The purpose of this thesis is to develop a working methodology to color a grey scale image. This thesis is based on approach of using a colored reference image. Coloring grey scale images has no exact solution till date and all available methods are based on approximation. This technique of using a color reference image for approximating color information in grey scale image is among most modern techniques.Method developed here in this paper is better than existing methods of approximation of color information addition in grey scale images in brightness, sharpness, color shade gradients and distribution of colors over objects.Color and grey scale images are analyzed for statistical and textural features. This analysis is done only on basis of luminance value in images. These features are then segmented and segments of color and grey scale images are mapped on basis of distances of segments from origin. Then chromatic values are transferred between these matched segments from color image to grey scale image.Technique proposed in this paper uses better mechanism of mapping clusters and mapping colors between segments, resulting in notable improvement in existing techniques in this category.