diff --git a/osu.Game.Tests/Visual/UserInterface/TestSceneLabelledColourPalette.cs b/osu.Game.Tests/Visual/UserInterface/TestSceneLabelledColourPalette.cs
index 325e71f76a..826da17ca8 100644
--- a/osu.Game.Tests/Visual/UserInterface/TestSceneLabelledColourPalette.cs
+++ b/osu.Game.Tests/Visual/UserInterface/TestSceneLabelledColourPalette.cs
@@ -20,13 +20,14 @@ namespace osu.Game.Tests.Visual.UserInterface
             createColourPalette(hasDescription);
 
             AddRepeatStep("add random colour", () => component.Colours.Add(randomColour()), 4);
+
+            AddStep("set custom prefix", () => component.ColourNamePrefix = "Combo");
+
             AddRepeatStep("remove random colour", () =>
             {
                 if (component.Colours.Count > 0)
                     component.Colours.RemoveAt(RNG.Next(component.Colours.Count));
-            }, 5);
-
-            AddStep("set custom prefix", () => component.ColourNamePrefix = "Combo");
+            }, 8);
         }
 
         private void createColourPalette(bool hasDescription = false)
diff --git a/osu.Game/Graphics/UserInterfaceV2/ColourPalette.cs b/osu.Game/Graphics/UserInterfaceV2/ColourPalette.cs
index 38ac51b955..3ca5c2d8d1 100644
--- a/osu.Game/Graphics/UserInterfaceV2/ColourPalette.cs
+++ b/osu.Game/Graphics/UserInterfaceV2/ColourPalette.cs
@@ -1,10 +1,12 @@
 // Copyright (c) ppy Pty Ltd <contact@ppy.sh>. Licensed under the MIT Licence.
 // See the LICENCE file in the repository root for full licence text.
 
+using System.Linq;
 using osu.Framework.Allocation;
 using osu.Framework.Bindables;
 using osu.Framework.Graphics;
 using osu.Framework.Graphics.Containers;
+using osu.Game.Graphics.Sprites;
 using osuTK;
 using osuTK.Graphics;
 
@@ -32,6 +34,7 @@ namespace osu.Game.Graphics.UserInterfaceV2
         }
 
         private FillFlowContainer<ColourDisplay> palette;
+        private Container placeholder;
 
         [BackgroundDependencyLoader]
         private void load()
@@ -39,12 +42,27 @@ namespace osu.Game.Graphics.UserInterfaceV2
             RelativeSizeAxes = Axes.X;
             AutoSizeAxes = Axes.Y;
 
-            InternalChild = palette = new FillFlowContainer<ColourDisplay>
+            InternalChildren = new Drawable[]
             {
-                RelativeSizeAxes = Axes.X,
-                AutoSizeAxes = Axes.Y,
-                Spacing = new Vector2(10),
-                Direction = FillDirection.Full
+                palette = new FillFlowContainer<ColourDisplay>
+                {
+                    RelativeSizeAxes = Axes.X,
+                    AutoSizeAxes = Axes.Y,
+                    Spacing = new Vector2(10),
+                    Direction = FillDirection.Full
+                },
+                placeholder = new Container
+                {
+                    RelativeSizeAxes = Axes.X,
+                    AutoSizeAxes = Axes.Y,
+                    Child = new OsuSpriteText
+                    {
+                        Anchor = Anchor.CentreRight,
+                        Origin = Anchor.CentreRight,
+                        Text = "(none)",
+                        Font = OsuFont.Default.With(weight: FontWeight.Bold)
+                    }
+                }
             };
         }
 
@@ -53,12 +71,26 @@ namespace osu.Game.Graphics.UserInterfaceV2
             base.LoadComplete();
 
             Colours.BindCollectionChanged((_, __) => updatePalette(), true);
+            FinishTransforms(true);
         }
 
+        private const int fade_duration = 200;
+
         private void updatePalette()
         {
             palette.Clear();
 
+            if (Colours.Any())
+            {
+                palette.FadeIn(fade_duration, Easing.OutQuint);
+                placeholder.FadeOut(fade_duration, Easing.OutQuint);
+            }
+            else
+            {
+                palette.FadeOut(fade_duration, Easing.OutQuint);
+                placeholder.FadeIn(fade_duration, Easing.OutQuint);
+            }
+
             foreach (var item in Colours)
             {
                 palette.Add(new ColourDisplay