diff --git a/packages/material-ui/src/Avatar/Avatar.js b/packages/material-ui/src/Avatar/Avatar.js
index 8b6667dea45bde..e80d2117054848 100644
--- a/packages/material-ui/src/Avatar/Avatar.js
+++ b/packages/material-ui/src/Avatar/Avatar.js
@@ -34,6 +34,34 @@ const useUtilityClasses = (styleProps) => {
   return composeClasses(slots, getAvatarUtilityClass, classes);
 };
 
+const stringToColor = (styleProps) => {
+  let hash = 0;
+  let i;
+  let color = '';
+  const string = styleProps.alt;
+
+  if (styleProps.sx && styleProps.sx.bgcolor) {
+    return color;
+  }
+  if (!string) {
+    return color;
+  }
+  /* eslint-disable no-bitwise */
+  for (i = 0; i < string.length; i += 1) {
+    hash = string.charCodeAt(i) + ((hash << 5) - hash);
+  }
+
+  color = '#';
+
+  for (i = 0; i < 3; i += 1) {
+    const value = (hash >> (i * 8)) & 0xff;
+    color += `00${value.toString(16)}`.substr(-2);
+  }
+  /* eslint-enable no-bitwise */
+
+  return color;
+};
+
 const AvatarRoot = experimentalStyled(
   'div',
   {},
@@ -42,32 +70,39 @@ const AvatarRoot = experimentalStyled(
     slot: 'Root',
     overridesResolver,
   },
-)(({ theme, styleProps }) => ({
-  position: 'relative',
-  display: 'flex',
-  alignItems: 'center',
-  justifyContent: 'center',
-  flexShrink: 0,
-  width: 40,
-  height: 40,
-  fontFamily: theme.typography.fontFamily,
-  fontSize: theme.typography.pxToRem(20),
-  lineHeight: 1,
-  borderRadius: '50%',
-  overflow: 'hidden',
-  userSelect: 'none',
-  ...(styleProps.variant === 'rounded' && {
-    borderRadius: theme.shape.borderRadius,
-  }),
-  ...(styleProps.variant === 'square' && {
-    borderRadius: 0,
-  }),
-  ...(styleProps.colorDefault && {
-    color: theme.palette.background.default,
-    backgroundColor:
-      theme.palette.mode === 'light' ? theme.palette.grey[400] : theme.palette.grey[600],
-  }),
-}));
+)(({ theme, styleProps }) => {
+  const stringColor = stringToColor(styleProps);
+  return {
+    position: 'relative',
+    display: 'flex',
+    alignItems: 'center',
+    justifyContent: 'center',
+    flexShrink: 0,
+    width: 40,
+    height: 40,
+    fontFamily: theme.typography.fontFamily,
+    fontSize: theme.typography.pxToRem(20),
+    lineHeight: 1,
+    borderRadius: '50%',
+    overflow: 'hidden',
+    userSelect: 'none',
+    ...(styleProps.variant === 'rounded' && {
+      borderRadius: theme.shape.borderRadius,
+    }),
+    ...(styleProps.variant === 'square' && {
+      borderRadius: 0,
+    }),
+    ...(styleProps.colorDefault && {
+      color: stringColor
+        ? theme.palette.getContrastText(stringColor)
+        : theme.palette.background.default,
+
+      backgroundColor:
+        stringColor ||
+        (theme.palette.mode === 'light' ? theme.palette.grey[400] : theme.palette.grey[600]),
+    }),
+  };
+});
 
 const AvatarImg = experimentalStyled(
   'img',