Oscar awards are given for the greatest achievements in Motion Picture Industry. The nominees as well as the winners of the various categories are decided by the members of Academy of Motion Picture Arts and Sciences (AMPAS). Presently, Oscar has 25 categories in the award ceremony, under which the talents of artists are acknowledged. From the time of its introduction, the award ceremony has undergone many changes, especially in terms of its categories. While some categories have been added, a few of the previous ones have been removed.

'Oscar for Best Short Film - Color' is a category that was introduced in 1936 and given only for two consecutive years. In 1936, the award was given first time, to the movie 'Give Me Liberty'. It is short drama film, directed by B. Reeves Eason, about how the leaving of a cook in a family leads to a situation of panic. In 1937, 'Penny Wisdom', a short comedy film directed by David Miller, became the second and last movie to receive this award. Since then, the category of 'Academy Award For Best Short Film In Color' has been removed.