diff --git a/src/app/globals.css b/src/app/globals.css
index fb4bd21..786bff6 100644
--- a/src/app/globals.css
+++ b/src/app/globals.css
@@ -14,6 +14,12 @@
   }
 }
 
+/* Dark mode with class strategy */
+.dark {
+  --foreground: #ededed;
+  --background: #0a0a0a;
+}
+
 body {
   color: var(--foreground);
   background: var(--background);
diff --git a/src/app/layout.tsx b/src/app/layout.tsx
index 17200f3..fb17b44 100644
--- a/src/app/layout.tsx
+++ b/src/app/layout.tsx
@@ -14,8 +14,8 @@ export default function RootLayout({
   children: React.ReactNode;
 }) {
   return (
-    <html lang="en">
-      <body className="min-h-screen bg-gray-50">
+    <html lang="en" suppressHydrationWarning>
+      <body className="min-h-screen transition-colors duration-200">
         <Providers>{children}</Providers>
       </body>
     </html>
diff --git a/src/app/providers.tsx b/src/app/providers.tsx
index 98f8bf5..26e1d5a 100644
--- a/src/app/providers.tsx
+++ b/src/app/providers.tsx
@@ -2,6 +2,7 @@
 
 import React, { createContext, useContext, useState, useCallback, useEffect } from "react";
 import { connectWallet, getPublicKey, isFreighterInstalled } from "@/lib/wallet";
+import { ThemeProvider } from "@/components/ThemeProvider";
 
 interface WalletContextType {
   address: string | null;
@@ -54,7 +55,7 @@ export function Providers({ children }: { children: React.ReactNode }) {
         disconnect,
       }}
     >
-      {children}
+      <ThemeProvider>{children}</ThemeProvider>
     </WalletContext.Provider>
   );
 }
diff --git a/src/components/Navbar.tsx b/src/components/Navbar.tsx
index 2d673aa..907450a 100644
--- a/src/components/Navbar.tsx
+++ b/src/components/Navbar.tsx
@@ -2,32 +2,36 @@
 
 import Link from "next/link";
 import { ConnectWallet } from "./ConnectWallet";
+import { ThemeToggle } from "./ThemeToggle";
 
 export function Navbar() {
   return (
-    <nav className="bg-white shadow-sm border-b">
+    <nav className="bg-white dark:bg-gray-900 shadow-sm border-b border-gray-200 dark:border-gray-700 transition-colors duration-200">
       <div className="max-w-7xl mx-auto px-4 sm:px-6 lg:px-8">
         <div className="flex justify-between h-16 items-center">
           <div className="flex items-center space-x-8">
-            <Link href="/" className="text-xl font-bold text-primary-700">
+            <Link href="/" className="text-xl font-bold text-primary-700 dark:text-primary-400">
               SoroSave
             </Link>
             <div className="hidden sm:flex space-x-4">
               <Link
                 href="/groups"
-                className="text-gray-600 hover:text-gray-900 px-3 py-2 text-sm font-medium"
+                className="text-gray-600 dark:text-gray-300 hover:text-gray-900 dark:hover:text-white px-3 py-2 text-sm font-medium transition-colors"
               >
                 Groups
               </Link>
               <Link
                 href="/groups/new"
-                className="text-gray-600 hover:text-gray-900 px-3 py-2 text-sm font-medium"
+                className="text-gray-600 dark:text-gray-300 hover:text-gray-900 dark:hover:text-white px-3 py-2 text-sm font-medium transition-colors"
               >
                 Create Group
               </Link>
             </div>
           </div>
-          <ConnectWallet />
+          <div className="flex items-center space-x-4">
+            <ThemeToggle />
+            <ConnectWallet />
+          </div>
         </div>
       </div>
     </nav>
diff --git a/src/components/ThemeProvider.tsx b/src/components/ThemeProvider.tsx
new file mode 100644
index 0000000..982e80c
--- /dev/null
+++ b/src/components/ThemeProvider.tsx
@@ -0,0 +1,64 @@
+"use client";
+
+import React, { createContext, useContext, useState, useEffect } from "react";
+
+type Theme = "light" | "dark";
+
+interface ThemeContextType {
+  theme: Theme;
+  toggleTheme: () => void;
+  setTheme: (theme: Theme) => void;
+}
+
+const ThemeContext = createContext<ThemeContextType | undefined>(undefined);
+
+export function useTheme() {
+  const context = useContext(ThemeContext);
+  if (context === undefined) {
+    throw new Error("useTheme must be used within a ThemeProvider");
+  }
+  return context;
+}
+
+export function ThemeProvider({ children }: { children: React.ReactNode }) {
+  const [theme, setThemeState] = useState<Theme>("light");
+  const [mounted, setMounted] = useState(false);
+
+  useEffect(() => {
+    setMounted(true);
+    // Check localStorage for saved theme preference
+    const savedTheme = localStorage.getItem("theme") as Theme | null;
+    if (savedTheme) {
+      setThemeState(savedTheme);
+      document.documentElement.classList.toggle("dark", savedTheme === "dark");
+    } else {
+      // Check system preference
+      const prefersDark = window.matchMedia("(prefers-color-scheme: dark)").matches;
+      const initialTheme = prefersDark ? "dark" : "light";
+      setThemeState(initialTheme);
+      document.documentElement.classList.toggle("dark", prefersDark);
+    }
+  }, []);
+
+  const setTheme = (newTheme: Theme) => {
+    setThemeState(newTheme);
+    localStorage.setItem("theme", newTheme);
+    document.documentElement.classList.toggle("dark", newTheme === "dark");
+  };
+
+  const toggleTheme = () => {
+    const newTheme = theme === "light" ? "dark" : "light";
+    setTheme(newTheme);
+  };
+
+  // Prevent hydration mismatch by not rendering until mounted
+  if (!mounted) {
+    return <>{children}</>;
+  }
+
+  return (
+    <ThemeContext.Provider value={{ theme, toggleTheme, setTheme }}>
+      {children}
+    </ThemeContext.Provider>
+  );
+}
diff --git a/src/components/ThemeToggle.tsx b/src/components/ThemeToggle.tsx
new file mode 100644
index 0000000..428475a
--- /dev/null
+++ b/src/components/ThemeToggle.tsx
@@ -0,0 +1,49 @@
+"use client";
+
+import { useTheme } from "./ThemeProvider";
+
+export function ThemeToggle() {
+  const { theme, toggleTheme } = useTheme();
+
+  return (
+    <button
+      onClick={toggleTheme}
+      className="p-2 rounded-lg bg-gray-200 dark:bg-gray-700 text-gray-800 dark:text-gray-200 hover:bg-gray-300 dark:hover:bg-gray-600 transition-colors duration-200"
+      aria-label={theme === "light" ? "Switch to dark mode" : "Switch to light mode"}
+    >
+      {theme === "light" ? (
+        <!-- Moon icon for dark mode -->
+        <svg
+          xmlns="http://www.w3.org/2000/svg"
+          fill="none"
+          viewBox="0 0 24 24"
+          strokeWidth={1.5}
+          stroke="currentColor"
+          className="w-5 h-5"
+        >
+          <path
+            strokeLinecap="round"
+            strokeLinejoin="round"
+            d="M21.752 15.002A9.718 9.718 0 0118 15.75c-5.385 0-9.75-4.365-9.75-9.75 0-1.33.266-2.597.748-3.752A9.753 9.753 0 003 11.25C3 16.635 7.365 21 12.75 21a9.753 9.753 0 009.002-5.998z"
+          />
+        </svg>
+      ) : (
+        <!-- Sun icon for light mode -->
+        <svg
+          xmlns="http://www.w3.org/2000/svg"
+          fill="none"
+          viewBox="0 0 24 24"
+          strokeWidth={1.5}
+          stroke="currentColor"
+          className="w-5 h-5"
+        >
+          <path
+            strokeLinecap="round"
+            strokeLinejoin="round"
+            d="M12 3v2.25m6.364.386l-1.591 1.591M21 12h-2.25m-.386 6.364l-1.591-1.591M12 18.75V21m-4.773-4.227l-1.591 1.591M5.25 12H3m4.227-4.773L5.636 5.636M15.75 12a3.75 3.75 0 11-7.5 0 3.75 3.75 0 017.5 0z"
+          />
+        </svg>
+      )}
+    </button>
+  );
+}
diff --git a/tailwind.config.js b/tailwind.config.js
index b46ff84..7df25f0 100644
--- a/tailwind.config.js
+++ b/tailwind.config.js
@@ -1,5 +1,6 @@
 /** @type {import('tailwindcss').Config} */
 module.exports = {
+  darkMode: 'class',
   content: ["./src/**/*.{js,ts,jsx,tsx,mdx}"],
   theme: {
     extend: {
