Cuttlefish Change Color, Shape-Shift to Elude Predators

The cuttlefish turn from colorful billboards into masters of disguise, retiring to the seafloor, where they use their extraordinary color manipulation to hide from predators such as dolphins.

It seems the cuttlefish can assess the color, contrast, even the texture, of their surroundings and emulate it—in seconds and in total darkness. Cuttlefish use pigmented organs, elastic sacs called chromatophores, to display red, yellow, brown, and black directly.

Bands of muscle radiate from each chromatophore, like the spokes of a wheel, so the creature can change the hue or opacity at will simply by contracting or relaxing those muscles to expose or conceal different color layers. With up to 200 chromatophores per .001 square inch (square millimeter), cuttlefish skin is like high-definition TV.

Ironically enough, cuttlefish are colorblind. So how do they match their camouflage and their environment so accurately?

Well that's the job of a separate layer of cells called leucophores, which reflect white light.
Read the article:http://news.nationalgeographic.com/news/2008/08/080608-cuttlefish-camouflage-missions_2.html

Reference:http://www.pbs.org/wgbh/nova/camo/anat-nf.html