diff --git a/blocks/color-mechanism/index.js b/blocks/color-mechanism/index.js
new file mode 100644
index 00000000000000..efe882e73bdd70
--- /dev/null
+++ b/blocks/color-mechanism/index.js
@@ -0,0 +1,90 @@
+/**
+ * External dependencies
+ */
+import { find, get, kebabCase } from 'lodash';
+
+/**
+ * WordPress dependencies
+ */
+import { getWrapperDisplayName } from '@wordpress/element';
+import { withContext } from '@wordpress/components';
+
+/**
+ * Internal dependencies
+ */
+import './style.scss';
+
+const getColorValue = ( colors, namedColor, customColor ) => {
+	if ( namedColor ) {
+		const colorObj = find( colors, { name: namedColor } );
+		return colorObj && colorObj.color;
+	}
+	if ( customColor ) {
+		return customColor;
+	}
+};
+
+const setColorValue = ( colors, colorAttributeName, customColorAttributeName, setAttributes ) =>
+	( colorValue ) => {
+		const colorObj = find( colors, { color: colorValue } );
+		if ( colorObj ) {
+			setAttributes( {
+				[ colorAttributeName ]: colorObj.name,
+				[ customColorAttributeName ]: undefined,
+			} );
+			return;
+		}
+		setAttributes( {
+			[ colorAttributeName ]: undefined,
+			[ customColorAttributeName ]: colorValue,
+		} );
+	};
+
+/**
+ * Returns a class based on the context a color is being used and its name.
+ *
+ * @param {string} colorContextName Context/place where color is being used e.g: background, text etc...
+ * @param {string} colorName        Name of the color.
+ *
+ * @return {string} String with the class corresponding to the color in the provided context.
+ */
+export function getColorClass( colorContextName, colorName ) {
+	if ( ! colorContextName || ! colorName ) {
+		return undefined;
+	}
+
+	return `has-${ kebabCase( colorName ) }-${ colorContextName }-color`;
+}
+
+/**
+ * Higher-order component, which handles color logic for class generation
+ * color value, retrieval and color attribute setting.
+ *
+ * @param {WPElement} WrappedComponent The wrapped component.
+ *
+ * @return {Component} Component with a new colors prop.
+ */
+export function withColors( WrappedComponent ) {
+	const ComponentWithColorContext = withContext( 'editor' )(
+		( settings, props ) => {
+			const colors = get( settings, 'colors', [] );
+			return {
+				colors: ( colorContextName, colorAttributeName, customColorAttributeName ) => ( {
+					value: getColorValue(
+						colors,
+						props.attributes[ colorAttributeName ],
+						props.attributes[ customColorAttributeName ]
+					),
+					class: getColorClass( colorContextName, props.attributes[ colorAttributeName ] ),
+					set: setColorValue( colors, colorAttributeName, customColorAttributeName, props.setAttributes ),
+				} ),
+			};
+		} )( WrappedComponent );
+
+	const NewComponent = ( props ) => {
+		return <ComponentWithColorContext { ...props } />;
+	};
+	NewComponent.displayName = getWrapperDisplayName( WrappedComponent, 'colorMechanism' );
+
+	return NewComponent;
+}
diff --git a/blocks/color-mechanism/style.scss b/blocks/color-mechanism/style.scss
new file mode 100644
index 00000000000000..4928e65e4065a0
--- /dev/null
+++ b/blocks/color-mechanism/style.scss
@@ -0,0 +1,87 @@
+p.has-pale-pink-background-color {
+	background-color: #f78da7;
+}
+
+p.has-vivid-red-background-color {
+	background-color: #cf2e2e;
+}
+
+p.has-luminous-vivid-orange-background-color {
+	background-color: #ff6900;
+}
+
+p.has-luminous-vivid-amber-background-color {
+	background-color: #fcb900;
+}
+
+p.has-light-green-cyan-background-color {
+	background-color: #7bdcb5;
+}
+
+p.has-vivid-green-cyan-background-color {
+	background-color: #00d084;
+}
+
+p.has-pale-cyan-blue-background-color {
+	background-color: #8ed1fc;
+}
+
+p.has-vivid-cyan-blue-background-color {
+	background-color: #0693e3;
+}
+
+p.has-very-light-gray-background-color {
+	background-color: #eeeeee;
+}
+
+p.has-cyan-bluish-gray-background-color {
+	background-color: #abb8c3;
+}
+
+p.has-very-dark-gray-background-color {
+	background-color: #313131;
+}
+
+p.has-pale-pink-text-color {
+	color: #f78da7;
+}
+
+p.has-vivid-red-text-color {
+	color: #cf2e2e;
+}
+
+p.has-luminous-vivid-orange-text-color {
+	color: #ff6900;
+}
+
+p.has-luminous-vivid-amber-text-color {
+	color: #fcb900;
+}
+
+p.has-light-green-cyan-text-color {
+	color: #7bdcb5;
+}
+
+p.has-vivid-green-cyan-text-color {
+	color: #00d084;
+}
+
+p.has-pale-cyan-blue-text-color {
+	color: #8ed1fc;
+}
+
+p.has-vivid-cyan-blue-text-color {
+	color: #0693e3;
+}
+
+p.has-very-light-gray-text-color {
+	color: #eeeeee;
+}
+
+p.has-cyan-bluish-gray-text-color {
+	color: #abb8c3;
+}
+
+p.has-very-dark-gray-text-color {
+	color: #313131;
+}
diff --git a/blocks/color-palette/index.js b/blocks/color-palette/index.js
index cd540ada1b4c64..332dcc52b6ddfe 100644
--- a/blocks/color-palette/index.js
+++ b/blocks/color-palette/index.js
@@ -23,7 +23,7 @@ export function ColorPalette( { colors, disableCustomColors = false, value, onCh
 
 	return (
 		<div className="blocks-color-palette">
-			{ map( colors, ( color ) => {
+			{ map( colors, ( { color } ) => {
 				const style = { color: color };
 				const className = classnames( 'blocks-color-palette__item', { 'is-active': value === color } );
 
diff --git a/blocks/color-palette/test/index.js b/blocks/color-palette/test/index.js
index 96ddc339cdf94a..f8bc82d7ce8e7e 100644
--- a/blocks/color-palette/test/index.js
+++ b/blocks/color-palette/test/index.js
@@ -9,7 +9,7 @@ import { shallow } from 'enzyme';
 import { ColorPalette } from '../';
 
 describe( 'ColorPalette', () => {
-	const colors = [ 'red', 'white', 'blue' ];
+	const colors = [ { name: 'red', color: 'red' }, { name: 'white', color: 'white' }, { name: 'blue', color: 'blue' } ];
 	const currentColor = 'red';
 	const onChange = jest.fn();
 
diff --git a/blocks/library/paragraph/editor.scss b/blocks/library/paragraph/editor.scss
index e5fe10296b7f15..2149aadb63e835 100644
--- a/blocks/library/paragraph/editor.scss
+++ b/blocks/library/paragraph/editor.scss
@@ -1,4 +1,4 @@
-.editor-block-list__block:not( .is-multi-selected ) .wp-block-paragraph {
+.editor-block-list__block:not( .is-multi-selected ) .wp-block-paragraph:not( .has-background ) {
 	background: white;
 }
 
diff --git a/blocks/library/paragraph/index.js b/blocks/library/paragraph/index.js
index d7cefb196a329f..65bf8714325055 100644
--- a/blocks/library/paragraph/index.js
+++ b/blocks/library/paragraph/index.js
@@ -34,6 +34,7 @@ import RichText from '../../rich-text';
 import InspectorControls from '../../inspector-controls';
 import ColorPalette from '../../color-palette';
 import ContrastChecker from '../../contrast-checker';
+import { getColorClass, withColors } from '../../color-mechanism';
 
 const { getComputedStyle } = window;
 
@@ -129,6 +130,7 @@ class ParagraphBlock extends Component {
 			mergeBlocks,
 			onReplace,
 			className,
+			colors,
 		} = this.props;
 
 		const {
@@ -136,13 +138,14 @@ class ParagraphBlock extends Component {
 			content,
 			dropCap,
 			placeholder,
-			backgroundColor,
-			textColor,
 			width,
 		} = attributes;
 
 		const fontSize = this.getFontSize();
 
+		const textColor = colors( 'text', 'textColor', 'customTextColor' );
+		const backgroundColor = colors( 'background', 'backgroundColor', 'customBackgroundColor' );
+
 		return [
 			isSelected && (
 				<BlockControls key="controls">
@@ -198,22 +201,22 @@ class ParagraphBlock extends Component {
 							onChange={ this.toggleDropCap }
 						/>
 					</PanelBody>
-					<PanelColor title={ __( 'Background Color' ) } colorValue={ backgroundColor } initialOpen={ false }>
+					<PanelColor title={ __( 'Background Color' ) } colorValue={ backgroundColor.value } initialOpen={ false }>
 						<ColorPalette
-							value={ backgroundColor }
-							onChange={ ( colorValue ) => setAttributes( { backgroundColor: colorValue } ) }
+							value={ backgroundColor.value }
+							onChange={ backgroundColor.set }
 						/>
 					</PanelColor>
-					<PanelColor title={ __( 'Text Color' ) } colorValue={ textColor } initialOpen={ false }>
+					<PanelColor title={ __( 'Text Color' ) } colorValue={ textColor.value } initialOpen={ false }>
 						<ColorPalette
-							value={ textColor }
-							onChange={ ( colorValue ) => setAttributes( { textColor: colorValue } ) }
+							value={ textColor.value }
+							onChange={ textColor.set }
 						/>
 					</PanelColor>
 					{ this.nodeRef && <ContrastCheckerWithFallbackStyles
 						node={ this.nodeRef }
-						textColor={ textColor }
-						backgroundColor={ backgroundColor }
+						textColor={ textColor.value }
+						backgroundColor={ backgroundColor.value }
 						isLargeText={ fontSize >= 18 }
 					/> }
 					<PanelBody title={ __( 'Block Alignment' ) }>
@@ -233,12 +236,14 @@ class ParagraphBlock extends Component {
 						<RichText
 							tagName="p"
 							className={ classnames( 'wp-block-paragraph', className, {
-								'has-background': backgroundColor,
+								'has-background': backgroundColor.value,
 								'has-drop-cap': dropCap,
+								[ backgroundColor.class ]: backgroundColor.class,
+								[ textColor.class ]: textColor.class,
 							} ) }
 							style={ {
-								backgroundColor: backgroundColor,
-								color: textColor,
+								backgroundColor: ! backgroundColor.class ? backgroundColor.value : undefined,
+								color: ! textColor.class ? textColor.value : undefined,
 								fontSize: fontSize ? fontSize + 'px' : undefined,
 								textAlign: align,
 							} }
@@ -302,9 +307,15 @@ const schema = {
 	textColor: {
 		type: 'string',
 	},
+	customTextColor: {
+		type: 'string',
+	},
 	backgroundColor: {
 		type: 'string',
 	},
+	customBackgroundColor: {
+		type: 'string',
+	},
 	fontSize: {
 		type: 'string',
 	},
@@ -414,7 +425,7 @@ export const settings = {
 		}
 	},
 
-	edit: ParagraphBlock,
+	edit: withColors( ParagraphBlock ),
 
 	save( { attributes } ) {
 		const {
@@ -424,20 +435,27 @@ export const settings = {
 			dropCap,
 			backgroundColor,
 			textColor,
+			customBackgroundColor,
+			customTextColor,
 			fontSize,
 			customFontSize,
 		} = attributes;
 
+		const textClass = getColorClass( 'text', textColor );
+		const backgroundClass = getColorClass( 'background', backgroundColor );
+
 		const className = classnames( {
 			[ `align${ width }` ]: width,
-			'has-background': backgroundColor,
+			'has-background': backgroundColor || customBackgroundColor,
 			'has-drop-cap': dropCap,
 			[ `is-${ fontSize }-text` ]: fontSize && FONT_SIZES[ fontSize ],
+			[ textClass ]: textClass,
+			[ backgroundClass ]: backgroundClass,
 		} );
 
 		const styles = {
-			backgroundColor: backgroundColor,
-			color: textColor,
+			backgroundColor: ! backgroundColor ? customBackgroundColor : undefined,
+			color: ! textColor ? customTextColor : undefined,
 			fontSize: ! fontSize && customFontSize ? customFontSize : undefined,
 			textAlign: align,
 		};
diff --git a/editor/components/provider/index.js b/editor/components/provider/index.js
index 1258e274e21d1d..53d8a12f3f3dcc 100644
--- a/editor/components/provider/index.js
+++ b/editor/components/provider/index.js
@@ -33,17 +33,48 @@ import store from '../../store';
 const DEFAULT_SETTINGS = {
 	alignWide: false,
 	colors: [
-		'#f78da7',
-		'#cf2e2e',
-		'#ff6900',
-		'#fcb900',
-		'#7bdcb5',
-		'#00d084',
-		'#8ed1fc',
-		'#0693e3',
-		'#eee',
-		'#abb8c3',
-		'#313131',
+		{	name: 'pale pink',
+			color: '#f78da7',
+		},
+		{	name: 'vivid red',
+			color: '#cf2e2e',
+		},
+		{
+			name: 'luminous vivid orange',
+			color: '#ff6900',
+		},
+		{
+			name: 'luminous vivid amber',
+			color: '#fcb900',
+		},
+		{
+			name: 'light green cyan',
+			color: '#7bdcb5',
+		},
+		{
+			name: 'vivid green cyan',
+			color: '#00d084',
+		},
+		{
+			name: 'pale cyan-blue',
+			color: '#8ed1fc',
+		},
+		{
+			name: 'vivid cyan-blue',
+			color: '#0693e3',
+		},
+		{
+			name: 'very light gray',
+			color: '#eeeeee',
+		},
+		{
+			name: 'cyan-bluish gray',
+			color: '#abb8c3',
+		},
+		{
+			name: 'very dark gray',
+			color: '#313131',
+		},
 	],
 
 	// This is current max width of the block inner area