Animals from a wide range of taxonomic groups are capable of colour change, of which camouflage is one of the main functions. A considerable amount of past work on this subject has investigated species capable of extremely rapid colour change (in seconds). However, relatively slow colour change (over hours, days, weeks and months), as well as changes arising via developmental plasticity are probably more common than rapid changes, yet less studied. We discuss three key areas of colour change and camouflage. First, we review the mechanisms underpinning colour change and developmental plasticity for camouflage, including cellular processes, visual feedback, hormonal control and dietary factors. Second, we discuss the adaptive value of colour change for camouflage, including the use of different camouflage types. Third, we discuss the evolutionary–ecological implications of colour change for concealment, including what it can tell us about intraspecific colour diversity, morph-specific strategies, and matching to different environments and microhabitats. Throughout, we discuss key unresolved questions and present directions for future work, and highlight how colour change facilitates camouflage among habitats and arises when animals are faced with environmental changes occurring over a range of spatial and temporal scales.This article is part of the themed issue ‘Animal coloration: production, perception, function and application’.