The jadeite jade in Guatemala exerts remarkable commercial quality, which has attracted wide attention. Guatemalan jadeite jade displays a rich variety of colors; however, the color formation of this jadeite jade has not been systematically investigated to date. In this paper, we study different colors of jade samples to trace the compositions and color-causing mechanisms through petrography, X-ray fluorescence spectroscopy (XRF), Fourier transform infrared spectroscopy (FTIR), laser Raman spectroscopy (LRS), and UV-visible absorption spectroscopy (UV-Vis), as well as electron probe microanalysis (EPMA). The results show that jadeite and omphacite are the main mineral compositions of Guatemalan jadeite jade, together with minor albite and other impurities. The color of Guatemala jadeite jade is mainly related to Cr3+, Fe2+, and Fe3+, of which a small amount of Cr3+ causes the jadeite jade to be emerald green. Moreover, 1~2% FeO contents can lead to the blue or gray color of the samples, while the Fe3+ makes the sample dark green. The green color of some Cr3+-free jadeite is caused by the electron transition between bands of Fe3+, and the green color is related to the iron content. Moreover, the chemical composition analysis shows that some metallic elements existed in Guatemalan jadeite jade, such as Ca, Ti, Al, Si, Ni, Fe, Mn, Cr, Na, Mg, and Sr, and some trace elements were lost or unevenly distributed, which may lead to the heterogeneity of the color of the samples. Our present investigation provides insights into color discrimination, quality evaluation, and identification of Guatemala jadeite jade.