diff --git a/androidApp/src/main/AndroidManifest.xml b/androidApp/src/main/AndroidManifest.xml
index cd18e8e82..f33d075aa 100644
--- a/androidApp/src/main/AndroidManifest.xml
+++ b/androidApp/src/main/AndroidManifest.xml
@@ -38,7 +38,7 @@
         <activity
             android:name=".HomeActivity"
             android:exported="true"
-            android:theme="@style/Theme.MifosSplash"
+            android:theme="@style/Theme.Mifos.Splash"
             android:windowSoftInputMode="adjustPan">
             <intent-filter>
                 <action android:name="android.intent.action.MAIN" />
diff --git a/androidApp/src/main/kotlin/org/mifos/mobile/HomeActivity.kt b/androidApp/src/main/kotlin/org/mifos/mobile/HomeActivity.kt
index 66d7682cb..0bfc0ecb7 100644
--- a/androidApp/src/main/kotlin/org/mifos/mobile/HomeActivity.kt
+++ b/androidApp/src/main/kotlin/org/mifos/mobile/HomeActivity.kt
@@ -9,8 +9,10 @@
  */
 package org.mifos.mobile
 
+import android.graphics.Color
 import android.os.Bundle
 import androidx.activity.ComponentActivity
+import androidx.activity.SystemBarStyle
 import androidx.activity.compose.setContent
 import androidx.activity.enableEdgeToEdge
 import androidx.activity.viewModels
@@ -35,6 +37,7 @@ import org.mifos.mobile.core.data.utils.NetworkMonitor
 import org.mifos.mobile.core.designsystem.theme.MifosMobileTheme
 import org.mifos.mobile.core.designsystem.theme.darkScrim
 import org.mifos.mobile.core.designsystem.theme.lightScrim
+import org.mifos.mobile.core.model.enums.AppTheme
 import org.mifos.mobile.navigation.MifosNavGraph.AUTH_GRAPH
 import org.mifos.mobile.navigation.MifosNavGraph.PASSCODE_GRAPH
 import org.mifos.mobile.navigation.RootNavGraph
@@ -54,7 +57,6 @@ class HomeActivity : ComponentActivity() {
         super.onCreate(savedInstanceState)
         var uiState: HomeActivityUiState by mutableStateOf(HomeActivityUiState.Loading)
 
-        // Update the uiState
         lifecycleScope.launch {
             lifecycle.repeatOnLifecycle(Lifecycle.State.STARTED) {
                 viewModel.uiState
@@ -76,25 +78,41 @@ class HomeActivity : ComponentActivity() {
             val navController = rememberNavController()
 
             val appState = rememberMifosMobileState(networkMonitor = networkMonitor)
-            val darkTheme = isSystemInDarkTheme()
             val navDestination = when (uiState) {
                 is Success -> if ((uiState as Success).userData.isAuthenticated) {
                     PASSCODE_GRAPH
                 } else {
                     AUTH_GRAPH
                 }
-
                 else -> AUTH_GRAPH
             }
 
-            DisposableEffect(darkTheme) {
-                window?.statusBarColor = if (darkTheme) darkScrim.toArgb() else lightScrim.toArgb()
-                window?.navigationBarColor = if (darkTheme) darkScrim.toArgb() else lightScrim.toArgb()
+            val isSystemInDarkMode = isSystemInDarkTheme()
+            DisposableEffect(isSystemInDarkMode) {
+                enableEdgeToEdge(
+                    statusBarStyle = SystemBarStyle.auto(
+                        Color.TRANSPARENT,
+                        Color.TRANSPARENT,
+                    ) { isSystemInDarkMode },
+                    navigationBarStyle = SystemBarStyle.auto(
+                        lightScrim.toArgb(),
+                        darkScrim.toArgb(),
+                    ) { isSystemInDarkMode },
+                )
                 onDispose {}
             }
 
+            val isDarkMode = when (uiState) {
+                is Success -> when ((uiState as Success).themeState) {
+                    AppTheme.DARK -> true
+                    AppTheme.LIGHT -> false
+                    AppTheme.SYSTEM -> isSystemInDarkMode
+                }
+                else -> isSystemInDarkMode
+            }
+
             CompositionLocalProvider {
-                MifosMobileTheme {
+                MifosMobileTheme(isDarkMode) {
                     RootNavGraph(
                         appState = appState,
                         navHostController = navController,
diff --git a/androidApp/src/main/kotlin/org/mifos/mobile/HomeActivityViewModel.kt b/androidApp/src/main/kotlin/org/mifos/mobile/HomeActivityViewModel.kt
index fdfc7e533..776d00a5b 100644
--- a/androidApp/src/main/kotlin/org/mifos/mobile/HomeActivityViewModel.kt
+++ b/androidApp/src/main/kotlin/org/mifos/mobile/HomeActivityViewModel.kt
@@ -14,22 +14,28 @@ import androidx.lifecycle.viewModelScope
 import dagger.hilt.android.lifecycle.HiltViewModel
 import kotlinx.coroutines.flow.SharingStarted
 import kotlinx.coroutines.flow.StateFlow
-import kotlinx.coroutines.flow.map
+import kotlinx.coroutines.flow.combine
 import kotlinx.coroutines.flow.stateIn
 import kotlinx.coroutines.launch
 import org.mifos.library.passcode.data.PasscodeManager
 import org.mifos.mobile.core.data.repository.UserDataRepository
+import org.mifos.mobile.core.datastore.PreferencesHelper
 import org.mifos.mobile.core.model.UserData
+import org.mifos.mobile.core.model.enums.AppTheme
 import javax.inject.Inject
 
 @HiltViewModel
 class HomeActivityViewModel @Inject constructor(
     private val userDataRepository: UserDataRepository,
     private val passcodeManager: PasscodeManager,
+    private val preferencesHelper: PreferencesHelper,
 ) : ViewModel() {
 
-    val uiState: StateFlow<HomeActivityUiState> = userDataRepository.userData.map {
-        HomeActivityUiState.Success(it)
+    val uiState: StateFlow<HomeActivityUiState> = combine(
+        userDataRepository.userData,
+        preferencesHelper.themeFlow,
+    ) { userData, themeState ->
+        HomeActivityUiState.Success(userData, themeState)
     }.stateIn(
         scope = viewModelScope,
         initialValue = HomeActivityUiState.Loading,
@@ -46,5 +52,5 @@ class HomeActivityViewModel @Inject constructor(
 
 sealed interface HomeActivityUiState {
     data object Loading : HomeActivityUiState
-    data class Success(val userData: UserData) : HomeActivityUiState
+    data class Success(val userData: UserData, val themeState: AppTheme) : HomeActivityUiState
 }
diff --git a/androidApp/src/main/kotlin/org/mifos/mobile/MifosSelfServiceApp.kt b/androidApp/src/main/kotlin/org/mifos/mobile/MifosSelfServiceApp.kt
index a728b6070..2ccac90b8 100644
--- a/androidApp/src/main/kotlin/org/mifos/mobile/MifosSelfServiceApp.kt
+++ b/androidApp/src/main/kotlin/org/mifos/mobile/MifosSelfServiceApp.kt
@@ -14,8 +14,6 @@ import androidx.multidex.MultiDexApplication
 import com.google.firebase.crashlytics.FirebaseCrashlytics
 import com.raizlabs.android.dbflow.config.FlowManager
 import dagger.hilt.android.HiltAndroidApp
-import org.mifos.mobile.core.datastore.PreferencesHelper
-import org.mifos.mobile.feature.settings.applySavedTheme
 
 @HiltAndroidApp
 class MifosSelfServiceApp : MultiDexApplication() {
@@ -24,7 +22,6 @@ class MifosSelfServiceApp : MultiDexApplication() {
         MultiDex.install(this)
         FlowManager.init(this)
         FirebaseCrashlytics.getInstance().setCrashlyticsCollectionEnabled(true)
-        PreferencesHelper(this).applySavedTheme()
     }
 
     override fun onTerminate() {
diff --git a/androidApp/src/main/res/values-night/color.xml b/androidApp/src/main/res/values-night/color.xml
new file mode 100644
index 000000000..b71f9f07c
--- /dev/null
+++ b/androidApp/src/main/res/values-night/color.xml
@@ -0,0 +1,13 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!--
+    Copyright 2024 Mifos Initiative
+
+    This Source Code Form is subject to the terms of the Mozilla Public License, v. 2.0.
+    If a copy of the MPL was not distributed with this file,
+    You can obtain one at https://mozilla.org/MPL/2.0/.
+
+    See https://github.com/openMF/mobile-mobile/blob/master/LICENSE.md
+-->
+<resources>
+    <color name="status_bar">#FF1B1B1F</color> // dark/color.xml
+</resources>
\ No newline at end of file
diff --git a/androidApp/src/main/res/values-night/theme.xml b/androidApp/src/main/res/values-night/theme.xml
new file mode 100644
index 000000000..1bcacceb8
--- /dev/null
+++ b/androidApp/src/main/res/values-night/theme.xml
@@ -0,0 +1,21 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!--
+    Copyright 2024 Mifos Initiative
+
+    This Source Code Form is subject to the terms of the Mozilla Public License, v. 2.0.
+    If a copy of the MPL was not distributed with this file,
+    You can obtain one at https://mozilla.org/MPL/2.0/.
+
+    See https://github.com/openMF/mobile-mobile/blob/master/LICENSE.md
+-->
+<resources xmlns:tools="http://schemas.android.com/tools">
+
+    <style name="NightAdjusted.Theme" parent="android:Theme.Material.NoActionBar">
+        <item name="android:statusBarColor">@color/status_bar</item>
+    </style>
+
+    <style name="NightAdjusted.Theme.Splash" parent="Theme.SplashScreen">
+        <item name="android:windowLightNavigationBar" tools:targetApi="27">false</item>
+    </style>
+
+</resources>
\ No newline at end of file
diff --git a/androidApp/src/main/res/values/colors.xml b/androidApp/src/main/res/values/colors.xml
index 94394e4c5..f6d79d8f5 100644
--- a/androidApp/src/main/res/values/colors.xml
+++ b/androidApp/src/main/res/values/colors.xml
@@ -54,7 +54,7 @@
     <color name="gray_bright">#33CCCCCC</color>
 
     <!-- Material design colors -->
-
+    <color name="status_bar">#FFFEFBFF</color>
     <!-- New UI color palette -->
     <!--<color name="primary">#068799</color>-->
     <!--<color name="primary_dark">#006978</color>-->
diff --git a/androidApp/src/main/res/values/splash.xml b/androidApp/src/main/res/values/splash.xml
index 9ee17867e..64f0c3289 100644
--- a/androidApp/src/main/res/values/splash.xml
+++ b/androidApp/src/main/res/values/splash.xml
@@ -8,18 +8,31 @@
 
     See https://github.com/openMF/mobile-mobile/blob/master/LICENSE.md
 -->
-<resources>
-    <style name="Theme.MifosSplash" parent="Theme.SplashScreen">
-        <item name="windowSplashScreenBackground">#FFFDFDF5</item>
-        <item name="windowSplashScreenAnimatedIcon">@drawable/splash_icon</item>
-        <item name="postSplashScreenTheme">@style/AppTheme</item>
-        <item name="windowSplashScreenAnimationDuration">10</item>
+<resources xmlns:tools="http://schemas.android.com/tools">
+
+    <!-- Base Theme for Night Mode -->
+    <style name="NightAdjusted.Theme" parent="android:Theme.Material.Light.NoActionBar">
+        <item name="android:statusBarColor">@color/status_bar</item>
+    </style>
+
+    <!-- Final Theme for the Application -->
+    <style name="Theme.MifosSplash" parent="NightAdjusted.Theme">
+        <!-- Splash background color -->
+        <item name="windowSplashScreenBackground">@color/white</item>
     </style>
 
-    <style name="AppTheme" parent="Theme.AppCompat.Light.NoActionBar">
-        <item name="android:statusBarColor">@color/background</item>
-        <item name="android:windowLightStatusBar">true</item>
-        <item name="android:windowContentOverlay">@null</item>
-        <item name="android:windowIsTranslucent">true</item>
+    <!-- Splash Screen Theme -->
+    <style name="NightAdjusted.Theme.Splash" parent="Theme.SplashScreen">
+        <item name="android:windowLightNavigationBar" tools:targetApi="27">true</item>
+        <!-- Splash screen animation duration -->
+        <item name="windowSplashScreenAnimationDuration">500</item>
+    </style>
+
+    <!-- Final Splash Theme -->
+    <style name="Theme.Mifos.Splash" parent="NightAdjusted.Theme.Splash">
+        <!-- Icon for splash screen -->
+        <item name="windowSplashScreenAnimatedIcon">@drawable/splash_icon</item>
+        <!-- Post splash screen theme -->
+        <item name="postSplashScreenTheme">@style/Theme.MifosSplash</item>
     </style>
 </resources>
diff --git a/core/datastore/src/main/java/org/mifos/mobile/core/datastore/PreferencesHelper.kt b/core/datastore/src/main/java/org/mifos/mobile/core/datastore/PreferencesHelper.kt
index b469a6bea..8c1fea1d8 100644
--- a/core/datastore/src/main/java/org/mifos/mobile/core/datastore/PreferencesHelper.kt
+++ b/core/datastore/src/main/java/org/mifos/mobile/core/datastore/PreferencesHelper.kt
@@ -16,6 +16,9 @@ import android.text.TextUtils
 import dagger.hilt.android.qualifiers.ApplicationContext
 import kotlinx.coroutines.channels.Channel
 import kotlinx.coroutines.channels.awaitClose
+import kotlinx.coroutines.flow.MutableStateFlow
+import kotlinx.coroutines.flow.StateFlow
+import kotlinx.coroutines.flow.asStateFlow
 import kotlinx.coroutines.flow.buffer
 import kotlinx.coroutines.flow.callbackFlow
 import org.mifos.mobile.core.model.enums.AppTheme
@@ -29,9 +32,23 @@ import javax.inject.Singleton
  */
 @Singleton
 class PreferencesHelper @Inject constructor(@ApplicationContext context: Context?) {
+    private val themeFlowState: MutableStateFlow<AppTheme>
+    val themeFlow: StateFlow<AppTheme> get() = themeFlowState.asStateFlow()
+
     private val sharedPreferences: SharedPreferences? =
         PreferenceManager.getDefaultSharedPreferences(context)
 
+    init {
+        if (!sharedPreferences?.contains(APPLICATION_THEME)!!) {
+            putInt(APPLICATION_THEME, AppTheme.SYSTEM.ordinal)
+        }
+        themeFlowState = MutableStateFlow(
+            AppTheme.entries.getOrNull(
+                sharedPreferences.getInt(APPLICATION_THEME, AppTheme.SYSTEM.ordinal),
+            ) ?: AppTheme.SYSTEM,
+        )
+    }
+
     fun clear() {
         val editor = sharedPreferences?.edit()
         // prevent deletion of url and tenant
@@ -178,6 +195,7 @@ class PreferencesHelper @Inject constructor(@ApplicationContext context: Context
         get() = getInt(APPLICATION_THEME, AppTheme.SYSTEM.ordinal) ?: AppTheme.SYSTEM.ordinal
         set(value) {
             putInt(APPLICATION_THEME, value)
+            themeFlowState.value = AppTheme.entries[value]
         }
 
     var language
diff --git a/core/designsystem/src/main/kotlin/org/mifos/mobile/core/designsystem/theme/Theme.kt b/core/designsystem/src/main/kotlin/org/mifos/mobile/core/designsystem/theme/Theme.kt
index b3e2da1f8..d5c34ea67 100644
--- a/core/designsystem/src/main/kotlin/org/mifos/mobile/core/designsystem/theme/Theme.kt
+++ b/core/designsystem/src/main/kotlin/org/mifos/mobile/core/designsystem/theme/Theme.kt
@@ -33,7 +33,7 @@ private val DarkThemeColors = darkColorScheme(
     secondary = Black1,
     error = RedErrorDark,
     background = BackgroundDark,
-    surface = Black1,
+    surface = BackgroundDark,
     onSurface = Color.White,
     onSecondary = Color.White,
     outlineVariant = Color.White,
diff --git a/feature/settings/src/main/java/org/mifos/mobile/feature/settings/SettingsViewModel.kt b/feature/settings/src/main/java/org/mifos/mobile/feature/settings/SettingsViewModel.kt
index 2e0627206..6d974423e 100644
--- a/feature/settings/src/main/java/org/mifos/mobile/feature/settings/SettingsViewModel.kt
+++ b/feature/settings/src/main/java/org/mifos/mobile/feature/settings/SettingsViewModel.kt
@@ -9,8 +9,6 @@
  */
 package org.mifos.mobile.feature.settings
 
-import android.os.Build
-import androidx.appcompat.app.AppCompatDelegate
 import androidx.lifecycle.ViewModel
 import androidx.lifecycle.viewModelScope
 import dagger.hilt.android.lifecycle.HiltViewModel
@@ -70,15 +68,7 @@ internal class SettingsViewModel @Inject constructor(
     }
 
     fun updateTheme(theme: AppTheme) {
-        AppCompatDelegate.setDefaultNightMode(
-            when (theme) {
-                AppTheme.DARK -> AppCompatDelegate.MODE_NIGHT_YES
-                AppTheme.LIGHT -> AppCompatDelegate.MODE_NIGHT_NO
-                else -> AppCompatDelegate.MODE_NIGHT_FOLLOW_SYSTEM
-            },
-        )
         preferencesHelper.appTheme = theme.ordinal
-        preferencesHelper.applyTheme(theme)
     }
 }
 
@@ -124,27 +114,3 @@ internal enum class SettingsCardItem(
         subclassOf = R.string.other,
     ),
 }
-
-fun PreferencesHelper.applySavedTheme() {
-    val applicationTheme = AppTheme.entries.find { it.ordinal == this.appTheme }
-    AppCompatDelegate.setDefaultNightMode(
-        when {
-            applicationTheme == AppTheme.DARK -> AppCompatDelegate.MODE_NIGHT_YES
-            applicationTheme == AppTheme.LIGHT -> AppCompatDelegate.MODE_NIGHT_NO
-            Build.VERSION.SDK_INT > Build.VERSION_CODES.P -> AppCompatDelegate.MODE_NIGHT_FOLLOW_SYSTEM
-            else -> AppCompatDelegate.MODE_NIGHT_NO
-        },
-    )
-}
-
-internal fun PreferencesHelper.applyTheme(applicationTheme: AppTheme) {
-    this.appTheme = applicationTheme.ordinal
-    AppCompatDelegate.setDefaultNightMode(
-        when {
-            applicationTheme == AppTheme.DARK -> AppCompatDelegate.MODE_NIGHT_YES
-            applicationTheme == AppTheme.LIGHT -> AppCompatDelegate.MODE_NIGHT_NO
-            Build.VERSION.SDK_INT > Build.VERSION_CODES.P -> AppCompatDelegate.MODE_NIGHT_FOLLOW_SYSTEM
-            else -> AppCompatDelegate.MODE_NIGHT_NO
-        },
-    )
-}