diff --git a/THANKS b/THANKS
index b5d19be..79885c7 100644
--- a/THANKS
+++ b/THANKS
@@ -129,3 +129,4 @@ Andras Horvath
 Drew Varner
 Roberto Aloi
 Luis Rascao
+Andrey Teplyashin
diff --git a/ebin/rebar.app b/ebin/rebar.app
index 6e3609b..13e6a74 100644
--- a/ebin/rebar.app
+++ b/ebin/rebar.app
@@ -56,6 +56,9 @@
          %% Default log level
          {log_level, warn},
 
+         %% Log colored
+         {log_colored, true},
+
          %% any_dir processing modules
          {any_dir_modules, [
                             rebar_require_vsn,
diff --git a/inttest/logging/logging_rt.erl b/inttest/logging/logging_rt.erl
index d3e1c0f..cf9815b 100644
--- a/inttest/logging/logging_rt.erl
+++ b/inttest/logging/logging_rt.erl
@@ -40,23 +40,40 @@ run(_Dir) ->
     SharedExpected = "==> logging_rt \\(compile\\)",
     %% provoke ERROR due to an invalid app file
     retest:log(info, "Check 'compile' failure output~n"),
+    {Error, Warn, Info, Debug} =
+        case application:get_env(rebar, log_colored) of
+            {ok, true} ->
+                {
+                 "\\e\\[1m\\e\\[31mERROR: \\e\\[0m",
+                 "\\e\\[33mWARN: \\e\\[0m",
+                 "\\e\\[32mINFO: \\e\\[0m",
+                 "\\e\\[34mDEBUG: \\e\\[0m"
+                };
+            _ ->
+                {
+                 "ERROR: ",
+                 "WARN: ",
+                 "INFO: ",
+                 "DEBUG: "
+                }
+        end,
     ok = check_output("./rebar compile -q", should_fail,
-                      [SharedExpected, "ERROR: "],
-                      ["WARN: ", "INFO: ", "DEBUG: "]),
+                      [SharedExpected, Error],
+                      [Warn, Info, Debug]),
     %% fix bad app file
     ok = file:write_file(?APP_FILE, app(logging, [])),
     retest:log(info, "Check 'compile' success output~n"),
     ok = check_output("./rebar compile", should_succeed,
                       [SharedExpected],
-                      ["ERROR: ", "WARN: ", "INFO: ", "DEBUG: "]),
+                      [Error, Warn, Info, Debug]),
     retest:log(info, "Check 'compile -v' success output~n"),
     ok = check_output("./rebar compile -v", should_succeed,
                       [SharedExpected],
-                      ["ERROR: ", "INFO: ", "DEBUG: "]),
+                      [Error, Info, Debug]),
     retest:log(info, "Check 'compile -vv' success output~n"),
     ok = check_output("./rebar compile -vv", should_succeed,
-                      [SharedExpected, "DEBUG: "],
-                      ["ERROR: ", "INFO: "]),
+                      [SharedExpected, Debug],
+                      [Error, Info]),
     ok.
 
 check_output(Cmd, FailureMode, Expected, Unexpected) ->
@@ -73,7 +90,7 @@ check_output(Cmd, FailureMode, Expected, Unexpected) ->
     end.
 
 check_output1(Cmd, Captured, Expected, Unexpected) ->
-    ReOpts = [{capture, all, list}],
+    ReOpts = [{capture, all, list}, unicode],
     ExMatches =
         lists:zf(
           fun(Pattern) ->
diff --git a/src/rebar_log.erl b/src/rebar_log.erl
index ba25332..3fdaaea 100644
--- a/src/rebar_log.erl
+++ b/src/rebar_log.erl
@@ -50,19 +50,28 @@ init(Config) ->
         ?WARN_LEVEL  -> set_level(warn);
         ?INFO_LEVEL  -> set_level(info);
         ?DEBUG_LEVEL -> set_level(debug)
-    end.
+    end,
+    LogColored = rebar_config:get_global(Config, log_colored, true),
+    set_log_colored(LogColored).
+
 
 set_level(Level) ->
-    ok = application:set_env(rebar, log_level, Level).
+    erlang:put(rebar_log_level, Level).
+
+set_log_colored(true) ->
+    erlang:put(rebar_log_colored, true);
+set_log_colored(_LogColored) ->
+    erlang:put(rebar_log_colored, false).
 
 log(Level, Str, Args) ->
     log(standard_io, Level, Str, Args).
 
 log(Device, Level, Str, Args) ->
-    {ok, LogLevel} = application:get_env(rebar, log_level),
+    LogLevel = erlang:get(rebar_log_level),
+    LogColored = erlang:get(rebar_log_colored),
     case should_log(LogLevel, Level) of
         true ->
-            io:format(Device, log_prefix(Level) ++ Str, Args);
+            io:format(Device, log_prefix(Level, LogColored) ++ Str, Args);
         false ->
             ok
     end.
@@ -90,7 +99,33 @@ should_log(error, error) -> true;
 should_log(error, _)     -> false;
 should_log(_, _)         -> false.
 
+log_prefix(Level, _Colored = false) ->
+    log_prefix(Level);
+log_prefix(Level, _Colored = true) ->
+    color_from_level(Level) ++ log_prefix(Level) ++ reset_color().
+
 log_prefix(debug) -> "DEBUG: ";
 log_prefix(info)  -> "INFO:  ";
 log_prefix(warn)  -> "WARN:  ";
 log_prefix(error) -> "ERROR: ".
+
+color_from_level(debug) ->
+    color_foreground(blue);
+color_from_level(info) ->
+    color_foreground(green);
+color_from_level(warn) ->
+    color_foreground(yellow);
+color_from_level(error) ->
+    color_bold() ++ color_foreground(red).
+
+color_foreground(black)   -> "\e[30m";
+color_foreground(red)     -> "\e[31m";
+color_foreground(green)   -> "\e[32m";
+color_foreground(yellow)  -> "\e[33m";
+color_foreground(blue)    -> "\e[34m";
+color_foreground(magenta) -> "\e[35m";
+color_foreground(cyan)    -> "\e[36m";
+color_foreground(white)   -> "\e[37m".
+
+color_bold()  -> "\e[1m".
+reset_color() -> "\e[0m".