Dogs do see in color, but their color vision is limited compared to humans. They have dichromatic vision, meaning they have two types of color-detecting cones in their retinas (compared to three types in humans). This allows dogs to see primarily shades of blue and yellow, but they have difficulty distinguishing red and green colors, which may appear as shades of gray or brown to them. Their color vision is similar to a human with red-green color blindness. So, dogs see a more muted and limited color spectrum, mainly blues, yellows, and grays, rather than the full range of colors humans see.
This limited color perception is balanced by other visual advantages, such as better night vision and motion detection, due to more rods in their retinas.