Litmus paper is a special type of paper treated with natural dyes from lichens that changes color to indicate whether a substance is acidic or basic.When dipped in an acidic solution, blue litmus paper turns red.When dipped in a basic (alkaline) solution, red litmus paper turns blue.Neutral solutions usually keep litmus paper purple or unchanged.This color change happens due to a chemical reaction involving molecules in the litmus that gain or lose hydrogen ions depending on the pH level of the solution.