diff --git a/common/src/app/common/types/text.cljc b/common/src/app/common/types/text.cljc
index f124abf50b..651aee21fc 100644
--- a/common/src/app/common/types/text.cljc
+++ b/common/src/app/common/types/text.cljc
@@ -431,4 +431,3 @@
       [{:type "paragraph-set"
         :children paragraphs}]}
      root-styles)))
-
diff --git a/frontend/resources/styles/common/refactor/design-tokens.scss b/frontend/resources/styles/common/refactor/design-tokens.scss
index 4a18a5ba87..54ccc918ca 100644
--- a/frontend/resources/styles/common/refactor/design-tokens.scss
+++ b/frontend/resources/styles/common/refactor/design-tokens.scss
@@ -404,6 +404,7 @@
   // TEXT SELECTION
   --text-editor-selection-background-color: var(--da-tertiary-70);
   --text-editor-selection-foreground-color: var(--app-white);
+  --text-editor-caret-color: var(--app-black);
 
   // NEW TEAM BUTTON
   // TODO: we should not put these functional tokens here, but rather in the components they belong to
diff --git a/frontend/src/app/main/ui/workspace/shapes/text/v2_editor.cljs b/frontend/src/app/main/ui/workspace/shapes/text/v2_editor.cljs
index e1dad90b26..8375cbc379 100644
--- a/frontend/src/app/main/ui/workspace/shapes/text/v2_editor.cljs
+++ b/frontend/src/app/main/ui/workspace/shapes/text/v2_editor.cljs
@@ -9,9 +9,11 @@
   (:require
    [app.common.data :as d]
    [app.common.data.macros :as dm]
+   [app.common.files.helpers :as cfh]
    [app.common.geom.shapes :as gsh]
    [app.common.geom.shapes.text :as gst]
    [app.common.math :as mth]
+   [app.common.types.color :as color]
    [app.common.types.text :as txt]
    [app.config :as cf]
    [app.main.data.workspace :as dw]
@@ -31,6 +33,11 @@
    [app.util.text.content.styles :as styles]
    [rumext.v2 :as mf]))
 
+(defn get-contrast-color [background-color]
+  (when background-color
+    (let [luminance (color/hex->lum background-color)]
+      (if (> luminance 0.5) "#000000" "#ffffff"))))
+
 (defn- gen-name
   [editor]
   (when (some? editor)
@@ -54,7 +61,7 @@
 
 (defn- initialize-event-handlers
   "Internal editor events handler initializer/destructor"
-  [shape-id content selection-ref editor-ref container-ref]
+  [shape-id content selection-ref editor-ref container-ref text-color]
   (let [editor-node
         (mf/ref-val editor-ref)
 
@@ -67,7 +74,11 @@
 
         style-defaults
         (styles/get-style-defaults
-         (merge (txt/get-default-text-attrs) txt/default-root-attrs default-font))
+         (merge
+          (txt/get-default-text-attrs)
+          {:fills [{:fill-color text-color :fill-opacity 1}]}
+          txt/default-root-attrs
+          default-font))
 
         options
         #js {:styleDefaults style-defaults
@@ -134,7 +145,8 @@
     (st/emit! (dwt/update-editor instance))
     (when (some? content)
       (dwt/set-editor-root! instance (content/cljs->dom content)))
-    (st/emit! (dwt/focus-editor))
+    (when (some? instance)
+      (st/emit! (dwt/focus-editor)))
 
     ;; This function is called when the component is unmount
     (fn []
@@ -148,21 +160,45 @@
       (dwt/dispose! instance)
       (st/emit! (dwt/update-editor nil)))))
 
+(defn get-color-from-content [content]
+  (let [fills (->> (tree-seq map? :children content)
+                   (mapcat :fills)
+                   (filter :fill-color))]
+    (some :fill-color fills)))
+
+(defn get-default-text-color
+  "Returns the appropriate text color based on fill, frame, and background."
+  [{:keys [frame background-color]}]
+  (if (and frame (not (cfh/root? frame)) (seq (:fills frame)))
+    (let [fill-color (some #(when (:fill-color %) (:fill-color %)) (:fills frame))]
+      (if fill-color
+        (get-contrast-color fill-color)
+        (get-contrast-color background-color)))
+    (get-contrast-color background-color)))
+
 (mf/defc text-editor-html
   "Text editor (HTML)"
   {::mf/wrap [mf/memo]
    ::mf/props :obj}
   [{:keys [shape]}]
-  (let [content       (:content shape)
-        shape-id      (dm/get-prop shape :id)
+  (let [content          (:content shape)
+        shape-id         (dm/get-prop shape :id)
+        fill-color       (get-color-from-content content)
 
         ;; This is a reference to the dom element that
         ;; should contain the TextEditor.
-        editor-ref    (mf/use-ref nil)
-
+        editor-ref       (mf/use-ref nil)
         ;; This reference is to the container
-        container-ref (mf/use-ref nil)
-        selection-ref (mf/use-ref nil)
+        container-ref    (mf/use-ref nil)
+        selection-ref    (mf/use-ref nil)
+
+        page             (mf/deref refs/workspace-page)
+        objects          (get page :objects)
+        frame            (cfh/get-frame objects shape-id)
+        background-color (:background page)
+
+        text-color       (or fill-color (get-default-text-color {:frame frame
+                                                                 :background-color background-color}))
 
         fonts
         (-> (mf/use-memo (mf/deps content) #(get-fonts content))
@@ -179,7 +215,12 @@
                                  content
                                  selection-ref
                                  editor-ref
-                                 container-ref))
+                                 container-ref
+                                 text-color))
+
+    (mf/with-effect [text-color]
+      (let [container-node (mf/ref-val container-ref)]
+        (dom/set-style! container-node "--text-editor-caret-color" text-color)))
 
     [:div
      {:class (dm/str (cur/get-dynamic "text" (:rotation shape))
diff --git a/frontend/src/app/main/ui/workspace/shapes/text/v2_editor.scss b/frontend/src/app/main/ui/workspace/shapes/text/v2_editor.scss
index d2732bd7f3..f797f33e18 100644
--- a/frontend/src/app/main/ui/workspace/shapes/text/v2_editor.scss
+++ b/frontend/src/app/main/ui/workspace/shapes/text/v2_editor.scss
@@ -23,7 +23,7 @@
   white-space: pre-wrap;
   overflow-wrap: break-word;
 
-  caret-color: black;
+  caret-color: var(--text-editor-caret-color);
 
   color: transparent;
 
@@ -38,7 +38,7 @@
     line-break: auto;
     line-height: inherit;
     overflow-wrap: initial;
-    caret-color: rgb(0, 0, 0);
+    caret-color: var(--text-editor-caret-color);
   }
 
   [data-itype="root"] {