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Abstract Sexual dichromatism is thought to evolve primarily as a function of sexual selection, especially female choice. However, other forces, from sex-specific environmental conditions to social signaling in females, can also generate color differences between sexes. We studied dewlap dichromatism across 292 species of Anolis lizards. Dewlaps are colorful throat ornaments found on males of most anole species but are also present in females in many species. Although male and female dewlaps often have similar coloration, in some species, they are strikingly dichromatic. We found that ornament color is labile and that dichromatism results from the loss of costly pigments in females. This pattern could indicate a shift towards signal loss in females; however, the secondary gains of female dewlaps across the phylogeny suggest a potential advantageous function. Possible mechanisms for female dewlap coloration include social selection, nonsexual signaling, or detectability in different microhabitats (e.g., sensory drive). Female dewlap color overlap between co-occurring species is both less than expected by chance overall and reduced in species-rich communities, suggesting that dichromatism could be driven by competition. Our results highlight that selection on females drives the observed pattern of dichromatism, suggesting a potentially adaptive role for female ornaments and emphasizing the need for additional work to understand female ornament evolution.