diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index a5cb5bf1ec7781..a15f95fb47414c 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -4,6 +4,8 @@
 
 ### Bug Fix
 
+-   Fixed error thrown in `ColorPicker` when used in controlled state in color gradients ([#36941](https://github.com/WordPress/gutenberg/pull/36941)).
+-   Updated readme to include default value introduced in fix for unexpected movements in the `ColorPicker` ([#35670](https://github.com/WordPress/gutenberg/pull/35670)).
 -   Replaced hardcoded blue in `ColorPicker` with UI theme color ([#36153](https://github.com/WordPress/gutenberg/pull/36153)).
 
 ### Experimental
diff --git a/packages/components/src/color-picker/README.md b/packages/components/src/color-picker/README.md
index efe8728d22bd69..1b065203196a7a 100644
--- a/packages/components/src/color-picker/README.md
+++ b/packages/components/src/color-picker/README.md
@@ -22,32 +22,34 @@ function Example() {
 
 ## Props
 
-### `color`
-
-**Type**: `string`
+### `color`: `string`
 
 The current color value to display in the picker. Must be a hex or hex8 string.
 
-### `onChange`
+- Required: No
 
-**Type**: `(hex8Color: string) => void`
+### `onChange`: `(hex8Color: string) => void`
 
 Fired when the color changes. Always passes a hex8 color string.
 
-### `enableAlpha`
+- Required: No
 
-**Type**: `boolean`
+### `enableAlpha`: `boolean`
 
 Defaults to `false`. When `true` the color picker will display the alpha channel both in the bottom inputs as well as in the color picker itself.
 
-### `defaultValue`
+- Required: No
+- Default: `false`
 
-**Type**: `string | undefined`
+### `defaultValue`: `string | undefined`
 
 An optional default value to use for the color picker.
 
-### `copyFormat`
+- Required: No
+- Default: `'#fff'`
 
-**Type**: `'hex' | 'hsl' | 'rgb' | undefined`
+### `copyFormat`: `'hex' | 'hsl' | 'rgb' | undefined`
 
 The format to copy when clicking the displayed color format.
+
+- Required: No
diff --git a/packages/components/src/color-picker/component.tsx b/packages/components/src/color-picker/component.tsx
index bd9ee1fd49465c..4f9f0c7da59e78 100644
--- a/packages/components/src/color-picker/component.tsx
+++ b/packages/components/src/color-picker/component.tsx
@@ -11,6 +11,7 @@ import namesPlugin from 'colord/plugins/names';
  */
 import { useState, useMemo } from '@wordpress/element';
 import { settings } from '@wordpress/icons';
+import { useDebounce } from '@wordpress/compose';
 import { __ } from '@wordpress/i18n';
 
 /**
@@ -32,6 +33,7 @@ import {
 import { ColorDisplay } from './color-display';
 import { ColorInput } from './color-input';
 import { Picker } from './picker';
+import { useControlledValue } from '../utils/hooks';
 
 import type { ColorType } from './types';
 
@@ -57,7 +59,7 @@ const ColorPicker = (
 ) => {
 	const {
 		enableAlpha = false,
-		color,
+		color: colorProp,
 		onChange,
 		defaultValue = '#fff',
 		copyFormat,
@@ -65,15 +67,23 @@ const ColorPicker = (
 	} = useContextSystem( props, 'ColorPicker' );
 
 	// Use a safe default value for the color and remove the possibility of `undefined`.
+	const [ color, setColor ] = useControlledValue( {
+		onChange,
+		value: colorProp,
+		defaultValue,
+	} );
+
 	const safeColordColor = useMemo( () => {
-		return color ? colord( color ) : colord( defaultValue );
-	}, [ color, defaultValue ] );
+		return colord( color );
+	}, [ color ] );
+
+	const debouncedSetColor = useDebounce( setColor );
 
 	const handleChange = useCallback(
 		( nextValue: Colord ) => {
-			onChange( nextValue.toHex() );
+			debouncedSetColor( nextValue.toHex() );
 		},
-		[ onChange ]
+		[ debouncedSetColor ]
 	);
 
 	const [ showInputs, setShowInputs ] = useState< boolean >( false );
diff --git a/packages/components/src/color-picker/test/index.js b/packages/components/src/color-picker/test/index.js
index 34a5198c236072..19f8f2130f005e 100644
--- a/packages/components/src/color-picker/test/index.js
+++ b/packages/components/src/color-picker/test/index.js
@@ -41,6 +41,12 @@ function moveReactColorfulSlider( sliderElement, from, to ) {
 	fireEvent( sliderElement, new FakeMouseEvent( 'mousemove', to ) );
 }
 
+const sleep = ( ms ) => {
+	const promise = new Promise( ( resolve ) => setTimeout( resolve, ms ) );
+	jest.advanceTimersByTime( ms + 1 );
+	return promise;
+};
+
 const hslaMatcher = expect.objectContaining( {
 	h: expect.any( Number ),
 	s: expect.any( Number ),
@@ -87,6 +93,9 @@ describe( 'ColorPicker', () => {
 				{ pageX: 10, pageY: 10 }
 			);
 
+			// `onChange` is debounced so we need to sleep for at least 1ms before checking that onChange was called
+			await sleep( 1 );
+
 			expect( onChangeComplete ).toHaveBeenCalledWith(
 				legacyColorMatcher
 			);
@@ -108,6 +117,9 @@ describe( 'ColorPicker', () => {
 			{ pageX: 10, pageY: 10 }
 		);
 
+		// `onChange` is debounced so we need to sleep for at least 1ms before checking that onChange was called
+		await sleep( 1 );
+
 		expect( onChange ).toHaveBeenCalledWith(
 			expect.stringMatching( /^#([a-fA-F0-9]{8})$/ )
 		);
@@ -138,6 +150,9 @@ describe( 'ColorPicker', () => {
 			{ pageX: 10, pageY: 10 }
 		);
 
+		// `onChange` is debounced so we need to sleep for at least 1ms before checking that onChange was called
+		await sleep( 1 );
+
 		expect( onChange ).toHaveBeenCalledWith(
 			expect.stringMatching( /^#([a-fA-F0-9]{6})$/ )
 		);