diff --git a/packages/roosterjs-content-model-plugins/lib/watermark/WatermarkPlugin.ts b/packages/roosterjs-content-model-plugins/lib/watermark/WatermarkPlugin.ts
index b09eef7ee89..c64f3cfe3a8 100644
--- a/packages/roosterjs-content-model-plugins/lib/watermark/WatermarkPlugin.ts
+++ b/packages/roosterjs-content-model-plugins/lib/watermark/WatermarkPlugin.ts
@@ -1,4 +1,4 @@
-import { getObjectKeys } from 'roosterjs-content-model-dom';
+import { ChangeSource, getObjectKeys } from 'roosterjs-content-model-dom';
 import { isModelEmptyFast } from './isModelEmptyFast';
 import type { WatermarkFormat } from './WatermarkFormat';
 import type { EditorPlugin, IEditor, PluginEvent } from 'roosterjs-content-model-types';
@@ -17,6 +17,7 @@ export class WatermarkPlugin implements EditorPlugin {
     private editor: IEditor | null = null;
     private format: WatermarkFormat;
     private isShowing = false;
+    private darkTextColor: string | null = null;
 
     /**
      * Create an instance of Watermark plugin
@@ -68,6 +69,25 @@ export class WatermarkPlugin implements EditorPlugin {
         ) {
             // When input text, editor must not be empty, so we can do hide watermark now without checking content model
             this.showHide(editor, false /*isEmpty*/);
+        } else if (
+            event.eventType == 'contentChanged' &&
+            (event.source == ChangeSource.SwitchToDarkMode ||
+                event.source == ChangeSource.SwitchToLightMode) &&
+            this.isShowing
+        ) {
+            // When the placeholder is shown and user switches the mode, we need to update watermark style
+            if (
+                event.source == ChangeSource.SwitchToDarkMode &&
+                !this.darkTextColor &&
+                this.format.textColor
+            ) {
+                // Get the dark color only once when dark mode is enabled for the first time
+                this.darkTextColor = editor
+                    .getColorManager()
+                    .getDarkColor(this.format.textColor, undefined, 'text');
+            }
+
+            this.applyWatermarkStyle(editor);
         } else if (
             event.eventType == 'editorReady' ||
             event.eventType == 'contentChanged' ||
@@ -93,17 +113,24 @@ export class WatermarkPlugin implements EditorPlugin {
     }
 
     protected show(editor: IEditor) {
+        this.applyWatermarkStyle(editor);
+        this.isShowing = true;
+    }
+
+    private applyWatermarkStyle(editor: IEditor) {
         let rule = `position: absolute; pointer-events: none; content: "${this.watermark}";`;
+        const format = {
+            ...this.format,
+            textColor: editor.isDarkMode() ? this.darkTextColor : this.format.textColor,
+        };
 
         getObjectKeys(styleMap).forEach(x => {
-            if (this.format[x]) {
-                rule += `${styleMap[x]}: ${this.format[x]}!important;`;
+            if (format[x]) {
+                rule += `${styleMap[x]}: ${format[x]}!important;`;
             }
         });
 
         editor.setEditorStyle(WATERMARK_CONTENT_KEY, rule, 'before');
-
-        this.isShowing = true;
     }
 
     protected hide(editor: IEditor) {
diff --git a/packages/roosterjs-content-model-plugins/test/watermark/WatermarkPluginTest.ts b/packages/roosterjs-content-model-plugins/test/watermark/WatermarkPluginTest.ts
index 66fe12c49ab..220c26ca261 100644
--- a/packages/roosterjs-content-model-plugins/test/watermark/WatermarkPluginTest.ts
+++ b/packages/roosterjs-content-model-plugins/test/watermark/WatermarkPluginTest.ts
@@ -1,4 +1,5 @@
 import * as isModelEmptyFast from '../../lib/watermark/isModelEmptyFast';
+import { ChangeSource } from 'roosterjs-content-model-dom';
 import { IEditor } from 'roosterjs-content-model-types';
 import { WatermarkPlugin } from '../../lib/watermark/WatermarkPlugin';
 
@@ -24,6 +25,7 @@ describe('WatermarkPlugin', () => {
         editor = {
             formatContentModel: formatContentModelSpy,
             setEditorStyle: setEditorStyleSpy,
+            isDarkMode: () => false,
         } as any;
     });
 
@@ -143,3 +145,113 @@ describe('WatermarkPlugin', () => {
         expect(setEditorStyleSpy).toHaveBeenCalledTimes(2);
     });
 });
+
+describe('WatermarkPlugin dark mode', () => {
+    let editor: IEditor;
+    let formatContentModelSpy: jasmine.Spy;
+    let isModelEmptyFastSpy: jasmine.Spy;
+    let setEditorStyleSpy: jasmine.Spy;
+    let getDarkColorSpy: jasmine.Spy;
+    let isDarkModeSpy: jasmine.Spy;
+    const DEFAULT_DARK_COLOR_SUFFIX_COLOR = 'DarkColorMock-';
+
+    const mockedModel = 'Model' as any;
+
+    beforeEach(() => {
+        isModelEmptyFastSpy = spyOn(isModelEmptyFast, 'isModelEmptyFast');
+        setEditorStyleSpy = jasmine.createSpy('setEditorStyle');
+        getDarkColorSpy = jasmine.createSpy('getDarkColor');
+        isDarkModeSpy = jasmine.createSpy('isDarkMode');
+
+        formatContentModelSpy = jasmine
+            .createSpy('formatContentModel')
+            .and.callFake((callback: Function) => {
+                const result = callback(mockedModel);
+
+                expect(result).toBeFalse();
+            });
+
+        editor = {
+            formatContentModel: formatContentModelSpy,
+            setEditorStyle: setEditorStyleSpy,
+            isDarkMode: isDarkModeSpy,
+            getColorManager: () => ({
+                getDarkColor: getDarkColorSpy.and.callFake((color: string) => {
+                    return `${DEFAULT_DARK_COLOR_SUFFIX_COLOR}${color}`;
+                }),
+            }),
+        } as any;
+    });
+
+    it('Has format, empty editor, with text', () => {
+        isModelEmptyFastSpy.and.returnValue(true);
+        const textColor = 'red';
+        const plugin = new WatermarkPlugin('test', {
+            fontFamily: 'Arial',
+            fontSize: '20pt',
+            textColor: textColor,
+        });
+        const darkModeStyles = `position: absolute; pointer-events: none; content: "test";font-family: Arial!important;font-size: 20pt!important;color: ${DEFAULT_DARK_COLOR_SUFFIX_COLOR}${textColor}!important;`;
+        const lightModeStyles = `position: absolute; pointer-events: none; content: "test";font-family: Arial!important;font-size: 20pt!important;color: red!important;`;
+
+        plugin.initialize(editor);
+
+        plugin.onPluginEvent({ eventType: 'editorReady' });
+
+        expect(formatContentModelSpy).toHaveBeenCalledTimes(1);
+        expect(setEditorStyleSpy).toHaveBeenCalledTimes(1);
+        expect(setEditorStyleSpy).toHaveBeenCalledWith(
+            '_WatermarkContent',
+            lightModeStyles,
+            'before'
+        );
+        expect(getDarkColorSpy).not.toHaveBeenCalled();
+        isDarkModeSpy.and.returnValue(true);
+        plugin.onPluginEvent({
+            eventType: 'contentChanged',
+            source: ChangeSource.SwitchToDarkMode,
+            rawEvent: {},
+        } as any);
+
+        expect(formatContentModelSpy).toHaveBeenCalledTimes(1);
+        expect(getDarkColorSpy).toHaveBeenCalledTimes(1);
+        expect(setEditorStyleSpy).toHaveBeenCalledTimes(2);
+        expect(setEditorStyleSpy).toHaveBeenCalledWith(
+            '_WatermarkContent',
+            darkModeStyles,
+            'before'
+        );
+
+        isDarkModeSpy.and.returnValue(false);
+        plugin.onPluginEvent({
+            eventType: 'contentChanged',
+            source: ChangeSource.SwitchToLightMode,
+            rawEvent: {},
+        } as any);
+
+        expect(formatContentModelSpy).toHaveBeenCalledTimes(1);
+        expect(getDarkColorSpy).toHaveBeenCalledTimes(1);
+        expect(setEditorStyleSpy).toHaveBeenCalledTimes(3);
+        expect(setEditorStyleSpy).toHaveBeenCalledWith(
+            '_WatermarkContent',
+            lightModeStyles,
+            'before'
+        );
+
+        isDarkModeSpy.and.returnValue(true);
+        plugin.onPluginEvent({
+            eventType: 'contentChanged',
+            source: ChangeSource.SwitchToDarkMode,
+            rawEvent: {},
+        } as any);
+
+        expect(formatContentModelSpy).toHaveBeenCalledTimes(1);
+        expect(getDarkColorSpy).toHaveBeenCalledTimes(1);
+        expect(setEditorStyleSpy).toHaveBeenCalledTimes(4);
+        expect(setEditorStyleSpy).toHaveBeenCalledWith(
+            '_WatermarkContent',
+            darkModeStyles,
+            'before'
+        );
+    });
+});
diff --git a/versions.json b/versions.json
index d1b1d566ec0..c0a39e64585 100644
--- a/versions.json
+++ b/versions.json
@@ -2,5 +2,7 @@
     "react": "9.0.0",
     "main": "9.6.0",
     "legacyAdapter": "8.62.0",
-    "overrides": {}
+    "overrides": {
+        "roosterjs-content-model-plugins": "9.6.1"
+    }
 }