diff --git a/hspec-core.cabal b/hspec-core.cabal
--- a/hspec-core.cabal
+++ b/hspec-core.cabal
@@ -5,7 +5,7 @@
 -- see: https://github.com/sol/hpack
 
 name:             hspec-core
-version:          2.8.0
+version:          2.8.1
 license:          MIT
 license-file:     LICENSE
 copyright:        (c) 2011-2021 Simon Hengel,
diff --git a/src/Test/Hspec/Core/Compat.hs b/src/Test/Hspec/Core/Compat.hs
--- a/src/Test/Hspec/Core/Compat.hs
+++ b/src/Test/Hspec/Core/Compat.hs
@@ -1,20 +1,7 @@
 {-# LANGUAGE CPP #-}
 module Test.Hspec.Core.Compat (
-  getDefaultConcurrentJobs
-, showType
-, showFullType
-, readMaybe
-, lookupEnv
-, module Imports
-
-#if !MIN_VERSION_base(4,6,0)
-, modifyIORef'
-, atomicWriteIORef
-#endif
-, interruptible
-
-, guarded
-, sortOn
+  module Imports
+, module Test.Hspec.Core.Compat
 ) where
 
 import           Control.Applicative as Imports
@@ -28,12 +15,25 @@
   , sequence_
   )
 import           Data.Foldable as Imports
+
+#if MIN_VERSION_base(4,11,0)
+import           Data.Functor as Imports
+#endif
+
 import           Data.Traversable as Imports
 import           Data.Monoid as Imports
-import           Data.List as Imports (stripPrefix, isPrefixOf, isInfixOf, intercalate, inits, tails, sortBy)
+import           Data.List as Imports (
+    stripPrefix
+  , isPrefixOf
+  , isInfixOf
+  , intercalate
+  , inits
+  , tails
+  , sortBy
 #if MIN_VERSION_base(4,8,0)
-import           Data.List (sortOn)
+  , sortOn
 #endif
+  )
 
 import           Prelude as Imports hiding (
     all
@@ -62,9 +62,16 @@
   )
 
 import           Data.Typeable (Typeable, typeOf, typeRepTyCon)
-import           Text.Read
 import           Data.IORef as Imports
+
+#if MIN_VERSION_base(4,6,0)
+import           Text.Read as Imports (readMaybe)
+import           System.Environment as Imports (lookupEnv)
+#else
+import           Text.Read
 import           System.Environment
+import qualified Text.ParserCombinators.ReadP as P
+#endif
 
 #if !MIN_VERSION_base(4,8,0)
 import           Data.Ord (comparing)
@@ -74,14 +81,12 @@
 import           Control.Concurrent
 
 #if MIN_VERSION_base(4,9,0)
-import           Control.Exception (interruptible)
+import           Control.Exception as Imports (interruptible)
 #else
 import           GHC.IO
 #endif
 
 #if !MIN_VERSION_base(4,6,0)
-import qualified Text.ParserCombinators.ReadP as P
-
 -- |Strict version of 'modifyIORef'
 modifyIORef' :: IORef a -> (a -> a) -> IO ()
 modifyIORef' ref f = do
@@ -152,4 +157,10 @@
 sortOn :: Ord b => (a -> b) -> [a] -> [a]
 sortOn f =
   map snd . sortBy (comparing fst) . map (\x -> let y = f x in y `seq` (y, x))
+#endif
+
+#if !MIN_VERSION_base(4,11,0)
+infixl 1 <&>
+(<&>) :: Functor f => f a -> (a -> b) -> f b
+(<&>) = flip (<$>)
 #endif
diff --git a/src/Test/Hspec/Core/FailureReport.hs b/src/Test/Hspec/Core/FailureReport.hs
--- a/src/Test/Hspec/Core/FailureReport.hs
+++ b/src/Test/Hspec/Core/FailureReport.hs
@@ -9,7 +9,7 @@
 import           Test.Hspec.Core.Compat
 
 #ifndef __GHCJS__
-import           System.SetEnv
+import           System.SetEnv (setEnv)
 import           Test.Hspec.Core.Util (safeTry)
 #endif
 import           System.IO
diff --git a/src/Test/Hspec/Core/Runner.hs b/src/Test/Hspec/Core/Runner.hs
--- a/src/Test/Hspec/Core/Runner.hs
+++ b/src/Test/Hspec/Core/Runner.hs
@@ -30,6 +30,7 @@
 #ifdef TEST
 , rerunAll
 , specToEvalForest
+, colorOutputSupported
 #endif
 ) where
 
@@ -210,7 +211,7 @@
     Nothing -> getDefaultConcurrentJobs
     Just n -> return n
 
-  useColor <- doesUseColor stdout config
+  useColor <- colorOutputSupported (configColorMode config) (hIsTerminalDevice stdout)
 
   results <- withHiddenCursor useColor stdout $ do
     let
@@ -283,12 +284,29 @@
   | useColor  = E.bracket_ (hHideCursor h) (hShowCursor h)
   | otherwise = id
 
-doesUseColor :: Handle -> Config -> IO Bool
-doesUseColor h c = case configColorMode c of
-  ColorAuto  -> (&&) <$> hIsTerminalDevice h <*> (not <$> isDumb)
+colorOutputSupported :: ColorMode -> IO Bool -> IO Bool
+colorOutputSupported mode isTerminalDevice = case mode of
+  ColorAuto  -> (not <$> noColor ||^ isDumb) &&^ isTerminalDevice
   ColorNever -> return False
   ColorAlways -> return True
 
+noColor :: IO Bool
+noColor = lookupEnv "NO_COLOR" <&> (/= Nothing)
+
+isDumb :: IO Bool
+isDumb = lookupEnv "TERM" <&> (== Just "dumb")
+
+(||^) :: IO Bool -> IO Bool -> IO Bool
+(||^) a b = ifM a (pure True) b
+
+(&&^) :: IO Bool -> IO Bool -> IO Bool
+(&&^) a b = ifM a b (pure False)
+
+ifM :: IO Bool -> IO a -> IO a -> IO a
+ifM action true false = do
+  bool <- action
+  if bool then true else false
+
 rerunAll :: Config -> Maybe FailureReport -> Summary -> Bool
 rerunAll _ Nothing _ = False
 rerunAll config (Just oldFailureReport) summary =
@@ -296,9 +314,6 @@
   && configRerun config
   && isSuccess summary
   && (not . null) (failureReportPaths oldFailureReport)
-
-isDumb :: IO Bool
-isDumb = maybe False (== "dumb") <$> lookupEnv "TERM"
 
 -- | Summary of a test run.
 data Summary = Summary {
diff --git a/test/Test/Hspec/Core/RunnerSpec.hs b/test/Test/Hspec/Core/RunnerSpec.hs
--- a/test/Test/Hspec/Core/RunnerSpec.hs
+++ b/test/Test/Hspec/Core/RunnerSpec.hs
@@ -575,6 +575,27 @@
         high <- readIORef highRef
         high `shouldBe` j
 
+  describe "colorOutputSupported" $ do
+    it "returns False" $ do
+      withEnvironment [] $ do
+        H.colorOutputSupported H.ColorAuto (return False) `shouldReturn` False
+
+    context "with a terminal device" $ do
+      let isTerminalDevice = return True
+      it "returns True" $ do
+        withEnvironment [] $ do
+          H.colorOutputSupported H.ColorAuto isTerminalDevice `shouldReturn` True
+
+      context "when TERM=dumb" $ do
+        it "returns False" $ do
+          withEnvironment [("TERM", "dumb")] $ do
+            H.colorOutputSupported H.ColorAuto isTerminalDevice `shouldReturn` False
+
+      context "when NO_COLOR is set" $ do
+        it "returns False" $ do
+          withEnvironment [("NO_COLOR", "yes")] $ do
+            H.colorOutputSupported H.ColorAuto isTerminalDevice `shouldReturn` False
+
   describe "rerunAll" $ do
     let
       report = FailureReport 0 0 0 0 [([], "foo")]
diff --git a/version.yaml b/version.yaml
--- a/version.yaml
+++ b/version.yaml
@@ -1,1 +1,1 @@
-&version 2.8.0
+&version 2.8.1