diff --git a/RELEASE-NOTES.txt b/RELEASE-NOTES.txt
index 6d4652960c..010cd212ca 100644
--- a/RELEASE-NOTES.txt
+++ b/RELEASE-NOTES.txt
@@ -1,5 +1,6 @@
 Unreleased
 ---
+* [**] Highlight color formatting style improvements [https://github.com/wordpress-mobile/gutenberg-mobile/pull/6517]
 
 1.115.0
 ---
diff --git a/__device-tests__/gutenberg-editor-functionality-test-1-visual.test.js b/__device-tests__/gutenberg-editor-functionality-test-1-visual.test.js
index 48b3fefad7..03602027ca 100644
--- a/__device-tests__/gutenberg-editor-functionality-test-1-visual.test.js
+++ b/__device-tests__/gutenberg-editor-functionality-test-1-visual.test.js
@@ -376,4 +376,88 @@ describe( 'Gutenberg Editor - Test Suite 1', () => {
 			expect( screenshot ).toMatchImageSnapshot();
 		} );
 	} );
+
+	describe( 'Highlight color', () => {
+		let screenshot;
+		it( 'should set a custom highlight color', async () => {
+			await editorPage.initializeEditor();
+
+			const defaultBlockAppenderElement =
+				await editorPage.getDefaultBlockAppenderElement();
+			await defaultBlockAppenderElement.click();
+			const toolbar = await editorPage.getToolbar();
+
+			await editorPage.toggleHighlightColor( 'Pale pink' );
+
+			await editorPage.typeKeyString( 'Hey ' );
+
+			screenshot = await takeScreenshotByElement(
+				await toolbar.$( '~Text color' ),
+				{ padding: -5 }
+			);
+			expect( screenshot ).toMatchImageSnapshot();
+
+			await editorPage.toggleHighlightColor( 'Vivid red' );
+
+			await editorPage.typeKeyString( 'there ' );
+
+			screenshot = await takeScreenshotByElement(
+				await toolbar.$( '~Text color' ),
+				{ padding: -5 }
+			);
+			expect( screenshot ).toMatchImageSnapshot();
+
+			await editorPage.toggleHighlightColor( 'Luminous vivid orange' );
+
+			await editorPage.typeKeyString( 'how are you?' );
+
+			screenshot = await takeScreenshotByElement(
+				await toolbar.$( '~Text color' ),
+				{ padding: -5 }
+			);
+			expect( screenshot ).toMatchImageSnapshot();
+
+			await editorPage.dismissKeyboard();
+			await editorPage.driver.waitUntil( async function () {
+				return ! ( await editorPage.driver.isKeyboardShown() );
+			} );
+
+			let paragraphBlockElement = await editorPage.getBlockAtPosition(
+				blockNames.paragraph
+			);
+			screenshot = await takeScreenshotByElement( paragraphBlockElement );
+			expect( screenshot ).toMatchImageSnapshot();
+
+			// Add a new Paragraph block
+			await editorPage.addParagraphBlockByTappingEmptyAreaBelowLastBlock();
+			paragraphBlockElement = await editorPage.getBlockAtPosition(
+				blockNames.paragraph,
+				2
+			);
+			expect( paragraphBlockElement ).toBeTruthy();
+
+			await editorPage.typeKeyString( 'Hey there' );
+
+			await editorPage.toggleHighlightColor( 'Luminous vivid orange' );
+
+			await editorPage.typeKeyString( ' how are you?' );
+
+			await editorPage.toggleHighlightColor( 'Pale pink' );
+
+			await editorPage.typeKeyString( ' all good!.' );
+
+			// Reset color
+			await editorPage.toggleHighlightColor();
+
+			await editorPage.typeKeyString( ' No colored text.' );
+
+			await editorPage.dismissKeyboard();
+			await editorPage.driver.waitUntil( async function () {
+				return ! ( await editorPage.driver.isKeyboardShown() );
+			} );
+
+			screenshot = await takeScreenshotByElement( paragraphBlockElement );
+			expect( screenshot ).toMatchImageSnapshot();
+		} );
+	} );
 } );
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diff --git a/gutenberg b/gutenberg
index 979770fcfa..660553fb70 160000
--- a/gutenberg
+++ b/gutenberg
@@ -1 +1 @@
-Subproject commit 979770fcfa7dc6b998c2310467694a37fc8b756f
+Subproject commit 660553fb70409bf11536da42d4f359ab1a64f5c9
diff --git a/ios-xcframework/Podfile.lock b/ios-xcframework/Podfile.lock
index 442202bbde..b932b20f6e 100644
--- a/ios-xcframework/Podfile.lock
+++ b/ios-xcframework/Podfile.lock
@@ -1106,7 +1106,7 @@ PODS:
     - React-Core
   - RNTAztecView (1.115.0):
     - React-Core
-    - WordPress-Aztec-iOS (= 1.19.9)
+    - WordPress-Aztec-iOS (= 1.19.11)
   - SDWebImage (5.11.1):
     - SDWebImage/Core (= 5.11.1)
   - SDWebImage/Core (5.11.1)
@@ -1114,7 +1114,7 @@ PODS:
     - libwebp (~> 1.0)
     - SDWebImage/Core (~> 5.10)
   - SocketRocket (0.6.1)
-  - WordPress-Aztec-iOS (1.19.9)
+  - WordPress-Aztec-iOS (1.19.11)
   - Yoga (1.14.0)
 
 DEPENDENCIES:
@@ -1399,11 +1399,11 @@ SPEC CHECKSUMS:
   RNReanimated: f705119af7f77c961122a09adbfdf3dd38ce6a60
   RNScreens: d07e03170921286b65f07e7b2a3aa8300f61f2ec
   RNSVG: eb0b170443191e4a1af53b9bd17d1f2fbd1ba152
-  RNTAztecView: f9ac93cee7a4cd984d8453a9141058fa22cb9b1a
+  RNTAztecView: a7f3ef74bdd75250ae479b8027021576047aed0f
   SDWebImage: a7f831e1a65eb5e285e3fb046a23fcfbf08e696d
   SDWebImageWebPCoder: 908b83b6adda48effe7667cd2b7f78c897e5111d
   SocketRocket: f32cd54efbe0f095c4d7594881e52619cfe80b17
-  WordPress-Aztec-iOS: fbebd569c61baa252b3f5058c0a2a9a6ada686bb
+  WordPress-Aztec-iOS: 47311b8a342f2b12babb5b8a705ab20b281a83ae
   Yoga: ff0382b894475dba0b4d2a5fda860bfee5a9afad
 
 PODFILE CHECKSUM: fbfd4d8f52bfcf86e5e1fab197d349d6d2b8e72f