Abstract: The present invention provides a new and improved method of producing a dustless vinyl halide polymer color concentrate that does not require the formation of a hot melt or the use of wax. The color concentrate comprises a multitude of fine particles which each comprise a vinyl halide polymer resin core and a colorant material shell. The method includes the steps of providing a vinyl halide polymer, providing a colorant material, providing a compatibilizer having a solubility parameter of from about 7 to about 12 (cal/ml).sup.1/2, and mixing the vinyl halide polymer, compatibilizer and colorant material together to yield the dustless concentrate in the form of a vinyl halide resin core surrounded by a shell of the compatibilzer and the colorant material.