Sayyiduna Abdullah bin Abbas (may Allah be pleased with them both) says that a man passed by the Messenger of Allah (peace and blessings be upon him) who had dyed his hair with henna, and he (peace and blessings be upon him) said: "How fine this is!" Then another man passed by him (peace and blessings be upon him) who had dyed his hair with henna and wasmah, and he (peace and blessings be upon him) said: "This is even better than that." Then yet another man passed by him (peace and blessings be upon him) who had dyed his hair yellow, and he (peace and blessings be upon him) said: "This is better than all of them." He says: Tawus used to dye his hair yellow.
Hadith Referenceالسنن الكبرى للبيهقي / كتاب القسم والنشوز / 14820