All color patterns in vertebrates are made by specific pigment-producing cells that come from the neural crest region. Chromatophore in fish, are located in the dermis, epidermis and surrounding the neurovascular region. When fish are exposed different stimuli these chromatophore convey the light absorption or interfering chemicals for the production of color. Fish have six different types of chromatophore viz. leucophores, melanophores, xanthophores, iridophores, erythrophore and cyanophore whereas mammals have only one type of chromatophore. Pigment forming cell types vary greatly not only in terms of the color but also in terms of the size, shape, origin and density of dispersion of the cells. In teleost skin colors are change by two different phenomena one is morphological and another is physiological color change. Stripe morphogenesis start, when metamorphosis first appear. Thyroid hormone is the key hormone which regulate growth and differentiation of xanthophore and trigger for metamorphosis the horizontal myoseptum is necessary for the correct longitudinal alignment of the stripes in zebrafish and develop a morphological prepattern. In the life history and behaviour of fish coloration play an important role to warn predator or mimicry, camouflage, photoprotection, thermoregulation and reproduction.