diff --git a/crates/ui2/src/components/label.rs b/crates/ui2/src/components/label.rs
index 7aeda3e850fbe91463f6f3f6a0298cb3fc7fa5a7..d455a041ee6e8f861a3cdacf1c155c2f7fc57871 100644
--- a/crates/ui2/src/components/label.rs
+++ b/crates/ui2/src/components/label.rs
@@ -129,6 +129,9 @@ impl RenderOnce for HighlightedLabel {
             ));
         }
 
+        let mut text_style = cx.text_style().clone();
+        text_style.color = self.color.color(cx);
+
         div()
             .flex()
             .when(self.strikethrough, |this| {
@@ -146,7 +149,7 @@ impl RenderOnce for HighlightedLabel {
                 LabelSize::Default => this.text_ui(),
                 LabelSize::Small => this.text_ui_sm(),
             })
-            .child(StyledText::new(self.label).with_highlights(&cx.text_style(), highlights))
+            .child(StyledText::new(self.label).with_highlights(&text_style, highlights))
     }
 }
 
diff --git a/crates/ui2/src/components/stories/label.rs b/crates/ui2/src/components/stories/label.rs
index 2417bee6e1cd77646ceddd2c4febe4c6e45b7e19..e026d388fde62545f47aab22985fa7efba4f3c7a 100644
--- a/crates/ui2/src/components/stories/label.rs
+++ b/crates/ui2/src/components/stories/label.rs
@@ -23,5 +23,9 @@ impl Render for LabelStory {
                 "Héllo, world!",
                 vec![0, 1, 3, 8, 9, 13],
             ))
+            .child(Story::label("Highlighted with `color`"))
+            .child(
+                HighlightedLabel::new("Hello, world!", vec![0, 1, 2, 7, 8, 12]).color(Color::Error),
+            )
     }
 }