diff --git a/apps/builder/app/builder/features/style-panel/controls/color/color-control.tsx b/apps/builder/app/builder/features/style-panel/controls/color/color-control.tsx
index 3498d42371..6c8a06b269 100644
--- a/apps/builder/app/builder/features/style-panel/controls/color/color-control.tsx
+++ b/apps/builder/app/builder/features/style-panel/controls/color/color-control.tsx
@@ -1,27 +1,36 @@
 import { Flex } from "@webstudio-is/design-system";
 import { toValue } from "@webstudio-is/css-engine";
 import type { ControlProps } from "../../style-sections";
-import { ColorPicker } from "../../shared/color-picker";
+import {
+  ColorPicker,
+  CssColorPickerValueInput,
+} from "../../shared/color-picker";
 import { colord } from "colord";
+import { getStyleSource } from "../../shared/style-info";
+import { styleConfigByName } from "../../shared/configs";
+import { useState } from "react";
 
 export const ColorControl = ({
   property,
+  items,
   currentStyle,
   setProperty,
+  deleteProperty,
 }: ControlProps) => {
+  const [intermediateValue, setIntermediateValue] =
+    useState<CssColorPickerValueInput>();
+
+  const { items: defaultItems } = styleConfigByName[property];
+  const styleInfo = currentStyle[property];
+
   let value = currentStyle[property]?.value ?? {
-    // provide default value to avoid control hiding
-    // when value is recomputed
-    type: "rgb" as const,
-    r: 0,
-    g: 0,
-    b: 0,
-    alpha: 0,
+    type: "keyword" as const,
+    value: "black",
   };
 
   const setValue = setProperty(property);
 
-  if (value.type !== "rgb") {
+  if (value.type !== "rgb" && value.type !== "keyword") {
     // Support previously set colors
     const colordValue = colord(toValue(value));
 
@@ -50,12 +59,40 @@ export const ColorControl = ({
   return (
     <Flex align="center" css={{ gridColumn: "2/4" }} gap="1">
       <ColorPicker
-        id={property}
+        property={property}
         value={value}
-        onChange={(value) => {
-          setValue(value, { isEphemeral: true });
+        styleSource={getStyleSource(styleInfo)}
+        keywords={(items ?? defaultItems).map((item) => ({
+          type: "keyword",
+          value: item.name,
+        }))}
+        intermediateValue={intermediateValue}
+        onChange={(styleValue) => {
+          setIntermediateValue(styleValue);
+
+          if (styleValue === undefined) {
+            deleteProperty(property, { isEphemeral: true });
+            return;
+          }
+
+          if (styleValue.type !== "intermediate") {
+            setValue(styleValue, { isEphemeral: true });
+          }
+        }}
+        onHighlight={(styleValue) => {
+          if (styleValue !== undefined) {
+            setValue(styleValue, { isEphemeral: true });
+          } else {
+            deleteProperty(property, { isEphemeral: true });
+          }
+        }}
+        onChangeComplete={({ value }) => {
+          setValue(value);
+          setIntermediateValue(undefined);
+        }}
+        onAbort={() => {
+          deleteProperty(property, { isEphemeral: true });
         }}
-        onChangeComplete={setValue}
       />
     </Flex>
   );
diff --git a/apps/builder/app/builder/features/style-panel/shared/color-picker.tsx b/apps/builder/app/builder/features/style-panel/shared/color-picker.tsx
index 10bb994f24..fd8f94bd73 100644
--- a/apps/builder/app/builder/features/style-panel/shared/color-picker.tsx
+++ b/apps/builder/app/builder/features/style-panel/shared/color-picker.tsx
@@ -1,19 +1,30 @@
 import { useState } from "react";
-import { colord, type RgbaColor } from "colord";
+import { colord, extend, type RgbaColor } from "colord";
+import namesPlugin from "colord/plugins/names";
 import { ColorResult, RGBColor, SketchPicker } from "react-color";
-import type { RgbValue } from "@webstudio-is/css-data";
-
+import type {
+  InvalidValue,
+  KeywordValue,
+  RgbValue,
+  StyleProperty,
+  StyleValue,
+} from "@webstudio-is/css-data";
 import {
   Box,
-  DeprecatedPopover,
-  DeprecatedPopoverTrigger,
-  DeprecatedPopoverContent,
-  DeprecatedPopoverPortal,
-  TextField,
+  Popover,
+  PopoverTrigger,
+  PopoverContent,
   css,
+  rawTheme,
 } from "@webstudio-is/design-system";
 import { toValue } from "@webstudio-is/css-engine";
 import { theme } from "@webstudio-is/design-system";
+import type { StyleSource } from "./style-info";
+import { CssValueInput } from "./css-value-input";
+import type { IntermediateStyleValue } from "./css-value-input/css-value-input";
+
+// To support color names
+extend([namesPlugin]);
 
 const pickerStyle = css({
   padding: theme.spacing[5],
@@ -33,11 +44,23 @@ const defaultPickerStyles = {
   },
 };
 
+export type CssColorPickerValueInput =
+  | RgbValue
+  | KeywordValue
+  | IntermediateStyleValue;
+
 type ColorPickerProps = {
-  onChange: (value: RgbValue) => void;
-  onChangeComplete: (value: RgbValue) => void;
-  value: RgbValue;
-  id: string;
+  onChange: (value: CssColorPickerValueInput | undefined) => void;
+  onChangeComplete: (event: {
+    value: RgbValue | KeywordValue | InvalidValue;
+  }) => void;
+  onHighlight: (value: StyleValue | undefined) => void;
+  onAbort: () => void;
+  intermediateValue: CssColorPickerValueInput | undefined;
+  value: RgbValue | KeywordValue;
+  styleSource: StyleSource;
+  keywords?: Array<KeywordValue>;
+  property: StyleProperty;
 };
 
 const colorResultToRgbValue = (rgb: RgbaColor | RGBColor): RgbValue => {
@@ -50,83 +73,108 @@ const colorResultToRgbValue = (rgb: RgbaColor | RGBColor): RgbValue => {
   };
 };
 
-const rgbValueToRgbColor = (rgb: RgbValue): RGBColor => {
+const styleValueToRgbaColor = (value: CssColorPickerValueInput): RgbaColor => {
+  const color = colord(
+    value.type === "intermediate" ? value.value : toValue(value)
+  ).toRgb();
+
   return {
-    r: rgb.r,
-    g: rgb.g,
-    b: rgb.b,
-    a: rgb.alpha,
+    r: color.r,
+    g: color.g,
+    b: color.b,
+    a: color.a,
   };
 };
 
+const whiteColor = { r: 255, g: 255, b: 255, a: 1 };
+const borderColorSwatch = colord(rawTheme.colors.borderColorSwatch).toRgb();
+const transparent = colord("transparent").toRgb();
+
+const distance = (a: RgbaColor, b: RgbaColor) => {
+  // Use Euclidian distance, if will not give good results use https://zschuessler.github.io/DeltaE/
+  return Math.sqrt(
+    Math.pow(a.r / 255 - b.r / 255, 2) +
+      Math.pow(a.g / 255 - b.g / 255, 2) +
+      Math.pow(a.b / 255 - b.b / 255, 2) +
+      Math.pow(a.a - b.a, 2)
+  );
+};
+
+const lerp = (a: number, b: number, t: number) => {
+  return a * (1 - t) + b * t;
+};
+
+const lerpColor = (a: RgbaColor, b: RgbaColor, t: number) => {
+  return {
+    r: lerp(a.r, b.r, t),
+    g: lerp(a.g, b.g, t),
+    b: lerp(a.b, b.b, t),
+    a: lerp(a.a, b.a, t),
+  };
+};
+
+const clamp = (value: number, min: number, max: number) => {
+  return Math.min(Math.max(value, min), max);
+};
+
 export const ColorPicker = ({
   value,
+  intermediateValue,
   onChange,
   onChangeComplete,
-  id,
+  onHighlight,
+  onAbort,
+  styleSource,
+  keywords,
+  property,
 }: ColorPickerProps) => {
   const [displayColorPicker, setDisplayColorPicker] = useState(false);
-  const [intermediateValue, setIntermediateValue] = useState<
-    | {
-        /**
-         * TextField value
-         */
-        stringValue: string;
-        /**
-         * Color picker value
-         */
-        rgbValue: RGBColor;
-        state: "invalid" | undefined;
-      }
-    | undefined
-  >(undefined);
 
-  const onInputChangeComplete = (source: "enter" | "blur") => {
-    if (intermediateValue === undefined) {
-      return;
-    }
+  const currentValue = intermediateValue ?? value;
 
-    const colordValue = colord(intermediateValue.stringValue);
-    if (colordValue.isValid()) {
-      const rgb = colordValue.toRgb();
-      onChangeComplete({
-        type: "rgb",
-        r: rgb.r,
-        g: rgb.g,
-        b: rgb.b,
-        alpha: rgb.a,
-      });
-      setIntermediateValue(undefined);
-      return;
-    }
+  const rgbValue = styleValueToRgbaColor(currentValue);
 
-    // We don't store invalid values in the CSS data, below is the only way we can show errors.
-    // See for details: https://github.com/webstudio-is/webstudio-builder/issues/564
-    // Anyway same behavior has Webflow - shows an error state on "Enter", and resets on Blur
+  // Change prefix color in sync with color picker, don't change during input changed
+  const prefixColor =
+    currentValue.type === "keyword" || currentValue.type === "rgb"
+      ? currentValue
+      : value;
 
-    // In case of "Enter" click show that the value is invalid
-    if (source === "enter") {
-      setIntermediateValue({
-        ...intermediateValue,
-        state: "invalid",
-      });
-      return;
-    }
+  const prefixColorRgba = styleValueToRgbaColor(prefixColor);
 
-    // In case of blur, just reset to external value
-    setIntermediateValue(undefined);
-  };
+  // @todo transparent icon can be better
+  const background =
+    prefixColorRgba.a < 1
+      ? // chessboard 5x5
+        `repeating-conic-gradient(rgba(0,0,0,0.22) 0% 25%, transparent 0% 50%) 0% 33.33% / 40% 40%, ${toValue(
+          prefixColor
+        )}`
+      : toValue(prefixColor);
 
-  const stringValue = intermediateValue?.stringValue ?? toValue(value);
-  const rgbValue = intermediateValue?.rgbValue ?? rgbValueToRgbColor(value);
+  const distanceToStartDrawBorder = 0.15;
+
+  // White color is invisible on white background, so we need to draw border
+  // the more color is white the more border is visible
+  const borderColor = colord(
+    lerpColor(
+      transparent,
+      borderColorSwatch,
+      clamp(
+        (distanceToStartDrawBorder - distance(whiteColor, prefixColorRgba)) /
+          distanceToStartDrawBorder,
+        0,
+        1
+      )
+    )
+  ).toRgbString();
 
   const prefix = (
-    <DeprecatedPopover
+    <Popover
       modal
       open={displayColorPicker}
       onOpenChange={setDisplayColorPicker}
     >
-      <DeprecatedPopoverTrigger
+      <PopoverTrigger
         asChild
         aria-label="Open color picker"
         onClick={() => setDisplayColorPicker((shown) => !shown)}
@@ -136,61 +184,77 @@ export const ColorPicker = ({
             margin: theme.spacing[3],
             width: theme.spacing[10],
             height: theme.spacing[10],
+            backgroundBlendMode: "difference",
             borderRadius: 2,
-            background: toValue(value),
+            background,
+            borderColor,
+            borderStyle: "solid",
           }}
         />
-      </DeprecatedPopoverTrigger>
-      <DeprecatedPopoverPortal>
-        <DeprecatedPopoverContent>
-          <SketchPicker
-            color={rgbValue}
-            onChange={(color: ColorResult) => {
-              setIntermediateValue({
-                stringValue: toValue(colorResultToRgbValue(color.rgb)),
-                rgbValue: color.rgb,
-                state: undefined,
-              });
-              onChange(colorResultToRgbValue(color.rgb));
-            }}
-            onChangeComplete={(color: ColorResult) => {
-              setIntermediateValue(undefined);
-              onChangeComplete(colorResultToRgbValue(color.rgb));
-            }}
-            // @todo to remove both when we have preset colors
-            presetColors={[]}
-            className={pickerStyle()}
-            styles={defaultPickerStyles}
-          />
-        </DeprecatedPopoverContent>
-      </DeprecatedPopoverPortal>
-    </DeprecatedPopover>
+      </PopoverTrigger>
+
+      <PopoverContent>
+        <SketchPicker
+          color={rgbValue}
+          onChange={(color: ColorResult) => {
+            onChange(colorResultToRgbValue(color.rgb));
+          }}
+          onChangeComplete={(color: ColorResult) => {
+            onChangeComplete({
+              value: colorResultToRgbValue(color.rgb),
+            });
+          }}
+          // @todo to remove both when we have preset colors
+          presetColors={[]}
+          className={pickerStyle()}
+          styles={defaultPickerStyles}
+        />
+      </PopoverContent>
+    </Popover>
   );
 
   return (
-    <TextField
-      onChange={(event) => {
-        setIntermediateValue({
-          stringValue: event.target.value,
-          rgbValue: rgbValue,
-          state: undefined,
-        });
-      }}
-      onBlur={() => {
-        if (displayColorPicker) {
+    <CssValueInput
+      styleSource={styleSource}
+      icon={prefix}
+      property={property}
+      value={value}
+      intermediateValue={intermediateValue}
+      keywords={keywords}
+      onChange={(styleValue) => {
+        if (
+          styleValue?.type === "rgb" ||
+          styleValue?.type === "keyword" ||
+          styleValue?.type === "intermediate" ||
+          styleValue === undefined
+        ) {
+          onChange(styleValue);
           return;
         }
-        onInputChangeComplete("blur");
+
+        onChange({
+          type: "intermediate",
+          value: toValue(styleValue),
+        });
       }}
-      value={stringValue}
-      state={intermediateValue?.state}
-      id={id}
-      prefix={prefix}
-      onKeyDown={(event) => {
-        if (event.key === "Enter") {
-          onInputChangeComplete("enter");
+      onHighlight={onHighlight}
+      onChangeComplete={({ value }) => {
+        if (
+          value.type === "rgb" ||
+          value.type === "keyword" ||
+          value.type === "invalid"
+        ) {
+          onChangeComplete({ value });
         }
+
+        onChangeComplete({
+          value: {
+            type: "invalid",
+            value: toValue(value),
+          },
+        });
       }}
+      onAbort={onAbort}
     />
   );
 };
diff --git a/apps/builder/app/builder/features/style-panel/shared/css-value-input/css-value-input.tsx b/apps/builder/app/builder/features/style-panel/shared/css-value-input/css-value-input.tsx
index 3886825326..4b405ffb5f 100644
--- a/apps/builder/app/builder/features/style-panel/shared/css-value-input/css-value-input.tsx
+++ b/apps/builder/app/builder/features/style-panel/shared/css-value-input/css-value-input.tsx
@@ -200,9 +200,9 @@ export type IntermediateStyleValue = {
   unit?: Unit;
 };
 
-type CssValueInputValue = StyleValue | IntermediateStyleValue;
+export type CssValueInputValue = StyleValue | IntermediateStyleValue;
 
-type ChangeReason =
+export type ChangeReason =
   | "enter"
   | "blur"
   | "unit-select"
diff --git a/apps/builder/app/builder/features/style-panel/shared/css-value-input/parse-intermediate-or-invalid-value.ts.test.ts b/apps/builder/app/builder/features/style-panel/shared/css-value-input/parse-intermediate-or-invalid-value.ts.test.ts
index f9848e984d..f3d0c1272f 100644
--- a/apps/builder/app/builder/features/style-panel/shared/css-value-input/parse-intermediate-or-invalid-value.ts.test.ts
+++ b/apps/builder/app/builder/features/style-panel/shared/css-value-input/parse-intermediate-or-invalid-value.ts.test.ts
@@ -322,3 +322,36 @@ describe("Value ending with `-` should be considered unitless", () => {
     });
   });
 });
+
+describe("Colors", () => {
+  test("color with value rgba(0,0,0,0)", () => {
+    const result = parseIntermediateOrInvalidValue("color", {
+      type: "intermediate",
+      value: "rgba(10,20,30,0.5)",
+    });
+
+    expect(result).toEqual({
+      type: "rgb",
+      alpha: 0.5,
+      r: 10,
+      g: 20,
+      b: 30,
+    });
+  });
+
+  test("color with value rgba(0,0,0,0)", () => {
+    const result = parseIntermediateOrInvalidValue("color", {
+      type: "intermediate",
+      value: "rgba(10,20,30,0.5)",
+      unit: "px",
+    });
+
+    expect(result).toEqual({
+      type: "rgb",
+      alpha: 0.5,
+      r: 10,
+      g: 20,
+      b: 30,
+    });
+  });
+});
diff --git a/apps/builder/app/builder/features/style-panel/shared/parse-css-value.test.ts b/apps/builder/app/builder/features/style-panel/shared/parse-css-value.test.ts
index 45f847495b..edecb1c288 100644
--- a/apps/builder/app/builder/features/style-panel/shared/parse-css-value.test.ts
+++ b/apps/builder/app/builder/features/style-panel/shared/parse-css-value.test.ts
@@ -104,4 +104,33 @@ describe("Parse CSS value", () => {
       });
     });
   });
+
+  describe("Colors", () => {
+    test("Color rgba values", () => {
+      expect(parseCssValue("backgroundColor", "rgba(0,0,0,0)")).toEqual({
+        type: "rgb",
+        alpha: 0,
+        b: 0,
+        g: 0,
+        r: 0,
+      });
+    });
+
+    test("Color rgba values", () => {
+      expect(parseCssValue("backgroundColor", "#00220011")).toEqual({
+        type: "rgb",
+        alpha: 0.07,
+        b: 0,
+        g: 34,
+        r: 0,
+      });
+    });
+
+    test("Color rgba values", () => {
+      expect(parseCssValue("color", "red")).toEqual({
+        type: "keyword",
+        value: "red",
+      });
+    });
+  });
 });
diff --git a/apps/builder/app/builder/features/style-panel/shared/parse-css-value.ts b/apps/builder/app/builder/features/style-panel/shared/parse-css-value.ts
index ad2be3b288..13a2d9b35d 100644
--- a/apps/builder/app/builder/features/style-panel/shared/parse-css-value.ts
+++ b/apps/builder/app/builder/features/style-panel/shared/parse-css-value.ts
@@ -3,6 +3,7 @@ import hyphenate from "hyphenate-style-name";
 import type { StyleProperty, StyleValue, Unit } from "@webstudio-is/css-data";
 import { units, keywordValues } from "@webstudio-is/css-data";
 import warnOnce from "warn-once";
+import { colord } from "colord";
 
 const cssTryParseValue = (input: string) => {
   try {
@@ -122,6 +123,21 @@ export const parseCssValue = (
     }
   }
 
+  // Probably a color (we can use csstree.lexer.matchProperty(cssPropertyName, ast) to extract the type but this looks much simpler)
+  if (property.toLocaleLowerCase().includes("color")) {
+    const mayBeColor = colord(input);
+    if (mayBeColor.isValid()) {
+      const rgb = mayBeColor.toRgb();
+      return {
+        type: "rgb",
+        alpha: rgb.a,
+        r: rgb.r,
+        g: rgb.g,
+        b: rgb.b,
+      };
+    }
+  }
+
   return {
     type: "unparsed",
     value: input,
diff --git a/packages/eslint-config-custom/index.js b/packages/eslint-config-custom/index.js
index 0e070aadb0..7ef259e684 100644
--- a/packages/eslint-config-custom/index.js
+++ b/packages/eslint-config-custom/index.js
@@ -52,6 +52,7 @@ module.exports = {
           "@lexical/react/*",
           "__generated__/*",
           "react-hot-toast/headless",
+          "colord/plugins/*",
         ],
       },
     ],
diff --git a/packages/react-sdk/src/css/get-browser-style.ts b/packages/react-sdk/src/css/get-browser-style.ts
index a803ab9d41..cefaf4f5bb 100644
--- a/packages/react-sdk/src/css/get-browser-style.ts
+++ b/packages/react-sdk/src/css/get-browser-style.ts
@@ -1,5 +1,5 @@
 import { detectFont } from "detect-font";
-import type { Style, StyleValue, Unit } from "@webstudio-is/css-data";
+import { keywordValues, Style, StyleValue, Unit } from "@webstudio-is/css-data";
 import { properties, units } from "@webstudio-is/css-data";
 
 const unitsList = Object.values(units).flat();
@@ -16,9 +16,20 @@ const parseValue = (
     value = "transparent";
   }
   if (Number.isNaN(number)) {
+    const values = keywordValues[
+      property as keyof typeof keywordValues
+    ] as ReadonlyArray<string>;
+
+    if (values?.includes(value)) {
+      return {
+        type: "keyword",
+        value: value,
+      };
+    }
+
     return {
-      type: "keyword",
-      value,
+      type: "unparsed",
+      value: value,
     };
   }