diff --git a/pkg/cmd/gist/list/list_test.go b/pkg/cmd/gist/list/list_test.go
index 4f6c8a9f7..ad6d8cdb5 100644
--- a/pkg/cmd/gist/list/list_test.go
+++ b/pkg/cmd/gist/list/list_test.go
@@ -487,8 +487,8 @@ func Test_listRun(t *testing.T) {
 			},
 			wantOut: heredoc.Docf(`
 				%[1]s[0;4;39mID  %[1]s[0m  %[1]s[0;4;39mDESCRIPTION                  %[1]s[0m  %[1]s[0;4;39mFILES  %[1]s[0m  %[1]s[0;4;39mVISIBILITY%[1]s[0m  %[1]s[0;4;39mUPDATED          %[1]s[0m
-				1234  %[1]s[0;30;43mocto%[1]s[0m%[1]s[0;1;39m match in the description%[1]s[0m  1 file   %[1]s[0;32mpublic    %[1]s[0m  %[1]s[38;5;242mabout 6 hours ago%[1]s[m
-				2345  %[1]s[0;1;39mmatch in the file name       %[1]s[0m  %[1]s[0;30;43m2 files%[1]s[0m  %[1]s[0;31msecret    %[1]s[0m  %[1]s[38;5;242mabout 6 hours ago%[1]s[m
+				1234  %[1]s[0;30;43mocto%[1]s[0m%[1]s[0;1;39m match in the description%[1]s[0m  1 file   %[1]s[0;32mpublic    %[1]s[0m  %[1]s[38;5;242mabout 6 hours ago%[1]s[0m
+				2345  %[1]s[0;1;39mmatch in the file name       %[1]s[0m  %[1]s[0;30;43m2 files%[1]s[0m  %[1]s[0;31msecret    %[1]s[0m  %[1]s[38;5;242mabout 6 hours ago%[1]s[0m
 			`, "\x1b"),
 		},
 		{
@@ -694,7 +694,7 @@ func Test_highlightMatch(t *testing.T) {
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			cs := iostreams.NewColorScheme(tt.color, false, false, iostreams.NoTheme)
+			cs := iostreams.NewColorScheme(tt.color, false, false, false, iostreams.NoTheme)
 
 			matched := false
 			got, err := highlightMatch(tt.input, regex, &matched, cs.Blue, cs.Highlight)
diff --git a/pkg/iostreams/color.go b/pkg/iostreams/color.go
index 3e2d08ac2..9e6c4f7ca 100644
--- a/pkg/iostreams/color.go
+++ b/pkg/iostreams/color.go
@@ -37,7 +37,7 @@ var (
 	noThemeTableHeader    = ansi.ColorFunc("default+u")
 
 	gray256 = func(t string) string {
-		return fmt.Sprintf("\x1b[%d;5;%dm%s\x1b[m", 38, 242, t)
+		return fmt.Sprintf("\x1b[%d;5;%dm%s\x1b[0m", 38, 242, t)
 	}
 )
 
@@ -91,8 +91,10 @@ func (c *ColorScheme) Muted(t string) string {
 	switch c.theme {
 	case LightTheme:
 		return lightThemeMuted(t)
-	default:
+	case DarkTheme:
 		return darkThemeMuted(t)
+	default:
+		return t
 	}
 }
 
diff --git a/pkg/iostreams/color_test.go b/pkg/iostreams/color_test.go
index a399e6d58..b0cf994e3 100644
--- a/pkg/iostreams/color_test.go
+++ b/pkg/iostreams/color_test.go
@@ -175,3 +175,67 @@ func TestTableHeader(t *testing.T) {
 		})
 	}
 }
+
+func TestMuted(t *testing.T) {
+	reset := "\x1b[0m"
+	gray4bit := "\x1b[0;90m"
+	gray8bit := "\x1b[38;5;242m"
+	brightBlack4bit := "\x1b[0;90m"
+	dimBlack4bit := "\x1b[0;2;37m"
+
+	tests := []struct {
+		name     string
+		cs       *ColorScheme
+		input    string
+		expected string
+	}{
+		{
+			name:     "when color is disabled but accessible colors are disabled, text is not stylized",
+			cs:       NewColorScheme(false, false, false, false, NoTheme),
+			input:    "this should not be stylized",
+			expected: "this should not be stylized",
+		},
+		{
+			name:     "when 4-bit color is enabled but accessible colors are disabled, legacy 4-bit gray color is used",
+			cs:       NewColorScheme(true, false, false, false, NoTheme),
+			input:    "this should be 4-bit gray",
+			expected: fmt.Sprintf("%sthis should be 4-bit gray%s", gray4bit, reset),
+		},
+		{
+			name:     "when 8-bit color is enabled but accessible colors are disabled, legacy 8-bit gray color is used",
+			cs:       NewColorScheme(true, true, false, false, NoTheme),
+			input:    "this should be 8-bit gray",
+			expected: fmt.Sprintf("%sthis should be 8-bit gray%s", gray8bit, reset),
+		},
+		{
+			name:     "when 24-bit color is enabled but accessible colors are disabled, legacy 8-bit gray color is used",
+			cs:       NewColorScheme(true, true, true, false, NoTheme),
+			input:    "this should be 8-bit gray",
+			expected: fmt.Sprintf("%sthis should be 8-bit gray%s", gray8bit, reset),
+		},
+		{
+			name:     "when 4-bit color is enabled and theme is dark, 4-bit light color is used",
+			cs:       NewColorScheme(true, true, true, true, DarkTheme),
+			input:    "this should be 4-bit dim black",
+			expected: fmt.Sprintf("%sthis should be 4-bit dim black%s", dimBlack4bit, reset),
+		},
+		{
+			name:     "when 4-bit color is enabled and theme is light, 4-bit dark color is used",
+			cs:       NewColorScheme(true, true, true, true, LightTheme),
+			input:    "this should be 4-bit bright black",
+			expected: fmt.Sprintf("%sthis should be 4-bit bright black%s", brightBlack4bit, reset),
+		},
+		{
+			name:     "when 4-bit color is enabled but no theme, 4-bit default color is used",
+			cs:       NewColorScheme(true, true, true, true, NoTheme),
+			input:    "this should have no explicit color",
+			expected: "this should have no explicit color",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			assert.Equal(t, tt.expected, tt.cs.Muted(tt.input))
+		})
+	}
+}