diff --git a/homeassistant/components/light/__init__.py b/homeassistant/components/light/__init__.py
index 51a3c61dbd5..54919a73331 100644
--- a/homeassistant/components/light/__init__.py
+++ b/homeassistant/components/light/__init__.py
@@ -88,6 +88,10 @@ ATTR_FLASH = "flash"
 FLASH_SHORT = "short"
 FLASH_LONG = "long"
 
+# Apply an effect to the light, can be EFFECT_COLORLOOP
+ATTR_EFFECT = "effect"
+EFFECT_COLORLOOP = "colorloop"
+
 LIGHT_PROFILES_FILE = "light_profiles.csv"
 
 # Maps discovered services to their platforms
@@ -114,7 +118,8 @@ def is_on(hass, entity_id=None):
 
 # pylint: disable=too-many-arguments
 def turn_on(hass, entity_id=None, transition=None, brightness=None,
-            rgb_color=None, xy_color=None, profile=None, flash=None):
+            rgb_color=None, xy_color=None, profile=None, flash=None,
+            effect=None):
     """ Turns all or specified light on. """
     data = {
         key: value for key, value in [
@@ -125,6 +130,7 @@ def turn_on(hass, entity_id=None, transition=None, brightness=None,
             (ATTR_RGB_COLOR, rgb_color),
             (ATTR_XY_COLOR, xy_color),
             (ATTR_FLASH, flash),
+            (ATTR_EFFECT, effect),
         ] if value is not None
     }
 
@@ -253,6 +259,10 @@ def setup(hass, config):
                 elif dat[ATTR_FLASH] == FLASH_LONG:
                     params[ATTR_FLASH] = FLASH_LONG
 
+            if ATTR_EFFECT in dat:
+                if dat[ATTR_EFFECT] == EFFECT_COLORLOOP:
+                    params[ATTR_EFFECT] = EFFECT_COLORLOOP
+
             for light in target_lights:
                 light.turn_on(**params)
 
diff --git a/homeassistant/components/light/hue.py b/homeassistant/components/light/hue.py
index 65a288f82d5..0b2cf1e2dd7 100644
--- a/homeassistant/components/light/hue.py
+++ b/homeassistant/components/light/hue.py
@@ -9,7 +9,8 @@ import homeassistant.util as util
 from homeassistant.const import CONF_HOST, DEVICE_DEFAULT_NAME
 from homeassistant.components.light import (
     Light, ATTR_BRIGHTNESS, ATTR_XY_COLOR, ATTR_TRANSITION,
-    ATTR_FLASH, FLASH_LONG, FLASH_SHORT)
+    ATTR_FLASH, FLASH_LONG, FLASH_SHORT, ATTR_EFFECT,
+    EFFECT_COLORLOOP)
 
 MIN_TIME_BETWEEN_SCANS = timedelta(seconds=10)
 MIN_TIME_BETWEEN_FORCED_SCANS = timedelta(milliseconds=100)
@@ -191,6 +192,13 @@ class HueLight(Light):
         else:
             command['alert'] = 'none'
 
+        effect = kwargs.get(ATTR_EFFECT)
+
+        if effect == EFFECT_COLORLOOP:
+            command['effect'] = 'colorloop'
+        else:
+            command['effect'] = 'none'
+
         self.bridge.set_light(self.light_id, command)
 
     def turn_off(self, **kwargs):