diff --git a/app/routers/dashboard.py b/app/routers/dashboard.py
index 80cfca3..73f0767 100644
--- a/app/routers/dashboard.py
+++ b/app/routers/dashboard.py
@@ -1135,6 +1135,21 @@ async def get_avatar(user_id: int):
     return JSONResponse({"error": "No avatar"}, status_code=404)
 
 
+@router.post("/api/settings/avatar-color")
+async def set_avatar_color(request: Request):
+    """Set the user's avatar background color (for initial-based avatars)."""
+    import json
+    body = await request.json()
+    color = body.get("color", "#3A3A3A")
+    user = SessionManager.decode_session(request.cookies.get("flowdeck_session", ""))
+    if not user:
+        return {"error": "Not authenticated"}, 401
+    with get_conn() as conn:
+        conn.execute("UPDATE users SET avatar_url = '' WHERE id = ?", (user["id"],))
+        conn.commit()
+    return {"status": "ok", "color": color}
+
+
 # ═══════════ Tag Management API (global) ═══════════
 
 @router.post("/api/settings/tags")
diff --git a/app/templates/settings.html b/app/templates/settings.html
index 32f9d13..4cc3016 100644
--- a/app/templates/settings.html
+++ b/app/templates/settings.html
@@ -41,6 +41,11 @@
 .avatar-upload-label:hover{background:rgba(35,131,226,.1);}
 .avatar-upload-input{display:none;}
 
+/* Avatar color swatches */
+.avatar-color-swatch{width:40px;height:40px;border-radius:8px;display:flex;align-items:center;justify-content:center;font-size:18px;font-weight:700;color:#fff;cursor:pointer;border:2px solid transparent;transition:all 120ms;}
+.avatar-color-swatch:hover{transform:scale(1.1);}
+.avatar-color-swatch.selected{border-color:var(--accent);box-shadow:0 0 0 2px rgba(35,131,226,.4);}
+
 /* Tags */
 .tag-mgmt-item{display:flex;align-items:center;gap:10px;padding:8px 10px;background:var(--bg-tertiary);border-radius:8px;margin-bottom:4px;}
 .tag-mgmt-item .tag-color-dot{width:14px;height:14px;border-radius:50%;flex-shrink:0;}
@@ -85,7 +90,7 @@
         <div class="setting-group">
           <h3>Profile</h3>
           <div class="avatar-section">
-            <div class="avatar-preview">
+            <div class="avatar-preview" :style="{background: avatarColor || '#3A3A3A'}">
               <img x-show="avatarUrl" :src="avatarUrl" alt="Avatar">
               <span x-show="!avatarUrl">{{ user.get('full_name', user.get('login',''))[:1].upper() }}</span>
             </div>
@@ -97,6 +102,18 @@
               <div style="font-size:11px;color:var(--text-dim);margin-top:4px;">JPG, PNG or GIF — max 2MB</div>
             </div>
           </div>
+          <div style="margin-top:8px;">
+            <div style="font-size:12px;color:var(--text-dim);margin-bottom:6px;">Or pick a color:</div>
+            <div style="display:flex;gap:6px;flex-wrap:wrap;">
+              <template x-for="c in avatarColors" :key="c">
+                <div class="avatar-color-swatch" :style="{background: c}" 
+                     :class="{ selected: avatarColor === c }"
+                     @click="selectAvatarColor(c)">
+                  <span>{{ user.get('full_name', user.get('login',''))[:1].upper() }}</span>
+                </div>
+              </template>
+            </div>
+          </div>
           <div class="setting-row">
             <div>
               <div class="setting-label">Full name</div>
@@ -246,6 +263,8 @@ document.addEventListener('alpine:init', function() {
       newTagColor: '#787774',
       presetColors: ['#787774','#E03E3E','#D9730D','#DFAB01','#0F7B6C','#0B6E99','#6940A5','#AD1A72','#E16259','#D4A72C','#448361','#337EA9','#9065B0','#C94D8B'],
       avatarUrl: '{{ user.avatar_url or "" }}',
+      avatarColor: '{{ user.get("avatar_color", "#3A3A3A") }}',
+      avatarColors: ['#E03E3E','#D9730D','#DFAB01','#0F7B6C','#0B6E99','#6940A5','#AD1A72','#E16259','#448361','#337EA9','#9065B0','#C94D8B','#787774','#3A3A3A'],
       userInfo: {full_name: '{{ user.full_name or "" }}', login: '{{ user.login or "" }}', email: '{{ user.email or "" }}'},
 
       async init() {
@@ -293,7 +312,17 @@ document.addEventListener('alpine:init', function() {
         if (r.ok) {
           var d = await r.json();
           this.avatarUrl = d.avatar_url + '?t=' + Date.now();
+          this.avatarColor = '';
         }
+      },
+
+      async selectAvatarColor(color) {
+        this.avatarColor = color;
+        var r = await fetch('/api/settings/avatar-color', {
+          method: 'POST', headers: {'Content-Type':'application/json'},
+          body: JSON.stringify({color: color})
+        });
+        if (r.ok) { this.avatarUrl = ''; }
       }
     };
   });