diff --git a/src/channel.c b/src/channel.c
index 88c53b7..a25e9fe 100644
--- a/src/channel.c
+++ b/src/channel.c
@@ -4802,6 +4802,50 @@
 		opt->jo_set2 |= JO2_TERM_KILL;
 		opt->jo_term_kill = get_tv_string_chk(item);
 	    }
+# if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS)
+	    else if (STRCMP(hi->hi_key, "ansi_colors") == 0)
+	    {
+		int 		n = 0;
+		listitem_T	*li;
+		long_u		rgb[16];
+
+		if (!(supported2 & JO2_ANSI_COLORS))
+		    break;
+
+		if (item == NULL || item->v_type != VAR_LIST
+			|| item->vval.v_list == NULL)
+		{
+		    EMSG2(_(e_invargval), "ansi_colors");
+		    return FAIL;
+		}
+
+		li = item->vval.v_list->lv_first;
+		for (; li != NULL && n < 16; li = li->li_next, n++)
+		{
+		    char_u	*color_name;
+		    guicolor_T 	guicolor;
+
+		    color_name = get_tv_string_chk(&li->li_tv);
+		    if (color_name == NULL)
+			return FAIL;
+
+		    guicolor = GUI_GET_COLOR(color_name);
+		    if (guicolor == INVALCOLOR)
+			return FAIL;
+
+		    rgb[n] = GUI_MCH_GET_RGB(guicolor);
+		}
+
+		if (n != 16 || li != NULL)
+		{
+		    EMSG2(_(e_invargval), "ansi_colors");
+		    return FAIL;
+		}
+
+		opt->jo_set2 |= JO2_ANSI_COLORS;
+		memcpy(opt->jo_ansi_colors, rgb, sizeof(rgb));
+	    }
+# endif
 #endif
 	    else if (STRCMP(hi->hi_key, "env") == 0)
 	    {
diff --git a/src/evalfunc.c b/src/evalfunc.c
index 1ffbb21..65279a5 100644
--- a/src/evalfunc.c
+++ b/src/evalfunc.c
@@ -856,6 +856,9 @@
     {"term_dumpload",	1, 2, f_term_dumpload},
     {"term_dumpwrite",	2, 3, f_term_dumpwrite},
     {"term_getaltscreen", 1, 1, f_term_getaltscreen},
+# if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS)
+    {"term_getansicolors", 1, 1, f_term_getansicolors},
+# endif
     {"term_getattr",	2, 2, f_term_getattr},
     {"term_getcursor",	1, 1, f_term_getcursor},
     {"term_getjob",	1, 1, f_term_getjob},
@@ -868,6 +871,9 @@
     {"term_list",	0, 0, f_term_list},
     {"term_scrape",	2, 2, f_term_scrape},
     {"term_sendkeys",	2, 2, f_term_sendkeys},
+# if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS)
+    {"term_setansicolors", 2, 2, f_term_setansicolors},
+# endif
     {"term_setkill",	2, 2, f_term_setkill},
     {"term_setrestore",	2, 2, f_term_setrestore},
     {"term_start",	1, 2, f_term_start},
diff --git a/src/proto/terminal.pro b/src/proto/terminal.pro
index 0ef7783..f7cea5a 100644
--- a/src/proto/terminal.pro
+++ b/src/proto/terminal.pro
@@ -32,6 +32,7 @@
 void f_term_dumpdiff(typval_T *argvars, typval_T *rettv);
 void f_term_dumpload(typval_T *argvars, typval_T *rettv);
 void f_term_getaltscreen(typval_T *argvars, typval_T *rettv);
+void f_term_getansicolors(typval_T *argvars, typval_T *rettv);
 void f_term_getattr(typval_T *argvars, typval_T *rettv);
 void f_term_getcursor(typval_T *argvars, typval_T *rettv);
 void f_term_getjob(typval_T *argvars, typval_T *rettv);
@@ -44,6 +45,7 @@
 void f_term_list(typval_T *argvars, typval_T *rettv);
 void f_term_scrape(typval_T *argvars, typval_T *rettv);
 void f_term_sendkeys(typval_T *argvars, typval_T *rettv);
+void f_term_setansicolors(typval_T *argvars, typval_T *rettv);
 void f_term_setrestore(typval_T *argvars, typval_T *rettv);
 void f_term_setkill(typval_T *argvars, typval_T *rettv);
 void f_term_start(typval_T *argvars, typval_T *rettv);
diff --git a/src/structs.h b/src/structs.h
index db2792b..d3f98ac 100644
--- a/src/structs.h
+++ b/src/structs.h
@@ -1708,7 +1708,7 @@
 #define JO2_EOF_CHARS	    0x1000	/* "eof_chars" */
 #define JO2_NORESTORE	    0x2000	/* "norestore" */
 #define JO2_TERM_KILL	    0x4000	/* "term_kill" */
-#define JO2_ALL		    0x7FFF
+#define JO2_ANSI_COLORS	    0x8000	/* "ansi_colors" */
 
 #define JO_MODE_ALL	(JO_MODE + JO_IN_MODE + JO_OUT_MODE + JO_ERR_MODE)
 #define JO_CB_ALL \
@@ -1777,6 +1777,9 @@
     int		jo_term_finish;
     char_u	*jo_eof_chars;
     char_u	*jo_term_kill;
+# if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS)
+    long_u	jo_ansi_colors[16];
+# endif
 #endif
 } jobopt_T;
 
diff --git a/src/terminal.c b/src/terminal.c
index a65fc00..7859941 100644
--- a/src/terminal.c
+++ b/src/terminal.c
@@ -38,11 +38,11 @@
  * in tl_scrollback are no longer used.
  *
  * TODO:
- * - Add a way to set the 16 ANSI colors, to be used for 'termguicolors' and in
- *   the GUI. #2747
  * - Win32: Make terminal used for :!cmd in the GUI work better.  Allow for
  *   redirection.  Probably in call to channel_set_pipes().
  * - implement term_setsize()
+ * - add an optional limit for the scrollback size.  When reaching it remove
+ *   10% at the start.
  * - Copy text in the vterm to the Vim buffer once in a while, so that
  *   completion works.
  * - in GUI vertical split causes problems.  Cursor is flickering. (Hirohito
@@ -64,8 +64,6 @@
  *   http://bazaar.launchpad.net/~leonerd/pangoterm/trunk/view/head:/main.c#L134
  * - when 'encoding' is not utf-8, or the job is using another encoding, setup
  *   conversions.
- * - add an optional limit for the scrollback size.  When reaching it remove
- *   10% at the start.
  */
 
 #include "vim.h"
@@ -3141,6 +3139,75 @@
     }
 }
 
+#if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS)
+/*
+ * Set the 16 ANSI colors from array of RGB values
+ */
+    static void
+set_vterm_palette(VTerm *vterm, long_u *rgb)
+{
+    int		index = 0;
+    VTermState	*state = vterm_obtain_state(vterm);
+    for (; index < 16; index++)
+    {
+	VTermColor	color;
+	color.red = (unsigned)(rgb[index] >> 16);
+	color.green = (unsigned)(rgb[index] >> 8) & 255;
+	color.blue = (unsigned)rgb[index] & 255;
+	vterm_state_set_palette_color(state, index, &color);
+    }
+}
+
+/*
+ * Set the ANSI color palette from a list of colors
+ */
+    static int
+set_ansi_colors_list(VTerm *vterm, list_T *list)
+{
+    int		n = 0;
+    long_u	rgb[16];
+    listitem_T	*li = list->lv_first;
+
+    for (; li != NULL && n < 16; li = li->li_next, n++)
+    {
+	char_u		*color_name;
+	guicolor_T	guicolor;
+
+	color_name = get_tv_string_chk(&li->li_tv);
+	if (color_name == NULL)
+	    return FAIL;
+
+	guicolor = GUI_GET_COLOR(color_name);
+	if (guicolor == INVALCOLOR)
+	    return FAIL;
+
+	rgb[n] = GUI_MCH_GET_RGB(guicolor);
+    }
+
+    if (n != 16 || li != NULL)
+	return FAIL;
+
+    set_vterm_palette(vterm, rgb);
+
+    return OK;
+}
+
+/*
+ * Initialize the ANSI color palette from g:terminal_ansi_colors[0:15]
+ */
+    static void
+init_vterm_ansi_colors(VTerm *vterm)
+{
+    dictitem_T	*var = find_var((char_u *)"g:terminal_ansi_colors", NULL, TRUE);
+
+    if (var != NULL
+	    && (var->di_tv.v_type != VAR_LIST
+		|| var->di_tv.vval.v_list == NULL
+		|| set_ansi_colors_list(vterm, var->di_tv.vval.v_list) == FAIL))
+	EMSG2(_(e_invarg2), "g:terminal_ansi_colors");
+}
+#endif
+
 /*
  * Handles a "drop" command from the job in the terminal.
  * "item" is the file name, "item->li_next" may have options.
@@ -3372,6 +3439,9 @@
 	    &term->tl_default_color.fg,
 	    &term->tl_default_color.bg);
 
+    if (t_colors >= 16)
+	vterm_state_set_bold_highbright(vterm_obtain_state(vterm), 1);
+
     /* Required to initialize most things. */
     vterm_screen_reset(screen, 1 /* hard */);
 
@@ -4762,6 +4832,68 @@
     }
 }
 
+#if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS) || defined(PROTO)
+/*
+ * "term_getansicolors(buf)" function
+ */
+    void
+f_term_getansicolors(typval_T *argvars, typval_T *rettv)
+{
+    buf_T	*buf = term_get_buf(argvars, "term_getansicolors()");
+    term_T	*term;
+    VTermState	*state;
+    VTermColor  color;
+    char_u	hexbuf[10];
+    int		index;
+    list_T	*list;
+
+    if (rettv_list_alloc(rettv) == FAIL)
+	return;
+
+    if (buf == NULL)
+	return;
+    term = buf->b_term;
+    if (term->tl_vterm == NULL)
+	return;
+
+    list = rettv->vval.v_list;
+    state = vterm_obtain_state(term->tl_vterm);
+    for (index = 0; index < 16; index++)
+    {
+	vterm_state_get_palette_color(state, index, &color);
+	sprintf((char *)hexbuf, "#%02x%02x%02x",
+		color.red, color.green, color.blue);
+	if (list_append_string(list, hexbuf, 7) == FAIL)
+	    return;
+    }
+}
+
+/*
+ * "term_setansicolors(buf, list)" function
+ */
+    void
+f_term_setansicolors(typval_T *argvars, typval_T *rettv UNUSED)
+{
+    buf_T	*buf = term_get_buf(argvars, "term_setansicolors()");
+    term_T	*term;
+
+    if (buf == NULL)
+	return;
+    term = buf->b_term;
+    if (term->tl_vterm == NULL)
+	return;
+
+    if (argvars[1].v_type != VAR_LIST || argvars[1].vval.v_list == NULL)
+    {
+	EMSG(_(e_listreq));
+	return;
+    }
+
+    if (set_ansi_colors_list(term->tl_vterm, argvars[1].vval.v_list) == FAIL)
+	EMSG(_(e_invarg));
+}
+#endif
+
 /*
  * "term_setrestore(buf, command)" function
  */
@@ -4824,7 +4956,8 @@
 		JO2_TERM_NAME + JO2_TERM_FINISH + JO2_HIDDEN + JO2_TERM_OPENCMD
 		    + JO2_TERM_COLS + JO2_TERM_ROWS + JO2_VERTICAL + JO2_CURWIN
 		    + JO2_CWD + JO2_ENV + JO2_EOF_CHARS
-		    + JO2_NORESTORE + JO2_TERM_KILL) == FAIL)
+		    + JO2_NORESTORE + JO2_TERM_KILL
+		    + JO2_ANSI_COLORS) == FAIL)
 	return;
 
     buf = term_start(&argvars[0], NULL, &opt, 0);
@@ -5152,6 +5285,13 @@
 
     create_vterm(term, term->tl_rows, term->tl_cols);
 
+#if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS)
+    if (opt->jo_set2 & JO2_ANSI_COLORS)
+	set_vterm_palette(term->tl_vterm, opt->jo_ansi_colors);
+    else
+	init_vterm_ansi_colors(term->tl_vterm);
+#endif
+
     channel_set_job(channel, job, opt);
     job_set_options(job, opt);
 
@@ -5324,6 +5464,13 @@
 {
     create_vterm(term, term->tl_rows, term->tl_cols);
 
+#if defined(FEAT_GUI) || defined(FEAT_TERMGUICOLORS)
+    if (opt->jo_set2 & JO2_ANSI_COLORS)
+	set_vterm_palette(term->tl_vterm, opt->jo_ansi_colors);
+    else
+	init_vterm_ansi_colors(term->tl_vterm);
+#endif
+
     /* This may change a string in "argvar". */
     term->tl_job = job_start(argvar, argv, opt);
     if (term->tl_job != NULL)
diff --git a/src/testdir/test_terminal.vim b/src/testdir/test_terminal.vim
index 5645625..3b95d39 100644
--- a/src/testdir/test_terminal.vim
+++ b/src/testdir/test_terminal.vim
@@ -1255,3 +1255,73 @@
   call ch_logfile('', '')
   call delete('Xlog')
 endfunc
+
+func Test_terminal_ansicolors_default()
+  let colors = [
+	\ '#000000', '#e00000',
+	\ '#00e000', '#e0e000',
+	\ '#0000e0', '#e000e0',
+	\ '#00e0e0', '#e0e0e0',
+	\ '#808080', '#ff4040',
+	\ '#40ff40', '#ffff40',
+	\ '#4040ff', '#ff40ff',
+	\ '#40ffff', '#ffffff',
+	\]
+
+  let buf = Run_shell_in_terminal({})
+  call assert_equal(colors, term_getansicolors(buf))
+  call Stop_shell_in_terminal(buf)
+  call term_wait(buf)
+
+  exe buf . 'bwipe'
+endfunc
+
+let s:test_colors = [
+	\ '#616e64', '#0d0a79',
+	\ '#6d610d', '#0a7373',
+	\ '#690d0a', '#6d696e',
+	\ '#0d0a6f', '#616e0d',
+	\ '#0a6479', '#6d0d0a',
+	\ '#617373', '#0d0a69',
+	\ '#6d690d', '#0a6e6f',
+	\ '#610d0a', '#6e6479',
+	\]
+
+func Test_terminal_ansicolors_global()
+  let g:terminal_ansi_colors = reverse(copy(s:test_colors))
+  let buf = Run_shell_in_terminal({})
+  call assert_equal(g:terminal_ansi_colors, term_getansicolors(buf))
+  call Stop_shell_in_terminal(buf)
+  call term_wait(buf)
+
+  exe buf . 'bwipe'
+  unlet g:terminal_ansi_colors
+endfunc
+
+func Test_terminal_ansicolors_func()
+  let g:terminal_ansi_colors = reverse(copy(s:test_colors))
+  let buf = Run_shell_in_terminal({'ansi_colors': s:test_colors})
+  call assert_equal(s:test_colors, term_getansicolors(buf))
+
+  call term_setansicolors(buf, g:terminal_ansi_colors)
+  call assert_equal(g:terminal_ansi_colors, term_getansicolors(buf))
+
+  let colors = [
+	\ 'ivory', 'AliceBlue',
+	\ 'grey67', 'dark goldenrod',
+	\ 'SteelBlue3', 'PaleVioletRed4',
+	\ 'MediumPurple2', 'yellow2',
+	\ 'RosyBrown3', 'OrangeRed2',
+	\ 'white smoke', 'navy blue',
+	\ 'grey47', 'gray97',
+	\ 'MistyRose2', 'DodgerBlue4',
+	\]
+  call term_setansicolors(buf, colors)
+
+  let colors[4] = 'Invalid'
+  call assert_fails('call term_setansicolors(buf, colors)', 'E474:')
+
+  call Stop_shell_in_terminal(buf)
+  call term_wait(buf)
+  exe buf . 'bwipe'
+endfunc
diff --git a/src/version.c b/src/version.c
index 2890f71..ff8d0c4 100644
--- a/src/version.c
+++ b/src/version.c
@@ -763,6 +763,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1685,
+/**/
     1684,
 /**/
     1683,