diff --git a/server/channels/api4/channel_test.go b/server/channels/api4/channel_test.go
index 0e191e863f..17428d12a0 100644
--- a/server/channels/api4/channel_test.go
+++ b/server/channels/api4/channel_test.go
@@ -172,7 +172,7 @@ func TestCreateChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         model.NewPointer(true),
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
@@ -182,7 +182,7 @@ func TestCreateChannel(t *testing.T) {
 
 		require.True(t, *createdChannel.BannerInfo.Enabled)
 		require.Equal(t, "banner text", *createdChannel.BannerInfo.Text)
-		require.Equal(t, "color", *createdChannel.BannerInfo.BackgroundColor)
+		require.Equal(t, "#dddddd", *createdChannel.BannerInfo.BackgroundColor)
 	})
 
 	t.Run("Cannot create channel with banner enabled but not configured", func(t *testing.T) {
@@ -767,7 +767,7 @@ func TestPatchChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         model.NewPointer(true),
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
@@ -799,7 +799,7 @@ func TestPatchChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         model.NewPointer(true),
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
@@ -831,7 +831,7 @@ func TestPatchChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         model.NewPointer(true),
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
@@ -841,7 +841,7 @@ func TestPatchChannel(t *testing.T) {
 		require.NotNil(t, patchedChannel.BannerInfo)
 		require.True(t, *patchedChannel.BannerInfo.Enabled)
 		require.Equal(t, "banner text", *patchedChannel.BannerInfo.Text)
-		require.Equal(t, "color", *patchedChannel.BannerInfo.BackgroundColor)
+		require.Equal(t, "#dddddd", *patchedChannel.BannerInfo.BackgroundColor)
 	})
 
 	t.Run("Should not be able to configure channel banner on a channel as a non-admin channel member", func(t *testing.T) {
@@ -856,7 +856,7 @@ func TestPatchChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         model.NewPointer(true),
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
@@ -877,7 +877,7 @@ func TestPatchChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         model.NewPointer(true),
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
@@ -887,7 +887,7 @@ func TestPatchChannel(t *testing.T) {
 		require.NotNil(t, patchedChannel.BannerInfo)
 		require.True(t, *patchedChannel.BannerInfo.Enabled)
 		require.Equal(t, "banner text", *patchedChannel.BannerInfo.Text)
-		require.Equal(t, "color", *patchedChannel.BannerInfo.BackgroundColor)
+		require.Equal(t, "#dddddd", *patchedChannel.BannerInfo.BackgroundColor)
 	})
 
 	t.Run("Cannot enable channel banner without configuring it", func(t *testing.T) {
@@ -923,7 +923,7 @@ func TestPatchChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         nil,
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
@@ -933,7 +933,7 @@ func TestPatchChannel(t *testing.T) {
 		require.NotNil(t, patchedChannel.BannerInfo)
 		require.Nil(t, patchedChannel.BannerInfo.Enabled)
 		require.Equal(t, "banner text", *patchedChannel.BannerInfo.Text)
-		require.Equal(t, "color", *patchedChannel.BannerInfo.BackgroundColor)
+		require.Equal(t, "#dddddd", *patchedChannel.BannerInfo.BackgroundColor)
 
 		patch = &model.ChannelPatch{
 			BannerInfo: &model.ChannelBannerInfo{
@@ -947,7 +947,7 @@ func TestPatchChannel(t *testing.T) {
 		require.NotNil(t, patchedChannel.BannerInfo)
 		require.True(t, *patchedChannel.BannerInfo.Enabled)
 		require.Equal(t, "banner text", *patchedChannel.BannerInfo.Text)
-		require.Equal(t, "color", *patchedChannel.BannerInfo.BackgroundColor)
+		require.Equal(t, "#dddddd", *patchedChannel.BannerInfo.BackgroundColor)
 	})
 
 	t.Run("Cannot configure channel banner on a DM channel", func(t *testing.T) {
@@ -966,7 +966,7 @@ func TestPatchChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         model.NewPointer(true),
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
@@ -994,7 +994,7 @@ func TestPatchChannel(t *testing.T) {
 			BannerInfo: &model.ChannelBannerInfo{
 				Enabled:         model.NewPointer(true),
 				Text:            model.NewPointer("banner text"),
-				BackgroundColor: model.NewPointer("color"),
+				BackgroundColor: model.NewPointer("#dddddd"),
 			},
 		}
 
diff --git a/server/i18n/en.json b/server/i18n/en.json
index 910b026d36..f1bbfc667a 100644
--- a/server/i18n/en.json
+++ b/server/i18n/en.json
@@ -8660,6 +8660,10 @@
     "id": "model.channel.is_valid.banner_info.background_color.empty.app_error",
     "translation": "Channel banner color cannot be empty when channel banner is enabled"
   },
+  {
+    "id": "model.channel.is_valid.banner_info.background_color.invalid.app_error",
+    "translation": "Channel banner color must be a valid hex color (e.g., #FF0000 or #F00)"
+  },
   {
     "id": "model.channel.is_valid.banner_info.channel_type.app_error",
     "translation": "Channel banner can only be configured on Public and Private channels"
diff --git a/server/public/model/channel.go b/server/public/model/channel.go
index 3693e3697d..087f52c4ab 100644
--- a/server/public/model/channel.go
+++ b/server/public/model/channel.go
@@ -17,6 +17,11 @@ import (
 	"unicode/utf8"
 )
 
+var (
+	// Validates both 3-digit (#RGB) and 6-digit (#RRGGBB) hex colors
+	channelHexColorRegex = regexp.MustCompile(`^#([0-9a-fA-F]{3}|[0-9a-fA-F]{6})$`)
+)
+
 type ChannelType string
 
 const (
@@ -312,6 +317,10 @@ func (o *Channel) IsValid() *AppError {
 		if o.BannerInfo.BackgroundColor == nil || len(*o.BannerInfo.BackgroundColor) == 0 {
 			return NewAppError("Channel.IsValid", "model.channel.is_valid.banner_info.background_color.empty.app_error", nil, "", http.StatusBadRequest)
 		}
+
+		if !channelHexColorRegex.MatchString(*o.BannerInfo.BackgroundColor) {
+			return NewAppError("Channel.IsValid", "model.channel.is_valid.banner_info.background_color.invalid.app_error", nil, "", http.StatusBadRequest)
+		}
 	}
 
 	return nil
diff --git a/server/public/model/channel_test.go b/server/public/model/channel_test.go
index 937241638f..36758bba6d 100644
--- a/server/public/model/channel_test.go
+++ b/server/public/model/channel_test.go
@@ -87,6 +87,68 @@ func TestChannelIsValid(t *testing.T) {
 	require.NotNil(t, o.IsValid())
 }
 
+func TestChannelBannerBackgroundColorValidation(t *testing.T) {
+	o := Channel{
+		Id:       NewId(),
+		CreateAt: GetMillis(),
+		UpdateAt: GetMillis(),
+		Name:     "valid-name",
+		Type:     ChannelTypeOpen,
+		Header:   "valid-header",
+		Purpose:  "valid-purpose",
+		BannerInfo: &ChannelBannerInfo{
+			Enabled: NewPointer(true),
+			Text:    NewPointer("Banner Text"),
+		},
+	}
+
+	// Test with nil background color
+	o.BannerInfo.BackgroundColor = nil
+	require.NotNil(t, o.IsValid())
+	require.Equal(t, "model.channel.is_valid.banner_info.background_color.empty.app_error", o.IsValid().Id)
+
+	// Test with empty background color
+	o.BannerInfo.BackgroundColor = NewPointer("")
+	require.NotNil(t, o.IsValid())
+	require.Equal(t, "model.channel.is_valid.banner_info.background_color.empty.app_error", o.IsValid().Id)
+
+	// Test with invalid background color (no # prefix)
+	o.BannerInfo.BackgroundColor = NewPointer("FF0000")
+	require.NotNil(t, o.IsValid())
+	require.Equal(t, "model.channel.is_valid.banner_info.background_color.invalid.app_error", o.IsValid().Id)
+
+	// Test with invalid background color (invalid characters)
+	o.BannerInfo.BackgroundColor = NewPointer("#GGGGGG")
+	require.NotNil(t, o.IsValid())
+	require.Equal(t, "model.channel.is_valid.banner_info.background_color.invalid.app_error", o.IsValid().Id)
+
+	// Test with invalid background color (wrong length)
+	o.BannerInfo.BackgroundColor = NewPointer("#FF00")
+	require.NotNil(t, o.IsValid())
+	require.Equal(t, "model.channel.is_valid.banner_info.background_color.invalid.app_error", o.IsValid().Id)
+
+	// Test with invalid background color (wrong length)
+	o.BannerInfo.BackgroundColor = NewPointer("#FF00000")
+	require.NotNil(t, o.IsValid())
+	require.Equal(t, "model.channel.is_valid.banner_info.background_color.invalid.app_error", o.IsValid().Id)
+
+	// Test with valid 6-digit hex color
+	o.BannerInfo.BackgroundColor = NewPointer("#FF0000")
+	require.Nil(t, o.IsValid())
+
+	// Test with valid 6-digit hex color (lowercase)
+	o.BannerInfo.BackgroundColor = NewPointer("#ff0000")
+	require.Nil(t, o.IsValid())
+
+	// Test with valid 3-digit hex color
+	o.BannerInfo.BackgroundColor = NewPointer("#F00")
+	require.Nil(t, o.IsValid())
+
+	// Test with valid 3-digit hex color (lowercase)
+	o.BannerInfo.BackgroundColor = NewPointer("#f00")
+	require.Nil(t, o.IsValid())
+}
+
 func TestChannelPreSave(t *testing.T) {
 	o := Channel{Name: "test"}
 	o.PreSave()
diff --git a/webapp/channels/src/components/channel_settings_modal/channel_settings_configuration_tab.test.tsx b/webapp/channels/src/components/channel_settings_modal/channel_settings_configuration_tab.test.tsx
index ec2b1a4710..80d593f7ce 100644
--- a/webapp/channels/src/components/channel_settings_modal/channel_settings_configuration_tab.test.tsx
+++ b/webapp/channels/src/components/channel_settings_modal/channel_settings_configuration_tab.test.tsx
@@ -337,4 +337,101 @@ describe('ChannelSettingsConfigurationTab', () => {
         const errorPanel = errorMessage.closest('.SaveChangesPanel');
         expect(errorPanel).toHaveClass('error');
     });
+
+    it('should save valid colors in hex format', async () => {
+        const {patchChannel} = require('mattermost-redux/actions/channels');
+        patchChannel.mockReturnValue({type: 'MOCK_ACTION', data: {}});
+
+        renderWithContext(<ChannelSettingsConfigurationTab {...baseProps}/>);
+
+        // Enable the banner
+        await act(async () => {
+            await userEvent.click(screen.getByTestId('channelBannerToggle-button'));
+        });
+
+        // Enter banner text
+        await act(async () => {
+            const textInput = screen.getByTestId('channel_banner_banner_text_textbox');
+            await userEvent.clear(textInput);
+            await userEvent.type(textInput, 'New banner text');
+        });
+
+        // Enter a valid hex color
+        await act(async () => {
+            const colorInput = screen.getByTestId('color-inputColorValue');
+            await userEvent.clear(colorInput);
+            await userEvent.type(colorInput, '#ff0000');
+        });
+
+        // Click the Save button
+        await act(async () => {
+            await userEvent.click(screen.getByRole('button', {name: 'Save'}));
+        });
+
+        // Verify patchChannel was called with the correct color
+        expect(patchChannel).toHaveBeenCalledWith('channel1', expect.objectContaining({
+            banner_info: expect.objectContaining({
+                background_color: expect.stringMatching(/#[0-9a-f]{6}/i), // Match any hex color
+            }),
+        }));
+    });
+
+    it('only valid colors will make the save changes panel visible', async () => {
+        const {patchChannel} = require('mattermost-redux/actions/channels');
+        patchChannel.mockReturnValue({type: 'MOCK_ACTION', data: {}});
+        patchChannel.mockClear(); // Clear any previous calls
+
+        const originalColor = '#DDDDDD'; // Original color
+
+        // Create a channel with an valid color
+        const channelWithValidColor = {
+            ...mockChannel,
+            banner_info: {
+                enabled: true,
+                text: 'Test text',
+                background_color: originalColor, // Valid color
+            },
+        };
+
+        // Render with the invalid color channel
+        renderWithContext(
+            <ChannelSettingsConfigurationTab
+                channel={channelWithValidColor}
+                setAreThereUnsavedChanges={jest.fn()}
+            />,
+        );
+
+        // Enter a invalid hex color
+        await act(async () => {
+            const colorInput = screen.getByTestId('color-inputColorValue');
+            await userEvent.clear(colorInput);
+            await userEvent.type(colorInput, 'not-a-color');
+        });
+
+        // Do another action to trigger blur on this input so color is validated
+        await act(async () => {
+            const textInput = screen.getByTestId('channel_banner_banner_text_textbox');
+            await userEvent.clear(textInput);
+            await userEvent.type(textInput, 'Test text');
+        });
+
+        // if invalid, the color automatically returns to the original color
+        expect(screen.getByTestId('color-inputColorValue')).toHaveValue(originalColor);
+
+        // Check that the save changes panel is not visible
+        expect(screen.queryByRole('button', {name: 'Save'})).not.toBeInTheDocument();
+
+        // Modify the color to a valid one
+        await act(async () => {
+            const colorInput = screen.getByTestId('color-inputColorValue');
+            await userEvent.clear(colorInput);
+            await userEvent.type(colorInput, '#123456');
+        });
+
+        // Add a small delay to ensure all state updates are processed
+        await new Promise((resolve) => setTimeout(resolve, 0));
+
+        // Check that the save changes panel is visible
+        expect(screen.getByRole('button', {name: 'Save'})).toBeInTheDocument();
+    });
 });