diff --git a/cmp-navigation/src/commonMain/kotlin/cmp/navigation/ComposeApp.kt b/cmp-navigation/src/commonMain/kotlin/cmp/navigation/ComposeApp.kt
index 7830b30e0c..116b8af430 100644
--- a/cmp-navigation/src/commonMain/kotlin/cmp/navigation/ComposeApp.kt
+++ b/cmp-navigation/src/commonMain/kotlin/cmp/navigation/ComposeApp.kt
@@ -9,11 +9,13 @@
  */
 package cmp.navigation
 
+import androidx.compose.foundation.isSystemInDarkTheme
 import androidx.compose.runtime.Composable
 import androidx.compose.runtime.getValue
 import androidx.compose.ui.Modifier
 import androidx.lifecycle.compose.collectAsStateWithLifecycle
 import cmp.navigation.rootnav.RootNavScreen
+import com.mifos.core.datastore.model.DarkThemeConfig
 import com.mifos.core.designsystem.theme.MifosTheme
 import com.mifos.core.ui.util.EventsEffect
 import org.koin.compose.viewmodel.koinViewModel
@@ -36,8 +38,14 @@ fun ComposeApp(
         }
     }
 
+    val darkTheme = when (uiState.darkThemeConfig) {
+        DarkThemeConfig.DARK -> true
+        DarkThemeConfig.LIGHT -> false
+        DarkThemeConfig.FOLLOW_SYSTEM -> isSystemInDarkTheme()
+    }
+
     MifosTheme(
-        darkTheme = uiState.darkTheme,
+        darkTheme = darkTheme,
         androidTheme = uiState.isAndroidTheme,
         shouldDisplayDynamicTheming = uiState.isDynamicColorsEnabled,
     ) {
diff --git a/cmp-navigation/src/commonMain/kotlin/cmp/navigation/ComposeAppViewModel.kt b/cmp-navigation/src/commonMain/kotlin/cmp/navigation/ComposeAppViewModel.kt
index 0a348e1e34..2851ccc569 100644
--- a/cmp-navigation/src/commonMain/kotlin/cmp/navigation/ComposeAppViewModel.kt
+++ b/cmp-navigation/src/commonMain/kotlin/cmp/navigation/ComposeAppViewModel.kt
@@ -28,7 +28,7 @@ class ComposeAppViewModel(
     private val networkMonitor: NetworkMonitor,
 ) : BaseViewModel<AppState, AppEvent, AppAction>(
     initialState = AppState(
-        darkTheme = false,
+        darkThemeConfig = DarkThemeConfig.FOLLOW_SYSTEM,
         isAndroidTheme = false,
         isDynamicColorsEnabled = false,
     ),
@@ -66,7 +66,7 @@ class ComposeAppViewModel(
 
     private fun handleAppThemeUpdated(action: AppAction.Internal.ThemeUpdate) {
         mutableStateFlow.update {
-            it.copy(darkTheme = action.theme == DarkThemeConfig.DARK)
+            it.copy(darkThemeConfig = action.theme)
         }
         sendEvent(AppEvent.UpdateAppTheme(osValue = action.theme.osValue))
     }
@@ -77,7 +77,7 @@ class ComposeAppViewModel(
 }
 
 data class AppState(
-    val darkTheme: Boolean,
+    val darkThemeConfig: DarkThemeConfig,
     val isAndroidTheme: Boolean,
     val isDynamicColorsEnabled: Boolean,
 )