The emergence of color psychology as a subject is consideredto be one of the newest branches in psychology. ColorPsychology is defined as the science or the study of the effectsthat colors tend to have over the moods, behaviors or feelingsof the people. Color psychology is used in various fieldsbecause of the effects that colors tend to have over differentdeterminants of human behavior. Color Psychology is consideredto be a part of modern psychology.Colors help in determining the various unclear perceptions.There is no direct relation between the perception and colorhowever they greatly complement each other. Colors help inimprovising the effectiveness of the placebos. Color Psychology iswidely used in the field of marketing and branding. The bigcompanies and business consider color as an important part oftheir marketing strategy due to the fact that the colors of theirproducts, goods, and services highly affect the perceptions andemotions of their customers which as a result determines thepurchase rates of the products, goods or services. Colors havebeen used for treating the illnesses of the people which isknown as Chromotherapy. Colors also affect the performingability of an individual. A relation exists between the color andthe time.Hence, it can be said that the color psychology is used indiverse fields and constitutes an important part of our lives.