diff --git a/src/config/Config.zig b/src/config/Config.zig
index 26425fb12..deef6777e 100644
--- a/src/config/Config.zig
+++ b/src/config/Config.zig
@@ -551,15 +551,16 @@ keybind: Keybinds = .{},
 @"shell-integration-features": ShellIntegrationFeatures = .{},
 
 /// Sets the reporting format for OSC sequences that request color information.
-/// Ghostty currently supports OSC 10 (foreground) and OSC 11 (background) queries,
-/// and by default the reported values are scaled-up RGB values, where each component
-/// are 16 bits. This is how most terminals report these values. However, some legacy
-/// applications may require 8-bit, unscaled, components. We also support turning off
-/// reporting alltogether. The components are lowercase hex values.
+/// Ghostty currently supports OSC 10 (foreground), OSC 11 (background), and OSC
+/// 4 (256 color palette) queries, and by default the reported values are
+/// scaled-up RGB values, where each component are 16 bits. This is how most
+/// terminals report these values. However, some legacy applications may require
+/// 8-bit, unscaled, components. We also support turning off reporting
+/// alltogether. The components are lowercase hex values.
 ///
 /// Allowable values are:
 ///
-///   * "none" - OSC 10/11 queries receive no reply
+///   * "none" - OSC 4/10/11 queries receive no reply
 ///   * "8-bit" - Color components are return unscaled, i.e. rr/gg/bb
 ///   * "16-bit" - Color components are returned scaled, e.g. rrrr/gggg/bbbb
 ///
diff --git a/src/inspector/termio.zig b/src/inspector/termio.zig
index 78a161069..1b9a45581 100644
--- a/src/inspector/termio.zig
+++ b/src/inspector/termio.zig
@@ -241,6 +241,24 @@ pub const VTEvent = struct {
                 try alloc.dupeZ(u8, @tagName(value)),
             ),
 
+            .Union => |u| {
+                const Tag = u.tag_type orelse @compileError("Unions must have a tag");
+                const tag_name = @tagName(@as(Tag, value));
+                inline for (u.fields) |field| {
+                    if (std.mem.eql(u8, field.name, tag_name)) {
+                        const s = if (field.type == void)
+                            try alloc.dupeZ(u8, tag_name)
+                        else
+                            try std.fmt.allocPrintZ(alloc, "{s}={}", .{
+                                tag_name,
+                                @field(value, field.name),
+                            });
+
+                        try md.put(key, s);
+                    }
+                }
+            },
+
             else => switch (Value) {
                 u8 => try md.put(
                     key,
diff --git a/src/renderer/Metal.zig b/src/renderer/Metal.zig
index d97ef6f21..6d75400ba 100644
--- a/src/renderer/Metal.zig
+++ b/src/renderer/Metal.zig
@@ -64,6 +64,18 @@ padding: renderer.Options.Padding,
 /// True if the window is focused
 focused: bool,
 
+/// The actual foreground color. May differ from the config foreground color if
+/// changed by a terminal application
+foreground_color: terminal.color.RGB,
+
+/// The actual background color. May differ from the config background color if
+/// changed by a terminal application
+background_color: terminal.color.RGB,
+
+/// The actual cursor color. May differ from the config cursor color if changed
+/// by a terminal application
+cursor_color: ?terminal.color.RGB,
+
 /// The current set of cells to render. This is rebuilt on every frame
 /// but we keep this around so that we don't reallocate. Each set of
 /// cells goes into a separate shader.
@@ -254,6 +266,9 @@ pub fn init(alloc: Allocator, options: renderer.Options) !Metal {
         .screen_size = null,
         .padding = options.padding,
         .focused = true,
+        .foreground_color = options.config.foreground,
+        .background_color = options.config.background,
+        .cursor_color = options.config.cursor_color,
 
         // Render state
         .cells_bg = .{},
@@ -461,15 +476,15 @@ pub fn render(
         }
 
         // Swap bg/fg if the terminal is reversed
-        const bg = self.config.background;
-        const fg = self.config.foreground;
+        const bg = self.background_color;
+        const fg = self.foreground_color;
         defer {
-            self.config.background = bg;
-            self.config.foreground = fg;
+            self.background_color = bg;
+            self.foreground_color = fg;
         }
         if (state.terminal.modes.get(.reverse_colors)) {
-            self.config.background = fg;
-            self.config.foreground = bg;
+            self.background_color = fg;
+            self.foreground_color = bg;
         }
 
         // We used to share terminal state, but we've since learned through
@@ -509,7 +524,7 @@ pub fn render(
         }
 
         break :critical .{
-            .bg = self.config.background,
+            .bg = self.background_color,
             .selection = selection,
             .screen = screen_copy,
             .preedit = if (cursor_style != null) state.preedit else null,
@@ -1267,21 +1282,21 @@ pub fn updateCell(
     const colors: BgFg = colors: {
         // If we are selected, we our colors are just inverted fg/bg
         var selection_res: ?BgFg = if (selected) .{
-            .bg = self.config.selection_background orelse self.config.foreground,
-            .fg = self.config.selection_foreground orelse self.config.background,
+            .bg = self.config.selection_background orelse self.foreground_color,
+            .fg = self.config.selection_foreground orelse self.background_color,
         } else null;
 
         const res: BgFg = selection_res orelse if (!cell.attrs.inverse) .{
             // In normal mode, background and fg match the cell. We
             // un-optionalize the fg by defaulting to our fg color.
             .bg = if (cell.attrs.has_bg) cell.bg else null,
-            .fg = if (cell.attrs.has_fg) cell.fg else self.config.foreground,
+            .fg = if (cell.attrs.has_fg) cell.fg else self.foreground_color,
         } else .{
             // In inverted mode, the background MUST be set to something
             // (is never null) so it is either the fg or default fg. The
             // fg is either the bg or default background.
-            .bg = if (cell.attrs.has_fg) cell.fg else self.config.foreground,
-            .fg = if (cell.attrs.has_bg) cell.bg else self.config.background,
+            .bg = if (cell.attrs.has_fg) cell.fg else self.foreground_color,
+            .fg = if (cell.attrs.has_bg) cell.bg else self.background_color,
         };
 
         // If the cell is "invisible" then we just make fg = bg so that
@@ -1289,7 +1304,7 @@ pub fn updateCell(
         if (cell.attrs.invisible) {
             break :colors BgFg{
                 .bg = res.bg,
-                .fg = res.bg orelse self.config.background,
+                .fg = res.bg orelse self.background_color,
             };
         }
 
@@ -1316,7 +1331,7 @@ pub fn updateCell(
 
             // If we have a background and its not the default background
             // then we apply background opacity
-            if (cell.attrs.has_bg and !std.meta.eql(rgb, self.config.background)) {
+            if (cell.attrs.has_bg and !std.meta.eql(rgb, self.background_color)) {
                 break :bg_alpha alpha;
             }
 
@@ -1434,7 +1449,7 @@ fn addCursor(
         ), screen.cursor.x - 1 };
     };
 
-    const color = self.config.cursor_color orelse self.config.foreground;
+    const color = self.cursor_color orelse self.foreground_color;
     const alpha: u8 = if (!self.focused) 255 else alpha: {
         const alpha = 255 * self.config.cursor_opacity;
         break :alpha @intFromFloat(@ceil(alpha));
diff --git a/src/renderer/OpenGL.zig b/src/renderer/OpenGL.zig
index 6ee23fc92..bc8982b37 100644
--- a/src/renderer/OpenGL.zig
+++ b/src/renderer/OpenGL.zig
@@ -67,6 +67,18 @@ font_shaper: font.Shaper,
 /// True if the window is focused
 focused: bool,
 
+/// The actual foreground color. May differ from the config foreground color if
+/// changed by a terminal application
+foreground_color: terminal.color.RGB,
+
+/// The actual background color. May differ from the config background color if
+/// changed by a terminal application
+background_color: terminal.color.RGB,
+
+/// The actual cursor color. May differ from the config cursor color if changed
+/// by a terminal application
+cursor_color: ?terminal.color.RGB,
+
 /// Padding options
 padding: renderer.Options.Padding,
 
@@ -310,6 +322,9 @@ pub fn init(alloc: Allocator, options: renderer.Options) !OpenGL {
         .font_shaper = shaper,
         .draw_background = options.config.background,
         .focused = true,
+        .foreground_color = options.config.foreground,
+        .background_color = options.config.background,
+        .cursor_color = options.config.cursor_color,
         .padding = options.padding,
         .surface_mailbox = options.surface_mailbox,
         .deferred_font_size = .{ .metrics = metrics },
@@ -586,15 +601,15 @@ pub fn render(
         }
 
         // Swap bg/fg if the terminal is reversed
-        const bg = self.config.background;
-        const fg = self.config.foreground;
+        const bg = self.background_color;
+        const fg = self.foreground_color;
         defer {
-            self.config.background = bg;
-            self.config.foreground = fg;
+            self.background_color = bg;
+            self.foreground_color = fg;
         }
         if (state.terminal.modes.get(.reverse_colors)) {
-            self.config.background = fg;
-            self.config.foreground = bg;
+            self.background_color = fg;
+            self.foreground_color = bg;
         }
 
         // We used to share terminal state, but we've since learned through
@@ -627,7 +642,7 @@ pub fn render(
         );
 
         break :critical .{
-            .gl_bg = self.config.background,
+            .gl_bg = self.background_color,
             .selection = selection,
             .screen = screen_copy,
             .preedit = if (cursor_style != null) state.preedit else null,
@@ -878,7 +893,7 @@ fn addCursor(
         ), screen.cursor.x - 1 };
     };
 
-    const color = self.config.cursor_color orelse self.config.foreground;
+    const color = self.cursor_color orelse self.foreground_color;
     const alpha: u8 = if (!self.focused) 255 else alpha: {
         const alpha = 255 * self.config.cursor_opacity;
         break :alpha @intFromFloat(@ceil(alpha));
@@ -1010,21 +1025,21 @@ pub fn updateCell(
     const colors: BgFg = colors: {
         // If we are selected, we our colors are just inverted fg/bg
         var selection_res: ?BgFg = if (selected) .{
-            .bg = self.config.selection_background orelse self.config.foreground,
-            .fg = self.config.selection_foreground orelse self.config.background,
+            .bg = self.config.selection_background orelse self.foreground_color,
+            .fg = self.config.selection_foreground orelse self.background_color,
         } else null;
 
         const res: BgFg = selection_res orelse if (!cell.attrs.inverse) .{
             // In normal mode, background and fg match the cell. We
             // un-optionalize the fg by defaulting to our fg color.
             .bg = if (cell.attrs.has_bg) cell.bg else null,
-            .fg = if (cell.attrs.has_fg) cell.fg else self.config.foreground,
+            .fg = if (cell.attrs.has_fg) cell.fg else self.foreground_color,
         } else .{
             // In inverted mode, the background MUST be set to something
             // (is never null) so it is either the fg or default fg. The
             // fg is either the bg or default background.
-            .bg = if (cell.attrs.has_fg) cell.fg else self.config.foreground,
-            .fg = if (cell.attrs.has_bg) cell.bg else self.config.background,
+            .bg = if (cell.attrs.has_fg) cell.fg else self.foreground_color,
+            .fg = if (cell.attrs.has_bg) cell.bg else self.background_color,
         };
 
         // If the cell is "invisible" then we just make fg = bg so that
@@ -1032,7 +1047,7 @@ pub fn updateCell(
         if (cell.attrs.invisible) {
             break :colors BgFg{
                 .bg = res.bg,
-                .fg = res.bg orelse self.config.background,
+                .fg = res.bg orelse self.background_color,
             };
         }
 
@@ -1070,7 +1085,7 @@ pub fn updateCell(
 
             // If we have a background and its not the default background
             // then we apply background opacity
-            if (cell.attrs.has_bg and !std.meta.eql(rgb, self.config.background)) {
+            if (cell.attrs.has_bg and !std.meta.eql(rgb, self.background_color)) {
                 break :bg_alpha alpha;
             }
 
diff --git a/src/renderer/Thread.zig b/src/renderer/Thread.zig
index f1c2280ca..17abd6325 100644
--- a/src/renderer/Thread.zig
+++ b/src/renderer/Thread.zig
@@ -262,6 +262,18 @@ fn drainMailbox(self: *Thread) !void {
                 try self.renderer.setFontSize(size);
             },
 
+            .foreground_color => |color| {
+                self.renderer.foreground_color = color;
+            },
+
+            .background_color => |color| {
+                self.renderer.background_color = color;
+            },
+
+            .cursor_color => |color| {
+                self.renderer.cursor_color = color;
+            },
+
             .resize => |v| {
                 try self.renderer.setScreenSize(v.screen_size, v.padding);
             },
diff --git a/src/renderer/message.zig b/src/renderer/message.zig
index d3fdc21de..3278a2c1c 100644
--- a/src/renderer/message.zig
+++ b/src/renderer/message.zig
@@ -3,6 +3,7 @@ const assert = std.debug.assert;
 const Allocator = std.mem.Allocator;
 const font = @import("../font/main.zig");
 const renderer = @import("../renderer.zig");
+const terminal = @import("../terminal/main.zig");
 
 /// The messages that can be sent to a renderer thread.
 pub const Message = union(enum) {
@@ -20,6 +21,18 @@ pub const Message = union(enum) {
     /// the size changes.
     font_size: font.face.DesiredSize,
 
+    /// Change the foreground color. This can be done separately from changing
+    /// the config file in response to an OSC 10 command.
+    foreground_color: terminal.color.RGB,
+
+    /// Change the background color. This can be done separately from changing
+    /// the config file in response to an OSC 11 command.
+    background_color: terminal.color.RGB,
+
+    /// Change the cursor color. This can be done separately from changing the
+    /// config file in response to an OSC 12 command.
+    cursor_color: ?terminal.color.RGB,
+
     /// Changes the screen size.
     resize: struct {
         /// The full screen (drawable) size. This does NOT include padding.
diff --git a/src/terminal/Parser.zig b/src/terminal/Parser.zig
index 032ac1bc6..200803647 100644
--- a/src/terminal/Parser.zig
+++ b/src/terminal/Parser.zig
@@ -827,7 +827,8 @@ test "osc: 112 incomplete sequence" {
         try testing.expect(a[2] == null);
 
         const cmd = a[0].?.osc_dispatch;
-        try testing.expect(cmd == .reset_cursor_color);
+        try testing.expect(cmd == .reset_color);
+        try testing.expectEqual(cmd.reset_color.kind, .cursor);
     }
 }
 
diff --git a/src/terminal/Terminal.zig b/src/terminal/Terminal.zig
index 70e0e2a3a..c5f777006 100644
--- a/src/terminal/Terminal.zig
+++ b/src/terminal/Terminal.zig
@@ -75,8 +75,17 @@ scrolling_region: ScrollingRegion,
 /// The last reported pwd, if any.
 pwd: std.ArrayList(u8),
 
-/// The color palette to use
-color_palette: color.Palette = color.default,
+/// The default color palette. This is only modified by changing the config file
+/// and is used to reset the palette when receiving an OSC 104 command.
+default_palette: color.Palette = color.default,
+
+/// The color palette to use. The mask indicates which palette indices have been
+/// modified with OSC 4
+color_palette: struct {
+    const Mask = std.StaticBitSet(@typeInfo(color.Palette).Array.len);
+    colors: color.Palette = color.default,
+    mask: Mask = Mask.initEmpty(),
+} = .{},
 
 /// The previous printed character. This is used for the repeat previous
 /// char CSI (ESC [ <n> b).
@@ -560,12 +569,12 @@ pub fn setAttribute(self: *Terminal, attr: sgr.Attribute) !void {
 
         .@"8_fg" => |n| {
             self.screen.cursor.pen.attrs.has_fg = true;
-            self.screen.cursor.pen.fg = self.color_palette[@intFromEnum(n)];
+            self.screen.cursor.pen.fg = self.color_palette.colors[@intFromEnum(n)];
         },
 
         .@"8_bg" => |n| {
             self.screen.cursor.pen.attrs.has_bg = true;
-            self.screen.cursor.pen.bg = self.color_palette[@intFromEnum(n)];
+            self.screen.cursor.pen.bg = self.color_palette.colors[@intFromEnum(n)];
         },
 
         .reset_fg => self.screen.cursor.pen.attrs.has_fg = false,
@@ -574,22 +583,22 @@ pub fn setAttribute(self: *Terminal, attr: sgr.Attribute) !void {
 
         .@"8_bright_fg" => |n| {
             self.screen.cursor.pen.attrs.has_fg = true;
-            self.screen.cursor.pen.fg = self.color_palette[@intFromEnum(n)];
+            self.screen.cursor.pen.fg = self.color_palette.colors[@intFromEnum(n)];
         },
 
         .@"8_bright_bg" => |n| {
             self.screen.cursor.pen.attrs.has_bg = true;
-            self.screen.cursor.pen.bg = self.color_palette[@intFromEnum(n)];
+            self.screen.cursor.pen.bg = self.color_palette.colors[@intFromEnum(n)];
         },
 
         .@"256_fg" => |idx| {
             self.screen.cursor.pen.attrs.has_fg = true;
-            self.screen.cursor.pen.fg = self.color_palette[idx];
+            self.screen.cursor.pen.fg = self.color_palette.colors[idx];
         },
 
         .@"256_bg" => |idx| {
             self.screen.cursor.pen.attrs.has_bg = true;
-            self.screen.cursor.pen.bg = self.color_palette[idx];
+            self.screen.cursor.pen.bg = self.color_palette.colors[idx];
         },
 
         .unknown => return error.InvalidAttribute,
diff --git a/src/terminal/color.zig b/src/terminal/color.zig
index 29e3f39de..eb2fecf5a 100644
--- a/src/terminal/color.zig
+++ b/src/terminal/color.zig
@@ -147,6 +147,112 @@ pub const RGB = struct {
         try std.testing.expectEqual(@as(usize, 24), @bitSizeOf(RGB));
         try std.testing.expectEqual(@as(usize, 3), @sizeOf(RGB));
     }
+
+    /// Parse a color from a floating point intensity value.
+    ///
+    /// The value should be between 0.0 and 1.0, inclusive.
+    fn fromIntensity(value: []const u8) !u8 {
+        const i = std.fmt.parseFloat(f64, value) catch return error.InvalidFormat;
+        if (i < 0.0 or i > 1.0) {
+            return error.InvalidFormat;
+        }
+
+        return @intFromFloat(i * std.math.maxInt(u8));
+    }
+
+    /// Parse a color from a string of hexadecimal digits
+    ///
+    /// The string can contain 1, 2, 3, or 4 characters and represents the color
+    /// value scaled in 4, 8, 12, or 16 bits, respectively.
+    fn fromHex(value: []const u8) !u8 {
+        if (value.len == 0 or value.len > 4) {
+            return error.InvalidFormat;
+        }
+
+        const color = std.fmt.parseUnsigned(u16, value, 16) catch return error.InvalidFormat;
+        const divisor: usize = switch (value.len) {
+            1 => std.math.maxInt(u4),
+            2 => std.math.maxInt(u8),
+            3 => std.math.maxInt(u12),
+            4 => std.math.maxInt(u16),
+            else => unreachable,
+        };
+
+        return @intCast(@as(usize, color) * std.math.maxInt(u8) / divisor);
+    }
+
+    /// Parse a color specification of the form
+    ///
+    ///     rgb:<red>/<green>/<blue>
+    ///
+    ///     <red>, <green>, <blue> := h | hh | hhh | hhhh
+    ///
+    /// where `h` is a single hexadecimal digit.
+    ///
+    /// Alternatively, the form
+    ///
+    ///     rgbi:<red>/<green>/<blue>
+    ///
+    /// where <red>, <green>, and <blue> are floating point values between 0.0
+    /// and 1.0 (inclusive) is also accepted.
+    pub fn parse(value: []const u8) !RGB {
+        const minimum_length = "rgb:a/a/a".len;
+        if (value.len < minimum_length or !std.mem.eql(u8, value[0..3], "rgb")) {
+            return error.InvalidFormat;
+        }
+
+        var i: usize = 3;
+
+        const use_intensity = if (value[i] == 'i') blk: {
+            i += 1;
+            break :blk true;
+        } else false;
+
+        if (value[i] != ':') {
+            return error.InvalidFormat;
+        }
+
+        i += 1;
+
+        const r = r: {
+            const slice = if (std.mem.indexOfScalarPos(u8, value, i, '/')) |end|
+                value[i..end]
+            else
+                return error.InvalidFormat;
+
+            i += slice.len + 1;
+
+            break :r if (use_intensity)
+                try RGB.fromIntensity(slice)
+            else
+                try RGB.fromHex(slice);
+        };
+
+        const g = g: {
+            const slice = if (std.mem.indexOfScalarPos(u8, value, i, '/')) |end|
+                value[i..end]
+            else
+                return error.InvalidFormat;
+
+            i += slice.len + 1;
+
+            break :g if (use_intensity)
+                try RGB.fromIntensity(slice)
+            else
+                try RGB.fromHex(slice);
+        };
+
+        const b = if (use_intensity)
+            try RGB.fromIntensity(value[i..])
+        else
+            try RGB.fromHex(value[i..]);
+
+        return RGB{
+            .r = r,
+            .g = g,
+            .b = b,
+        };
+    }
 };
 
 test "palette: default" {
@@ -158,3 +264,23 @@ test "palette: default" {
         try testing.expectEqual(Name.default(@as(Name, @enumFromInt(i))), default[i]);
     }
 }
+
+test "RGB.parse" {
+    const testing = std.testing;
+
+    try testing.expectEqual(RGB{ .r = 255, .g = 0, .b = 0 }, try RGB.parse("rgbi:1.0/0/0"));
+    try testing.expectEqual(RGB{ .r = 127, .g = 160, .b = 0 }, try RGB.parse("rgb:7f/a0a0/0"));
+    try testing.expectEqual(RGB{ .r = 255, .g = 255, .b = 255 }, try RGB.parse("rgb:f/ff/fff"));
+
+    // Invalid format
+    try testing.expectError(error.InvalidFormat, RGB.parse("rgb;"));
+    try testing.expectError(error.InvalidFormat, RGB.parse("rgb:"));
+    try testing.expectError(error.InvalidFormat, RGB.parse(":a/a/a"));
+    try testing.expectError(error.InvalidFormat, RGB.parse("a/a/a"));
+    try testing.expectError(error.InvalidFormat, RGB.parse("rgb:a/a/a/"));
+    try testing.expectError(error.InvalidFormat, RGB.parse("rgb:00000///"));
+    try testing.expectError(error.InvalidFormat, RGB.parse("rgb:000/"));
+    try testing.expectError(error.InvalidFormat, RGB.parse("rgbi:a/a/a"));
+    try testing.expectError(error.InvalidFormat, RGB.parse("rgb:0.5/0.0/1.0"));
+    try testing.expectError(error.InvalidFormat, RGB.parse("rgb:not/hex/zz"));
+}
diff --git a/src/terminal/osc.zig b/src/terminal/osc.zig
index 823f9ff67..2e59eb279 100644
--- a/src/terminal/osc.zig
+++ b/src/terminal/osc.zig
@@ -64,10 +64,6 @@ pub const Command = union(enum) {
         // TODO: err option
     },
 
-    /// Reset the color for the cursor. This reverts changes made with
-    /// change/read cursor color.
-    reset_cursor_color: void,
-
     /// Set or get clipboard contents. If data is null, then the current
     /// clipboard contents are sent to the pty. If data is set, this
     /// contents is set on the clipboard.
@@ -94,24 +90,49 @@ pub const Command = union(enum) {
         value: []const u8,
     },
 
-    /// OSC 10 and OSC 11 default color report.
-    report_default_color: struct {
-        /// OSC 10 requests the foreground color, OSC 11 the background color.
-        kind: DefaultColorKind,
+    /// OSC 4, OSC 10, and OSC 11 color report.
+    report_color: struct {
+        /// OSC 4 requests a palette color, OSC 10 requests the foreground
+        /// color, OSC 11 the background color.
+        kind: ColorKind,
 
         /// We must reply with the same string terminator (ST) as used in the
         /// request.
         terminator: Terminator = .st,
     },
 
-    pub const DefaultColorKind = enum {
+    /// Modify the foreground (OSC 10) or background color (OSC 11), or a palette color (OSC 4)
+    set_color: struct {
+        /// OSC 4 sets a palette color, OSC 10 sets the foreground color, OSC 11
+        /// the background color.
+        kind: ColorKind,
+
+        /// The color spec as a string
+        value: []const u8,
+    },
+
+    /// Reset a palette color (OSC 104) or the foreground (OSC 110), background
+    /// (OSC 111), or cursor (OSC 112) color.
+    reset_color: struct {
+        kind: ColorKind,
+
+        /// OSC 104 can have parameters indicating which palette colors to
+        /// reset.
+        value: []const u8,
+    },
+
+    pub const ColorKind = union(enum) {
+        palette: u8,
         foreground,
         background,
+        cursor,
 
-        pub fn code(self: DefaultColorKind) []const u8 {
+        pub fn code(self: ColorKind) []const u8 {
             return switch (self) {
+                .palette => "4",
                 .foreground => "10",
                 .background => "11",
+                .cursor => "12",
             };
         }
     };
@@ -195,21 +216,24 @@ pub const Parser = struct {
         @"1",
         @"10",
         @"11",
+        @"12",
         @"13",
         @"133",
         @"2",
         @"22",
+        @"4",
         @"5",
         @"52",
         @"7",
 
-        // OSC 10 is used to query the default foreground color, and to set the default foreground color.
-        // Only querying is currently supported.
-        query_default_fg,
+        // OSC 10 is used to query or set the current foreground color.
+        query_fg_color,
 
-        // OSC 11 is used to query the default background color, and to set the default background color.
-        // Only querying is currently supported.
-        query_default_bg,
+        // OSC 11 is used to query or set the current background color.
+        query_bg_color,
+
+        // OSC 12 is used to query or set the current cursor color.
+        query_cursor_color,
 
         // We're in a semantic prompt OSC command but we aren't sure
         // what the command is yet, i.e. `133;`
@@ -224,6 +248,13 @@ pub const Parser = struct {
         clipboard_kind,
         clipboard_kind_end,
 
+        // Get/set color palette index
+        color_palette_index,
+        color_palette_index_end,
+
+        // Reset color palette index
+        reset_color_palette_index,
+
         // Expect a string parameter. param_str must be set as well as
         // buf_start.
         string,
@@ -277,6 +308,7 @@ pub const Parser = struct {
                 '0' => self.state = .@"0",
                 '1' => self.state = .@"1",
                 '2' => self.state = .@"2",
+                '4' => self.state = .@"4",
                 '5' => self.state = .@"5",
                 '7' => self.state = .@"7",
                 else => self.state = .invalid,
@@ -296,22 +328,47 @@ pub const Parser = struct {
             .@"1" => switch (c) {
                 '0' => self.state = .@"10",
                 '1' => self.state = .@"11",
+                '2' => self.state = .@"12",
                 '3' => self.state = .@"13",
                 else => self.state = .invalid,
             },
 
             .@"10" => switch (c) {
-                ';' => self.state = .query_default_fg,
+                ';' => self.state = .query_fg_color,
+                '4' => {
+                    self.command = .{ .reset_color = .{
+                        .kind = .{ .palette = 0 },
+                        .value = "",
+                    } };
+
+                    self.state = .reset_color_palette_index;
+                    self.complete = true;
+                },
                 else => self.state = .invalid,
             },
 
             .@"11" => switch (c) {
-                ';' => self.state = .query_default_bg,
-                '2' => {
+                ';' => self.state = .query_bg_color,
+                '0' => {
+                    self.command = .{ .reset_color = .{ .kind = .foreground, .value = undefined } };
                     self.complete = true;
-                    self.command = .{ .reset_cursor_color = {} };
                     self.state = .invalid;
                 },
+                '1' => {
+                    self.command = .{ .reset_color = .{ .kind = .background, .value = undefined } };
+                    self.complete = true;
+                    self.state = .invalid;
+                },
+                '2' => {
+                    self.command = .{ .reset_color = .{ .kind = .cursor, .value = undefined } };
+                    self.complete = true;
+                    self.state = .invalid;
+                },
+                else => self.state = .invalid,
+            },
+
+            .@"12" => switch (c) {
+                ';' => self.state = .query_cursor_color,
                 else => self.state = .invalid,
             },
 
@@ -348,6 +405,61 @@ pub const Parser = struct {
                 else => self.state = .invalid,
             },
 
+            .@"4" => switch (c) {
+                ';' => {
+                    self.state = .color_palette_index;
+                    self.buf_start = self.buf_idx;
+                },
+                else => self.state = .invalid,
+            },
+
+            .color_palette_index => switch (c) {
+                '0'...'9' => {},
+                ';' => {
+                    if (std.fmt.parseUnsigned(u8, self.buf[self.buf_start .. self.buf_idx - 1], 10)) |num| {
+                        self.state = .color_palette_index_end;
+                        self.temp_state = .{ .num = num };
+                    } else |err| switch (err) {
+                        error.Overflow => self.state = .invalid,
+                        error.InvalidCharacter => unreachable,
+                    }
+                },
+                else => self.state = .invalid,
+            },
+
+            .color_palette_index_end => switch (c) {
+                '?' => {
+                    self.command = .{ .report_color = .{
+                        .kind = .{ .palette = @intCast(self.temp_state.num) },
+                    } };
+
+                    self.complete = true;
+                },
+                else => {
+                    self.command = .{ .set_color = .{
+                        .kind = .{ .palette = @intCast(self.temp_state.num) },
+                        .value = "",
+                    } };
+
+                    self.state = .string;
+                    self.temp_state = .{ .str = &self.command.set_color.value };
+                    self.buf_start = self.buf_idx - 1;
+                },
+            },
+
+            .reset_color_palette_index => switch (c) {
+                ';' => {
+                    self.state = .string;
+                    self.temp_state = .{ .str = &self.command.reset_color.value };
+                    self.buf_start = self.buf_idx;
+                    self.complete = false;
+                },
+                else => {
+                    self.state = .invalid;
+                    self.complete = false;
+                },
+            },
+
             .@"5" => switch (c) {
                 '2' => self.state = .@"52",
                 else => self.state = .invalid,
@@ -394,20 +506,58 @@ pub const Parser = struct {
                 else => self.state = .invalid,
             },
 
-            .query_default_fg => switch (c) {
+            .query_fg_color => switch (c) {
                 '?' => {
-                    self.command = .{ .report_default_color = .{ .kind = .foreground } };
+                    self.command = .{ .report_color = .{ .kind = .foreground } };
                     self.complete = true;
+                    self.state = .invalid;
+                },
+                else => {
+                    self.command = .{ .set_color = .{
+                        .kind = .foreground,
+                        .value = "",
+                    } };
+
+                    self.state = .string;
+                    self.temp_state = .{ .str = &self.command.set_color.value };
+                    self.buf_start = self.buf_idx - 1;
                 },
-                else => self.state = .invalid,
             },
 
-            .query_default_bg => switch (c) {
+            .query_bg_color => switch (c) {
                 '?' => {
-                    self.command = .{ .report_default_color = .{ .kind = .background } };
+                    self.command = .{ .report_color = .{ .kind = .background } };
                     self.complete = true;
+                    self.state = .invalid;
+                },
+                else => {
+                    self.command = .{ .set_color = .{
+                        .kind = .background,
+                        .value = "",
+                    } };
+
+                    self.state = .string;
+                    self.temp_state = .{ .str = &self.command.set_color.value };
+                    self.buf_start = self.buf_idx - 1;
+                },
+            },
+
+            .query_cursor_color => switch (c) {
+                '?' => {
+                    self.command = .{ .report_color = .{ .kind = .cursor } };
+                    self.complete = true;
+                    self.state = .invalid;
+                },
+                else => {
+                    self.command = .{ .set_color = .{
+                        .kind = .cursor,
+                        .value = "",
+                    } };
+
+                    self.state = .string;
+                    self.temp_state = .{ .str = &self.command.set_color.value };
+                    self.buf_start = self.buf_idx - 1;
                 },
-                else => self.state = .invalid,
             },
 
             .semantic_prompt => switch (c) {
@@ -616,7 +766,7 @@ pub const Parser = struct {
         }
 
         switch (self.command) {
-            .report_default_color => |*c| c.terminator = Terminator.init(terminator_ch),
+            .report_color => |*c| c.terminator = Terminator.init(terminator_ch),
             else => {},
         }
 
@@ -788,7 +938,7 @@ test "OSC: end_of_input" {
     try testing.expect(cmd == .end_of_input);
 }
 
-test "OSC: reset_cursor_color" {
+test "OSC: reset cursor color" {
     const testing = std.testing;
 
     var p: Parser = .{};
@@ -797,7 +947,8 @@ test "OSC: reset_cursor_color" {
     for (input) |ch| p.next(ch);
 
     const cmd = p.end(null).?;
-    try testing.expect(cmd == .reset_cursor_color);
+    try testing.expect(cmd == .reset_color);
+    try testing.expectEqual(cmd.reset_color.kind, .cursor);
 }
 
 test "OSC: get/set clipboard" {
@@ -902,9 +1053,23 @@ test "OSC: report default foreground color" {
 
     // This corresponds to ST = ESC followed by \
     const cmd = p.end('\x1b').?;
-    try testing.expect(cmd == .report_default_color);
-    try testing.expectEqual(cmd.report_default_color.kind, .foreground);
-    try testing.expectEqual(cmd.report_default_color.terminator, .st);
+    try testing.expect(cmd == .report_color);
+    try testing.expectEqual(cmd.report_color.kind, .foreground);
+    try testing.expectEqual(cmd.report_color.terminator, .st);
+}
+
+test "OSC: set foreground color" {
+    const testing = std.testing;
+
+    var p: Parser = .{};
+
+    const input = "10;rgbi:0.0/0.5/1.0";
+    for (input) |ch| p.next(ch);
+
+    const cmd = p.end('\x07').?;
+    try testing.expect(cmd == .set_color);
+    try testing.expectEqual(cmd.set_color.kind, .foreground);
+    try testing.expectEqualStrings(cmd.set_color.value, "rgbi:0.0/0.5/1.0");
 }
 
 test "OSC: report default background color" {
@@ -917,7 +1082,49 @@ test "OSC: report default background color" {
 
     // This corresponds to ST = BEL character
     const cmd = p.end('\x07').?;
-    try testing.expect(cmd == .report_default_color);
-    try testing.expectEqual(cmd.report_default_color.kind, .background);
-    try testing.expectEqual(cmd.report_default_color.terminator, .bel);
+    try testing.expect(cmd == .report_color);
+    try testing.expectEqual(cmd.report_color.kind, .background);
+    try testing.expectEqual(cmd.report_color.terminator, .bel);
+}
+
+test "OSC: set background color" {
+    const testing = std.testing;
+
+    var p: Parser = .{};
+
+    const input = "11;rgb:f/ff/ffff";
+    for (input) |ch| p.next(ch);
+
+    const cmd = p.end('\x1b').?;
+    try testing.expect(cmd == .set_color);
+    try testing.expectEqual(cmd.set_color.kind, .background);
+    try testing.expectEqualStrings(cmd.set_color.value, "rgb:f/ff/ffff");
+}
+
+test "OSC: get palette color" {
+    const testing = std.testing;
+
+    var p: Parser = .{};
+
+    const input = "4;1;?";
+    for (input) |ch| p.next(ch);
+
+    const cmd = p.end('\x1b').?;
+    try testing.expect(cmd == .report_color);
+    try testing.expectEqual(cmd.report_color.kind, .{ .palette = 1 });
+    try testing.expectEqual(cmd.report_color.terminator, .st);
+}
+
+test "OSC: set palette color" {
+    const testing = std.testing;
+
+    var p: Parser = .{};
+
+    const input = "4;17;rgb:aa/bb/cc";
+    for (input) |ch| p.next(ch);
+
+    const cmd = p.end('\x1b').?;
+    try testing.expect(cmd == .set_color);
+    try testing.expectEqual(cmd.set_color.kind, .{ .palette = 17 });
+    try testing.expectEqualStrings(cmd.set_color.value, "rgb:aa/bb/cc");
 }
diff --git a/src/terminal/stream.zig b/src/terminal/stream.zig
index 6f27a9b06..e41b27849 100644
--- a/src/terminal/stream.zig
+++ b/src/terminal/stream.zig
@@ -1045,17 +1045,26 @@ pub fn Stream(comptime Handler: type) type {
                     } else log.warn("unimplemented OSC callback: {}", .{cmd});
                 },
 
-                .report_default_color => |v| {
-                    if (@hasDecl(T, "reportDefaultColor")) {
-                        try self.handler.reportDefaultColor(v.kind, v.terminator);
+                .report_color => |v| {
+                    if (@hasDecl(T, "reportColor")) {
+                        try self.handler.reportColor(v.kind, v.terminator);
                         return;
                     } else log.warn("unimplemented OSC callback: {}", .{cmd});
                 },
 
-                else => if (@hasDecl(T, "oscUnimplemented"))
-                    try self.handler.oscUnimplemented(cmd)
-                else
-                    log.warn("unimplemented OSC command: {}", .{cmd}),
+                .set_color => |v| {
+                    if (@hasDecl(T, "setColor")) {
+                        try self.handler.setColor(v.kind, v.value);
+                        return;
+                    } else log.warn("unimplemented OSC callback: {}", .{cmd});
+                },
+
+                .reset_color => |v| {
+                    if (@hasDecl(T, "resetColor")) {
+                        try self.handler.resetColor(v.kind, v.value);
+                        return;
+                    } else log.warn("unimplemented OSC callback: {}", .{cmd});
+                },
             }
 
             // Fall through for when we don't have a handler.
diff --git a/src/termio/Exec.zig b/src/termio/Exec.zig
index f48dbca0d..03891364f 100644
--- a/src/termio/Exec.zig
+++ b/src/termio/Exec.zig
@@ -69,13 +69,23 @@ grid_size: renderer.GridSize,
 /// it when a CSI q with default is called.
 default_cursor_style: terminal.Cursor.Style,
 default_cursor_blink: ?bool,
+default_cursor_color: ?terminal.color.RGB,
 
-/// Default foreground color for OSC 10 reporting.
+/// Actual cursor color
+cursor_color: ?terminal.color.RGB,
+
+/// Default foreground color as set by the config file
 default_foreground_color: terminal.color.RGB,
 
-/// Default background color for OSC 11 reporting.
+/// Default background color as set by the config file
 default_background_color: terminal.color.RGB,
 
+/// Actual foreground color
+foreground_color: terminal.color.RGB,
+
+/// Actual background color
+background_color: terminal.color.RGB,
+
 /// The OSC 10/11 reply style.
 osc_color_report_format: configpkg.Config.OSCColorReportFormat,
 
@@ -90,6 +100,7 @@ pub const DerivedConfig = struct {
     image_storage_limit: usize,
     cursor_style: terminal.Cursor.Style,
     cursor_blink: ?bool,
+    cursor_color: ?configpkg.Config.Color,
     foreground: configpkg.Config.Color,
     background: configpkg.Config.Color,
     osc_color_report_format: configpkg.Config.OSCColorReportFormat,
@@ -106,6 +117,7 @@ pub const DerivedConfig = struct {
             .image_storage_limit = config.@"image-storage-limit",
             .cursor_style = config.@"cursor-style",
             .cursor_blink = config.@"cursor-style-blink",
+            .cursor_color = config.@"cursor-color",
             .foreground = config.foreground,
             .background = config.background,
             .osc_color_report_format = config.@"osc-color-report-format",
@@ -132,7 +144,7 @@ pub fn init(alloc: Allocator, opts: termio.Options) !Exec {
         opts.grid_size.rows,
     );
     errdefer term.deinit(alloc);
-    term.color_palette = opts.config.palette;
+    term.default_palette = opts.config.palette;
 
     // Set the image size limits
     try term.screen.kitty_images.setLimit(alloc, opts.config.image_storage_limit);
@@ -169,8 +181,18 @@ pub fn init(alloc: Allocator, opts: termio.Options) !Exec {
         .grid_size = opts.grid_size,
         .default_cursor_style = opts.config.cursor_style,
         .default_cursor_blink = opts.config.cursor_blink,
+        .default_cursor_color = if (opts.config.cursor_color) |col|
+            col.toTerminalRGB()
+        else
+            null,
+        .cursor_color = if (opts.config.cursor_color) |col|
+            col.toTerminalRGB()
+        else
+            null,
         .default_foreground_color = config.foreground.toTerminalRGB(),
         .default_background_color = config.background.toTerminalRGB(),
+        .foreground_color = config.foreground.toTerminalRGB(),
+        .background_color = config.background.toTerminalRGB(),
         .osc_color_report_format = config.osc_color_report_format,
         .data = null,
     };
@@ -236,8 +258,12 @@ pub fn threadEnter(self: *Exec, thread: *termio.Thread) !ThreadData {
                 .grid_size = &self.grid_size,
                 .default_cursor_style = self.default_cursor_style,
                 .default_cursor_blink = self.default_cursor_blink,
+                .default_cursor_color = self.default_cursor_color,
+                .cursor_color = self.cursor_color,
                 .default_foreground_color = self.default_foreground_color,
                 .default_background_color = self.default_background_color,
+                .foreground_color = self.foreground_color,
+                .background_color = self.background_color,
                 .osc_color_report_format = self.osc_color_report_format,
             },
 
@@ -322,11 +348,19 @@ pub fn changeConfig(self: *Exec, config: *DerivedConfig) !void {
 
     // Update the palette. Note this will only apply to new colors drawn
     // since we decode all palette colors to RGB on usage.
-    self.terminal.color_palette = config.palette;
+    self.terminal.default_palette = config.palette;
 
     // Update our default cursor style
     self.default_cursor_style = config.cursor_style;
     self.default_cursor_blink = config.cursor_blink;
+    self.default_cursor_color = if (config.cursor_color) |col|
+        col.toTerminalRGB()
+    else
+        null;
+
+    // Update default foreground and background colors
+    self.default_foreground_color = config.foreground.toTerminalRGB();
+    self.default_background_color = config.background.toTerminalRGB();
 
     // If we have event data, then update our active stream too
     if (self.data) |data| {
@@ -1326,8 +1360,23 @@ const StreamHandler = struct {
     default_cursor: bool = true,
     default_cursor_style: terminal.Cursor.Style,
     default_cursor_blink: ?bool,
+    default_cursor_color: ?terminal.color.RGB,
+
+    /// Actual cursor color. This can be changed with OSC 12.
+    cursor_color: ?terminal.color.RGB,
+
+    /// The default foreground and background color are those set by the user's
+    /// config file. These can be overridden by terminal applications using OSC
+    /// 10 and OSC 11, respectively.
     default_foreground_color: terminal.color.RGB,
     default_background_color: terminal.color.RGB,
+
+    /// The actual foreground and background color. Normally this will be the
+    /// same as the default foreground and background color, unless changed by a
+    /// terminal application.
+    foreground_color: terminal.color.RGB,
+    background_color: terminal.color.RGB,
+
     osc_color_report_format: configpkg.Config.OSCColorReportFormat,
 
     pub fn deinit(self: *StreamHandler) void {
@@ -2150,18 +2199,20 @@ const StreamHandler = struct {
         }
     }
 
-    /// Implements OSC 10 and OSC 11, which reports default foreground and
-    /// background color respectively.
-    pub fn reportDefaultColor(
+    /// Implements OSC 4, OSC 10, and OSC 11, which reports palette color,
+    /// default foreground color, and background color respectively.
+    pub fn reportColor(
         self: *StreamHandler,
-        kind: terminal.osc.Command.DefaultColorKind,
+        kind: terminal.osc.Command.ColorKind,
         terminator: terminal.osc.Terminator,
     ) !void {
         if (self.osc_color_report_format == .none) return;
 
         const color = switch (kind) {
-            .foreground => self.default_foreground_color,
-            .background => self.default_background_color,
+            .palette => |i| self.terminal.color_palette.colors[i],
+            .foreground => self.foreground_color,
+            .background => self.background_color,
+            .cursor => self.cursor_color orelse self.foreground_color,
         };
 
         var msg: termio.Message = .{ .write_small = .{} };
@@ -2195,4 +2246,88 @@ const StreamHandler = struct {
         msg.write_small.len = @intCast(resp.len);
         self.messageWriter(msg);
     }
+
+    pub fn setColor(
+        self: *StreamHandler,
+        kind: terminal.osc.Command.ColorKind,
+        value: []const u8,
+    ) !void {
+        const color = try terminal.color.RGB.parse(value);
+
+        switch (kind) {
+            .palette => |i| {
+                self.terminal.color_palette.colors[i] = color;
+                self.terminal.color_palette.mask.set(i);
+            },
+            .foreground => {
+                self.foreground_color = color;
+                _ = self.ev.renderer_mailbox.push(.{
+                    .foreground_color = color,
+                }, .{ .forever = {} });
+            },
+            .background => {
+                self.background_color = color;
+                _ = self.ev.renderer_mailbox.push(.{
+                    .background_color = color,
+                }, .{ .forever = {} });
+            },
+            .cursor => {
+                self.cursor_color = color;
+                _ = self.ev.renderer_mailbox.push(.{
+                    .cursor_color = color,
+                }, .{ .forever = {} });
+            },
+        }
+    }
+
+    pub fn resetColor(
+        self: *StreamHandler,
+        kind: terminal.osc.Command.ColorKind,
+        value: []const u8,
+    ) !void {
+        switch (kind) {
+            .palette => {
+                const mask = &self.terminal.color_palette.mask;
+                if (value.len == 0) {
+                    // Find all bit positions in the mask which are set and
+                    // reset those indices to the default palette
+                    var it = mask.iterator(.{});
+                    while (it.next()) |i| {
+                        log.warn("Resetting palette color {}", .{i});
+                        self.terminal.color_palette.colors[i] = self.terminal.default_palette[i];
+                        mask.unset(i);
+                    }
+                } else {
+                    var it = std.mem.tokenizeScalar(u8, value, ';');
+                    while (it.next()) |param| {
+                        // Skip invalid parameters
+                        const i = std.fmt.parseUnsigned(u8, param, 10) catch continue;
+                        log.warn("Resetting palette color {}", .{i});
+                        if (mask.isSet(i)) {
+                            self.terminal.color_palette.colors[i] = self.terminal.default_palette[i];
+                            mask.unset(i);
+                        }
+                    }
+                }
+            },
+            .foreground => {
+                self.foreground_color = self.default_foreground_color;
+                _ = self.ev.renderer_mailbox.push(.{
+                    .foreground_color = self.foreground_color,
+                }, .{ .forever = {} });
+            },
+            .background => {
+                self.background_color = self.default_background_color;
+                _ = self.ev.renderer_mailbox.push(.{
+                    .background_color = self.background_color,
+                }, .{ .forever = {} });
+            },
+            .cursor => {
+                self.cursor_color = self.default_cursor_color;
+                _ = self.ev.renderer_mailbox.push(.{
+                    .cursor_color = self.cursor_color,
+                }, .{ .forever = {} });
+            },
+        }
+    }
 };