diff --git a/watch.c b/watch.c
index 860d7021..c202ed7b 100644
--- a/watch.c
+++ b/watch.c
@@ -137,7 +137,41 @@ static void init_ansi_colors(void)
 }
 
 
-static int set_ansi_attribute(const int attrib)
+static int process_ansi_color_escape_sequence(char** escape_sequence) {
+	// process SGR ANSI color escape sequence
+	// Eg 8-bit
+	// 38;5;⟨n⟩  (set fg color to n)
+	// 48;5;⟨n⟩  (set bg color to n)
+	//
+	// Eg 24-bit (not yet implemented)
+	// ESC[ 38;2;⟨r⟩;⟨g⟩;⟨b⟩ m Select RGB foreground color
+	// ESC[ 48;2;⟨r⟩;⟨g⟩;⟨b⟩ m Select RGB background color
+	int num;
+
+	if ((*escape_sequence)[0] != ';')
+		return 0; /* not understood */
+
+	if ((*escape_sequence)[1] == '5') {
+		// 8 bit! ANSI specifies a predefined set of 256 colors here.
+		if ((*escape_sequence)[2] != ';')
+			return 0; /* not understood */
+		num = strtol((*escape_sequence) + 3, escape_sequence, 10);
+		if (num >= 0 && num <= 7) {
+			// 0-7 are standard colors  same as SGR 30-37
+			return num + 1;
+		}
+
+		// Remainder aren't yet implemented
+		// 8- 15:  high intensity colors (as in ESC [ 90–97 m)
+		// 16-231:  6 × 6 × 6 cube (216 colors): 16 + 36 × r + 6 × g + b (0 ≤ r, g, b ≤ 5)
+		// 232-255:  grayscale from black to white in 24 steps
+	}
+
+	return 0; /* not understood */
+}
+
+
+static int set_ansi_attribute(const int attrib, char** escape_sequence)
 {
 	switch (attrib) {
 	case -1:	/* restore last settings */
@@ -185,12 +219,24 @@ static int set_ansi_attribute(const int attrib)
 	case 27:	/* unset inversed */
 		attributes &= ~A_REVERSE;
 		break;
-	case 39:
-		fg_col = 0;
-		break;
-	case 49:
-		bg_col = 0;
-		break;
+    case 38:
+        fg_col = process_ansi_color_escape_sequence(escape_sequence);
+        if (fg_col == 0) {
+            return 0; /* not understood */
+        }
+        break;
+    case 39:
+        fg_col = 0;
+        break;
+    case 48:
+        bg_col = process_ansi_color_escape_sequence(escape_sequence);
+        if (bg_col == 0) {
+            return 0; /* not understood */
+        }
+        break;
+    case 49:
+        bg_col = 0;
+        break;
 	default:
 		if (attrib >= 30 && attrib <= 37) {	/* set foreground color */
 			fg_col = attrib - 30 + 1;
@@ -207,6 +253,7 @@ static int set_ansi_attribute(const int attrib)
 static void process_ansi(FILE * fp)
 {
 	int i, c;
+	int ansi_attribute;
 	char buf[MAX_ANSIBUF];
 	char *numstart, *endptr;
 
@@ -237,10 +284,11 @@ static void process_ansi(FILE * fp)
 
 	/* Special case of <ESC>[m */
 	if (buf[0] == '\0')
-		set_ansi_attribute(0);
+		set_ansi_attribute(0, NULL);
 
 	for (endptr = numstart = buf; *endptr != '\0'; numstart = endptr + 1) {
-		if (!set_ansi_attribute(strtol(numstart, &endptr, 10)))
+		ansi_attribute = strtol(numstart, &endptr, 10);
+		if (!set_ansi_attribute(ansi_attribute, &endptr))
 			break;
 	}
 }
@@ -522,7 +570,7 @@ static int run_command(char *restrict command, char **restrict command_argv)
 	for (y = show_title; y < height; y++) {
 		int eolseen = 0, tabpending = 0, tabwaspending = 0;
 		if (flags & WATCH_COLOR)
-			set_ansi_attribute(-1);
+			set_ansi_attribute(-1, NULL);
 #ifdef WITH_WATCH8BIT
 		wint_t carry = WEOF;
 #endif
@@ -535,7 +583,7 @@ static int run_command(char *restrict command, char **restrict command_argv)
 			int attr = 0;
 
 			if (tabwaspending && (flags & WATCH_COLOR))
-				set_ansi_attribute(-1);
+				set_ansi_attribute(-1, NULL);
 			tabwaspending = 0;
 
 			if (!eolseen) {