diff --git a/Engine/source/core/color.h b/Engine/source/core/color.h
index 2b6ade809..c4e1ffe13 100644
--- a/Engine/source/core/color.h
+++ b/Engine/source/core/color.h
@@ -550,6 +550,7 @@ inline void ColorI::set(const String& hex)
 	red = (U8)(convertFromHex(redString));
 	green = (U8)(convertFromHex(greenString));
 	blue = (U8)(convertFromHex(blueString));
+   alpha = 255;
 }
 
 inline S32 ColorI::convertFromHex(const String& hex) const
diff --git a/Templates/BaseGame/game/tools/gui/colorPicker.ed.gui b/Templates/BaseGame/game/tools/gui/colorPicker.ed.gui
index 3c6d60901..236262deb 100644
--- a/Templates/BaseGame/game/tools/gui/colorPicker.ed.gui
+++ b/Templates/BaseGame/game/tools/gui/colorPicker.ed.gui
@@ -26,7 +26,7 @@ $guiContent = new GuiColorPickerCtrl(ColorPickerDlg,EditorGuiGroup) {
          changeChildSizeToFit = "0";
          changeChildPosition = "0";
          position = "0 24";
-         extent = "271 481";
+         extent = "271 491";
          profile = "GuiDefaultProfile";
          tooltipProfile = "GuiToolTipProfile";
 
@@ -283,20 +283,26 @@ $guiContent = new GuiColorPickerCtrl(ColorPickerDlg,EditorGuiGroup) {
          };
          new GuiRolloutCtrl() {
             caption = ":: Color Palette";
+            margin = "5 5 5 5";
             position = "0 445";
-            extent = "271 36";
+            extent = "271 46";
             profile = "GuiRolloutProfile";
             tooltipProfile = "GuiToolTipProfile";
 
-            new GuiStackControl() {
-               stackingType = "Dynamic";
-               padding = "5";
-               changeChildSizeToFit = "0";
-               position = "0 17";
-               extent = "271 16";
-               profile = "GuiDefaultProfile";
-               tooltipProfile = "GuiToolTipProfile";
-            };
+            new GuiDynamicCtrlArrayControl(ColorPaletteStack) {
+                  colCount = "12";
+                  colSize = "12";
+                  rowSize = "12";
+                  rowCount = "3";
+                  rowSpacing = "1";
+                  colSpacing = "1";
+                  dynamicSize = "1";
+                  padding = "3 3 3 3";
+                  position = "0 17";
+                  extent = "271 47";
+                  profile = "GuiDefaultProfile";
+                  tooltipProfile = "GuiToolTipProfile";
+               };
          };
       };
    };
@@ -342,6 +348,87 @@ function GetColorF( %currentColor, %callback, %root, %updateCallback, %cancelCal
    %root.pushDialog(ColorPickerDlg);
 }
 
+function ColorPaletteStack::onWake(%this)
+{
+   if($Pref::ColorPicker::ColorPalette $= "")
+   {
+      $Pref::ColorPicker::ColorPalette = "#FFFFFF #FF0000 #00FF00 #0000FF";
+   }
+
+   %colorCount = getWordCount($Pref::ColorPicker::ColorPalette);
+   
+   if(%colorCount > 63)
+      %colorCount = 63;
+
+   for(%i=0; %i < %colorCount; %i++)
+   {
+      %hex = getWord($Pref::ColorPicker::ColorPalette, %i);
+      %rgb = ColorHEXToRGB(%hex);
+      %rgb = ColorIntToFloat(%rgb);
+
+      %colorBox = new GuiSwatchButtonCtrl() {
+                  extent = "16 16";
+                  color = %rgb;
+                  profile = "GuiDefaultProfile";
+                  colorHex = %hex;
+                  useMouseEvents = "1";
+                  class = "ColorPaletteSwatch";
+               };
+
+      ColorPaletteStack.Add(%colorBox);
+   }
+
+   %button = new GuiButtonCtrl() {
+               text = "+";
+               extent = "16 16";
+               profile = "ToolsGuiButtonProfile";
+               tooltipProfile = "GuiToolTipProfile";
+               command = "ColorPaletteStack.addCurrentColorToStack();";
+            };
+
+   ColorPaletteStack.Add(%button);
+}
+
+function ColorPaletteStack::addCurrentColorToStack(%this)
+{
+   %hex = HexTextEditor.getValue();
+   //Make sure we have 6 characters
+   while(strlen(%hex) < 6)
+   {
+      %hex = "0" @ %hex;
+   }
+   %hex = strupr(%hex);
+
+   $Pref::ColorPicker::ColorPalette = "#" @ %hex SPC $Pref::ColorPicker::ColorPalette;
+   ColorPaletteStack.clear();
+   ColorPaletteStack.onWake();
+}
+
+function ColorPaletteStack::onSleep(%this)
+{
+   ColorPaletteStack.clear();
+}
+
+function ColorPaletteSwatch::onMouseDown(%this)
+{
+   //Update all the other color fields
+   %rgb = ColorHEXToRGB(%this.colorHex);
+   %hsb = ColorRGBToHSB(%rgb);
+   
+   // these automatically update our ColorNewSelected which
+   // updates all text fields including these.
+   ColorHueRange.setSelectedHue(getWord(%hsb, 0));
+   ColorHueRange.executeUpdate();
+
+   ColorBlendRange.setSelectedSaturation(getWord(%hsb, 1));
+   ColorBlendRange.setSelectedBrightness(getWord(%hsb, 2));
+   ColorBlendRange.executeUpdate();
+
+   // for now just set full alpha until we save out alpha as well
+   ColorAlphaRange.setSelectedAlpha(255);
+   ColorAlphaRange.executeUpdate();
+}
+
 function ColorPickerRGBClass::onValidate(%this)
 {
    %red = RedTextEdit.getValue();