The plumage colour of male pied flycatchers varies on a continuum from brownish and female-like to a conspicuous black-and-white. Males have a conspicuous plumage only during the breeding season, when the mortality rate was low and not correlated with plumage colour. Brownish males breed successfully, and breeding males had no lower annual rate of return than non-breeders. Experiments on male intrusion showed that possession of a cryptic, female-like plumage did not facilitate nest site settlement by such males. Dark males were on average older, arrived earlier, and defended more nestboxes than brown males. However, experiments showed that plumage colour was not a reliable indicator of the outcome of competitive combats between males. These facts argue against several existing hypotheses about variation in male plumage colour. A new explanation is proposed: a bright colour serves to signal presence and thereby reduces territory holding costs. The brownish males arrive only shortly before the females and thus will not benefit as much by being conspicuous as do the black-and-white males that arrive earlier in spring.