diff --git a/components/ColorPicker/src/ColorPicker.xaml b/components/ColorPicker/src/ColorPicker.xaml
index 284eb7b2..557f6ab0 100644
--- a/components/ColorPicker/src/ColorPicker.xaml
+++ b/components/ColorPicker/src/ColorPicker.xaml
@@ -1,4 +1,4 @@
-<ResourceDictionary xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
+<ResourceDictionary xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
                     xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml"
                     xmlns:animations="using:CommunityToolkit.WinUI.Animations"
                     xmlns:contract8Present="http://schemas.microsoft.com/winfx/2006/xaml/presentation?IsApiContractPresent(Windows.Foundation.UniversalApiContract,8)"
@@ -16,6 +16,7 @@
     <SolidColorBrush x:Key="CheckerboardColor1"
                      Color="#FFd4d4d4" />
     <converters:ColorToDisplayNameConverter x:Key="ColorToDisplayNameConverter" />
+    <localconverters:NullToTransparentConverter x:Key="NullToTransparentConverter" />
     <localconverters:ColorToHexConverter x:Key="ColorToHexConverter" />
 
     <localconverters:ContrastBrushConverter x:Key="ContrastBrushConverter" />
@@ -291,7 +292,7 @@
                                                   animations:Implicit.HideAnimations="{StaticResource HideTransitions}"
                                                   animations:Implicit.ShowAnimations="{StaticResource ShowTransitions}"
                                                   ItemsSource="{TemplateBinding CustomPaletteColors}"
-                                                  SelectedValue="{Binding RelativeSource={RelativeSource TemplatedParent}, Path=Color, Mode=TwoWay}"
+                                                  SelectedValue="{Binding RelativeSource={RelativeSource TemplatedParent}, Path=Color, Converter={StaticResource NullToTransparentConverter}, Mode=TwoWay}"
                                                   SelectionMode="Single"
                                                   Tag="{Binding RelativeSource={RelativeSource TemplatedParent}, Path=Color, Mode=OneWay}">
                                             <GridView.ItemsPanel>
diff --git a/components/ColorPicker/src/Converters/NullToTransparentConverter.cs b/components/ColorPicker/src/Converters/NullToTransparentConverter.cs
new file mode 100644
index 00000000..c4fef85c
--- /dev/null
+++ b/components/ColorPicker/src/Converters/NullToTransparentConverter.cs
@@ -0,0 +1,17 @@
+// Licensed to the .NET Foundation under one or more agreements.
+// The .NET Foundation licenses this file to you under the MIT license.
+// See the LICENSE file in the project root for more information.
+
+namespace CommunityToolkit.WinUI.Controls;
+
+internal partial class NullToTransparentConverter : IValueConverter
+{
+    public object Convert(object value, Type targetType, object parameter, string language) => value;
+
+    public object ConvertBack(object? value, Type targetType, object parameter, string language) => value ??
+#if !WINAPPSDK
+        Windows.UI.Colors.Transparent;
+#else
+        Microsoft.UI.Colors.Transparent;
+#endif
+}