In order to use Custom Option Swatch you must first upload swatch images to your magento. On the Catalog > Custom Option Swatch page click on the Add Swatch (Texture) button in the upper right corner of the page.
The Add Swatch Form Page will show up. Fill out the label and select the swatch image that you want to upload from your computer, then hit on the Save and Continue Edit button that’s in the upper right corner of the page.
Once the page reloads, it should look like this:
You should be able to see the swatch image that you uploaded and the label for that image that you entered.
Now go back to Catalog > Custom Options Swatch page and you should be able to see the swatch that you’ve just created:
Repeat the process and add a few more swatches to your Magento.
Create a simple product to test the Custom Options Swatch extension. Go to Catalog > Manage Products page and hit the Add Product button in the upper right corner of the page.
On the next page select default attribute set and simple product for product type.
On the next page fill out the required fields with values that you’d like to show.
Go to Custom Options Tab and click on the Add New Option Button.
Fill out the Title of the custom option and in Input Type dropdown select Swatch Selection.
A new area will appear and in it the “select swatches button”. Click on the Select Swatches button and it will list all the swatches you uploaded to your magento.
You can select which swatches you want to add to this product by checking the checkbox on the right side of the page and hitting the “add Selected Swatches to Options” button.
Once assigned, swatches options should look like this:
Don’t forget to Save the product. Here’s how the product custom swatch options looks like on the public product details page:
And here’s how the selected swatch looks like: