diff --git a/docs/library/framebuf.rst b/docs/library/framebuf.rst
index 0073ba708d..13502cc7ae 100644
--- a/docs/library/framebuf.rst
+++ b/docs/library/framebuf.rst
@@ -103,16 +103,23 @@ Other methods
     Shift the contents of the FrameBuffer by the given vector. This may
     leave a footprint of the previous colors in the FrameBuffer.
 
-.. method:: FrameBuffer.blit(fbuf, x, y[, key])
+.. method:: FrameBuffer.blit(fbuf, x, y, key=-1, palette=None)
 
     Draw another FrameBuffer on top of the current one at the given coordinates.
     If *key* is specified then it should be a color integer and the
     corresponding color will be considered transparent: all pixels with that
     color value will not be drawn.
 
-    This method works between FrameBuffer instances utilising different formats,
-    but the resulting colors may be unexpected due to the mismatch in color
-    formats.
+    The *palette* argument enables blitting between FrameBuffers with differing
+    formats. Typical usage is to render a monochrome or grayscale glyph/icon to
+    a color display. The *palette* is a FrameBuffer instance whose format is
+    that of the current FrameBuffer. The *palette* height is one pixel and its
+    pixel width is the number of colors in the source FrameBuffer. The *palette*
+    for an N-bit source needs 2**N pixels; the *palette* for a monochrome source
+    would have 2 pixels representing background and foreground colors. The
+    application assigns a color to each pixel in the *palette*. The color of the
+    current pixel will be that of that *palette* pixel whose x position is the
+    color of the corresponding source pixel.
 
 Constants
 ---------
diff --git a/extmod/modframebuf.c b/extmod/modframebuf.c
index 18b170078d..454624dda8 100644
--- a/extmod/modframebuf.c
+++ b/extmod/modframebuf.c
@@ -491,6 +491,10 @@ STATIC mp_obj_t framebuf_blit(size_t n_args, const mp_obj_t *args) {
     if (n_args > 4) {
         key = mp_obj_get_int(args[4]);
     }
+    mp_obj_framebuf_t *palette = NULL;
+    if (n_args > 5 && args[5] != mp_const_none) {
+        palette = MP_OBJ_TO_PTR(mp_obj_cast_to_native_base(args[5], MP_OBJ_FROM_PTR(&mp_type_framebuf)));
+    }
 
     if (
         (x >= self->width) ||
@@ -514,6 +518,9 @@ STATIC mp_obj_t framebuf_blit(size_t n_args, const mp_obj_t *args) {
         int cx1 = x1;
         for (int cx0 = x0; cx0 < x0end; ++cx0) {
             uint32_t col = getpixel(source, cx1, y1);
+            if (palette) {
+                col = getpixel(palette, col, 0);
+            }
             if (col != (uint32_t)key) {
                 setpixel(self, cx0, y0, col);
             }
@@ -523,7 +530,7 @@ STATIC mp_obj_t framebuf_blit(size_t n_args, const mp_obj_t *args) {
     }
     return mp_const_none;
 }
-STATIC MP_DEFINE_CONST_FUN_OBJ_VAR_BETWEEN(framebuf_blit_obj, 4, 5, framebuf_blit);
+STATIC MP_DEFINE_CONST_FUN_OBJ_VAR_BETWEEN(framebuf_blit_obj, 4, 6, framebuf_blit);
 
 STATIC mp_obj_t framebuf_scroll(mp_obj_t self_in, mp_obj_t xstep_in, mp_obj_t ystep_in) {
     mp_obj_framebuf_t *self = MP_OBJ_TO_PTR(self_in);
diff --git a/tests/extmod/framebuf_palette.py b/tests/extmod/framebuf_palette.py
new file mode 100644
index 0000000000..84db834c15
--- /dev/null
+++ b/tests/extmod/framebuf_palette.py
@@ -0,0 +1,35 @@
+# Test blit between different color spaces
+try:
+    import framebuf, usys
+except ImportError:
+    print("SKIP")
+    raise SystemExit
+
+# Monochrome glyph/icon
+w = 8
+h = 8
+cbuf = bytearray(w * h // 8)
+fbc = framebuf.FrameBuffer(cbuf, w, h, framebuf.MONO_HLSB)
+fbc.line(0, 0, 7, 7, 1)
+
+# RGB565 destination
+wd = 16
+hd = 16
+dest = bytearray(wd * hd * 2)
+fbd = framebuf.FrameBuffer(dest, wd, hd, framebuf.RGB565)
+
+wp = 2
+bg = 0x1234
+fg = 0xF800
+pal = bytearray(wp * 2)
+palette = framebuf.FrameBuffer(pal, wp, 1, framebuf.RGB565)
+palette.pixel(0, 0, bg)
+palette.pixel(1, 0, fg)
+
+fbd.blit(fbc, 0, 0, -1, palette)
+
+print(fbd.pixel(0, 0) == fg)
+print(fbd.pixel(7, 7) == fg)
+print(fbd.pixel(8, 8) == 0)  # Ouside blit
+print(fbd.pixel(0, 1) == bg)
+print(fbd.pixel(1, 0) == bg)
diff --git a/tests/extmod/framebuf_palette.py.exp b/tests/extmod/framebuf_palette.py.exp
new file mode 100644
index 0000000000..2e883c51de
--- /dev/null
+++ b/tests/extmod/framebuf_palette.py.exp
@@ -0,0 +1,5 @@
+True
+True
+True
+True
+True