- "Welcome, Link. I admire you for coming this far. I will give you the power of color. If you want offense, choose red. If you want defense choose blue."
- — The Great Fairy of the Color Dungeon
The Color Dungeon utilizes the Game Boy Color's capabilities by means of a number of color-based puzzles and enemies. Because The Legend of Zelda: Link's Awakening has limited color capabilities, the Color Dungeon is available only on the DX version. The entrance is hidden beneath a grave in Koholint Island's Cemetery and can be found only by pushing the gravestones a certain way. The combination in which to push the gravestones is found in a book in the Mabe Village Library.
After defeating the dungeon's boss, Giant Hardhat Beetle, Link meets the Fairy Queen. She gives Link the option of either Blue Clothes, which halve damage taken, or the Red Clothes, which double sword damage. Link can go back to her at any time to switch to a different set of clothes; however, he cannot re-obtain his green tunic.
The dungeon's music is a remix version of the dungeon music from The Legend of Zelda.