diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index f53a991..dde8588 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -16,6 +16,9 @@ lualine theme at lua/lualine/themes/{your_colorscheme}.lua in you repo.
 
 To create a custom theme you need to define a colorscheme for each of vim's modes. Each mode has a `fg` and `bg` field for every lualine section.
 To specify colors you can use #rrggbb/color_name(like: red)/cterm_color(0-255).
+Instead of defining colors as table containing values you can define it as a
+string. This string is considered a highlight group name and lualines highlight
+is linked to that group.
 You can add special effects with `gui`.
 
 Though the example shows a,b,c being set you can specify theme for x, y, z too.
diff --git a/lua/lualine/component.lua b/lua/lualine/component.lua
index 88333ef..b52511b 100644
--- a/lua/lualine/component.lua
+++ b/lua/lualine/component.lua
@@ -39,13 +39,11 @@ local Component = {
 
   create_option_highlights = function(self)
     -- set custom highlights
-    if type(self.options.color) == 'table' then
+    if self.options.color then
       self.options.color_highlight = highlight.create_component_highlight_group(
                                          self.options.color,
                                          self.options.component_name,
                                          self.options)
-    elseif type(self.options.color) == 'string' then
-      self.options.color_highlight_link = self.options.color
     end
   end,
 
@@ -84,9 +82,6 @@ local Component = {
     if self.options.color_highlight then
       self.status = highlight.component_format_highlight(
                         self.options.color_highlight) .. self.status
-    elseif self.options.color_highlight_link then
-      self.status = '%#' .. self.options.color_highlight_link .. '#' ..
-                        self.status
     end
     self.status = self.status .. default_highlight
   end,
diff --git a/lua/lualine/components/diagnostics.lua b/lua/lualine/components/diagnostics.lua
index ff92aae..51b6446 100644
--- a/lua/lualine/components/diagnostics.lua
+++ b/lua/lualine/components/diagnostics.lua
@@ -2,6 +2,7 @@
 -- MIT license, see LICENSE for more details.
 local highlight = require('lualine.highlight')
 local utils = require('lualine.utils.utils')
+local utils_notices = require('lualine.utils.notices')
 
 local Diagnostics = require('lualine.component'):new()
 
@@ -14,6 +15,34 @@ Diagnostics.default_colors = {
 }
 -- LuaFormatter on
 
+local function color_deprecation_notice(color, opt_name)
+  utils_notices.add_notice(string.format([[
+### Diagnostics component
+Using option `%s` as string to set foreground color has been deprecated
+and will soon be removed. Now this option has same semantics as regular
+`color` option for components. Means now you can set bg/fg or both.
+String value is still valid but it's interpreted differemtly. When a
+string is used for this option it's treated as a highlight group name.
+In that case `%s` will be linked to that highlight group.
+
+You have something like this in your config.
+
+```lua
+  {'diagnostics',
+    %s = '%s',
+  }
+```
+
+You'll have to change it to this to retain previous behavior
+
+```lua
+  {'diagnostics',
+    %s = { fg = '%s'},
+  }
+```
+]], opt_name, opt_name, opt_name, color, opt_name, color))
+end
+
 -- Initializer
 Diagnostics.new = function(self, options, child)
   local new_diagnostics = self._parent:new(options, child or Diagnostics)
@@ -41,43 +70,59 @@ Diagnostics.new = function(self, options, child)
   new_diagnostics.last_update = ''
   -- apply colors
   if not new_diagnostics.options.color_error then
-    new_diagnostics.options.color_error =
+    new_diagnostics.options.color_error = {fg =
         utils.extract_highlight_colors('LspDiagnosticsDefaultError', 'fg') or
             utils.extract_highlight_colors('DiffDelete', 'fg') or
-            Diagnostics.default_colors.error
+            Diagnostics.default_colors.error }
+  elseif type(new_diagnostics.options.color_error) == 'string'
+    and vim.fn.hlexists(new_diagnostics.options.color_error) == 0 then
+    new_diagnostics.options.color_error = {fg = new_diagnostics.options.color_error}
+    color_deprecation_notice(new_diagnostics.options.color_error.fg, 'color_error')
   end
   if not new_diagnostics.options.color_warn then
-    new_diagnostics.options.color_warn =
+    new_diagnostics.options.color_warn = {fg =
         utils.extract_highlight_colors('LspDiagnosticsDefaultWarning', 'fg') or
             utils.extract_highlight_colors('DiffText', 'fg') or
-            Diagnostics.default_colors.warn
+            Diagnostics.default_colors.warn }
+  elseif type(new_diagnostics.options.color_warn) == 'string'
+    and vim.fn.hlexists(new_diagnostics.options.color_warn) == 0 then
+    new_diagnostics.options.color_warn = {fg = new_diagnostics.options.color_warn}
+    color_deprecation_notice(new_diagnostics.options.color_warn.fg, 'color_warn')
   end
   if not new_diagnostics.options.color_info then
-    new_diagnostics.options.color_info =
+    new_diagnostics.options.color_info = {fg =
         utils.extract_highlight_colors('LspDiagnosticsDefaultInformation', 'fg') or
             utils.extract_highlight_colors('Normal', 'fg') or
-            Diagnostics.default_colors.info
+            Diagnostics.default_colors.info}
+  elseif type(new_diagnostics.options.color_info) == 'string'
+    and vim.fn.hlexists(new_diagnostics.options.color_info) == 0 then
+    new_diagnostics.options.color_info = {fg = new_diagnostics.options.color_info}
+    color_deprecation_notice(new_diagnostics.options.color_info.fg, 'color_info')
   end
   if not new_diagnostics.options.color_hint then
-    new_diagnostics.options.color_hint =
+    new_diagnostics.options.color_hint = {fg =
         utils.extract_highlight_colors('LspDiagnosticsDefaultHint', 'fg') or
             utils.extract_highlight_colors('DiffChange', 'fg') or
-            Diagnostics.default_colors.hint
+            Diagnostics.default_colors.hint}
+  elseif type(new_diagnostics.options.color_hint) == 'string'
+    and vim.fn.hlexists(new_diagnostics.options.color_hint) == 0 then
+    new_diagnostics.options.color_hint = {fg = new_diagnostics.options.color_hint}
+    color_deprecation_notice(new_diagnostics.options.color_hint.fg, 'color_hint')
   end
 
   if new_diagnostics.options.colored then
     new_diagnostics.highlight_groups = {
       error = highlight.create_component_highlight_group(
-          {fg = new_diagnostics.options.color_error}, 'diagnostics_error',
+          new_diagnostics.options.color_error, 'diagnostics_error',
           new_diagnostics.options),
       warn = highlight.create_component_highlight_group(
-          {fg = new_diagnostics.options.color_warn}, 'diagnostics_warn',
+          new_diagnostics.options.color_warn, 'diagnostics_warn',
           new_diagnostics.options),
       info = highlight.create_component_highlight_group(
-          {fg = new_diagnostics.options.color_info}, 'diagnostics_info',
+          new_diagnostics.options.color_info, 'diagnostics_info',
           new_diagnostics.options),
       hint = highlight.create_component_highlight_group(
-          {fg = new_diagnostics.options.color_hint}, 'diagnostics_hint',
+          new_diagnostics.options.color_hint, 'diagnostics_hint',
           new_diagnostics.options)
     }
   end
diff --git a/lua/lualine/components/diff.lua b/lua/lualine/components/diff.lua
index 1a18459..57b6bfb 100644
--- a/lua/lualine/components/diff.lua
+++ b/lua/lualine/components/diff.lua
@@ -1,6 +1,7 @@
 -- Copyright (c) 2020-2021 shadmansaleh
 -- MIT license, see LICENSE for more details.
 local utils = require 'lualine.utils.utils'
+local utils_notices = require('lualine.utils.notices')
 local highlight = require 'lualine.highlight'
 local Job = require'lualine.utils.job'
 
@@ -22,6 +23,33 @@ Diff.default_colors = {
 
 local diff_cache = {} -- Stores last known value of diff of a buffer
 
+local function color_deprecation_notice(color, opt_name)
+  utils_notices.add_notice(string.format([[
+### Diff component
+Using option `%s` as string to set foreground color has been deprecated
+and will soon be removed. Now this option has same semantics as regular
+`color` option for components. Means now you can set bg/fg or both.
+String value is still valid but it's interpreted differemtly. When a
+string is used for this option it's treated as a highlight group name.
+In that case `%s` will be linked to that highlight group.
+
+You have something like this in your config.
+
+```lua
+  {'diff',
+    %s = '%s',
+  }
+```
+
+You'll have to change it to this to retain previous behavior
+
+```lua
+  {'diff',
+    %s = { fg = '%s'},
+  }
+```
+]], opt_name, opt_name, opt_name, color, opt_name, color))
+end
 -- Initializer
 Diff.new = function(self, options, child)
   local new_instance = self._parent:new(options, child or Diff)
@@ -34,32 +62,44 @@ Diff.new = function(self, options, child)
   end
   -- apply colors
   if not new_instance.options.color_added then
-    new_instance.options.color_added = utils.extract_highlight_colors('DiffAdd',
-                                                                      'fg') or
-                                           Diff.default_colors.added
+    new_instance.options.color_added = {fg =
+      utils.extract_highlight_colors('DiffAdd', 'fg') or
+          Diff.default_colors.added}
+  elseif type(new_instance.options.color_added) == 'string'
+    and vim.fn.hlexists(new_instance.options.color_added) == 0 then
+    new_instance.options.color_added = {fg = new_instance.options.color_added}
+    color_deprecation_notice(new_instance.options.color_added.fg, 'color_added')
   end
   if not new_instance.options.color_modified then
-    new_instance.options.color_modified =
+    new_instance.options.color_modified = {fg =
         utils.extract_highlight_colors('DiffChange', 'fg') or
-            Diff.default_colors.modified
+            Diff.default_colors.modified}
+  elseif type(new_instance.options.color_modified) == 'string'
+    and vim.fn.hlexists(new_instance.options.color_modified) == 0 then
+    new_instance.options.color_modified = {fg = new_instance.options.color_modified}
+    color_deprecation_notice(new_instance.options.color_modified.fg, 'color_modified')
   end
   if not new_instance.options.color_removed then
-    new_instance.options.color_removed =
+    new_instance.options.color_removed = {fg =
         utils.extract_highlight_colors('DiffDelete', 'fg') or
-            Diff.default_colors.removed
+            Diff.default_colors.removed}
+  elseif type(new_instance.options.color_removed) == 'string'
+    and vim.fn.hlexists(new_instance.options.color_removed) == 0 then
+    new_instance.options.color_removed = {fg = new_instance.options.color_removed}
+    color_deprecation_notice(new_instance.options.color_removed.fg, 'color_removed')
   end
 
   -- create highlights and save highlight_name in highlights table
   if new_instance.options.colored then
     new_instance.highlights = {
       added = highlight.create_component_highlight_group(
-          {fg = new_instance.options.color_added}, 'diff_added',
+          new_instance.options.color_added, 'diff_added',
           new_instance.options),
       modified = highlight.create_component_highlight_group(
-          {fg = new_instance.options.color_modified}, 'diff_modified',
+          new_instance.options.color_modified, 'diff_modified',
           new_instance.options),
       removed = highlight.create_component_highlight_group(
-          {fg = new_instance.options.color_removed}, 'diff_removed',
+          new_instance.options.color_removed, 'diff_removed',
           new_instance.options)
     }
   end
diff --git a/lua/lualine/highlight.lua b/lua/lualine/highlight.lua
index c39f69e..b9b3f63 100644
--- a/lua/lualine/highlight.lua
+++ b/lua/lualine/highlight.lua
@@ -20,31 +20,36 @@ local function sanitize_color(color)
   end
 end
 
-function M.highlight(name, foreground, background, gui, reload)
-  foreground = sanitize_color(foreground)
-  background = sanitize_color(background)
-  local command = {'highlight', name}
-  if foreground and foreground ~= 'none' then
-    table.insert(command, 'guifg=' .. foreground)
-    if cterm_colors then
-      table.insert(command,
-                   'ctermfg=' .. cterm_colors.get_cterm_color(foreground))
+function M.highlight(name, foreground, background, gui, link, reload)
+  local command = {'highlight!'}
+  if link and #link > 0 then
+    vim.list_extend(command, {'link', name, link})
+  else
+    foreground = sanitize_color(foreground)
+    background = sanitize_color(background)
+    table.insert(command, name)
+    if foreground and foreground ~= 'none' then
+      table.insert(command, 'guifg=' .. foreground)
+      if cterm_colors then
+        table.insert(command,
+                     'ctermfg=' .. cterm_colors.get_cterm_color(foreground))
+      end
     end
-  end
-  if background and background ~= 'none' then
-    table.insert(command, 'guibg=' .. background)
-    if cterm_colors then
-      table.insert(command,
-                   'ctermbg=' .. cterm_colors.get_cterm_color(background))
+    if background and background ~= 'none' then
+      table.insert(command, 'guibg=' .. background)
+      if cterm_colors then
+        table.insert(command,
+                     'ctermbg=' .. cterm_colors.get_cterm_color(background))
+      end
+    end
+    if gui then
+      table.insert(command, 'cterm=' .. gui)
+      table.insert(command, 'gui=' .. gui)
     end
-  end
-  if gui then
-    table.insert(command, 'cterm=' .. gui)
-    table.insert(command, 'gui=' .. gui)
   end
   vim.cmd(table.concat(command, ' '))
   if not reload then
-    utils.save_highlight(name, {name, foreground, background, gui, true})
+    utils.save_highlight(name, {name, foreground, background, gui, link, true})
   end
 end
 
@@ -55,10 +60,15 @@ function M.create_highlight_groups(theme)
     cterm_colors = require 'lualine.utils.cterm_colors'
   end
   for mode, sections in pairs(theme) do
-    for section, colorscheme in pairs(sections) do
+    for section, color in pairs(sections) do
       local highlight_group_name = {'lualine', section, mode}
-      M.highlight(table.concat(highlight_group_name, '_'), colorscheme.fg,
-                  colorscheme.bg, colorscheme.gui)
+      if type(color) == 'string' then -- link to a highlight group
+        M.highlight(table.concat(highlight_group_name, '_'), nil,
+                    nil, nil, color)
+      else -- Define a new highlight
+        M.highlight(table.concat(highlight_group_name, '_'), color.fg,
+                    color.bg, color.gui, nil)
+      end
     end
   end
 end
@@ -105,12 +115,18 @@ function M.create_component_highlight_group(color, highlight_tag, options)
     highlight_tag = highlight_tag .. '_' .. tostring(tag_id)
     tag_id = tag_id + 1
   end
+  if type(color) == 'string' then
+    local highlight_group_name = table.concat(
+                                     {'lualine', highlight_tag, 'no_mode'}, '_')
+    M.highlight(highlight_group_name, nil, nil, nil, color) -- l8nk to group
+    return highlight_group_name
+  end
   if color.bg and color.fg then
     -- When bg and fg are both present we donn't need to set highlighs for
     -- each mode as they will surely look the same. So we can work without options
     local highlight_group_name = table.concat(
                                      {'lualine', highlight_tag, 'no_mode'}, '_')
-    M.highlight(highlight_group_name, color.fg, color.bg, color.gui)
+    M.highlight(highlight_group_name, color.fg, color.bg, color.gui, nil)
     return highlight_group_name
   end
 
@@ -134,11 +150,13 @@ function M.create_component_highlight_group(color, highlight_tag, options)
     -- Check if it's same as normal mode if it is no need to create aditional highlight
     if mode ~= 'normal' then
       if bg ~= normal_hl.bg or fg ~= normal_hl.fg then
-        M.highlight(table.concat(highlight_group_name, '_'), fg, bg, color.gui)
+        M.highlight(table.concat(highlight_group_name, '_'), fg, bg, color.gui,
+                    nil)
       end
     else
       normal_hl = {bg = bg, fg = fg}
-      M.highlight(table.concat(highlight_group_name, '_'), fg, bg, color.gui)
+      M.highlight(table.concat(highlight_group_name, '_'), fg, bg, color.gui,
+                  nil)
     end
   end
   return options.self.section .. '_' .. highlight_tag
@@ -238,7 +256,7 @@ function M.get_transitional_highlights(left_section_data, right_section_data,
     if reverse then fg, bg = bg, fg end
     if not fg or not bg then return '' end -- Color retrieval failed
     if bg == fg then return '' end -- Separatoe won't be visible anyway
-    M.highlight(highlight_name, fg, bg)
+    M.highlight(highlight_name, fg, bg, nil)
   end
   return '%#' .. highlight_name .. '#'
 end
diff --git a/lua/lualine/init.lua b/lua/lualine/init.lua
index f56f9a6..a2574eb 100644
--- a/lua/lualine/init.lua
+++ b/lua/lualine/init.lua
@@ -4,6 +4,7 @@ local highlight = require('lualine.highlight')
 local loader = require('lualine.utils.loader')
 local utils_section = require('lualine.utils.section')
 local utils = require('lualine.utils.utils')
+local utils_notices = require('lualine.utils.notices')
 local config_module = require('lualine.config')
 
 local config = config_module.config
@@ -218,12 +219,14 @@ local function setup_augroup()
 end
 
 local function setup(user_config)
+  utils_notices.clear_notices()
   config = config_module.apply_configuration(user_config)
   setup_augroup()
   setup_theme()
   loader.load_all(config)
   set_statusline()
   set_tabline()
+  utils_notices.notice_message_startup()
 end
 
 return {
diff --git a/lua/lualine/utils/notices.lua b/lua/lualine/utils/notices.lua
new file mode 100644
index 0000000..98df9af
--- /dev/null
+++ b/lua/lualine/utils/notices.lua
@@ -0,0 +1,44 @@
+-- To provide notices for user
+local M = {}
+local notices = {}
+
+function M.add_notice(notice)
+  if type(notice) == 'string' then notice = vim.split(notice, "\n") end
+  table.insert(notices, notice)
+end
+
+function M.notice_message_startup()
+  if #notices > 0 then
+    vim.cmd('command! -nargs=0 LualineNotices lua require"lualine.utils.notices".show_notices()')
+    vim.schedule(function()
+      vim.notify(
+        "lualine: There are some issues with your config. Run :LualineNotices for details",
+        vim.log.levels.WARN, {})
+    end)
+  end
+end
+
+function M.show_notices()
+  vim.cmd [[
+  :silent! new
+  :silent! setl ft=markdown bt=nofile nobuflisted bh=wipe
+  :silent! nnoremap <silent><buffer> q <cmd>bd<cr>
+  :silent! normal ggdG
+  ]]
+  local ok, _ = pcall(vim.api.nvim_buf_set_name, 0, "Lualine Notices")
+  if not ok then
+    vim.notify("Lualine Notices is already open in another window",
+               vim.log.levels.ERROR, {})
+   vim.cmd('normal q')
+   return
+  end
+  local notice = vim.tbl_flatten(notices)
+  vim.fn.append(0, notice)
+  vim.api.nvim_win_set_cursor(0, {1, 0})
+end
+
+function M.clear_notices()
+  notices = {}
+end
+
+return M
diff --git a/lua/tests/spec/component_spec.lua b/lua/tests/spec/component_spec.lua
index 6c4845a..fe4b28f 100644
--- a/lua/tests/spec/component_spec.lua
+++ b/lua/tests/spec/component_spec.lua
@@ -47,10 +47,21 @@ describe('Component:', function()
                                                                          .component_name,
                                                                      comp1.options)
     hl.create_component_highlight_group:revert()
-    local opts2 = build_component_opts({color = 'MyHl'})
+    color = 'MyHl'
+    local opts2 = build_component_opts({color = color})
+    stub(hl, 'create_component_highlight_group')
+    hl.create_component_highlight_group.returns('MyCompLinkedHl')
     local comp2 = require('lualine.components.special.function_component'):new(
                       opts2)
-    eq('MyHl', comp2.options.color_highlight_link)
+    eq('MyCompLinkedHl', comp2.options.color_highlight)
+    -- color highlight wan't in options when create_comp_hl was
+    -- called so remove it before assert
+    comp2.options.color_highlight = nil
+    assert.stub(hl.create_component_highlight_group).was_called_with(color,
+                                                                     comp2.options
+                                                                         .component_name,
+                                                                     comp2.options)
+    hl.create_component_highlight_group:revert()
   end)
 
   it('can draw', function()
@@ -186,7 +197,9 @@ describe('Component:', function()
         padding = 0,
         color = 'MyHl'
       })
-      assert_component(nil, opts, '%#MyHl#test')
+      local comp = require('lualine.components.special.function_component'):new(opts)
+      local custom_link_hl_name = 'lualine_'..comp.options.component_name..'_no_mode'
+      eq('%#'..custom_link_hl_name..'#test', comp:draw(opts.hl))
       local opts2 = build_component_opts(
                         {
             component_separators = {'', ''},
diff --git a/lua/tests/spec/utils_spec.lua b/lua/tests/spec/utils_spec.lua
index f290edb..b4f9d76 100644
--- a/lua/tests/spec/utils_spec.lua
+++ b/lua/tests/spec/utils_spec.lua
@@ -8,7 +8,7 @@ describe('Utils', function()
   local utils = require('lualine.utils.utils')
 
   it('can save and restore highlights', function()
-    local hl1 = {'hl1', '#122233', '#445566', 'italic', true}
+    local hl1 = {'hl1', '#122233', '#445566', 'italic', nil, true}
     utils.save_highlight(hl1[1], hl1)
     -- highlight loaded in loaded_highlights table
     eq(utils.loaded_highlights[hl1[1]], hl1)
@@ -101,9 +101,11 @@ describe('Section genarator', function()
       require('lualine.components.special.function_component'):new(opts_colored),
       require('lualine.components.special.function_component'):new(opts)
     }
+    local highlight_name2 = 'lualine_'..section[2].options.component_name..'_no_mode'
     -- Removes separator on string color
     eq(
-        '%#lualine_MySection_normal# test %#lualine_MySection_normal#%#MyColor#'
+        '%#lualine_MySection_normal# test %#lualine_MySection_normal#%#'
+        ..highlight_name2..'#'
         .. ' test %#lualine_MySection_normal# test %#lualine_MySection_normal#',
         sec.draw_section(section, 'MySection'))
     section[2] =
@@ -119,7 +121,7 @@ describe('Section genarator', function()
     section[2] =
         require('lua.lualine.components.special.function_component'):new(
             opts_colored3)
-    local highlight_name2 =
+    highlight_name2 =
         '%#lualine_c_' .. section[2].options.component_name .. '_normal#'
     -- Doesn't remove separator on color without bg
     eq('%#lualine_MySection_normal# test %#lualine_MySection_normal#' ..