A common misconception about chameleons and anoles is that the advantage of changing color is camouflage. In reality, changing color helps to regulate temperature and is used as a form of communication. Some species, such as the Smith's Dwarf Chameleon, do change color as an effective form of camouflage.

Some chameleon species are able to change their skin coloration. Different chameleon species are able to vary their coloration and pattern through combinations of pink, blue, red, orange, green, black, brown, light blue, yellow, turquoise, and purple.

Color change in chameleons has functions in social signaling and in reactions to temperature and other conditions, as well as in camouflage. The relative importance of these functions varies with the circumstances, as well as the species. Color change signals a chameleon's physiological condition and intentions to other chameleons. Chameleons tend to show darker colors when angered, or attempting to scare or intimidate others, while males show lighter, multicolored patterns when courting females

The desert-dwelling Namaqua chameleon also uses color change as an aid to thermoregulation, becoming black in the cooler morning to absorb heat more efficiently, then a lighter grey color to reflect light during the heat of the day. It may show both colors at the same time, neatly separated left from right by the spine.