diff --git a/runelite-client/src/main/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsConfig.java b/runelite-client/src/main/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsConfig.java
index 029d67d6ba..a9eede906e 100644
--- a/runelite-client/src/main/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsConfig.java
+++ b/runelite-client/src/main/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsConfig.java
@@ -118,4 +118,12 @@ public interface NpcIndicatorsConfig extends Config
 	{
 		return false;
 	}
+
+	@ConfigItem(
+		position = 7,
+		keyName = "deadNpcMenuColor",
+		name = "Dead NPC menu color",
+		description = "Color of the NPC menus for dead NPCs"
+	)
+	Color deadNpcMenuColor();
 }
\ No newline at end of file
diff --git a/runelite-client/src/main/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsPlugin.java b/runelite-client/src/main/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsPlugin.java
index ed8a577880..77abdd41f3 100644
--- a/runelite-client/src/main/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsPlugin.java
+++ b/runelite-client/src/main/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsPlugin.java
@@ -28,6 +28,7 @@ package net.runelite.client.plugins.npchighlight;
 import com.google.common.annotations.VisibleForTesting;
 import com.google.common.collect.ImmutableSet;
 import com.google.inject.Provides;
+import java.awt.Color;
 import java.time.Instant;
 import java.util.ArrayList;
 import java.util.Arrays;
@@ -259,17 +260,33 @@ public class NpcIndicatorsPlugin extends Plugin
 			type -= MENU_ACTION_DEPRIORITIZE_OFFSET;
 		}
 
-		if (config.highlightMenuNames() &&
-			NPC_MENU_ACTIONS.contains(MenuAction.of(type)) &&
-			highlightedNpcs.stream().anyMatch(npc -> npc.getIndex() == event.getIdentifier() && (!npc.isDead() || !config.ignoreDeadNpcs())))
+		final MenuAction menuAction = MenuAction.of(type);
+
+		if (NPC_MENU_ACTIONS.contains(menuAction))
 		{
-			MenuEntry[] menuEntries = client.getMenuEntries();
-			final MenuEntry menuEntry = menuEntries[menuEntries.length - 1];
-			final String target = ColorUtil.prependColorTag(Text.removeTags(event.getTarget()), config.getHighlightColor());
-			menuEntry.setTarget(target);
-			client.setMenuEntries(menuEntries);
+			NPC npc = client.getCachedNPCs()[event.getIdentifier()];
+
+			Color color = null;
+			if (npc.isDead())
+			{
+				color = config.deadNpcMenuColor();
+			}
+
+			if (color == null && highlightedNpcs.contains(npc) && config.highlightMenuNames() && (!npc.isDead() || !config.ignoreDeadNpcs()))
+			{
+				color = config.getHighlightColor();
+			}
+
+			if (color != null)
+			{
+				MenuEntry[] menuEntries = client.getMenuEntries();
+				final MenuEntry menuEntry = menuEntries[menuEntries.length - 1];
+				final String target = ColorUtil.prependColorTag(Text.removeTags(event.getTarget()), color);
+				menuEntry.setTarget(target);
+				client.setMenuEntries(menuEntries);
+			}
 		}
-		else if (hotKeyPressed && type == MenuAction.EXAMINE_NPC.getId())
+		else if (hotKeyPressed && menuAction == MenuAction.EXAMINE_NPC)
 		{
 			// Add tag option
 			MenuEntry[] menuEntries = client.getMenuEntries();
diff --git a/runelite-client/src/test/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsPluginTest.java b/runelite-client/src/test/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsPluginTest.java
index 58df1cf936..7884a7c81b 100644
--- a/runelite-client/src/test/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsPluginTest.java
+++ b/runelite-client/src/test/java/net/runelite/client/plugins/npchighlight/NpcIndicatorsPluginTest.java
@@ -27,17 +27,26 @@ package net.runelite.client.plugins.npchighlight;
 import com.google.inject.Guice;
 import com.google.inject.testing.fieldbinder.Bind;
 import com.google.inject.testing.fieldbinder.BoundFieldModule;
+import java.awt.Color;
 import java.util.Iterator;
 import java.util.List;
 import java.util.concurrent.ScheduledExecutorService;
 import javax.inject.Inject;
 import net.runelite.api.Client;
+import net.runelite.api.MenuAction;
+import net.runelite.api.MenuEntry;
+import net.runelite.api.NPC;
+import net.runelite.api.events.MenuEntryAdded;
+import net.runelite.api.events.NpcSpawned;
+import net.runelite.client.events.ConfigChanged;
 import net.runelite.client.ui.overlay.OverlayManager;
 import static org.junit.Assert.assertEquals;
 import org.junit.Before;
 import org.junit.Test;
 import org.junit.runner.RunWith;
 import org.mockito.Mock;
+import static org.mockito.Mockito.mock;
+import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.when;
 import org.mockito.junit.MockitoJUnitRunner;
 
@@ -81,4 +90,56 @@ public class NpcIndicatorsPluginTest
 		assertEquals("zulrah", iterator.next());
 		assertEquals("*wyvern", iterator.next());
 	}
+
+	@Test
+	public void testDeadNpcMenuHighlight()
+	{
+		when(npcIndicatorsConfig.getNpcToHighlight()).thenReturn("goblin");
+		when(npcIndicatorsConfig.deadNpcMenuColor()).thenReturn(Color.RED);
+
+		ConfigChanged configChanged = new ConfigChanged();
+		configChanged.setGroup("npcindicators");
+		npcIndicatorsPlugin.onConfigChanged(configChanged);
+
+		NPC npc = mock(NPC.class);
+		when(npc.getName()).thenReturn("Goblin");
+		when(npc.isDead()).thenReturn(true);
+		npcIndicatorsPlugin.onNpcSpawned(new NpcSpawned(npc));
+
+		when(client.getCachedNPCs()).thenReturn(new NPC[]{npc}); // id 0
+
+		when(client.getMenuEntries()).thenReturn(new MenuEntry[]{new MenuEntry()});
+		MenuEntryAdded menuEntryAdded = new MenuEntryAdded("", "Goblin", MenuAction.NPC_FIRST_OPTION.getId(), 0, -1, -1);
+		npcIndicatorsPlugin.onMenuEntryAdded(menuEntryAdded);
+
+		MenuEntry target = new MenuEntry();
+		target.setTarget("<col=ff0000>Goblin"); // red
+		verify(client).setMenuEntries(new MenuEntry[]{target});
+	}
+
+	@Test
+	public void testAliveNpcMenuHighlight()
+	{
+		when(npcIndicatorsConfig.getNpcToHighlight()).thenReturn("goblin");
+		when(npcIndicatorsConfig.highlightMenuNames()).thenReturn(true);
+		when(npcIndicatorsConfig.getHighlightColor()).thenReturn(Color.BLUE);
+
+		ConfigChanged configChanged = new ConfigChanged();
+		configChanged.setGroup("npcindicators");
+		npcIndicatorsPlugin.onConfigChanged(configChanged);
+
+		NPC npc = mock(NPC.class);
+		when(npc.getName()).thenReturn("Goblin");
+		npcIndicatorsPlugin.onNpcSpawned(new NpcSpawned(npc));
+
+		when(client.getCachedNPCs()).thenReturn(new NPC[]{npc}); // id 0
+
+		when(client.getMenuEntries()).thenReturn(new MenuEntry[]{new MenuEntry()});
+		MenuEntryAdded menuEntryAdded = new MenuEntryAdded("", "Goblin", MenuAction.NPC_FIRST_OPTION.getId(), 0, -1, -1);
+		npcIndicatorsPlugin.onMenuEntryAdded(menuEntryAdded);
+
+		MenuEntry target = new MenuEntry();
+		target.setTarget("<col=0000ff>Goblin"); // blue
+		verify(client).setMenuEntries(new MenuEntry[]{target});
+	}
 }