chromatophore

A pigment-containing or pigment-producing cell, that by expansion or contraction can change the color of the skin. Found in a wide range of animals including amphibians, fish, reptiles, crustaceans and cephalopods.

And here they are being demonstrated in action by this adorable cuttlefish:

camouflage

Anne’s Noudah face was immobile, but chromatophores sent a wave of violet and gold sweeping across her skin in an expression of cautious optimism.

Definition from The American Heritage® Dictionary of the English Language, 4th Edition (via Wordnik); image and further verbiage from Wikipedia

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