A film entitled 'The World, The Flesh and the Devil' was the world's first full-length feature color film. Hollywood was just perfecting the process in 1939, and that year saw two major films released with the new process: 'Gone With the Wind' and 'The Wizard of Oz'.
This is a good list of the earliest color feature films. I guess the answer to this questions depends on whether or not you want to count "hand colored" films or not.
The first natural color film was that listed above, "The World, The Flesh and the Devil". That film has unfortunately been lost.
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