app/api/static/docs/swagger.json b/backend/app/api/static/docs/swagger.json
index 78260159..1b5e301c 100644
--- a/backend/app/api/static/docs/swagger.json
+++ b/backend/app/api/static/docs/swagger.json
@@ -3576,6 +3576,9 @@
         "repo.LabelOut": {
             "type": "object",
             "properties": {
+                "color": {
+                    "type": "string"
+                },
                 "createdAt": {
                     "type": "string"
                 },
@@ -3596,6 +3599,9 @@
         "repo.LabelSummary": {
             "type": "object",
             "properties": {
+                "color": {
+                    "type": "string"
+                },
                 "createdAt": {
                     "type": "string"
                 },
diff --git a/backend/app/api/static/docs/swagger.yaml b/backend/app/api/static/docs/swagger.yaml
index db182f31..cce02236 100644
--- a/backend/app/api/static/docs/swagger.yaml
+++ b/backend/app/api/static/docs/swagger.yaml
@@ -997,6 +997,8 @@ definitions:
     type: object
   repo.LabelOut:
     properties:
+      color:
+        type: string
       createdAt:
         type: string
       description:
@@ -1010,6 +1012,8 @@ definitions:
     type: object
   repo.LabelSummary:
     properties:
+      color:
+        type: string
       createdAt:
         type: string
       description:
diff --git a/backend/internal/data/repo/repo_labels.go b/backend/internal/data/repo/repo_labels.go
index 03e2b4c1..6238a8b3 100644
--- a/backend/internal/data/repo/repo_labels.go
+++ b/backend/internal/data/repo/repo_labels.go
@@ -35,6 +35,7 @@ type (
 		ID          uuid.UUID `json:"id"`
 		Name        string    `json:"name"`
 		Description string    `json:"description"`
+		Color       string    `json:"color"`
 		CreatedAt   time.Time `json:"createdAt"`
 		UpdatedAt   time.Time `json:"updatedAt"`
 	}
@@ -49,6 +50,7 @@ func mapLabelSummary(label *ent.Label) LabelSummary {
 		ID:          label.ID,
 		Name:        label.Name,
 		Description: label.Description,
+		Color:       label.Color,
 		CreatedAt:   label.CreatedAt,
 		UpdatedAt:   label.UpdatedAt,
 	}
diff --git a/docs/en/api/openapi-2.0.json b/docs/en/api/openapi-2.0.json
index 78260159..1b5e301c 100644
--- a/docs/en/api/openapi-2.0.json
+++ b/docs/en/api/openapi-2.0.json
@@ -3576,6 +3576,9 @@
         "repo.LabelOut": {
             "type": "object",
             "properties": {
+                "color": {
+                    "type": "string"
+                },
                 "createdAt": {
                     "type": "string"
                 },
@@ -3596,6 +3599,9 @@
         "repo.LabelSummary": {
             "type": "object",
             "properties": {
+                "color": {
+                    "type": "string"
+                },
                 "createdAt": {
                     "type": "string"
                 },
diff --git a/docs/en/api/openapi-2.0.yaml b/docs/en/api/openapi-2.0.yaml
index db182f31..cce02236 100644
--- a/docs/en/api/openapi-2.0.yaml
+++ b/docs/en/api/openapi-2.0.yaml
@@ -997,6 +997,8 @@ definitions:
     type: object
   repo.LabelOut:
     properties:
+      color:
+        type: string
       createdAt:
         type: string
       description:
@@ -1010,6 +1012,8 @@ definitions:
     type: object
   repo.LabelSummary:
     properties:
+      color:
+        type: string
       createdAt:
         type: string
       description:
diff --git a/frontend/components/Form/ColorSelector.vue b/frontend/components/Form/ColorSelector.vue
new file mode 100644
index 00000000..1c6be061
--- /dev/null
+++ b/frontend/components/Form/ColorSelector.vue
@@ -0,0 +1,155 @@
+<script setup lang="ts">
+  import { computed, onMounted } from "vue";
+  import { useI18n } from "vue-i18n";
+  import { Label } from "~/components/ui/label";
+  import { Button } from "~/components/ui/button";
+  import MdiClose from "~icons/mdi/close";
+  import MdiDiceMultiple from "~icons/mdi/dice-multiple";
+
+  const { t } = useI18n();
+
+  const props = defineProps({
+    modelValue: {
+      type: String,
+      required: true,
+      default: "",
+    },
+    label: {
+      type: String,
+      default: "",
+    },
+    inline: {
+      type: Boolean,
+      default: false,
+    },
+    showHex: {
+      type: Boolean,
+      default: false,
+    },
+    size: {
+      type: [String, Number],
+      default: 24,
+    },
+    startingColor: {
+      type: String,
+      default: "",
+    },
+  });
+
+  const emits = defineEmits(["update:modelValue"]);
+
+  const id = useId();
+
+  const swatchStyle = computed(() => ({
+    backgroundColor: props.modelValue || "hsl(var(--muted))",
+    width: typeof props.size === "number" ? `${props.size}px` : props.size,
+    height: typeof props.size === "number" ? `${props.size}px` : props.size,
+  }));
+
+  const value = useVModel(props, "modelValue", emits);
+
+  // Initialize with starting color if provided and current value is empty
+  onMounted(() => {
+    if (props.startingColor && (!value.value || value.value === "")) {
+      value.value = props.startingColor;
+    }
+  });
+
+  function clearColor() {
+    value.value = "";
+  }
+
+  function randomizeColor() {
+    const randomColor =
+      "#" +
+      Math.floor(Math.random() * 16777215)
+        .toString(16)
+        .padStart(6, "0");
+    value.value = randomColor;
+  }
+</script>
+
+<template>
+  <div v-if="!inline" class="flex w-full flex-col gap-1.5">
+    <Label :for="id" class="flex w-full px-1">
+      <span>{{ label }}</span>
+    </Label>
+    <div class="flex items-center gap-2">
+      <span
+        :style="swatchStyle"
+        class="inline-block cursor-pointer rounded-full border ring-offset-background focus:outline-none focus:ring-2 focus:ring-ring focus:ring-offset-2"
+        :aria-label="`${t('components.color_selector.color')}: ${modelValue || t('components.color_selector.no_color_selected')}`"
+        role="button"
+        tabindex="0"
+        @click="$refs.colorInput.click()"
+      />
+      <span v-if="showHex" class="font-mono text-xs text-muted-foreground">{{
+        modelValue || t("components.color_selector.no_color")
+      }}</span>
+      <div class="flex gap-1">
+        <Button
+          type="button"
+          variant="outline"
+          size="sm"
+          class="size-6 p-0"
+          :aria-label="t('components.color_selector.randomize')"
+          @click="randomizeColor"
+        >
+          <MdiDiceMultiple class="size-3" />
+        </Button>
+        <Button
+          type="button"
+          variant="outline"
+          size="sm"
+          class="size-6 p-0"
+          :aria-label="t('components.color_selector.clear')"
+          @click="clearColor"
+        >
+          <MdiClose class="size-3" />
+        </Button>
+      </div>
+      <input :id="id" ref="colorInput" v-model="value" type="color" class="sr-only" tabindex="-1" />
+    </div>
+  </div>
+  <div v-else class="sm:grid sm:grid-cols-4 sm:items-start sm:gap-4">
+    <Label class="flex w-full px-1 py-2" :for="id">
+      <span>{{ label }}</span>
+    </Label>
+    <div class="col-span-3 mt-2 flex items-center gap-2">
+      <span
+        :style="swatchStyle"
+        class="inline-block cursor-pointer rounded-full border ring-offset-background focus:outline-none focus:outline-primary focus:ring-2 focus:ring-ring focus:ring-offset-2"
+        :aria-label="`${t('components.color_selector.color')}: ${modelValue || t('components.color_selector.no_color_selected')}`"
+        role="button"
+        tabindex="0"
+        @click="$refs.colorInput.click()"
+      />
+      <span v-if="showHex" class="font-mono text-xs text-muted-foreground">{{
+        modelValue || t("components.color_selector.no_color")
+      }}</span>
+      <div class="flex gap-1">
+        <Button
+          type="button"
+          variant="outline"
+          size="sm"
+          class="size-6 p-0"
+          :aria-label="t('components.color_selector.randomize')"
+          @click="randomizeColor"
+        >
+          <MdiDiceMultiple class="size-3" />
+        </Button>
+        <Button
+          type="button"
+          variant="outline"
+          size="sm"
+          class="size-6 p-0"
+          :aria-label="t('components.color_selector.clear')"
+          @click="clearColor"
+        >
+          <MdiClose class="size-3" />
+        </Button>
+      </div>
+      <input :id="id" ref="colorInput" v-model="value" type="color" class="sr-only" tabindex="-1" />
+    </div>
+  </div>
+</template>
diff --git a/frontend/components/Label/Chip.vue b/frontend/components/Label/Chip.vue
index 364436d7..bcb5ebe3 100644
--- a/frontend/components/Label/Chip.vue
+++ b/frontend/components/Label/Chip.vue
@@ -2,6 +2,7 @@
   import type { LabelOut, LabelSummary } from "~~/lib/api/types/data-contracts";
   import MdiArrowUp from "~icons/mdi/arrow-up";
   import MdiTagOutline from "~icons/mdi/tag-outline";
+  import { getContrastTextColor } from "~/lib/utils";
 
   export type sizes = "sm" | "md" | "lg" | "xl";
   defineProps({
@@ -18,12 +19,17 @@
 
 <template>
   <NuxtLink
-    class="group/label-chip flex gap-2 rounded-full bg-accent text-accent-foreground shadow transition duration-300 hover:bg-accent/50"
+    class="group/label-chip flex gap-2 rounded-full shadow transition duration-300 hover:bg-accent/50"
     :class="{
       'p-4 py-1 text-base': size === 'lg',
       'p-3 py-1 text-sm': size !== 'sm' && size !== 'lg',
       'p-2 py-0.5 text-xs': size === 'sm',
     }"
+    :style="
+      label.color
+        ? { backgroundColor: label.color, color: getContrastTextColor(label.color) }
+        : { backgroundColor: 'hsl(var(--accent))' }
+    "
     :to="`/label/${label.id}`"
   >
     <div class="relative">
diff --git a/frontend/components/Label/CreateModal.vue b/frontend/components/Label/CreateModal.vue
index 46a6f979..51a59a1f 100644
--- a/frontend/components/Label/CreateModal.vue
+++ b/frontend/components/Label/CreateModal.vue
@@ -14,6 +14,7 @@
         :label="$t('components.label.create_modal.label_description')"
         :max-length="255"
       />
+      <ColorSelector v-model="form.color" :label="$t('components.label.create_modal.label_color')" :show-hex="true" />
       <div class="mt-4 flex flex-row-reverse">
         <ButtonGroup>
           <Button :disabled="loading" type="submit">{{ $t("global.create") }}</Button>
@@ -31,6 +32,7 @@
   import { toast } from "@/components/ui/sonner";
   import BaseModal from "@/components/App/CreateModal.vue";
   import { useDialog, useDialogHotkey } from "~/components/ui/dialog-provider";
+  import ColorSelector from "@/components/Form/ColorSelector.vue";
 
   const { t } = useI18n();
 
diff --git a/frontend/components/Label/Selector.vue b/frontend/components/Label/Selector.vue
index 76d972ad..849bbc11 100644
--- a/frontend/components/Label/Selector.vue
+++ b/frontend/components/Label/Selector.vue
@@ -11,6 +11,11 @@
     >
       <div class="flex flex-wrap items-center gap-2 px-3">
         <TagsInputItem v-for="item in modelValue" :key="item" :value="item">
+          <span
+            v-if="shortenedLabels.find(l => l.id === item)?.color"
+            class="ml-2 inline-block size-4 rounded-full"
+            :style="{ backgroundColor: shortenedLabels.find(l => l.id === item)?.color }"
+          />
           <TagsInputItemText />
           <TagsInputItemDelete />
         </TagsInputItem>
@@ -55,6 +60,11 @@
                     }
                   "
                 >
+                  <span
+                    class="mr-2 inline-block size-4 rounded-full align-middle"
+                    :class="{ border: shortenedLabels.find(l => l.id === label.value)?.color }"
+                    :style="{ backgroundColor: shortenedLabels.find(l => l.id === label.value)?.color }"
+                  />
                   {{ label.label }}
                 </CommandItem>
               </CommandGroup>
@@ -127,14 +137,14 @@
     return filtered;
   });
 
-  const createAndAdd = async (name: string) => {
+  const createAndAdd = async (name: string, color = "") => {
     if (name.length > 50) {
       toast.error(t("components.label.create_modal.toast.label_name_too_long"));
       return;
     }
     const { error, data } = await api.labels.create({
       name,
-      color: "", // Future!
+      color,
       description: "",
     });
 
diff --git a/frontend/lib/api/types/data-contracts.ts b/frontend/lib/api/types/data-contracts.ts
index e16d753b..da315c83 100644
--- a/frontend/lib/api/types/data-contracts.ts
+++ b/frontend/lib/api/types/data-contracts.ts
@@ -638,6 +638,7 @@ export interface LabelCreate {
 }
 
 export interface LabelOut {
+  color: string;
   createdAt: Date | string;
   description: string;
   id: string;
@@ -646,6 +647,7 @@ export interface LabelOut {
 }
 
 export interface LabelSummary {
+  color: string;
   createdAt: Date | string;
   description: string;
   id: string;
diff --git a/frontend/lib/utils.ts b/frontend/lib/utils.ts
index 365058ce..13aac2ad 100644
--- a/frontend/lib/utils.ts
+++ b/frontend/lib/utils.ts
@@ -4,3 +4,35 @@ import { twMerge } from "tailwind-merge";
 export function cn(...inputs: ClassValue[]) {
   return twMerge(clsx(inputs));
 }
+
+/**
+ * Returns either '#000' or '#fff' depending on which has better contrast with the given background color.
+ * Accepts hex (#RRGGBB or #RGB) or rgb(a) strings.
+ */
+export function getContrastTextColor(bgColor: string): string {
+  let r = 0;
+  let g = 0;
+  let b = 0;
+  if (bgColor.startsWith("#")) {
+    let hex = bgColor.slice(1);
+    if (hex.length === 3) {
+      hex = hex
+        .split("")
+        .map(x => x + x)
+        .join("");
+    }
+    r = parseInt(hex.slice(0, 2), 16);
+    g = parseInt(hex.slice(2, 4), 16);
+    b = parseInt(hex.slice(4, 6), 16);
+  } else if (bgColor.startsWith("rgb")) {
+    const match = bgColor.match(/rgba?\((\d+),\s*(\d+),\s*(\d+)/);
+    if (match) {
+      r = parseInt(match[1]);
+      g = parseInt(match[2]);
+      b = parseInt(match[3]);
+    }
+  }
+  // Calculate luminance
+  const luminance = (0.299 * r + 0.587 * g + 0.114 * b) / 255;
+  return luminance > 0.5 ? "#000" : "#fff";
+}
diff --git a/frontend/locales/en.json b/frontend/locales/en.json
index aaa08b46..67ce4da5 100644
--- a/frontend/locales/en.json
+++ b/frontend/locales/en.json
@@ -24,6 +24,13 @@
                 "new_version_available_link": "Click here to view the release notes"
             }
         },
+        "color_selector": {
+            "color": "Color",
+            "clear": "Clear color",
+            "no_color": "No color",
+            "no_color_selected": "No color selected",
+            "randomize": "Randomize color"
+        },
         "form": {
             "password": {
                 "toggle_show": "Toggle Password Show"
@@ -144,7 +151,8 @@
                     "create_failed": "Couldn't create label",
                     "create_success": "Label created",
                     "label_name_too_long": "Label name must not be longer than 50 characters"
-                }
+                },
+                "label_color": "Label Color"
             },
             "selector": {
                 "select_labels": "Select Labels"
diff --git a/frontend/pages/label/[id].vue b/frontend/pages/label/[id].vue
index bffa698d..d60aaacb 100644
--- a/frontend/pages/label/[id].vue
+++ b/frontend/pages/label/[id].vue
@@ -10,6 +10,8 @@
   import { Button } from "@/components/ui/button";
   import { Badge } from "@/components/ui/badge";
   import { Separator } from "@/components/ui/separator";
+  import ColorSelector from "@/components/Form/ColorSelector.vue";
+  import { getContrastTextColor } from "~/lib/utils";
 
   definePageMeta({
     middleware: ["auth"],
@@ -128,7 +130,12 @@
           :label="$t('components.label.create_modal.label_description')"
           :max-length="255"
         />
-        <!-- TODO: color  -->
+        <ColorSelector
+          v-model="updateData.color"
+          :label="$t('components.label.create_modal.label_color')"
+          :show-hex="true"
+          :starting-color="label.color"
+        />
         <DialogFooter>
           <Button type="submit" :loading="updating"> {{ $t("global.update") }} </Button>
         </DialogFooter>
@@ -144,7 +151,12 @@
       <header :class="{ 'mb-2': label.description }">
         <div class="flex flex-wrap items-end gap-2">
           <div
-            class="mb-auto flex size-12 items-center justify-center rounded-full bg-secondary text-secondary-foreground"
+            class="mb-auto flex size-12 items-center justify-center rounded-full"
+            :style="
+              label.color
+                ? { backgroundColor: label.color, color: getContrastTextColor(label.color) }
+                : { backgroundColor: 'hsl(var(--secondary))', color: 'hsl(var(--secondary-foreground))' }
+            "
           >
             <MdiPackageVariant class="size-7" />
           </div>