Colored diamonds belong to a kind of extremely rare ore resources and gemstone wealth. This paper describes in detail the main producing areas of colored diamonds in China and the geological characteristics of the orebodies and, from the angles of primary deposit and placer, deals with geological characteristics of colored diamond orebodies in such provinces as Shandong, Liaoning, Hunan and Guizhou. According to the results achieved, China's colored diamonds are characterized by extremely rare content, varying crystal completeness, existence of inclusions in most diamonds, well-developed crystal corrosion and high transparency. China's colored diamonds represented by those from Shandong have relatively large grain sizes and hence can be applied as high-end gemstones. It is also pointed out that the value of China's colored diamonds has not been fundamentally tapped, and their market value has not been fully manifested yet.