Color transition mechanism of shikonin as an acid-alkali indicator was studied. It was confirmed that the presence of phenolic hydroxy radical was essential for the color change of shikonin. But in accordance with shikonin sodium salt (blue color), which was presumed to make chelation as six membered rings. Shikonin in alkaline solution, by dissociated phenolic protons of naphthoquinone nucleous, converted to the corresponding anion and instead of disappearance tautomerization, electron delocalization occurred and an additional pair of nonbonding electrons in the anion was available for interaction with .phi. electron system of the ring with further extension of the conjugation. It was responsible for its blue color(corresponding color: orange) with needs less energy difference (${phi}{ arw}{phi}^{*}$) because of conjugation extension. Shikonin sodium salt seems to have similar nuclear structure as shikonin anion.