diff --git a/builtin_set_color.cpp b/builtin_set_color.cpp
index 1cce8097b..b3757e1c3 100644
--- a/builtin_set_color.cpp
+++ b/builtin_set_color.cpp
@@ -132,37 +132,31 @@ static int builtin_set_color(parser_t &parser, wchar_t **argv)
         }
     }
 
-    /* Remaining argument is foreground color */
-    const wchar_t *fgcolor = NULL;
-    if (woptind < argc)
+    /* Remaining arguments are foreground color */
+    std::vector<rgb_color_t> fgcolors;
+    for (; woptind < argc; woptind++)
     {
-        if (woptind + 1 == argc)
+        rgb_color_t fg = rgb_color_t(argv[woptind]);
+        if (fg.is_none() || fg.is_ignore())
         {
-            fgcolor = argv[woptind];
-        }
-        else
-        {
-            append_format(stderr_buffer,
-                          _(L"%ls: Too many arguments\n"),
-                          argv[0]);
+            append_format(stderr_buffer, _(L"%ls: Unknown color '%ls'\n"), argv[0], argv[woptind]);
             return STATUS_BUILTIN_ERROR;
         }
+        fgcolors.push_back(fg);
     }
 
-    if (fgcolor == NULL && bgcolor == NULL && !bold && !underline)
+    if (fgcolors.empty() && bgcolor == NULL && !bold && !underline)
     {
         append_format(stderr_buffer,
                       _(L"%ls: Expected an argument\n"),
                       argv[0]);
         return STATUS_BUILTIN_ERROR;
     }
-
-    const rgb_color_t fg = rgb_color_t(fgcolor ? fgcolor : L"");
-    if (fgcolor && (fg.is_none() || fg.is_ignore()))
-    {
-        append_format(stderr_buffer, _(L"%ls: Unknown color '%ls'\n"), argv[0], fgcolor);
-        return STATUS_BUILTIN_ERROR;
-    }
+    
+    // #1323: We may have multiple foreground colors. Choose the best one.
+    // If we had no foreground coor, we'll get none(); if we have at least one we expect not-none
+    const rgb_color_t fg = best_color(fgcolors, output_get_color_support());
+    assert(fgcolors.empty() || !(fg.is_none() || fg.is_ignore()));
 
     const rgb_color_t bg = rgb_color_t(bgcolor ? bgcolor : L"");
     if (bgcolor && (bg.is_none() || bg.is_ignore()))
@@ -187,7 +181,6 @@ static int builtin_set_color(parser_t &parser, wchar_t **argv)
         return STATUS_BUILTIN_ERROR;
     }
 
-
     /* Save old output function so we can restore it */
     int (* const saved_writer_func)(char) = output_get_writer();
 
@@ -216,7 +209,7 @@ static int builtin_set_color(parser_t &parser, wchar_t **argv)
         }
     }
 
-    if (fgcolor != NULL)
+    if (! fg.is_none())
     {
         if (fg.is_normal() || fg.is_reset())
         {
diff --git a/output.cpp b/output.cpp
index f6fb9fa96..6144746ab 100644
--- a/output.cpp
+++ b/output.cpp
@@ -488,6 +488,45 @@ void writestr(const wchar_t *str)
         delete[] buffer;
 }
 
+rgb_color_t best_color(const std::vector<rgb_color_t> &candidates, color_support_t support)
+{
+    if (candidates.empty())
+    {
+        return rgb_color_t::none();
+    }
+    
+    rgb_color_t first_rgb = rgb_color_t::none(), first_named = rgb_color_t::none();
+    for (size_t i=0; i < candidates.size(); i++)
+    {
+        const rgb_color_t &color = candidates.at(i);
+        if (first_rgb.is_none() && color.is_rgb())
+        {
+            first_rgb = color;
+        }
+        if (first_named.is_none() && color.is_named())
+        {
+            first_named = color;
+        }
+    }
+    // If we have both RGB and named colors, then prefer rgb if term256 is supported
+    rgb_color_t result = rgb_color_t::none();
+    bool has_term256 = !! (support & color_support_term256);
+    if ((!first_rgb.is_none() && has_term256) || first_named.is_none())
+    {
+        result = first_rgb;
+    }
+    else
+    {
+        result = first_named;
+    }
+    if (result.is_none())
+    {
+        result = candidates.at(0);
+    }
+    return result;
+}
+
+/* This code should be refactored to enable sharing with builtin_set_color */
 rgb_color_t parse_color(const wcstring &val, bool is_background)
 {
     int is_bold=0;
@@ -530,30 +569,8 @@ rgb_color_t parse_color(const wcstring &val, bool is_background)
             }
         }
     }
-
-    // Pick the best candidate
-    rgb_color_t first_rgb = rgb_color_t::none(), first_named = rgb_color_t::none();
-    for (size_t i=0; i < candidates.size(); i++)
-    {
-        const rgb_color_t &color = candidates.at(i);
-        if (color.is_rgb() && first_rgb.is_none())
-            first_rgb = color;
-        if (color.is_named() && first_named.is_none())
-            first_named = color;
-    }
-
-    // If we have both RGB and named colors, then prefer rgb if term256 is supported
-    rgb_color_t result;
-    bool has_term256 = !! (output_get_color_support() & color_support_term256);
-    if ((!first_rgb.is_none() && has_term256) || first_named.is_none())
-    {
-        result = first_rgb;
-    }
-    else
-    {
-        result = first_named;
-    }
-
+    rgb_color_t result = best_color(candidates, output_get_color_support());
+    
     if (result.is_none())
         result = rgb_color_t::normal();
 
diff --git a/output.h b/output.h
index ccd94645a..6d1b4a010 100644
--- a/output.h
+++ b/output.h
@@ -132,6 +132,9 @@ typedef unsigned int color_support_t;
 color_support_t output_get_color_support();
 void output_set_color_support(color_support_t support);
 
+/** Given a list of rgb_color_t, pick the "best" one, as determined by the color support. Returns rgb_color_t::none() if empty */
+rgb_color_t best_color(const std::vector<rgb_color_t> &colors, color_support_t support);
+
 /* Exported for builtin_set_color's usage only */
 void write_color(rgb_color_t color, bool is_fg);
 unsigned char index_for_color(rgb_color_t c);