Colored pencils consist of a wood casing filled with wax or oil-based material. Pigment is added to the filling along with water or bonding agents. They contain no graphite. Colored pencils come in both student and artist grades. The artist grade contains more pigment, and is more UV resistant (lightfast). As a fine art medium, colored pencils are attractive to artists for their ease of handling, the wide range of colors, the blending ability, and the ability to make very thin precise lines when needed.  

The Colored Pencil Society of America (CPSA) has been instrumental in the promotion and recognition of colored pencil as a fine art medium.