Dynamic variation and stabilization of color temperature according to user preferences, using multichip Red-Green-Blue LEDs, is a challenging task. Color point can vary due to variation in junction temperature caused due to self-heating, variation in ambient temperature, and device aging. In this paper, we present a closed-loop system that can tune and control the color points from 2700 to 6500 K from the variations of ambient temperature. Open-loop results obtained using forward voltage technique clearly show the effect of temperature on forward voltage, total flux, tristimulus values, color point, and peak wavelength. The effect of PWM dimming factor on tristimulus values is also studied. Nonuniform decay rates of Red-Green-Blue LEDs demand the design of separate control loops. Thus, a cost-effective hardware-in-loop simulation system with individual color control, compensating the temperature by instantly detecting the diode forward voltage with minimum number of components, is designed and validated.