diff --git a/packages/core/src/extensions/Collaboration/CursorPlugin.ts b/packages/core/src/extensions/Collaboration/CursorPlugin.ts
index 50ae84b887..5e2a45d116 100644
--- a/packages/core/src/extensions/Collaboration/CursorPlugin.ts
+++ b/packages/core/src/extensions/Collaboration/CursorPlugin.ts
@@ -131,6 +131,27 @@ export class CursorPlugin extends BlockNoteExtension {
     this.provider.awareness.setLocalStateField("user", user);
   };
 
+  /**
+   * Determine whether the foreground color should be white or black based on a provided background color
+   * Inspired by: https://stackoverflow.com/a/3943023
+   *
+   */
+  public static isDarkColor(bgColor: string): boolean {
+    const color = bgColor.charAt(0) === "#" ? bgColor.substring(1, 7) : bgColor;
+    const r = parseInt(color.substring(0, 2), 16); // hexToR
+    const g = parseInt(color.substring(2, 4), 16); // hexToG
+    const b = parseInt(color.substring(4, 6), 16); // hexToB
+    const uicolors = [r / 255, g / 255, b / 255];
+    const c = uicolors.map((col) => {
+      if (col <= 0.03928) {
+        return col / 12.92;
+      }
+      return Math.pow((col + 0.055) / 1.055, 2.4);
+    });
+    const L = 0.2126 * c[0] + 0.7152 * c[1] + 0.0722 * c[2];
+    return L <= 0.179;
+  }
+
   public static defaultCursorRender = (user: CollaborationUser) => {
     const cursorElement = document.createElement("span");
 
@@ -139,12 +160,22 @@ export class CursorPlugin extends BlockNoteExtension {
     const caretElement = document.createElement("span");
     caretElement.setAttribute("contentedEditable", "false");
     caretElement.classList.add("bn-collaboration-cursor__caret");
-    caretElement.setAttribute("style", `background-color: ${user.color}`);
+    caretElement.setAttribute(
+      "style",
+      `background-color: ${user.color}; color: ${
+        CursorPlugin.isDarkColor(user.color) ? "white" : "black"
+      }`,
+    );
 
     const labelElement = document.createElement("span");
 
     labelElement.classList.add("bn-collaboration-cursor__label");
-    labelElement.setAttribute("style", `background-color: ${user.color}`);
+    labelElement.setAttribute(
+      "style",
+      `background-color: ${user.color}; color: ${
+        CursorPlugin.isDarkColor(user.color) ? "white" : "black"
+      }`,
+    );
     labelElement.insertBefore(document.createTextNode(user.name), null);
 
     caretElement.insertBefore(labelElement, null);