In view of the difficulty of distinguishing the color component in top dyed melange yarn due to the spectral overlap of the component colors, a novel color component analysis method based on support vector machine is presented. With this method, spectra data can be distinguished more accurately and effectively than with the traditional method-human-eye detection-and therefore, the method will be very helpful for accurate color matching. In our work, the core idea was to convert the overlapped spectra data into linearly separable ones in a high dimension space, followed by recognition and determination of the composition of melange yarn by trained support vector machine classifier. The effects of four kernel functions, i.e., linear, radial basis kernel, sigmoid, and polynomial, as well as five spectral preprocessing methods, including amplification, first derivative, second derivative, principal components analysis, and L*a*b* values were studied. The results demonstrated that with the amplification factor of 100 of reflectance spectra coupled with L*a*b* as input data, and using radial basis kernel as kernel function, the highest recognition rate was achieved, with an average recognition rate of eight colors of 96.5%, indicating that it was a better color component analysis method for top dyed melange yarn.