diff --git a/src/main/java/meteordevelopment/meteorclient/systems/modules/render/ESP.java b/src/main/java/meteordevelopment/meteorclient/systems/modules/render/ESP.java
index 796ca5dd4d..a649a0539b 100644
--- a/src/main/java/meteordevelopment/meteorclient/systems/modules/render/ESP.java
+++ b/src/main/java/meteordevelopment/meteorclient/systems/modules/render/ESP.java
@@ -123,18 +123,26 @@ public class ESP extends Module {
 
     // Colors
 
-    public final Setting<Boolean> distance = sgColors.add(new BoolSetting.Builder()
-        .name("distance-colors")
-        .description("Changes the color of tracers depending on distance.")
-        .defaultValue(false)
+    public final Setting<ESPColorMode> colorMode = sgColors.add(new EnumSetting.Builder<ESPColorMode>()
+        .name("color-mode")
+        .description("Determines the colors used for entities.")
+        .defaultValue(ESPColorMode.EntityType)
         .build()
     );
 
     public final Setting<Boolean> friendOverride = sgColors.add(new BoolSetting.Builder()
         .name("show-friend-colors")
-        .description("Whether or not to override the distance color of friends with the friend color.")
+        .description("Whether or not to override the distance/health color of friends with the friend color.")
         .defaultValue(true)
-        .visible(distance::get)
+        .visible(() -> colorMode.get() == ESPColorMode.Distance || colorMode.get() == ESPColorMode.Health)
+        .build()
+    );
+
+    private final Setting<SettingColor> nonLivingEntityColor = sgColors.add(new ColorSetting.Builder()
+        .name("non-living-entity-color")
+        .description("The color used for non living entities such as dropped items.")
+        .defaultValue(new SettingColor(25, 25, 25))
+        .visible(() -> colorMode.get() == ESPColorMode.Health)
         .build()
     );
 
@@ -142,7 +150,7 @@ public class ESP extends Module {
         .name("players-color")
         .description("The other player's color.")
         .defaultValue(new SettingColor(255, 255, 255))
-        .visible(() -> !distance.get())
+        .visible(() -> colorMode.get() == ESPColorMode.EntityType)
         .build()
     );
 
@@ -150,7 +158,7 @@ public class ESP extends Module {
         .name("animals-color")
         .description("The animal's color.")
         .defaultValue(new SettingColor(25, 255, 25, 255))
-        .visible(() -> !distance.get())
+        .visible(() -> colorMode.get() == ESPColorMode.EntityType)
         .build()
     );
 
@@ -158,7 +166,7 @@ public class ESP extends Module {
         .name("water-animals-color")
         .description("The water animal's color.")
         .defaultValue(new SettingColor(25, 25, 255, 255))
-        .visible(() -> !distance.get())
+        .visible(() -> colorMode.get() == ESPColorMode.EntityType)
         .build()
     );
 
@@ -166,7 +174,7 @@ public class ESP extends Module {
         .name("monsters-color")
         .description("The monster's color.")
         .defaultValue(new SettingColor(255, 25, 25, 255))
-        .visible(() -> !distance.get())
+        .visible(() -> colorMode.get() == ESPColorMode.EntityType)
         .build()
     );
 
@@ -174,7 +182,7 @@ public class ESP extends Module {
         .name("ambient-color")
         .description("The ambient's color.")
         .defaultValue(new SettingColor(25, 25, 25, 255))
-        .visible(() -> !distance.get())
+        .visible(() -> colorMode.get() == ESPColorMode.EntityType)
         .build()
     );
 
@@ -182,7 +190,7 @@ public class ESP extends Module {
         .name("misc-color")
         .description("The misc color.")
         .defaultValue(new SettingColor(175, 175, 175, 255))
-        .visible(() -> !distance.get())
+        .visible(() -> colorMode.get() == ESPColorMode.EntityType)
         .build()
     );
 
@@ -387,21 +395,27 @@ private double getFadeAlpha(Entity entity) {
     }
 
     public Color getEntityTypeColor(Entity entity) {
-        if (distance.get()) {
-            if (friendOverride.get() && entity instanceof PlayerEntity && Friends.get().isFriend((PlayerEntity) entity)) {
-                return Config.get().friendColor.get();
-            } else return EntityUtils.getColorFromDistance(entity);
-        } else if (entity instanceof PlayerEntity) {
-            return PlayerUtils.getPlayerColor(((PlayerEntity) entity), playersColor.get());
-        } else {
-            return switch (entity.getType().getSpawnGroup()) {
-                case CREATURE -> animalsColor.get();
-                case WATER_AMBIENT, WATER_CREATURE, UNDERGROUND_WATER_CREATURE, AXOLOTLS -> waterAnimalsColor.get();
-                case MONSTER -> monstersColor.get();
-                case AMBIENT -> ambientColor.get();
-                default -> miscColor.get();
-            };
+        if (colorMode.get() == ESPColorMode.EntityType) {
+            if (entity instanceof PlayerEntity player) {
+                return PlayerUtils.getPlayerColor(player, playersColor.get());
+            } else {
+                return switch (entity.getType().getSpawnGroup()) {
+                    case CREATURE -> animalsColor.get();
+                    case WATER_AMBIENT, WATER_CREATURE, UNDERGROUND_WATER_CREATURE, AXOLOTLS -> waterAnimalsColor.get();
+                    case MONSTER -> monstersColor.get();
+                    case AMBIENT -> ambientColor.get();
+                    default -> miscColor.get();
+                };
+            }
+        }
+
+        if (friendOverride.get() && entity instanceof PlayerEntity player
+            && Friends.get().isFriend(player)) {
+            return Config.get().friendColor.get();
         }
+
+        if (colorMode.get() == ESPColorMode.Health) return EntityUtils.getColorFromHealth(entity, nonLivingEntityColor.get());
+        else return EntityUtils.getColorFromDistance(entity);
     }
 
     @Override
@@ -417,6 +431,17 @@ public boolean isGlow() {
         return isActive() && mode.get() == Mode.Glow;
     }
 
+    public enum ESPColorMode {
+        EntityType,
+        Distance,
+        Health;
+
+        @Override
+        public String toString() {
+            return this == EntityType ? "Entity Type" : super.toString();
+        }
+    }
+
     public enum Mode {
         Box,
         Wireframe,
diff --git a/src/main/java/meteordevelopment/meteorclient/utils/entity/EntityUtils.java b/src/main/java/meteordevelopment/meteorclient/utils/entity/EntityUtils.java
index bba31172f3..ed36f776bb 100644
--- a/src/main/java/meteordevelopment/meteorclient/utils/entity/EntityUtils.java
+++ b/src/main/java/meteordevelopment/meteorclient/utils/entity/EntityUtils.java
@@ -208,6 +208,38 @@ public static Color getColorFromDistance(Entity entity) {
         return distanceColor;
     }
 
+    public static Color getColorFromHealth(Entity entity, Color nonLivingEntityColor) {
+        // For entities without health (items, pearls, etc.)
+        if (!(entity instanceof LivingEntity living)) {
+            return new Color(nonLivingEntityColor);
+        }
+
+        float health = living.getHealth();
+        float maxHealth = living.getMaxHealth();
+
+        if (maxHealth <= 0) {
+            return new Color(nonLivingEntityColor);
+        }
+
+        double percent = health / maxHealth;
+
+        percent = Math.max(0.0, Math.min(1.0, percent));
+
+        int r, g;
+
+        if (percent < 0.5) {
+            // Red to Yellow
+            r = 255;
+            g = (int) (255 * (percent / 0.5));
+        } else {
+            // Yellow to Green
+            g = 255;
+            r = 255 - (int) (255 * ((percent - 0.5) / 0.5));
+        }
+
+        return new Color(r, g, 0, 255);
+    }
+
     public static boolean intersectsWithEntity(Box box, Predicate<Entity> predicate) {
         EntityLookup<Entity> entityLookup = ((WorldAccessor) mc.world).meteor$getEntityLookup();