diff --git a/platform/lang-impl/src/com/intellij/openapi/options/colors/pages/GeneralColorsPage.java b/platform/lang-impl/src/com/intellij/openapi/options/colors/pages/GeneralColorsPage.java
index 0327f604c1c0..5dadbc92a131 100644
--- a/platform/lang-impl/src/com/intellij/openapi/options/colors/pages/GeneralColorsPage.java
+++ b/platform/lang-impl/src/com/intellij/openapi/options/colors/pages/GeneralColorsPage.java
@@ -115,15 +115,8 @@ public class GeneralColorsPage implements ColorSettingsPage, InspectionColorSett
     new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.indent.guide"), EditorColors.INDENT_GUIDE_COLOR, ColorDescriptor.Kind.BACKGROUND),
     new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.indent.guide.selected"), EditorColors.SELECTED_INDENT_GUIDE_COLOR, ColorDescriptor.Kind.BACKGROUND),
     new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.line.number"), EditorColors.LINE_NUMBERS_COLOR, ColorDescriptor.Kind.FOREGROUND),
-    new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.vcs.annotations"), EditorColors.ANNOTATIONS_COLOR, ColorDescriptor.Kind.FOREGROUND),
-    new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.vcs.annotations.merged"), EditorColors.ANNOTATIONS_MERGED_COLOR, ColorDescriptor.Kind.FOREGROUND),
     new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.tearline"), EditorColors.TEARLINE_COLOR, ColorDescriptor.Kind.FOREGROUND),
     new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.tearline.selected"), EditorColors.SELECTED_TEARLINE_COLOR, ColorDescriptor.Kind.FOREGROUND),
-    new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.added.lines"), EditorColors.ADDED_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND),
-    new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.modified.lines"), EditorColors.MODIFIED_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND),
-    new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.deleted.lines"), EditorColors.DELETED_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND),
-    new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.whitespaces.modified.lines"), EditorColors.WHITESPACES_MODIFIED_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND),
-    new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.border.lines"), EditorColors.BORDER_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND),
     new ColorDescriptor(OptionsBundle.message("options.java.color.descriptor.method.separator.color"), CodeInsightColors.METHOD_SEPARATORS_COLOR, ColorDescriptor.Kind.FOREGROUND),
     new ColorDescriptor(OptionsBundle.message("options.general.color.soft.wrap.sign"), EditorColors.SOFT_WRAP_SIGN_COLOR, ColorDescriptor.Kind.FOREGROUND),
   };
diff --git a/platform/platform-resources-en/src/messages/ApplicationBundle.properties b/platform/platform-resources-en/src/messages/ApplicationBundle.properties
index 822e9322e391..7729be0d29e6 100644
--- a/platform/platform-resources-en/src/messages/ApplicationBundle.properties
+++ b/platform/platform-resources-en/src/messages/ApplicationBundle.properties
@@ -549,6 +549,7 @@ checkbox.font.italic=Italic
 label.font.type=Font
 label.inherit.attributes=Use inherited attributes
 title.diff=Diff \\& Merge
+title.vcs=VCS
 title.file.status=File Status
 title.scope.based=By Scope
 title.colors.and.fonts=Colors \\& Fonts
diff --git a/platform/platform-resources-en/src/messages/OptionsBundle.properties b/platform/platform-resources-en/src/messages/OptionsBundle.properties
index d0876d581808..492c40501e58 100644
--- a/platform/platform-resources-en/src/messages/OptionsBundle.properties
+++ b/platform/platform-resources-en/src/messages/OptionsBundle.properties
@@ -117,7 +117,7 @@ options.xml.attribute.descriptor.descriptor.entity,reference=Entity reference
 #Color descriptors
 options.general.color.descriptor.background.in.readonly.files=Text//Background in readonly files
 options.general.color.descriptor.readonly.fragment.background=Text//Readonly fragment background
-options.general.color.descriptor.gutter.background=Gutter//Background
+options.general.color.descriptor.gutter.background=Editor//Gutter background
 options.general.color.descriptor.notification.background=Editor//Notification background
 options.general.color.descriptor.selection.background=Editor//Selection background
 options.general.color.descriptor.selection.foreground=Editor//Selection foreground
@@ -128,15 +128,16 @@ options.general.color.descriptor.whitespaces=Text//Whitespaces
 options.general.color.descriptor.indent.guide=Code//Vertical indent guide
 options.general.color.descriptor.indent.guide.selected=Code//Selected vertical indent guide
 options.general.color.descriptor.line.number=Code//Line number
-options.general.color.descriptor.vcs.annotations=VCS Annotations//Regular
-options.general.color.descriptor.vcs.annotations.merged=VCS Annotations//Merged from
+options.general.color.descriptor.vcs.annotations=VCS Annotations//Foreground
+options.general.color.descriptor.vcs.annotations.merged=VCS Annotations//Foreground for merged commits (SVN only)
+options.general.color.descriptor.vcs.annotations.color.n=VCS Annotations//Background color #{0}
 options.general.color.descriptor.tearline=Editor//Tear line
 options.general.color.descriptor.tearline.selected=Editor//Tear line selection
-options.general.color.descriptor.added.lines=Gutter//Added lines
-options.general.color.descriptor.modified.lines=Gutter//Modified lines
-options.general.color.descriptor.deleted.lines=Gutter//Deleted lines
-options.general.color.descriptor.whitespaces.modified.lines=Gutter//Lines with whitespace-only modifications
-options.general.color.descriptor.border.lines=Gutter//Border for changed lines
+options.general.color.descriptor.added.lines=Editor Gutter//Added lines
+options.general.color.descriptor.modified.lines=Editor Gutter//Modified lines
+options.general.color.descriptor.deleted.lines=Editor Gutter//Deleted lines
+options.general.color.descriptor.whitespaces.modified.lines=Editor Gutter//Whitespace-modified lines
+options.general.color.descriptor.border.lines=Editor Gutter//Border
 options.general.color.descriptor.console.background=Console//Background
 options.general.color.descriptor.console.stdout=Console//Standard output
 options.general.color.descriptor.console.stderr=Console//Error output
diff --git a/platform/platform-resources/src/DefaultColorSchemesManager.xml b/platform/platform-resources/src/DefaultColorSchemesManager.xml
index ad062bae0951..34b941be4d85 100644
--- a/platform/platform-resources/src/DefaultColorSchemesManager.xml
+++ b/platform/platform-resources/src/DefaultColorSchemesManager.xml
@@ -53,6 +53,12 @@
       <option name="FILESTATUS_OBSOLETE" value="7c7c00"/>
       <option name="FILESTATUS_SWITCHED" value="08978f"/>
       <option name="FILESTATUS_SUPPRESSED" value=""/>
+
+      <option name="VCS_ANNOTATIONS_COLOR_1" value="eaffe2"/>
+      <option name="VCS_ANNOTATIONS_COLOR_2" value="d1d1d1"/>
+      <option name="VCS_ANNOTATIONS_COLOR_3" value="d9e4f9"/>
+      <option name="VCS_ANNOTATIONS_COLOR_4" value="fffbcf"/>
+      <option name="VCS_ANNOTATIONS_COLOR_5" value="ffbfc3"/>
     </colors>
 
     <attributes>
@@ -1049,6 +1055,12 @@
       <option name="DIFF_SEPARATORS_TOP_BORDER" value="1E1E1E"/>
       <option name="DIFF_SEPARATORS_BACKGROUND" value="232323"/>
       <option name="DIFF_SEPARATORS_BOTTOM_BORDER" value="222222"/>
+
+      <option name="VCS_ANNOTATIONS_COLOR_1" value="464c43"/>
+      <option name="VCS_ANNOTATIONS_COLOR_2" value="444342"/>
+      <option name="VCS_ANNOTATIONS_COLOR_3" value="41444a"/>
+      <option name="VCS_ANNOTATIONS_COLOR_4" value="484248"/>
+      <option name="VCS_ANNOTATIONS_COLOR_5" value="4c393a"/>
     </colors>
     <attributes>
       <option name="ANNOTATION_ATTRIBUTE_NAME_ATTRIBUTES">
diff --git a/platform/platform-resources/src/META-INF/VcsExtensions.xml b/platform/platform-resources/src/META-INF/VcsExtensions.xml
index 67805d161fef..ac83197b24a1 100644
--- a/platform/platform-resources/src/META-INF/VcsExtensions.xml
+++ b/platform/platform-resources/src/META-INF/VcsExtensions.xml
@@ -5,6 +5,8 @@
 
     <applicationService serviceInterface="com.intellij.codeInsight.actions.FormatChangedTextUtil"
                         serviceImplementation="com.intellij.codeInsight.actions.VcsAwareFormatChangedTextUtil" overrides="true"/>
+    <applicationService serviceInterface="com.intellij.openapi.vcs.actions.AnnotationsSettings"
+                        serviceImplementation="com.intellij.openapi.vcs.actions.AnnotationsSettings"/>
 
     <projectService serviceInterface="com.intellij.openapi.vcs.AbstractVcsHelper"
                     serviceImplementation="com.intellij.openapi.vcs.impl.AbstractVcsHelperImpl"/>
@@ -33,6 +35,8 @@
     <search.topHitProvider implementation="com.intellij.openapi.vcs.configurable.VcsOptionsTopHitProvider"/>
     <projectConfigurable groupId="root" groupWeight="45" dynamic="true" key="version.control.main.configurable.name" bundle="messages.VcsBundle"
                          provider="com.intellij.openapi.vcs.configurable.VcsManagerConfigurableProvider" id="project.propVCSSupport.Mappings"/>
+    <colorAndFontPanelFactory implementation="com.intellij.openapi.vcs.actions.VcsColorsPageFactory"/>
+    <colorAndFontDescriptorProvider implementation="com.intellij.openapi.vcs.actions.VcsColorsPageFactory"/>
 
     <changesViewContent tabName="Repository" className="com.intellij.openapi.vcs.changes.committed.CommittedChangesViewManager"
                         predicateClassName="com.intellij.openapi.vcs.changes.committed.CommittedChangesVisibilityPredicate"/>
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotateToggleAction.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotateToggleAction.java
index 761352ef6c2f..693d9597ecb5 100644
--- a/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotateToggleAction.java
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotateToggleAction.java
@@ -19,6 +19,7 @@ import com.intellij.openapi.actionSystem.AnActionEvent;
 import com.intellij.openapi.actionSystem.Separator;
 import com.intellij.openapi.actionSystem.ToggleAction;
 import com.intellij.openapi.editor.Editor;
+import com.intellij.openapi.editor.colors.EditorColorsScheme;
 import com.intellij.openapi.editor.ex.EditorGutterComponentEx;
 import com.intellij.openapi.extensions.ExtensionPointName;
 import com.intellij.openapi.localVcs.UpToDateLineNumberProvider;
@@ -50,7 +51,7 @@ import java.util.Map;
  * @author Konstantin Bulenkov
  * @author: lesya
  */
-public class AnnotateToggleAction extends ToggleAction implements DumbAware, AnnotationColors {
+public class AnnotateToggleAction extends ToggleAction implements DumbAware {
   public static final ExtensionPointName<Provider> EP_NAME =
     ExtensionPointName.create("com.intellij.openapi.vcs.actions.AnnotateToggleAction.Provider");
 
@@ -121,7 +122,7 @@ public class AnnotateToggleAction extends ToggleAction implements DumbAware, Ann
     presentation.addAction(Separator.getInstance());
 
     final Couple<Map<VcsRevisionNumber, Color>> bgColorMap =
-      Registry.is("vcs.show.colored.annotations") ? computeBgColors(fileAnnotation) : null;
+      Registry.is("vcs.show.colored.annotations") ? computeBgColors(fileAnnotation, editor) : null;
     final Map<VcsRevisionNumber, Integer> historyIds = Registry.is("vcs.show.history.numbers") ? computeLineNumbers(fileAnnotation) : null;
 
     if (switcher != null) {
@@ -200,13 +201,16 @@ public class AnnotateToggleAction extends ToggleAction implements DumbAware, Ann
   }
 
   @NotNull
-  private static Couple<Map<VcsRevisionNumber, Color>> computeBgColors(@NotNull FileAnnotation fileAnnotation) {
+  private static Couple<Map<VcsRevisionNumber, Color>> computeBgColors(@NotNull FileAnnotation fileAnnotation, @NotNull Editor editor) {
     final Map<VcsRevisionNumber, Color> commitOrderColors = new HashMap<VcsRevisionNumber, Color>();
     final Map<VcsRevisionNumber, Color> commitAuthorColors = new HashMap<VcsRevisionNumber, Color>();
     final Map<String, Color> authorColors = new HashMap<String, Color>();
     final List<VcsFileRevision> fileRevisionList = fileAnnotation.getRevisions();
     if (fileRevisionList != null) {
-      final int colorsCount = BG_COLORS.length;
+      EditorColorsScheme colorScheme = editor.getColorsScheme();
+      AnnotationsSettings settings = AnnotationsSettings.getInstance();
+      List<Color> authorsColorPalette = settings.getAuthorsColors(colorScheme);
+      List<Color> orderedColorPalette = settings.getOrderedColors(colorScheme);
       final int revisionsCount = fileRevisionList.size();
 
       for (int i = 0; i < fileRevisionList.size(); i++) {
@@ -218,14 +222,14 @@ public class AnnotateToggleAction extends ToggleAction implements DumbAware, Ann
         if (!commitAuthorColors.containsKey(number)) {
           if (author != null && !authorColors.containsKey(author)) {
             final int index = authorColors.size();
-            Color color = BG_COLORS[index * BG_COLORS_PRIME % colorsCount];
+            Color color = authorsColorPalette.get(index % authorsColorPalette.size());
             authorColors.put(author, color);
           }
 
           commitAuthorColors.put(number, authorColors.get(author));
         }
         if (!commitOrderColors.containsKey(number)) {
-          Color color = BG_COLORS[colorsCount * i / revisionsCount];
+          Color color = orderedColorPalette.get(orderedColorPalette.size() * i / revisionsCount);
           commitOrderColors.put(number, color);
         }
       }
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotationColors.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotationColors.java
index b7fd121651b3..67ff0d9dee85 100644
--- a/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotationColors.java
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotationColors.java
@@ -15,31 +15,16 @@
  */
 package com.intellij.openapi.vcs.actions;
 
-import com.intellij.ui.Gray;
-import com.intellij.ui.JBColor;
+import com.intellij.util.ArrayUtil;
 
 import java.awt.*;
 
 /**
- * @author Konstantin Bulenkov
+ * @deprecated use {@link AnnotationsSettings} instead
  */
+@Deprecated
 public interface AnnotationColors {
   int BG_COLORS_PRIME = 3;
 
-  Color[] BG_COLORS = {
-    new JBColor(new Color(234, 255, 226), new Color(70, 76, 67)),
-    new JBColor(new Color(222, 241, 229), new Color(66, 72, 68)),
-    new JBColor(new Color(208, 229, 229), new Color(62, 68, 68)),
-    new JBColor(new Color(227, 226, 223), new Color(68, 67, 66)),
-    new JBColor(Gray._236, Gray._70),
-    new JBColor(new Color(217, 222, 229), new Color(65, 66, 68)),
-    new JBColor(new Color(217, 228, 249), new Color(65, 68, 74)),
-    new JBColor(new Color(220, 204, 236), new Color(66, 61, 70)),
-    new JBColor(new Color(255, 204, 238), new Color(76, 61, 71)),
-    new JBColor(new Color(243, 223, 243), new Color(72, 66, 72)),
-    new JBColor(new Color(255, 251, 207), new Color(76, 75, 62)),
-    new JBColor(new Color(255, 226, 199), new Color(76, 67, 59)),
-    new JBColor(new Color(255, 213, 203), new Color(76, 63, 60)),
-    new JBColor(new Color(255, 191, 195), new Color(76, 57, 58)),
-  };
+  Color[] BG_COLORS = ArrayUtil.toObjectArray(AnnotationsSettings.getInstance().getOrderedColors(null), Color.class);
 }
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotationsSettings.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotationsSettings.java
new file mode 100644
index 000000000000..f2ebdfcaeb1a
--- /dev/null
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/AnnotationsSettings.java
@@ -0,0 +1,77 @@
+/*
+ * Copyright 2000-2010 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.openapi.vcs.actions;
+
+import com.intellij.openapi.components.ServiceManager;
+import com.intellij.openapi.editor.colors.ColorKey;
+import com.intellij.openapi.editor.colors.EditorColorsManager;
+import com.intellij.openapi.editor.colors.EditorColorsScheme;
+import com.intellij.openapi.vcs.ui.ColorGenerator;
+import com.intellij.util.containers.ContainerUtil;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+
+import java.awt.*;
+import java.util.ArrayList;
+import java.util.List;
+
+public class AnnotationsSettings {
+  static final List<ColorKey> ANCHOR_COLOR_KEYS = createColorKeys(5);
+
+  static final int COLOR_COUNT = 20;
+  private static final int SHUFFLE_STEP = 4;
+
+  @NotNull
+  private static List<ColorKey> createColorKeys(int count) {
+    List<ColorKey> keys = new ArrayList<>();
+    for (int i = 0; i < count; i++) {
+      keys.add(ColorKey.createColorKey("VCS_ANNOTATIONS_COLOR_" + (i + 1)));
+    }
+    return keys;
+  }
+
+  public static AnnotationsSettings getInstance() {
+    return ServiceManager.getService(AnnotationsSettings.class);
+  }
+
+  @NotNull
+  public List<Color> getAuthorsColors(@Nullable EditorColorsScheme scheme) {
+    if (scheme == null) scheme = EditorColorsManager.getInstance().getGlobalScheme();
+    List<Color> colors = getOrderedColors(scheme);
+
+    List<Color> authorColors = new ArrayList<>();
+    for (int i = 0; i < SHUFFLE_STEP; i++) {
+      for (int k = 0; k <= colors.size() / SHUFFLE_STEP; k++) {
+        int index = k * SHUFFLE_STEP + i;
+        if (index < colors.size()) authorColors.add(colors.get(index));
+      }
+    }
+
+    return authorColors;
+  }
+
+  @NotNull
+  public List<Color> getOrderedColors(@Nullable EditorColorsScheme scheme) {
+    if (scheme == null) scheme = EditorColorsManager.getInstance().getGlobalScheme();
+
+    List<Color> anchorColors = new ArrayList<>();
+    for (ColorKey key : ANCHOR_COLOR_KEYS) {
+      ContainerUtil.addIfNotNull(anchorColors, scheme.getColor(key));
+    }
+
+    return ColorGenerator.generateLinearColorSequence(anchorColors, COLOR_COUNT);
+  }
+}
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/VcsColorsPageFactory.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/VcsColorsPageFactory.java
new file mode 100644
index 000000000000..eb2bc33fd616
--- /dev/null
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/VcsColorsPageFactory.java
@@ -0,0 +1,99 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.openapi.vcs.actions;
+
+import com.intellij.application.options.colors.*;
+import com.intellij.openapi.application.ApplicationBundle;
+import com.intellij.openapi.editor.colors.ColorKey;
+import com.intellij.openapi.editor.colors.EditorColors;
+import com.intellij.openapi.options.OptionsBundle;
+import com.intellij.openapi.options.colors.AttributesDescriptor;
+import com.intellij.openapi.options.colors.ColorAndFontDescriptorsProvider;
+import com.intellij.openapi.options.colors.ColorDescriptor;
+import com.intellij.psi.codeStyle.DisplayPriority;
+import com.intellij.psi.codeStyle.DisplayPrioritySortable;
+import com.intellij.util.ArrayUtil;
+import org.jetbrains.annotations.NotNull;
+
+import java.util.ArrayList;
+import java.util.List;
+
+public class VcsColorsPageFactory implements ColorAndFontPanelFactory, ColorAndFontDescriptorsProvider, DisplayPrioritySortable {
+  public static final String VCS_GROUP = ApplicationBundle.message("title.vcs");
+
+  @Override
+  @NotNull
+  public NewColorAndFontPanel createPanel(@NotNull ColorAndFontOptions options) {
+    final SchemesPanel schemesPanel = new SchemesPanel(options);
+    final OptionsPanelImpl optionsPanel = new OptionsPanelImpl(options, schemesPanel, VCS_GROUP);
+    final VcsPreviewPanel previewPanel = new VcsPreviewPanel();
+
+    schemesPanel.addListener(new ColorAndFontSettingsListener.Abstract() {
+      @Override
+      public void schemeChanged(final Object source) {
+        previewPanel.setColorScheme(options.getSelectedScheme());
+        optionsPanel.updateOptionsList();
+      }
+    });
+
+    return new NewColorAndFontPanel(schemesPanel, optionsPanel, previewPanel, VCS_GROUP, null, null);
+  }
+
+  @Override
+  @NotNull
+  public AttributesDescriptor[] getAttributeDescriptors() {
+    return new AttributesDescriptor[0];
+  }
+
+  @Override
+  @NotNull
+  public ColorDescriptor[] getColorDescriptors() {
+    List<ColorDescriptor> descriptors = new ArrayList<>();
+
+    descriptors.add(new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.added.lines"), EditorColors.ADDED_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND));
+    descriptors.add(new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.modified.lines"), EditorColors.MODIFIED_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND));
+    descriptors.add(new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.deleted.lines"), EditorColors.DELETED_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND));
+    descriptors.add(new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.whitespaces.modified.lines"), EditorColors.WHITESPACES_MODIFIED_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND));
+    descriptors.add(new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.border.lines"), EditorColors.BORDER_LINES_COLOR, ColorDescriptor.Kind.BACKGROUND));
+
+    descriptors.add(new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.vcs.annotations"), EditorColors.ANNOTATIONS_COLOR, ColorDescriptor.Kind.FOREGROUND));
+    descriptors.add(new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.vcs.annotations.merged"), EditorColors.ANNOTATIONS_MERGED_COLOR, ColorDescriptor.Kind.FOREGROUND));
+
+    List<ColorKey> colorKeys = AnnotationsSettings.ANCHOR_COLOR_KEYS;
+    for (int i = 0; i < colorKeys.size(); i++) {
+      descriptors.add(new ColorDescriptor(OptionsBundle.message("options.general.color.descriptor.vcs.annotations.color.n", i + 1), colorKeys.get(i), ColorDescriptor.Kind.BACKGROUND));
+    }
+
+    return ArrayUtil.toObjectArray(descriptors, ColorDescriptor.class);
+  }
+
+  @NotNull
+  @Override
+  public String getPanelDisplayName() {
+    return VCS_GROUP;
+  }
+
+  @Override
+  @NotNull
+  public String getDisplayName() {
+    return VCS_GROUP;
+  }
+
+  @Override
+  public DisplayPriority getPriority() {
+    return DisplayPriority.COMMON_SETTINGS;
+  }
+}
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/VcsPreviewPanel.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/VcsPreviewPanel.java
new file mode 100644
index 000000000000..ff9aea453a51
--- /dev/null
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/actions/VcsPreviewPanel.java
@@ -0,0 +1,200 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.openapi.vcs.actions;
+
+import com.intellij.application.options.colors.ColorAndFontSettingsListener;
+import com.intellij.application.options.colors.PreviewPanel;
+import com.intellij.diff.util.DiffUtil;
+import com.intellij.openapi.actionSystem.AnAction;
+import com.intellij.openapi.editor.Editor;
+import com.intellij.openapi.editor.EditorFactory;
+import com.intellij.openapi.editor.TextAnnotationGutterProvider;
+import com.intellij.openapi.editor.colors.ColorKey;
+import com.intellij.openapi.editor.colors.EditorColors;
+import com.intellij.openapi.editor.colors.EditorColorsScheme;
+import com.intellij.openapi.editor.colors.EditorFontType;
+import com.intellij.openapi.editor.ex.EditorEx;
+import com.intellij.openapi.editor.impl.DocumentImpl;
+import com.intellij.openapi.editor.markup.RangeHighlighter;
+import com.intellij.openapi.util.TextRange;
+import com.intellij.openapi.util.text.StringUtil;
+import com.intellij.openapi.vcs.ex.LineStatusMarkerRenderer;
+import com.intellij.openapi.vcs.ex.Range;
+import com.intellij.openapi.vcs.ex.Range.InnerRange;
+import com.intellij.util.EventDispatcher;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+
+import java.awt.*;
+import java.awt.event.MouseEvent;
+import java.util.ArrayList;
+import java.util.Collections;
+import java.util.List;
+
+class VcsPreviewPanel implements PreviewPanel {
+  private final EventDispatcher<ColorAndFontSettingsListener> myDispatcher = EventDispatcher.create(ColorAndFontSettingsListener.class);
+
+  private final EditorEx myEditor;
+
+  public VcsPreviewPanel() {
+    StringBuilder sb = new StringBuilder();
+    sb.append(
+      "Deleted line below\n\n" +
+      "Modified line\n\n" +
+      "Added line\n\n" +
+      "Line with modified whitespaces\n\n" +
+      "Added line\n" +
+      "Line with modified whitespaces and deletion after\n"
+    );
+    int additionalLines = Math.max(0, AnnotationsSettings.COLOR_COUNT - StringUtil.countNewLines(sb));
+    sb.append(StringUtil.repeat("\n", additionalLines));
+
+    DocumentImpl document = new DocumentImpl(sb);
+    myEditor = (EditorEx)EditorFactory.getInstance().createViewer(document);
+  }
+
+  @Override
+  public void disposeUIResources() {
+    EditorFactory.getInstance().releaseEditor(myEditor);
+  }
+
+  @Override
+  public Component getPanel() {
+    return myEditor.getComponent();
+  }
+
+  @Override
+  public void blinkSelectedHighlightType(Object selected) {
+  }
+
+  @Override
+  public void updateView() {
+    myEditor.getMarkupModel().removeAllHighlighters();
+    myEditor.getGutterComponentEx().closeAllAnnotations();
+
+    addHighlighter(new Range(1, 1, 0, 1), EditorColors.DELETED_LINES_COLOR);
+    addHighlighter(createModifiedRange(2, Range.MODIFIED), EditorColors.MODIFIED_LINES_COLOR);
+    addHighlighter(createModifiedRange(4, Range.INSERTED), EditorColors.ADDED_LINES_COLOR);
+    addHighlighter(createModifiedRange(6, Range.EQUAL), EditorColors.WHITESPACES_MODIFIED_LINES_COLOR);
+    addHighlighter(createModifiedRange(8, Range.INSERTED, Range.EQUAL, Range.DELETED), EditorColors.WHITESPACES_MODIFIED_LINES_COLOR);
+
+    List<Color> annotationColors = AnnotationsSettings.getInstance().getOrderedColors(myEditor.getColorsScheme());
+    myEditor.getGutterComponentEx().registerTextAnnotation(new MyTextAnnotationGutterProvider(annotationColors));
+  }
+
+  @NotNull
+  private static Range createModifiedRange(int currentLine, byte... inner) {
+    List<InnerRange> innerRanges = new ArrayList<>();
+
+    int currentInnerLine = currentLine;
+    for (byte type : inner) {
+      switch (type) {
+        case Range.EQUAL:
+        case Range.INSERTED:
+        case Range.MODIFIED:
+          innerRanges.add(new InnerRange(currentInnerLine, currentInnerLine + 1, type));
+          currentInnerLine++;
+          break;
+        case Range.DELETED:
+          innerRanges.add(new InnerRange(currentInnerLine, currentInnerLine, type));
+          break;
+      }
+    }
+
+    return new Range(currentLine, currentInnerLine, 0, 1, innerRanges);
+  }
+
+  private void addHighlighter(@NotNull Range range, @NotNull ColorKey colorKey) {
+    TextRange textRange = DiffUtil.getLinesRange(myEditor.getDocument(), range.getLine1(), range.getLine2());
+
+    RangeHighlighter highlighter = LineStatusMarkerRenderer.createRangeHighlighter(range, textRange, myEditor.getMarkupModel());
+    highlighter.setLineMarkerRenderer(new LineStatusMarkerRenderer(range) {
+      @Override
+      public void doAction(Editor editor, MouseEvent e) {
+        myDispatcher.getMulticaster().selectionInPreviewChanged(colorKey.getExternalName());
+      }
+    });
+  }
+
+  @Override
+  public void addListener(@NotNull ColorAndFontSettingsListener listener) {
+    myDispatcher.addListener(listener);
+  }
+
+  public void setColorScheme(final EditorColorsScheme highlighterSettings) {
+    myEditor.setColorsScheme(highlighterSettings);
+  }
+
+  private static class MyTextAnnotationGutterProvider implements TextAnnotationGutterProvider {
+    @NotNull private final List<Color> myBackgroundColors;
+
+    public MyTextAnnotationGutterProvider(@NotNull List<Color> backgroundColors) {
+      myBackgroundColors = backgroundColors;
+    }
+
+    @Nullable
+    @Override
+    public String getLineText(int line, Editor editor) {
+      if (line == 0) return "Merged commit (SVN)";
+
+      int colorNumber = line - 1;
+      if (colorNumber < myBackgroundColors.size()) {
+        return "Annotation background #" + (colorNumber + 1);
+      }
+      return null;
+    }
+
+    @Nullable
+    @Override
+    public String getToolTip(int line, Editor editor) {
+      return null;
+    }
+
+    @Override
+    public EditorFontType getStyle(int line, Editor editor) {
+      return null;
+    }
+
+    @Nullable
+    @Override
+    public ColorKey getColor(int line, Editor editor) {
+      if (line == 0) return EditorColors.ANNOTATIONS_MERGED_COLOR;
+      return EditorColors.ANNOTATIONS_COLOR;
+    }
+
+    @Nullable
+    @Override
+    public Color getBgColor(int line, Editor editor) {
+      if (line == 0) return myBackgroundColors.get(0);
+
+      int colorNumber = line - 1;
+      if (colorNumber < myBackgroundColors.size()) {
+        return myBackgroundColors.get(colorNumber);
+      }
+
+      return null;
+    }
+
+    @Override
+    public List<AnAction> getPopupActions(int line, Editor editor) {
+      return Collections.emptyList();
+    }
+
+    @Override
+    public void gutterClosed() {
+    }
+  }
+}
diff --git a/platform/vcs-impl/src/com/intellij/openapi/vcs/ui/ColorGenerator.java b/platform/vcs-impl/src/com/intellij/openapi/vcs/ui/ColorGenerator.java
new file mode 100644
index 000000000000..98f67e63dde2
--- /dev/null
+++ b/platform/vcs-impl/src/com/intellij/openapi/vcs/ui/ColorGenerator.java
@@ -0,0 +1,77 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.openapi.vcs.ui;
+
+import com.intellij.ui.JBColor;
+import com.intellij.util.containers.ContainerUtil;
+import org.jetbrains.annotations.NotNull;
+
+import java.awt.*;
+import java.util.ArrayList;
+import java.util.Collections;
+import java.util.List;
+
+public class ColorGenerator {
+  @NotNull
+  public static List<Color> generateLinearColorSequence(@NotNull List<Color> anchorColors, int count) {
+    if (count == 0) return Collections.emptyList();
+    if (anchorColors.isEmpty()) return Collections.nCopies(count, JBColor.GRAY);
+    if (anchorColors.size() == 1) return Collections.nCopies(count, anchorColors.get(0));
+
+    List<Color> result = new ArrayList<>();
+    result.add(anchorColors.get(0));
+
+    int segmentCount = anchorColors.size() - 1;
+    int colorPerSegment = (count - 1) / segmentCount;
+    if (count - 1 > colorPerSegment * segmentCount) colorPerSegment++; // divide rounding up
+
+    for (int i = 0; i < segmentCount; i++) {
+      Color color1 = anchorColors.get(i);
+      Color color2 = anchorColors.get(i + 1);
+
+      List<Color> linearColors = generateLinearColorSequence(color1, color2, colorPerSegment + 1);
+
+      // skip first element from sequence to avoid duplication from connected segments
+      result.addAll(linearColors.subList(1, linearColors.size()));
+    }
+    return result.subList(0, count);
+  }
+
+  @NotNull
+  public static List<Color> generateLinearColorSequence(@NotNull Color color1, @NotNull Color color2, int count) {
+    if (count == 1) return ContainerUtil.list(color1);
+    if (count == 2) return ContainerUtil.list(color1, color2);
+
+    List<Color> result = new ArrayList<>();
+    for (int i = 0; i < count; i++) {
+      float ratio = (float)i / (count - 1);
+
+      //noinspection UseJBColor
+      result.add(new Color(
+        ratio(color1.getRed(), color2.getRed(), ratio),
+        ratio(color1.getGreen(), color2.getGreen(), ratio),
+        ratio(color1.getBlue(), color2.getBlue(), ratio)
+      ));
+    }
+
+    return result;
+  }
+
+  private static int ratio(int val1, int val2, float ratio) {
+    int value = (int)(val1 + ((val2 - val1) * ratio));
+    return Math.max(Math.min(value, 255), 0);
+  }
+}
diff --git a/platform/vcs-impl/testSrc/com/intellij/openapi/vcs/ui/ColorGeneratorTest.kt b/platform/vcs-impl/testSrc/com/intellij/openapi/vcs/ui/ColorGeneratorTest.kt
new file mode 100644
index 000000000000..e72b4ab0baa1
--- /dev/null
+++ b/platform/vcs-impl/testSrc/com/intellij/openapi/vcs/ui/ColorGeneratorTest.kt
@@ -0,0 +1,61 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.openapi.vcs.ui
+
+import com.intellij.testFramework.UsefulTestCase
+import com.intellij.ui.Gray
+import java.awt.Color
+
+class ColorGeneratorTest : UsefulTestCase () {
+  fun testLineGeneration() {
+    for (count in 0..5) {
+      assertEquals(count, generate(Color.BLACK, Color.WHITE, count).size)
+    }
+
+    assertOrderedEquals(generate(Gray._100, Gray._200, 1), listOf(Gray._100))
+    assertOrderedEquals(generate(Gray._100, Gray._200, 2), listOf(Gray._100, Gray._200))
+    assertOrderedEquals(generate(Gray._100, Gray._200, 3), listOf(Gray._100, Gray._150, Gray._200))
+    assertOrderedEquals(generate(Gray._100, Gray._200, 5), listOf(Gray._100, Gray._125, Gray._150, Gray._175, Gray._200))
+
+    assertOrderedEquals(generate(Color(0, 100, 200), Color(200, 100, 0), 3), listOf(Color(0, 100, 200), Color(100, 100, 100), Color(200, 100, 0)))
+  }
+
+  fun testChainLineGeneration() {
+    for (anchorCount in 0..5) {
+      val anchors = generate(Color.BLACK, Color.WHITE, anchorCount)
+      for (count in 0..40) {
+        val generated = generateChain(count, anchors)
+        assertEquals(count, generated.size)
+      }
+    }
+
+    assertOrderedEquals(generateChain(1, Gray._100, Gray._200), listOf(Gray._100))
+    assertOrderedEquals(generateChain(2, Gray._100, Gray._200), listOf(Gray._100, Gray._200))
+    assertOrderedEquals(generateChain(3, Gray._100, Gray._200), listOf(Gray._100, Gray._150, Gray._200))
+    assertOrderedEquals(generateChain(5, Gray._100, Gray._200), listOf(Gray._100, Gray._125, Gray._150, Gray._175, Gray._200))
+
+    assertOrderedEquals(generateChain(3, Gray._0, Gray._100, Gray._200), listOf(Gray._0, Gray._100, Gray._200))
+    assertOrderedEquals(generateChain(5, Gray._0, Gray._100, Gray._200), listOf(Gray._0, Gray._50, Gray._100, Gray._150, Gray._200))
+    assertOrderedEquals(generateChain(9, Gray._0, Gray._100, Gray._200), listOf(Gray._0, Gray._25, Gray._50, Gray._75, Gray._100, Gray._125, Gray._150, Gray._175, Gray._200))
+
+    assertOrderedEquals(generateChain(3, Color(0, 100, 200), Color(200, 100, 0)), listOf(Color(0, 100, 200), Color(100, 100, 100), Color(200, 100, 0)))
+    assertOrderedEquals(generateChain(5, Color(0, 100, 200), Color(0, 0, 0), Color(200, 100, 0)), listOf(Color(0, 100, 200), Color(0, 50, 100), Color(0, 0, 0), Color(100, 50, 0), Color(200, 100, 0)))
+  }
+
+  fun generate(color1: Color, color2: Color, count: Int) = ColorGenerator.generateLinearColorSequence(color1, color2, count)
+  fun generateChain(count: Int, vararg colors: Color) = ColorGenerator.generateLinearColorSequence(colors.asList(), count)
+  fun generateChain(count: Int, colors: List<Color>) = ColorGenerator.generateLinearColorSequence(colors, count)
+}