State-of-the-art computers being used today for instructional multimedia products have monitors capable of displaying millions of different colors. Designers are given virtually unlimited control over the factors that govern the display of these colors. This paper examines how color is displayed on computer monitors and interrelationships with how humans perceive color. Discussion also considers uses for color that are affective (adding aesthetic value), structural (text vs. backgrounds), and cognitive (highlighting, coding and layering to reduce cognitive load). Finally, the paper offers solutions to some of the problems inherent in the use of color and recommends guidelines for proper and effective use of color in instructional multimedia products. (Contains 37 references.) (AEF)