diff --git a/lnrpc/peersrpc/peers_server.go b/lnrpc/peersrpc/peers_server.go
index 9ca6f437a..aae96bc1b 100644
--- a/lnrpc/peersrpc/peers_server.go
+++ b/lnrpc/peersrpc/peers_server.go
@@ -9,6 +9,7 @@ import (
 	"sync/atomic"
 
 	"github.com/grpc-ecosystem/grpc-gateway/v2/runtime"
+	"github.com/lightningnetwork/lnd/lncfg"
 	"github.com/lightningnetwork/lnd/lnrpc"
 	"github.com/lightningnetwork/lnd/lnwire"
 	"github.com/lightningnetwork/lnd/netann"
@@ -177,7 +178,25 @@ func (s *Server) UpdateNodeAnnouncement(_ context.Context,
 
 	// TODO(positiveblue): apply feature bit modifications
 
-	// TODO(positiveblue): apply color modifications
+	if req.Color != "" {
+		color, err := lncfg.ParseHexColor(req.Color)
+		if err != nil {
+			return nil, fmt.Errorf("unable to parse color: %v", err)
+		}
+
+		if color != currentNodeAnn.RGBColor {
+			resp.Ops = append(resp.Ops, &lnrpc.Op{
+				Entity: "color",
+				Actions: []string{
+					fmt.Sprintf("changed to %v", color),
+				},
+			})
+			nodeModifiers = append(
+				nodeModifiers,
+				netann.NodeAnnSetColor(color),
+			)
+		}
+	}
 
 	if req.Alias != "" {
 		alias, err := lnwire.NewNodeAlias(req.Alias)
diff --git a/lntest/itest/assertions.go b/lntest/itest/assertions.go
index 2110d6e9e..01fe6b211 100644
--- a/lntest/itest/assertions.go
+++ b/lntest/itest/assertions.go
@@ -1862,6 +1862,9 @@ func assertAnchorOutputLost(t *harnessTest, node *lntest.HarnessNode,
 func assertNodeAnnouncement(t *harnessTest, n1, n2 *lnrpc.NodeUpdate) {
 	// Alias should match.
 	require.Equal(t.t, n1.Alias, n2.Alias, "alias don't match")
+
+	// Color should match.
+	require.Equal(t.t, n1.Color, n2.Color, "color don't match")
 }
 
 // assertUpdateNodeAnnouncementResponse is a helper function to assert
diff --git a/lntest/itest/lnd_channel_graph_test.go b/lntest/itest/lnd_channel_graph_test.go
index 9910c62d1..7c19883e0 100644
--- a/lntest/itest/lnd_channel_graph_test.go
+++ b/lntest/itest/lnd_channel_graph_test.go
@@ -821,6 +821,7 @@ func testUpdateNodeAnnouncement(net *lntest.NetworkHarness, t *harnessTest) {
 
 	defaultDaveNodeAnn := &lnrpc.NodeUpdate{
 		Alias: resp.Alias,
+		Color: resp.Color,
 	}
 
 	// Dave must have an open channel before he can send a node
@@ -866,15 +867,18 @@ func testUpdateNodeAnnouncement(net *lntest.NetworkHarness, t *harnessTest) {
 
 	// Update Node.
 	newAlias := "new-alias"
+	newColor := "#2288ee"
 
 	nodeAnnReq := &peersrpc.NodeAnnouncementUpdateRequest{
 		Alias: newAlias,
+		Color: newColor,
 	}
 
 	response, err := dave.UpdateNodeAnnouncement(ctxt, nodeAnnReq)
 	require.NoError(t.t, err, "unable to update dave's node announcement")
 
 	expectedOps := map[string]int{
+		"color": 1,
 		"alias": 1,
 	}
 	assertUpdateNodeAnnouncementResponse(t, response, expectedOps)
@@ -883,6 +887,7 @@ func testUpdateNodeAnnouncement(net *lntest.NetworkHarness, t *harnessTest) {
 	// the requested color, requested alias and the new added addresses.
 	newDaveNodeAnn := &lnrpc.NodeUpdate{
 		Alias: newAlias,
+		Color: newColor,
 	}
 
 	// We'll then wait for Alice to receive dave's node announcement
diff --git a/netann/node_announcement.go b/netann/node_announcement.go
index df13ca1b6..48dc8411e 100644
--- a/netann/node_announcement.go
+++ b/netann/node_announcement.go
@@ -1,6 +1,7 @@
 package netann
 
 import (
+	"image/color"
 	"net"
 	"time"
 
@@ -29,6 +30,14 @@ func NodeAnnSetAddrs(addrs []net.Addr) func(*lnwire.NodeAnnouncement) {
 	}
 }
 
+// NodeAnnSetColor is a functional option that sets the color of the
+// given node announcment.
+func NodeAnnSetColor(newColor color.RGBA) func(*lnwire.NodeAnnouncement) {
+	return func(nodeAnn *lnwire.NodeAnnouncement) {
+		nodeAnn.RGBColor = newColor
+	}
+}
+
 // NodeAnnSetTimestamp is a functional option that sets the timestamp of the
 // announcement to the current time, or increments it if the timestamp is
 // already in the future.