diff --git a/frappe/core/doctype/doctype/boilerplate/test_controller.js b/frappe/core/doctype/doctype/boilerplate/test_controller.js
index 6749c53bb0..ed27ac02f6 100644
--- a/frappe/core/doctype/doctype/boilerplate/test_controller.js
+++ b/frappe/core/doctype/doctype/boilerplate/test_controller.js
@@ -8,9 +8,9 @@ QUnit.test("test: {doctype}", function (assert) {{
 	// number of asserts
 	assert.expect(1);
 
-	frappe.run_serially('{doctype}', [
+	frappe.run_serially([
 		// insert a new {doctype}
-		() => frappe.tests.make([
+		() => frappe.tests.make('{doctype}', [
 			// values to be set
 			{{key: 'value'}}
 		]),
diff --git a/frappe/core/doctype/version/test_version.py b/frappe/core/doctype/version/test_version.py
index 82f13242ae..be721b3271 100644
--- a/frappe/core/doctype/version/test_version.py
+++ b/frappe/core/doctype/version/test_version.py
@@ -14,12 +14,13 @@ class TestVersion(unittest.TestCase):
 		new_doc = copy.deepcopy(old_doc)
 
 		old_doc.color = None
+		new_doc.color = '#fafafa'
 
 		diff = get_diff(old_doc, new_doc)['changed']
 
 		self.assertEquals(get_fieldnames(diff)[0], 'color')
 		self.assertTrue(get_old_values(diff)[0] is None)
-		self.assertEquals(get_new_values(diff)[0], 'blue')
+		self.assertEquals(get_new_values(diff)[0], '#fafafa')
 
 		new_doc.starts_on = "2017-07-20"
 
diff --git a/frappe/desk/doctype/event/event.json b/frappe/desk/doctype/event/event.json
index 75e949e90f..12fcf5d0af 100644
--- a/frappe/desk/doctype/event/event.json
+++ b/frappe/desk/doctype/event/event.json
@@ -312,9 +312,9 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
-   "default": "blue", 
+   "default": "", 
    "fieldname": "color", 
-   "fieldtype": "Select", 
+   "fieldtype": "Color", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
@@ -325,7 +325,7 @@
    "label": "Color", 
    "length": 0, 
    "no_copy": 0, 
-   "options": "red\ngreen\nblue\nyellow\nskyblue\norange", 
+   "options": "", 
    "permlevel": 0, 
    "precision": "", 
    "print_hide": 0, 
@@ -895,8 +895,8 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2017-07-06 12:37:44.036819", 
- "modified_by": "Administrator", 
+ "modified": "2017-08-03 16:34:54.657796", 
+ "modified_by": "faris@erpnext.com", 
  "module": "Desk", 
  "name": "Event", 
  "owner": "Administrator", 
diff --git a/frappe/desk/doctype/event/test_event.js b/frappe/desk/doctype/event/test_event.js
new file mode 100644
index 0000000000..5d824800ed
--- /dev/null
+++ b/frappe/desk/doctype/event/test_event.js
@@ -0,0 +1,36 @@
+
+QUnit.test("test: Event", function (assert) {
+	let done = assert.async();
+
+	// number of asserts
+	assert.expect(4);
+
+	const subject = '_Test Event 1';
+	const datetime = frappe.datetime.now_datetime();
+	const hex = '#6be273';
+	const rgb = 'rgb(107, 226, 115)';
+
+	frappe.run_serially([
+		// insert a new Event
+		() => frappe.tests.make('Event', [
+			// values to be set
+			{subject: subject},
+			{starts_on: datetime},
+			{color: hex}
+		]),
+		() => {
+			assert.equal(cur_frm.doc.subject, subject, 'Subject correctly set');
+			assert.equal(cur_frm.doc.starts_on, datetime, 'Date correctly set');
+			assert.equal(cur_frm.doc.color, hex, 'Color correctly set');
+		},
+		() => frappe.set_route('List', 'Event', 'Calendar'),
+		() => frappe.timeout(2),
+		() => {
+			const bg_color = $(`.result-list:visible .fc-day-grid-event:contains("${subject}")`)
+				.css('background-color');
+			assert.equal(bg_color, rgb, 'Event background color is set correctly');
+		},
+		() => done()
+	]);
+
+});
diff --git a/frappe/public/build.json b/frappe/public/build.json
index 054421286e..75dbf5063a 100755
--- a/frappe/public/build.json
+++ b/frappe/public/build.json
@@ -87,6 +87,7 @@
 		"public/js/frappe/ui/messages.js",
 		"public/js/frappe/ui/keyboard.js",
 		"public/js/frappe/ui/emoji.js",
+		"public/js/frappe/ui/colors.js",
 
 		"public/js/frappe/request.js",
 		"public/js/frappe/socketio_client.js",
diff --git a/frappe/public/css/calendar.css b/frappe/public/css/calendar.css
index a46ab7227f..df530f7c30 100644
--- a/frappe/public/css/calendar.css
+++ b/frappe/public/css/calendar.css
@@ -73,7 +73,6 @@ th.fc-day-header {
   background: #cfdce5 !important;
 }
 .fc-day-grid-event {
-  background-color: rgba(94, 100, 255, 0.2) !important;
   border: none !important;
   margin: 5px 4px 0 !important;
   padding: 1px 5px !important;
diff --git a/frappe/public/js/frappe/form/control.js b/frappe/public/js/frappe/form/control.js
index 54bb4e0595..f979bb2cb5 100755
--- a/frappe/public/js/frappe/form/control.js
+++ b/frappe/public/js/frappe/form/control.js
@@ -688,6 +688,8 @@ frappe.ui.form.ControlColor = frappe.ui.form.ControlData.extend({
 	},
 	set_formatted_input: function(value) {
 		this._super(value);
+
+		if(!value) value = '#ffffff';
 		this.$input.css({
 			"background-color": value
 		});
@@ -721,6 +723,9 @@ frappe.ui.form.ControlColor = frappe.ui.form.ControlData.extend({
 		});
 	},
 	validate: function (value) {
+		if(value === '') {
+			return '';
+		}
 		var is_valid = /^#[0-9A-F]{6}$/i.test(value);
 		if(is_valid) {
 			return value;
diff --git a/frappe/public/js/frappe/ui/colors.js b/frappe/public/js/frappe/ui/colors.js
new file mode 100644
index 0000000000..1b3e41ff27
--- /dev/null
+++ b/frappe/public/js/frappe/ui/colors.js
@@ -0,0 +1,121 @@
+// Copyright (c) 2017, Frappe Technologies Pvt. Ltd. and Contributors
+// MIT License. See license.txt
+
+frappe.provide("frappe.ui");
+
+frappe.ui.color_map = {
+	red: ["#ffc4c4", "#ff8989", "#ff4d4d", "#a83333"],
+	brown: ["#ffe8cd", "#ffd19c", "#ffb868", "#a87945"],
+	orange: ["#ffd2c2", "#ffa685", "#ff7846", "#a85b5b"],
+	peach: ["#ffd7d7", "#ffb1b1", "#ff8989", "#a84f2e"],
+	yellow: ["#fffacd", "#fff168", "#fff69c", "#a89f45"],
+	yellowgreen: ["#ebf8cc", "#d9f399", "#c5ec63", "#7b933d"],
+	green: ["#cef6d1", "#9deca2", "#6be273", "#428b46"],
+	cyan: ["#d2f8ed", "#a4f3dd", "#77ecca", "#49937e"],
+	skyblue: ["#d2f1ff", "#a6e4ff", "#78d6ff", "#4f8ea8"],
+	blue: ["#d2d2ff", "#a3a3ff", "#7575ff", "#4d4da8"],
+	purple: ["#dac7ff", "#b592ff", "#8e58ff", "#5e3aa8"],
+	pink: ["#f8d4f8", "#f3aaf0", "#ec7dea", "#934f92"]
+};
+
+frappe.ui.color = {
+	get: function(color_name, shade) {
+		if(color_name && shade) return this.get_color_shade(color_name, shade);
+		if(color_name) return this.get_color_shade(color_name, 'default');
+		return frappe.ui.color_map;
+	},
+	get_color: function(color_name) {
+		const color_names = Object.keys(frappe.ui.color_map);
+		if(color_names.includes(color_name)) {
+			return frappe.ui.color_map[color_name];
+		} else {
+			throw new RangeError(`${color_name} can be one of ${color_names}`);
+		}
+	},
+	get_color_shade: function(color_name, shade) {
+		const shades = {
+			'default': 2,
+			'light': 1,
+			'extra-light': 0,
+			'dark': 3
+		};
+
+		if(Object.keys(shades).includes(shade)) {
+			return frappe.ui.color_map[color_name][shades[shade]];
+		} else {
+			throw new RangeError(`${shade} can be one of ${Object.keys(shades)}`);
+		}
+	},
+	all: function() {
+		return Object.values(frappe.ui.color_map)
+			.reduce((acc, curr) => acc.concat(curr) , []);
+	},
+	names: function() {
+		return Object.keys(frappe.ui.color_map);
+	},
+	validate: function(color_name) {
+		if(!color_name) return false;
+		if(color_name.startsWith('#')) {
+			return this.all().includes(color_name);
+		}
+		return this.names().includes(color_name);
+	},
+	get_color_name: function(hex) {
+		for (const key in frappe.ui.color_map) {
+			const colors = frappe.ui.color_map[key];
+			if (colors.includes(hex)) return key;
+		}
+	},
+	get_contrast_color: function(hex) {
+		if(!this.validate(hex)) {
+			const brightness = this.brightness(hex);
+			if(brightness < 128) {
+				return this.lighten(hex, 0.5);
+			}
+			return this.lighten(hex, -0.5);
+		}
+
+		const color_name = this.get_color_name(hex);
+		const colors = this.get_color(color_name);
+		const shade_value = colors.indexOf(hex);
+		if(shade_value <= 1) {
+			return this.get(color_name, 'dark');
+		}
+		return this.get(color_name, 'extra-light');
+	},
+
+	lighten(color, percent) {
+		// https://stackoverflow.com/a/13542669/5353542
+		var f = parseInt(color.slice(1), 16),
+			t = percent < 0 ? 0 : 255,
+			p = percent < 0 ? percent * -1 : percent,
+			R = f >> 16,
+			G = f >> 8 & 0x00FF,
+			B = f & 0x0000FF;
+		return "#" +
+			(0x1000000 +
+				(Math.round((t - R) * p) + R) *
+				0x10000 +
+				(Math.round((t - G) * p) + G) *
+				0x100 + (Math.round((t - B) * p) + B)
+			).toString(16).slice(1);
+	},
+
+	hex_to_rgb(hex) {
+		if(hex.startsWith('#')) {
+			hex = hex.substring(1);
+		}
+		const r = parseInt(hex.substring(0, 2), 16);
+		const g = parseInt(hex.substring(2, 4), 16);
+		const b = parseInt(hex.substring(4, 6), 16);
+		return {r, g, b};
+	},
+
+	brightness(hex) {
+		const rgb = this.hex_to_rgb(hex);
+		// https://www.w3.org/TR/AERT#color-contrast
+		// 255 - brightest (#fff)
+		// 0 - darkest (#000)
+		return (rgb.r * 299 + rgb.g * 587 + rgb.b * 114) / 1000;
+	}
+};
diff --git a/frappe/public/js/frappe/views/calendar/calendar.js b/frappe/public/js/frappe/views/calendar/calendar.js
index ce49e5c33d..4b8b4febf9 100644
--- a/frappe/public/js/frappe/views/calendar/calendar.js
+++ b/frappe/public/js/frappe/views/calendar/calendar.js
@@ -100,7 +100,8 @@ frappe.views.Calendar = Class.extend({
 	color_map: {
 		"danger": "red",
 		"success": "green",
-		"warning": "orange"
+		"warning": "orange",
+		"default": "blue"
 	},
 	get_system_datetime: function(date) {
 		date._offset = moment.user_utc_offset;
@@ -232,25 +233,28 @@ frappe.views.Calendar = Class.extend({
 			d.end = frappe.datetime.convert_to_user_tz(d.end);
 
 			me.fix_end_date_for_event_render(d);
-
-			let color;
-			if(me.get_css_class) {
-				color = me.color_map[me.get_css_class(d)];
-				// if invalid, fallback to blue color
-				if(!Object.values(me.color_map).includes(color)) {
-					color = "blue";
-				}
-			} else {
-				// color field can be set in {doctype}_calendar.js
-				// see event_calendar.js
-				color = d.color;
-			}
-
-			if(!color) color = "blue";
-			d.className = "fc-bg-" + color;
+			me.prepare_colors(d);
 			return d;
 		});
 	},
+	prepare_colors: function(d) {
+		let color, color_name;
+		if(this.get_css_class) {
+			color_name = this.color_map[this.get_css_class(d)];
+			color_name =
+				frappe.ui.color.validate(color_name) ?
+					color_name :
+					'blue';
+			d.backgroundColor = frappe.ui.color.get(color_name, 'extra-light');
+			d.textColor = frappe.ui.color.get(color_name, 'dark');
+		} else {
+			color = d.color;
+			if(!color) color = frappe.ui.color.get('blue', 'extra-light');
+			d.backgroundColor = color;
+			d.textColor = frappe.ui.color.get_contrast_color(color);
+		}
+		return d;
+	},
 	update_event: function(event, revertFunc) {
 		var me = this;
 		frappe.model.remove_from_locals(me.doctype, event.name);
diff --git a/frappe/public/less/calendar.less b/frappe/public/less/calendar.less
index f69a7323e3..482beb3cfe 100644
--- a/frappe/public/less/calendar.less
+++ b/frappe/public/less/calendar.less
@@ -27,7 +27,7 @@ th.fc-widget-header {
 
 .fc-unthemed .fc-today {
 	background-color: #FFF !important;
-	
+
 	.fc-day-number {
 		background-color: @brand-primary;
 		min-width: 20px;
@@ -90,7 +90,6 @@ th.fc-day-header {
 }
 
 .fc-day-grid-event {
-	background-color: rgba(94, 100, 255, 0.2) !important;
 	border: none !important;
 	margin: 5px 4px 0 !important;
 	padding: 1px 5px !important;
diff --git a/frappe/tests/ui/tests.txt b/frappe/tests/ui/tests.txt
index 93907305f7..221257babc 100644
--- a/frappe/tests/ui/tests.txt
+++ b/frappe/tests/ui/tests.txt
@@ -9,4 +9,5 @@ frappe/tests/ui/test_kanban/test_kanban_filters.js
 frappe/tests/ui/test_kanban/test_kanban_column.js
 frappe/core/doctype/report/test_query_report.js
 frappe/tests/ui/test_linked_with.js
-frappe/custom/doctype/customize_form/test_customize_form.js
\ No newline at end of file
+frappe/custom/doctype/customize_form/test_customize_form.js
+frappe/desk/doctype/event/test_event.js