A colored pencil is a type of drawing tool that consists of a wooden or graphite core, wrapped in a layer of colored wax or oil-based clay. The coloring comes from the addition of pigments to this outer coating. Colored pencils are typically used for creating detailed and precise drawings, as they allow artists to create smooth transitions between colors by blending them together with their fingers or a blender tool. They can also be layered on top of each other to achieve different effects.