diff --git a/app/_layout.tsx b/app/_layout.tsx
index 6f79126..0a38cb4 100644
--- a/app/_layout.tsx
+++ b/app/_layout.tsx
@@ -1,7 +1,8 @@
 import { Slot } from 'expo-router';
 import React, { useEffect } from 'react';
-import { initDatabase } from '../services/database';
+import { addCategory, initDatabase } from '../services/database';
 import { AuthProvider } from './contexts/AuthContext';
+import { ThemeProvider } from './contexts/ThemeContext';
 
 export default function _layout() {
 
@@ -12,7 +13,9 @@ export default function _layout() {
   console.log("layout called")
   return (
     <AuthProvider>
-      <Slot />
+      <ThemeProvider>
+        <Slot />
+      </ThemeProvider>
     </AuthProvider>
   )
 }
\ No newline at end of file
diff --git a/app/contexts/ThemeContext.tsx b/app/contexts/ThemeContext.tsx
new file mode 100644
index 0000000..9e00714
--- /dev/null
+++ b/app/contexts/ThemeContext.tsx
@@ -0,0 +1,97 @@
+import {useContext, createContext, useState, useEffect} from "react"
+import AsyncStorage from "@react-native-async-storage/async-storage"
+import { useColorScheme } from "react-native";
+import themeColors from "../../constants/colors";
+
+
+interface ThemeProps {
+  isSystemTheme?: boolean
+  theme: "light" | "dark";
+  colors: typeof themeColors.light & typeof themeColors.dark;
+  applySystemTheme?: () => void;
+  applyTheme?: (theme: "light" | "dark") => void;
+}
+
+const THEME_KEY = "THEME"
+const SYSTEM_THEME_KEY = "SYSTEM_THEME"
+
+const ThemeContext = createContext<ThemeProps>({theme: "light", colors: themeColors.light})
+
+export const useTheme = () => {
+  return useContext(ThemeContext)
+}
+
+export const ThemeProvider = ({children} : any) => {
+  const currentSystemTheme = useColorScheme()
+  const [isSystemTheme, setIsSystemTheme] = useState<boolean>(true);
+  const [theme, setTheme] = useState<"light" | "dark">("light");
+  const [colors, setColors] = useState<typeof themeColors.light & typeof themeColors.dark>(themeColors.light)
+
+  useEffect(() => {
+    console.log("effect called")
+    const loadTheme = async () => {
+      try {
+        const is_system_theme = await AsyncStorage.getItem(SYSTEM_THEME_KEY)
+        const saved_theme = await AsyncStorage.getItem(THEME_KEY);
+
+        if(is_system_theme !== "false"){//We will use !== false bacause system theme should be used if unspecified
+          applySystemTheme();
+          return;
+        }
+
+        if(saved_theme === "light" || saved_theme === "dark"){
+          applyTheme(saved_theme);
+        }
+
+      } catch (error) {
+        console.error(error)
+      }
+    } 
+    loadTheme();
+  }, [currentSystemTheme])
+
+
+  const applySystemTheme = () => {
+    const storeSystemTheme = async () => {
+      console.log("applySystemTheme")
+      await AsyncStorage.setItem(SYSTEM_THEME_KEY, "true")
+    }
+
+    storeSystemTheme();
+    setIsSystemTheme(true)
+    applyThemeInternal(currentSystemTheme ?? "light")
+  }
+
+  const applyThemeInternal = (theme: "light" | "dark") => {
+    const storeTheme = async (theme: "light" | "dark") => {
+      await AsyncStorage.setItem(THEME_KEY, theme)
+    }
+
+    setTheme(theme);
+    storeTheme(theme);
+    setColors(themeColors[theme])
+  }
+
+  const applyTheme = (theme: "light" | "dark") => {
+    const unsetSytemTheme = async () => {
+      AsyncStorage.setItem(SYSTEM_THEME_KEY, "false");
+    }
+    unsetSytemTheme()
+    setIsSystemTheme(false);
+    applyThemeInternal(theme);
+  }
+
+  const value = {
+    isSystemTheme: isSystemTheme,
+    applyTheme: applyTheme,
+    applySystemTheme: applySystemTheme,
+    theme: theme,
+    colors: colors,
+  }
+
+  return (
+    <ThemeContext.Provider value={value}>
+      {children}
+    </ThemeContext.Provider>
+  )
+}
diff --git a/package-lock.json b/package-lock.json
index 2e67c4c..f07d162 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -9,6 +9,7 @@
       "version": "1.0.0",
       "dependencies": {
         "@expo/vector-icons": "^13.0.0",
+        "@react-native-async-storage/async-storage": "1.18.2",
         "@react-navigation/native": "^6.0.2",
         "expo": "~49.0.15",
         "expo-font": "~11.4.0",
@@ -4277,6 +4278,17 @@
         "react": "^16.8 || ^17.0 || ^18.0"
       }
     },
+    "node_modules/@react-native-async-storage/async-storage": {
+      "version": "1.18.2",
+      "resolved": "https://registry.npmjs.org/@react-native-async-storage/async-storage/-/async-storage-1.18.2.tgz",
+      "integrity": "sha512-dM8AfdoeIxlh+zqgr0o5+vCTPQ0Ru1mrPzONZMsr7ufp5h+6WgNxQNza7t0r5qQ6b04AJqTlBNixTWZxqP649Q==",
+      "dependencies": {
+        "merge-options": "^3.0.4"
+      },
+      "peerDependencies": {
+        "react-native": "^0.0.0-0 || 0.60 - 0.72 || 1000.0.0"
+      }
+    },
     "node_modules/@react-native-community/cli": {
       "version": "11.3.7",
       "resolved": "https://registry.npmjs.org/@react-native-community/cli/-/cli-11.3.7.tgz",
@@ -13452,6 +13464,25 @@
       "resolved": "https://registry.npmjs.org/memory-cache/-/memory-cache-0.2.0.tgz",
       "integrity": "sha512-OcjA+jzjOYzKmKS6IQVALHLVz+rNTMPoJvCztFaZxwG14wtAW7VRZjwTQu06vKCYOxh4jVnik7ya0SXTB0W+xA=="
     },
+    "node_modules/merge-options": {
+      "version": "3.0.4",
+      "resolved": "https://registry.npmjs.org/merge-options/-/merge-options-3.0.4.tgz",
+      "integrity": "sha512-2Sug1+knBjkaMsMgf1ctR1Ujx+Ayku4EdJN4Z+C2+JzoeF7A3OZ9KM2GY0CpQS51NR61LTurMJrRKPhSs3ZRTQ==",
+      "dependencies": {
+        "is-plain-obj": "^2.1.0"
+      },
+      "engines": {
+        "node": ">=10"
+      }
+    },
+    "node_modules/merge-options/node_modules/is-plain-obj": {
+      "version": "2.1.0",
+      "resolved": "https://registry.npmjs.org/is-plain-obj/-/is-plain-obj-2.1.0.tgz",
+      "integrity": "sha512-YWnfyRwxL/+SsrWYfOpUtz5b3YD+nyfkHvjbcanzk8zgyO4ASD67uVMRt8k5bM4lLMDnXfriRhOpemw+NfT1eA==",
+      "engines": {
+        "node": ">=8"
+      }
+    },
     "node_modules/merge-stream": {
       "version": "2.0.0",
       "resolved": "https://registry.npmjs.org/merge-stream/-/merge-stream-2.0.0.tgz",
diff --git a/package.json b/package.json
index 8fff007..a625b05 100644
--- a/package.json
+++ b/package.json
@@ -19,6 +19,7 @@
   },
   "dependencies": {
     "@expo/vector-icons": "^13.0.0",
+    "@react-native-async-storage/async-storage": "1.18.2",
     "@react-navigation/native": "^6.0.2",
     "expo": "~49.0.15",
     "expo-font": "~11.4.0",