diff --git a/runelite-client/src/main/java/net/runelite/client/plugins/chatnotifications/ChatNotificationsPlugin.java b/runelite-client/src/main/java/net/runelite/client/plugins/chatnotifications/ChatNotificationsPlugin.java
index 874a446a34..140aa3eef7 100644
--- a/runelite-client/src/main/java/net/runelite/client/plugins/chatnotifications/ChatNotificationsPlugin.java
+++ b/runelite-client/src/main/java/net/runelite/client/plugins/chatnotifications/ChatNotificationsPlugin.java
@@ -25,6 +25,7 @@
  */
 package net.runelite.client.plugins.chatnotifications;
 
+import com.google.common.annotations.VisibleForTesting;
 import com.google.common.base.Strings;
 import com.google.inject.Provides;
 import java.util.List;
@@ -115,7 +116,7 @@ public class ChatNotificationsPlugin extends Plugin
 			List<String> items = Text.fromCSV(config.highlightWordsString());
 			String joined = items.stream()
 				.map(Text::escapeJagex) // we compare these strings to the raw Jagex ones
-				.map(Pattern::quote)
+				.map(this::quoteAndIgnoreColor) // regex escape and ignore nested colors in the target message
 				.collect(Collectors.joining("|"));
 			// To match <word> \b doesn't work due to <> not being in \w,
 			// so match \b or \s
@@ -184,7 +185,26 @@ public class ChatNotificationsPlugin extends Plugin
 			while (matcher.find())
 			{
 				String value = matcher.group();
-				matcher.appendReplacement(stringBuffer, "<col" + ChatColorType.HIGHLIGHT + ">" + value + "<col" + ChatColorType.NORMAL + ">");
+
+				// Determine the ending color by:
+				// 1) use the color from value if it has one
+				// 2) use the last color from stringBuffer + <content between last match and current match>
+				// To do #2 we just search for the last col tag after calling appendReplacement
+				String endColor = getLastColor(value);
+
+				// Strip color tags from the highlighted region so that it remains highlighted correctly
+				value = stripColor(value);
+
+				matcher.appendReplacement(stringBuffer, "<col" + ChatColorType.HIGHLIGHT + '>' + value);
+
+				if (endColor == null)
+				{
+					endColor = getLastColor(stringBuffer.toString());
+				}
+
+				// Append end color
+				stringBuffer.append(endColor == null ? "<col" + ChatColorType.NORMAL + ">" : endColor);
+
 				update = true;
 				found = true;
 			}
@@ -228,4 +248,61 @@ public class ChatNotificationsPlugin extends Plugin
 		String notification = stringBuilder.toString();
 		notifier.notify(notification);
 	}
+
+	private String quoteAndIgnoreColor(String str)
+	{
+		StringBuilder stringBuilder = new StringBuilder();
+
+		for (int i = 0; i < str.length(); ++i)
+		{
+			char c = str.charAt(i);
+			stringBuilder.append(Pattern.quote(String.valueOf(c)));
+			stringBuilder.append("(?:<col=[^>]*?>)?");
+		}
+
+		return stringBuilder.toString();
+	}
+
+	/**
+	 * Get the last color tag from a string, or null if there was none
+	 *
+	 * @param str
+	 * @return
+	 */
+	private static String getLastColor(String str)
+	{
+		int colIdx = str.lastIndexOf("<col=");
+		int colEndIdx = str.lastIndexOf("</col>");
+
+		if (colEndIdx > colIdx)
+		{
+			// ends in a </col> which resets the color to normal
+			return "<col" + ChatColorType.NORMAL + ">";
+		}
+
+		if (colIdx == -1)
+		{
+			return null; // no color
+		}
+
+		int closeIdx = str.indexOf('>', colIdx);
+		if (closeIdx == -1)
+		{
+			return null; // unclosed col tag
+		}
+
+		return str.substring(colIdx, closeIdx + 1); // include the >
+	}
+
+	/**
+	 * Strip color tags from a string.
+	 *
+	 * @param str
+	 * @return
+	 */
+	@VisibleForTesting
+	static String stripColor(String str)
+	{
+		return str.replaceAll("(<col=[0-9a-f]+>|</col>)", "");
+	}
 }
diff --git a/runelite-client/src/test/java/net/runelite/client/plugins/chatnotifications/ChatNotificationsPluginTest.java b/runelite-client/src/test/java/net/runelite/client/plugins/chatnotifications/ChatNotificationsPluginTest.java
index ffa54ccbae..5eda571f9a 100644
--- a/runelite-client/src/test/java/net/runelite/client/plugins/chatnotifications/ChatNotificationsPluginTest.java
+++ b/runelite-client/src/test/java/net/runelite/client/plugins/chatnotifications/ChatNotificationsPluginTest.java
@@ -131,6 +131,82 @@ public class ChatNotificationsPluginTest
 		verify(messageNode).setValue("foo <colHIGHLIGHT>test<colNORMAL>. bar");
 	}
 
+	@Test
+	public void testColor()
+	{
+		when(config.highlightWordsString()).thenReturn("you. It");
+
+		String message = "Your dodgy necklace protects you. <col=ff0000>It has 1 charge left.</col>";
+		MessageNode messageNode = mock(MessageNode.class);
+		when(messageNode.getValue()).thenReturn(message);
+
+		ChatMessage chatMessage = new ChatMessage();
+		chatMessage.setType(ChatMessageType.PUBLICCHAT);
+		chatMessage.setMessageNode(messageNode);
+
+		chatNotificationsPlugin.startUp(); // load highlight config
+		chatNotificationsPlugin.onChatMessage(chatMessage);
+
+		verify(messageNode).setValue("Your dodgy necklace protects <colHIGHLIGHT>you. It<col=ff0000> has 1 charge left.</col>");
+	}
+
+	@Test
+	public void testPreceedingColor()
+	{
+		when(config.highlightWordsString()).thenReturn("you. It");
+
+		String message = "Your dodgy <col=00ff00>necklace protects you. It has 1 charge left.</col>";
+		MessageNode messageNode = mock(MessageNode.class);
+		when(messageNode.getValue()).thenReturn(message);
+
+		ChatMessage chatMessage = new ChatMessage();
+		chatMessage.setType(ChatMessageType.PUBLICCHAT);
+		chatMessage.setMessageNode(messageNode);
+
+		chatNotificationsPlugin.startUp(); // load highlight config
+		chatNotificationsPlugin.onChatMessage(chatMessage);
+
+		verify(messageNode).setValue("Your dodgy <col=00ff00>necklace protects <colHIGHLIGHT>you. It<col=00ff00> has 1 charge left.</col>");
+	}
+
+	@Test
+	public void testEmoji()
+	{
+		when(config.highlightWordsString()).thenReturn("test");
+
+		String message = "emoji test <img=29>";
+		MessageNode messageNode = mock(MessageNode.class);
+		when(messageNode.getValue()).thenReturn(message);
+
+		ChatMessage chatMessage = new ChatMessage();
+		chatMessage.setType(ChatMessageType.PUBLICCHAT);
+		chatMessage.setMessageNode(messageNode);
+
+		chatNotificationsPlugin.startUp(); // load highlight config
+		chatNotificationsPlugin.onChatMessage(chatMessage);
+
+		verify(messageNode).setValue("emoji <colHIGHLIGHT>test<colNORMAL> <img=29>");
+	}
+
+	@Test
+	public void testNonMatchedColors()
+	{
+		when(config.highlightWordsString()).thenReturn("test");
+
+		String message = "<col=ff0000>color</col> test <img=29>";
+		MessageNode messageNode = mock(MessageNode.class);
+		when(messageNode.getValue()).thenReturn(message);
+
+		ChatMessage chatMessage = new ChatMessage();
+		chatMessage.setType(ChatMessageType.PUBLICCHAT);
+		chatMessage.setMessageNode(messageNode);
+
+		chatNotificationsPlugin.startUp(); // load highlight config
+		chatNotificationsPlugin.onChatMessage(chatMessage);
+
+		verify(messageNode).setValue("<col=ff0000>color</col> <colHIGHLIGHT>test<colNORMAL> <img=29>");
+	}
+
 	@Test
 	public void highlightListTest()
 	{
@@ -144,4 +220,10 @@ public class ChatNotificationsPluginTest
 		assertEquals("a", iterator.next());
 		assertEquals("test", iterator.next());
 	}
+
+	@Test
+	public void testStripColor()
+	{
+		assertEquals("you. It", ChatNotificationsPlugin.stripColor("you. <col=ff0000>It"));
+	}
 }
\ No newline at end of file