diff --git a/frontend/src/components/Layout.tsx b/frontend/src/components/Layout.tsx
index dee983f..877632f 100644
--- a/frontend/src/components/Layout.tsx
+++ b/frontend/src/components/Layout.tsx
@@ -11,16 +11,33 @@ export default function Layout({ children }: LayoutProps) {
   const navigate = useNavigate();
   const [theme, setTheme] = useState<'light' | 'dark'>(() => {
     const saved = localStorage.getItem('theme');
-    return (saved as 'light' | 'dark') || 'light';
+    if (saved === 'light' || saved === 'dark') {
+      return saved;
+    }
+    // Auto-detect system preference
+    return window.matchMedia('(prefers-color-scheme: dark)').matches ? 'dark' : 'light';
   });
   const [isDropdownOpen, setIsDropdownOpen] = useState(false);
   const dropdownRef = useRef<HTMLDivElement>(null);
 
   useEffect(() => {
     document.documentElement.setAttribute('data-theme', theme);
-    localStorage.setItem('theme', theme);
   }, [theme]);
 
+  // Listen for system theme changes
+  useEffect(() => {
+    const mediaQuery = window.matchMedia('(prefers-color-scheme: dark)');
+    const handleChange = (e: MediaQueryListEvent) => {
+      // Only auto-switch if user hasn't manually set a preference
+      const saved = localStorage.getItem('theme');
+      if (!saved) {
+        setTheme(e.matches ? 'dark' : 'light');
+      }
+    };
+    mediaQuery.addEventListener('change', handleChange);
+    return () => mediaQuery.removeEventListener('change', handleChange);
+  }, []);
+
   useEffect(() => {
     const handleClickOutside = (event: MouseEvent) => {
       if (dropdownRef.current && !dropdownRef.current.contains(event.target as Node)) {
@@ -33,7 +50,11 @@ export default function Layout({ children }: LayoutProps) {
   }, []);
 
   const toggleTheme = () => {
-    setTheme((prev) => (prev === 'light' ? 'dark' : 'light'));
+    setTheme((prev) => {
+      const newTheme = prev === 'light' ? 'dark' : 'light';
+      localStorage.setItem('theme', newTheme);
+      return newTheme;
+    });
   };
 
   const handleLogout = () => {