diff --git a/frontend/src/App.js b/frontend/src/App.js
index 99177c3..2b5cd4d 100644
--- a/frontend/src/App.js
+++ b/frontend/src/App.js
@@ -1,31 +1,16 @@
-import React, { useState, useEffect } from 'react';
+import React from 'react';
 import { GeistProvider, CssBaseline, Page, useToasts } from '@geist-ui/core';
 import Header from './components/Header';
 import MainContent from './components/MainContent';
 import { useFileManagement } from './hooks/useFileManagement';
-import { fetchUserSettings, lookupFileByName } from './services/api';
+import { SettingsProvider, useSettings } from './contexts/SettingsContext';
+import { lookupFileByName } from './services/api';
 import './App.scss';
 
-function App() {
-  const [themeType, setThemeType] = useState('light');
-  const [userId, setUserId] = useState(1);
-  const [settings, setSettings] = useState({ gitEnabled: false });
+function AppContent() {
+  const { settings, loading } = useSettings();
   const { setToast } = useToasts();
 
-  useEffect(() => {
-    const loadUserSettings = async () => {
-      try {
-        const fetchedSettings = await fetchUserSettings(userId);
-        setSettings(fetchedSettings.settings);
-        setThemeType(fetchedSettings.settings.theme);
-      } catch (error) {
-        console.error('Failed to load user settings:', error);
-      }
-    };
-
-    loadUserSettings();
-  }, [userId]);
-
   const {
     content,
     files,
@@ -39,18 +24,14 @@ function App() {
     pullLatestChanges,
   } = useFileManagement(settings.gitEnabled);
 
-  const handleThemeChange = (newTheme) => {
-    setThemeType(newTheme);
-  };
-
   const handleLinkClick = async (filename) => {
     try {
       const filePaths = await lookupFileByName(filename);
       if (filePaths.length === 1) {
         handleFileSelect(filePaths[0]);
       } else if (filePaths.length > 1) {
-        setFileOptions(filePaths.map((path) => ({ label: path, value: path })));
-        setFileSelectionModalVisible(true);
+        // Handle multiple file options (you may want to show a modal or dropdown)
+        console.log('Multiple files found:', filePaths);
       } else {
         setToast({ text: `File "${filename}" not found`, type: 'error' });
       }
@@ -63,11 +44,15 @@ function App() {
     }
   };
 
+  if (loading) {
+    return <div>Loading...</div>;
+  }
+
   return (
-    <GeistProvider themeType={themeType}>
+    <GeistProvider themeType={settings.theme}>
       <CssBaseline />
       <Page>
-        <Header currentTheme={themeType} onThemeChange={handleThemeChange} />
+        <Header />
         <Page.Content className="page-content">
           <MainContent
             content={content}
@@ -90,4 +75,12 @@ function App() {
   );
 }
 
+function App() {
+  return (
+    <SettingsProvider>
+      <AppContent />
+    </SettingsProvider>
+  );
+}
+
 export default App;
diff --git a/frontend/src/components/Header.js b/frontend/src/components/Header.js
index cbac3aa..44d6de5 100644
--- a/frontend/src/components/Header.js
+++ b/frontend/src/components/Header.js
@@ -2,9 +2,11 @@ import React, { useState } from 'react';
 import { Page, Text, User, Button, Spacer } from '@geist-ui/core';
 import { Settings as SettingsIcon } from '@geist-ui/icons';
 import Settings from './Settings';
+import { useSettings } from '../contexts/SettingsContext';
 
-const Header = ({ currentTheme, onThemeChange }) => {
+const Header = () => {
   const [settingsVisible, setSettingsVisible] = useState(false);
+  const { settings } = useSettings();
 
   const openSettings = () => setSettingsVisible(true);
   const closeSettings = () => setSettingsVisible(false);
@@ -16,12 +18,7 @@ const Header = ({ currentTheme, onThemeChange }) => {
       <User src="https://via.placeholder.com/40" name="User" />
       <Spacer w={0.5} />
       <Button auto icon={<SettingsIcon />} onClick={openSettings} />
-      <Settings
-        visible={settingsVisible}
-        onClose={closeSettings}
-        currentTheme={currentTheme}
-        onThemeChange={onThemeChange}
-      />
+      <Settings visible={settingsVisible} onClose={closeSettings} />
     </Page.Header>
   );
 };
diff --git a/frontend/src/components/MainContent.js b/frontend/src/components/MainContent.js
index 91beee6..f193bee 100644
--- a/frontend/src/components/MainContent.js
+++ b/frontend/src/components/MainContent.js
@@ -16,6 +16,7 @@ import CommitMessageModal from './modals/CommitMessageModal';
 import ContentView from './ContentView';
 import { commitAndPush, saveFileContent, deleteFile } from '../services/api';
 import { isImageFile } from '../utils/fileHelpers';
+import { useSettings } from '../contexts/SettingsContext';
 
 const MainContent = ({
   content,
@@ -25,7 +26,6 @@ const MainContent = ({
   onFileSelect,
   onContentChange,
   onSave,
-  settings,
   pullLatestChanges,
   onLinkClick,
   lookupFileByName,
@@ -33,6 +33,7 @@ const MainContent = ({
   const [activeTab, setActiveTab] = useState('source');
   const { type: themeType } = useTheme();
   const { setToast } = useToasts();
+  const { settings } = useSettings();
   const [newFileModalVisible, setNewFileModalVisible] = useState(false);
   const [newFileName, setNewFileName] = useState('');
   const [deleteFileModalVisible, setDeleteFileModalVisible] = useState(false);
diff --git a/frontend/src/components/Settings.js b/frontend/src/components/Settings.js
index 2ab0c0b..a5e1928 100644
--- a/frontend/src/components/Settings.js
+++ b/frontend/src/components/Settings.js
@@ -1,75 +1,88 @@
-import React, { useState, useEffect, useCallback } from 'react';
+import React, { useReducer, useEffect, useCallback, useRef } from 'react';
 import { Modal, Spacer, useTheme, Dot, useToasts } from '@geist-ui/core';
-import { saveUserSettings, fetchUserSettings } from '../services/api';
+import { useSettings } from '../contexts/SettingsContext';
 import AppearanceSettings from './settings/AppearanceSettings';
 import EditorSettings from './settings/EditorSettings';
 import GitSettings from './settings/GitSettings';
 
-const Settings = ({ visible, onClose, currentTheme, onThemeChange }) => {
-  const theme = useTheme();
-  const { setToast } = useToasts();
-  const [settings, setSettings] = useState({
-    autoSave: false,
-    gitEnabled: false,
-    gitUrl: '',
-    gitUser: '',
-    gitToken: '',
-    gitAutoCommit: false,
-    gitCommitMsgTemplate: '',
-  });
-  const [themeSettings, setThemeSettings] = useState(currentTheme);
-  const [originalSettings, setOriginalSettings] = useState({});
-  const [originalTheme, setOriginalTheme] = useState(currentTheme);
-  const [hasUnsavedChanges, setHasUnsavedChanges] = useState(false);
-  const [isInitialized, setIsInitialized] = useState(false);
+const initialState = {
+  localSettings: {},
+  initialSettings: {},
+  hasUnsavedChanges: false,
+};
 
-  const loadSettings = useCallback(async () => {
-    try {
-      const userSettings = await fetchUserSettings(1); // Assuming user ID 1 for now
-      const { theme, ...otherSettings } = userSettings.settings;
-      setSettings(otherSettings);
-      setThemeSettings(theme);
-      setOriginalSettings(otherSettings);
-      setOriginalTheme(theme);
-      setHasUnsavedChanges(false);
-      setIsInitialized(true);
-    } catch (error) {
-      console.error('Failed to load user settings:', error);
+function settingsReducer(state, action) {
+  console.log('Reducer action:', action.type, action.payload); // Debug log
+  switch (action.type) {
+    case 'INIT_SETTINGS':
+      return {
+        ...state,
+        localSettings: action.payload,
+        initialSettings: action.payload,
+        hasUnsavedChanges: false,
+      };
+    case 'UPDATE_LOCAL_SETTINGS':
+      const newLocalSettings = { ...state.localSettings, ...action.payload };
+      const hasChanges =
+        JSON.stringify(newLocalSettings) !==
+        JSON.stringify(state.initialSettings);
+      return {
+        ...state,
+        localSettings: newLocalSettings,
+        hasUnsavedChanges: hasChanges,
+      };
+    case 'MARK_SAVED':
+      return {
+        ...state,
+        initialSettings: state.localSettings,
+        hasUnsavedChanges: false,
+      };
+    case 'RESET':
+      return {
+        ...state,
+        localSettings: state.initialSettings,
+        hasUnsavedChanges: false,
+      };
+    default:
+      return state;
+  }
+}
+
+const Settings = ({ visible, onClose }) => {
+  const { settings, updateSettings, updateTheme } = useSettings();
+  const { setToast } = useToasts();
+  const [state, dispatch] = useReducer(settingsReducer, initialState);
+  const isInitialMount = useRef(true);
+  const updateThemeTimeoutRef = useRef(null);
+
+  useEffect(() => {
+    if (isInitialMount.current) {
+      isInitialMount.current = false;
+      dispatch({ type: 'INIT_SETTINGS', payload: settings });
     }
+  }, [settings]);
+
+  const handleInputChange = useCallback((key, value) => {
+    dispatch({ type: 'UPDATE_LOCAL_SETTINGS', payload: { [key]: value } });
   }, []);
 
-  useEffect(() => {
-    if (!isInitialized) {
-      loadSettings();
+  const handleThemeChange = useCallback(() => {
+    const newTheme = state.localSettings.theme === 'dark' ? 'light' : 'dark';
+    dispatch({ type: 'UPDATE_LOCAL_SETTINGS', payload: { theme: newTheme } });
+
+    // Debounce the theme update
+    if (updateThemeTimeoutRef.current) {
+      clearTimeout(updateThemeTimeoutRef.current);
     }
-  }, [isInitialized, loadSettings]);
-
-  useEffect(() => {
-    const settingsChanged =
-      JSON.stringify(settings) !== JSON.stringify(originalSettings);
-    const themeChanged = themeSettings !== originalTheme;
-    setHasUnsavedChanges(settingsChanged || themeChanged);
-  }, [settings, themeSettings, originalSettings, originalTheme]);
-
-  const handleInputChange = (key, value) => {
-    setSettings((prev) => ({ ...prev, [key]: value }));
-  };
-
-  const handleThemeChange = () => {
-    const newTheme = themeSettings === 'dark' ? 'light' : 'dark';
-    setThemeSettings(newTheme);
-    onThemeChange(newTheme);
-  };
+    updateThemeTimeoutRef.current = setTimeout(() => {
+      updateTheme(newTheme);
+    }, 0);
+  }, [state.localSettings.theme, updateTheme]);
 
   const handleSubmit = async () => {
     try {
-      await saveUserSettings({
-        userId: 1, // Assuming user ID 1 for now
-        settings: { ...settings, theme: themeSettings },
-      });
-      setOriginalSettings(settings);
-      setOriginalTheme(themeSettings);
-      setHasUnsavedChanges(false);
+      await updateSettings(state.localSettings);
+      dispatch({ type: 'MARK_SAVED' });
       setToast({ text: 'Settings saved successfully', type: 'success' });
       onClose();
     } catch (error) {
@@ -81,36 +94,66 @@ const Settings = ({ visible, onClose, currentTheme, onThemeChange }) => {
     }
   };
 
+  const handleClose = useCallback(() => {
+    if (state.hasUnsavedChanges) {
+      const confirmClose = window.confirm(
+        'You have unsaved changes. Are you sure you want to close without saving?'
+      );
+      if (confirmClose) {
+        updateTheme(state.initialSettings.theme); // Revert theme if not saved
+        dispatch({ type: 'RESET' });
+        onClose();
+      }
+    } else {
+      onClose();
+    }
+  }, [
+    state.hasUnsavedChanges,
+    state.initialSettings.theme,
+    updateTheme,
+    onClose,
+  ]);
+
+  useEffect(() => {
+    return () => {
+      if (updateThemeTimeoutRef.current) {
+        clearTimeout(updateThemeTimeoutRef.current);
+      }
+    };
+  }, []);
+
+  console.log('State:', state); // Debugging log
+
   return (
-    <Modal visible={visible} onClose={onClose}>
+    <Modal visible={visible} onClose={handleClose}>
       <Modal.Title>
         Settings
-        {hasUnsavedChanges && (
+        {state.hasUnsavedChanges && (
           <Dot type="warning" style={{ marginLeft: '8px' }} />
         )}
       </Modal.Title>
       <Modal.Content>
         <AppearanceSettings
-          themeSettings={themeSettings}
+          themeSettings={state.localSettings.theme}
           onThemeChange={handleThemeChange}
         />
         <Spacer h={1} />
         <EditorSettings
-          autoSave={settings.autoSave}
+          autoSave={state.localSettings.autoSave}
           onAutoSaveChange={(value) => handleInputChange('autoSave', value)}
         />
         <Spacer h={1} />
         <GitSettings
-          gitEnabled={settings.gitEnabled}
-          gitUrl={settings.gitUrl}
-          gitUser={settings.gitUser}
-          gitToken={settings.gitToken}
-          gitAutoCommit={settings.gitAutoCommit}
-          gitCommitMsgTemplate={settings.gitCommitMsgTemplate}
+          gitEnabled={state.localSettings.gitEnabled}
+          gitUrl={state.localSettings.gitUrl}
+          gitUser={state.localSettings.gitUser}
+          gitToken={state.localSettings.gitToken}
+          gitAutoCommit={state.localSettings.gitAutoCommit}
+          gitCommitMsgTemplate={state.localSettings.gitCommitMsgTemplate}
           onInputChange={handleInputChange}
         />
       </Modal.Content>
-      <Modal.Action passive onClick={onClose}>
+      <Modal.Action passive onClick={handleClose}>
         Cancel
       </Modal.Action>
       <Modal.Action onClick={handleSubmit}>Save Changes</Modal.Action>
diff --git a/frontend/src/contexts/SettingsContext.js b/frontend/src/contexts/SettingsContext.js
new file mode 100644
index 0000000..5caf883
--- /dev/null
+++ b/frontend/src/contexts/SettingsContext.js
@@ -0,0 +1,66 @@
+import React, { createContext, useState, useContext, useEffect } from 'react';
+import { fetchUserSettings, saveUserSettings } from '../services/api';
+
+const SettingsContext = createContext();
+
+export const useSettings = () => {
+  return useContext(SettingsContext);
+};
+
+export const SettingsProvider = ({ children }) => {
+  const [settings, setSettings] = useState({
+    theme: 'light',
+    autoSave: false,
+    gitEnabled: false,
+    gitUrl: '',
+    gitUser: '',
+    gitToken: '',
+    gitAutoCommit: false,
+    gitCommitMsgTemplate: '',
+  });
+
+  const [loading, setLoading] = useState(true);
+
+  useEffect(() => {
+    const loadSettings = async () => {
+      try {
+        const userSettings = await fetchUserSettings(1); // Assuming user ID 1 for now
+        setSettings(userSettings.settings);
+      } catch (error) {
+        console.error('Failed to load user settings:', error);
+      } finally {
+        setLoading(false);
+      }
+    };
+
+    loadSettings();
+  }, []);
+
+  const updateSettings = async (newSettings) => {
+    try {
+      await saveUserSettings({
+        userId: 1, // Assuming user ID 1 for now
+        settings: newSettings,
+      });
+      setSettings(newSettings);
+    } catch (error) {
+      console.error('Failed to save settings:', error);
+      throw error;
+    }
+  };
+
+  const updateTheme = (newTheme) => {
+    setSettings((prevSettings) => ({
+      ...prevSettings,
+      theme: newTheme,
+    }));
+  };
+
+  return (
+    <SettingsContext.Provider
+      value={{ settings, updateSettings, updateTheme, loading }}
+    >
+      {children}
+    </SettingsContext.Provider>
+  );
+};