diff --git a/README.md b/README.md
index 5ba6f3e0a..ad54a2679 100644
--- a/README.md
+++ b/README.md
@@ -45,6 +45,31 @@ From a boolean logic perspective, top-level match objects are `OR`-ed together a
 > You need to set `dot: true` to change this behavior.
 > See [Inputs](#inputs) table below for details.
 
+#### Advanced configuration
+
+In order to define label colors, the `.github/labeler.yml` can be extended as follow:
+```yml
+# Add 'label1' to any changes within 'example' folder or any subfolders
+label1:
+  pattern:
+    - example/**
+  color:
+    '#FFFF00'
+
+
+# Add 'label2' to any file changes within 'example2' folder
+label2: example2/*
+
+# Add label3 to any change to .txt files within the entire repository. Quotation marks are required for the leading asterisk
+label3:
+  pattern:
+    - '**/*.txt'
+  color:
+    '#ECECEC'
+
+```
+
+
 #### Basic Examples
 
 ```yml
diff --git a/__mocks__/@actions/github.ts b/__mocks__/@actions/github.ts
index 9e857c537..4e213c163 100644
--- a/__mocks__/@actions/github.ts
+++ b/__mocks__/@actions/github.ts
@@ -13,7 +13,8 @@ export const context = {
 const mockApi = {
   rest: {
     issues: {
-      setLabels: jest.fn()
+      setLabels: jest.fn(),
+      updateLabel: jest.fn()
     },
     pulls: {
       get: jest.fn().mockResolvedValue({
diff --git a/__tests__/fixtures/only_pdfs_with_color.yml b/__tests__/fixtures/only_pdfs_with_color.yml
new file mode 100644
index 000000000..ed5090a29
--- /dev/null
+++ b/__tests__/fixtures/only_pdfs_with_color.yml
@@ -0,0 +1,4 @@
+touched-a-pdf-file:
+  pattern:
+    - any: ['*.pdf']
+  color: '#FF0011'
diff --git a/__tests__/main.test.ts b/__tests__/main.test.ts
index 425861566..860e40b65 100644
--- a/__tests__/main.test.ts
+++ b/__tests__/main.test.ts
@@ -9,6 +9,7 @@ jest.mock('@actions/github');
 
 const gh = github.getOctokit('_');
 const setLabelsMock = jest.spyOn(gh.rest.issues, 'setLabels');
+const updateLabelMock = jest.spyOn(gh.rest.issues, 'updateLabel');
 const reposMock = jest.spyOn(gh.rest.repos, 'getContent');
 const paginateMock = jest.spyOn(gh, 'paginate');
 const getPullMock = jest.spyOn(gh.rest.pulls, 'get');
@@ -34,7 +35,10 @@ class NotFound extends Error {
 }
 
 const yamlFixtures = {
-  'only_pdfs.yml': fs.readFileSync('__tests__/fixtures/only_pdfs.yml')
+  'only_pdfs.yml': fs.readFileSync('__tests__/fixtures/only_pdfs.yml'),
+  'only_pdfs_with_color.yml': fs.readFileSync(
+    '__tests__/fixtures/only_pdfs_with_color.yml'
+  )
 };
 
 const configureInput = (
@@ -352,6 +356,31 @@ describe('run', () => {
     expect(reposMock).toHaveBeenCalled();
   });
 
+  it('does update label color when defined in the configuration', async () => {
+    setLabelsMock.mockClear();
+
+    usingLabelerConfigYaml('only_pdfs_with_color.yml');
+    mockGitHubResponseChangedFiles('foo.pdf');
+
+    await run();
+
+    console.log(setLabelsMock.mock.calls);
+    expect(setLabelsMock).toHaveBeenCalledTimes(1);
+    expect(setLabelsMock).toHaveBeenCalledWith({
+      owner: 'monalisa',
+      repo: 'helloworld',
+      issue_number: 123,
+      labels: ['manually-added', 'touched-a-pdf-file']
+    });
+    expect(updateLabelMock).toHaveBeenCalledTimes(1);
+    expect(updateLabelMock).toHaveBeenCalledWith({
+      owner: 'monalisa',
+      repo: 'helloworld',
+      name: 'touched-a-pdf-file',
+      color: '#FF0011'
+    });
+  });
+
   test.each([
     [new HttpError('Error message')],
     [new NotFound('Error message')]
diff --git a/src/labeler.ts b/src/labeler.ts
index 272e3af2e..9ddb7c76c 100644
--- a/src/labeler.ts
+++ b/src/labeler.ts
@@ -11,6 +11,10 @@ interface MatchConfig {
 }
 
 type StringOrMatchConfig = string | MatchConfig;
+type LabelsConfig = Map<
+  string,
+  {stringOrMatch: StringOrMatchConfig[]; color?: string}
+>;
 type ClientType = ReturnType<typeof github.getOctokit>;
 
 // GitHub Issues cannot have more than 100 labels
@@ -55,13 +59,15 @@ export async function run() {
         continue;
       }
 
-      const labelGlobs: Map<string, StringOrMatchConfig[]> =
-        await getLabelGlobs(client, configPath);
+      const labelsConfig: LabelsConfig = await getLabelGlobs(
+        client,
+        configPath
+      );
 
       const preexistingLabels = pullRequest.labels.map(l => l.name);
       const allLabels: Set<string> = new Set<string>(preexistingLabels);
 
-      for (const [label, globs] of labelGlobs.entries()) {
+      for (const [label, {stringOrMatch: globs}] of labelsConfig.entries()) {
         core.debug(`processing ${label}`);
         if (checkGlobs(changedFiles, globs, dot)) {
           allLabels.add(label);
@@ -77,7 +83,12 @@ export async function run() {
         let newLabels: string[] = [];
 
         if (!isListEqual(labelsToAdd, preexistingLabels)) {
-          await setLabels(client, prNumber, labelsToAdd);
+          await setLabels(
+            client,
+            prNumber,
+            labelsToAdd,
+            getLabelsColor(labelsConfig)
+          );
           newLabels = labelsToAdd.filter(l => !preexistingLabels.includes(l));
         }
 
@@ -164,7 +175,7 @@ async function getChangedFiles(
 async function getLabelGlobs(
   client: ClientType,
   configurationPath: string
-): Promise<Map<string, StringOrMatchConfig[]>> {
+): Promise<LabelsConfig> {
   let configurationContent: string;
   try {
     if (!fs.existsSync(configurationPath)) {
@@ -196,6 +207,16 @@ async function getLabelGlobs(
   return getLabelGlobMapFromObject(configObject);
 }
 
+function getLabelsColor(labelsConfig: LabelsConfig): Map<string, string> {
+  const labelsColor: Map<string, string> = new Map();
+  for (const [label, {color}] of labelsConfig.entries()) {
+    if (color) {
+      labelsColor.set(label, color);
+    }
+  }
+  return labelsColor;
+}
+
 async function fetchContent(
   client: ClientType,
   repoPath: string
@@ -210,15 +231,24 @@ async function fetchContent(
   return Buffer.from(response.data.content, response.data.encoding).toString();
 }
 
-function getLabelGlobMapFromObject(
-  configObject: any
-): Map<string, StringOrMatchConfig[]> {
-  const labelGlobs: Map<string, StringOrMatchConfig[]> = new Map();
+function getLabelGlobMapFromObject(configObject: any): LabelsConfig {
+  const labelGlobs: Map<
+    string,
+    {stringOrMatch: StringOrMatchConfig[]; color?: string}
+  > = new Map();
   for (const label in configObject) {
     if (typeof configObject[label] === 'string') {
-      labelGlobs.set(label, [configObject[label]]);
+      labelGlobs.set(label, {stringOrMatch: [configObject[label]]});
     } else if (configObject[label] instanceof Array) {
-      labelGlobs.set(label, configObject[label]);
+      labelGlobs.set(label, {stringOrMatch: configObject[label]});
+    } else if (
+      typeof configObject[label] === 'object' &&
+      configObject[label]?.pattern
+    ) {
+      labelGlobs.set(label, {
+        stringOrMatch: configObject[label].pattern,
+        color: configObject[label].color
+      });
     } else {
       throw Error(
         `found unexpected type for label ${label} (should be string or array of globs)`
@@ -337,12 +367,26 @@ function isListEqual(listA: string[], listB: string[]): boolean {
 async function setLabels(
   client: ClientType,
   prNumber: number,
-  labels: string[]
+  labels: string[],
+  labelsColour: Map<string, string>
 ) {
+  // remove previous labels
   await client.rest.issues.setLabels({
     owner: github.context.repo.owner,
     repo: github.context.repo.repo,
     issue_number: prNumber,
-    labels: labels
+    labels
   });
+
+  for (const label of labels) {
+    const color = labelsColour.get(label);
+    if (color) {
+      await client.rest.issues.updateLabel({
+        owner: github.context.repo.owner,
+        repo: github.context.repo.repo,
+        name: label,
+        color: color ?? '#EDEDED'
+      });
+    }
+  }
 }