In this paper, we study speech enhancement in eigen-domain. In our previous work on audible noise reduction, we use masking properties of the human auditory system to define the audible noise quantity in the eigen-domain. We then derived the speech enhancement algorithm using white noise model. Without loss of generality, in this paper, we introduce the noise reduction method for colored noise. Through many simulations, we show that colored noise modeling is superior over other existing eigen-decomposition methods in terms of objective and subjective evaluations.