"search and highlight" in linux command line

Is there a way to display a text file in command line, but highlight the matches?

Actually there is a pretty neat tip from jacksonh:

grep --color -E "test|$" yourfile

What we're doing here is matching against the $ pattern and the test pattern, obviously $doesn't have anything to colourize so only the test pattern gets color. The -E just turns on extended regex matching.