diff --git a/CHANGELOG b/CHANGELOG
index d21165516a..980a2704ae 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -66,6 +66,7 @@ NEW:
 		Removed the submarine detection ability from Cruiser and Transport.
 		Added the submarine detection ability to Submarines and Missile Subs.
 		Increased the submarine detection range of Gunboat from 3 to 4.
+		Fixed Spies having an enemy color health bar when disguised as a friendly unit (occurred using the Team Health Colors setting).
 	Tiberian Dawn:
 		Chinook rotors now counter-rotate.
 		Commando can now plant C4 on bridges.
diff --git a/OpenRA.Game/Traits/Selectable.cs b/OpenRA.Game/Traits/Selectable.cs
index 4d19bcb8a2..80dfa10f15 100644
--- a/OpenRA.Game/Traits/Selectable.cs
+++ b/OpenRA.Game/Traits/Selectable.cs
@@ -181,8 +181,11 @@ namespace OpenRA.Traits
 		Color GetHealthColor(Health health)
 		{
 			if (Game.Settings.Game.TeamHealthColors)
-				return self.Owner.IsAlliedWith(self.World.LocalPlayer) ? Color.LimeGreen :
-						self.Owner.NonCombatant ? Color.Tan : Color.Red;
+			{
+				var isAlly = self.Owner.IsAlliedWith(self.World.LocalPlayer)
+					|| (self.IsDisguised() && self.World.LocalPlayer.IsAlliedWith(self.EffectiveOwner.Owner));
+				return isAlly ?	Color.LimeGreen : self.Owner.NonCombatant ? Color.Tan : Color.Red;
+			}
 			else
 				return health.DamageState == DamageState.Critical ? Color.Red :
 						health.DamageState == DamageState.Heavy ? Color.Yellow : Color.LimeGreen;