An electro-optic medium that may be incorporated into an electro-optic display. The medium includes a first microcapsule containing at least one of a first dispersion of colored particles and a colored fluid and an encapsulated second dispersion that may include the first microcapsule and a plurality of electrophoretic particles. The colored particles of the first dispersion may include one or more sets of differently colored electrophoretic particles. The second dispersion may be encapsulated within a second microcapsule or a microcell, for example.