diff --git a/app/components/Layout.tsx b/app/components/Layout.tsx
index c9c62d2..3a1b374 100644
--- a/app/components/Layout.tsx
+++ b/app/components/Layout.tsx
@@ -1,9 +1,9 @@
 'use client'
 
-import { Bot, LayoutDashboard, LogOut, Moon, Plus, Share2, Sun, User } from 'lucide-react'
+import { Bot, LayoutDashboard, LogOut, Plus, Share2, User } from 'lucide-react'
 import { ReactNode } from 'react'
 import { useAuth } from '../contexts/AuthContext'
-import { useTheme } from '../contexts/ThemeContext'
+import { ThemeToggle } from './ui/ThemeToggle'
 
 type Page = 'dashboard' | 'add' | 'shared' | 'ai' | 'profile'
 
@@ -23,7 +23,6 @@ const navItems = [
 
 export function Layout({ children, currentPage, onNavigate }: LayoutProps) {
   const { signOut } = useAuth()
-  const { theme, toggleTheme } = useTheme()
 
   return (
     <div className="min-h-screen bg-stone-50 text-slate-950 dark:bg-slate-950 dark:text-slate-50">
@@ -68,13 +67,7 @@ export function Layout({ children, currentPage, onNavigate }: LayoutProps) {
         </nav>
 
         <div className="mt-auto space-y-2 border-t border-slate-200 pt-4 dark:border-slate-800">
-          <button
-            onClick={toggleTheme}
-            className="flex w-full items-center gap-3 rounded-lg px-3 py-2.5 text-sm font-semibold text-slate-600 transition-colors hover:bg-slate-100 hover:text-slate-950 dark:text-slate-300 dark:hover:bg-slate-900 dark:hover:text-white"
-          >
-            {theme === 'light' ? <Moon className="h-4 w-4" /> : <Sun className="h-4 w-4" />}
-            {theme === 'light' ? 'Dark mode' : 'Light mode'}
-          </button>
+          <ThemeToggle variant="row" />
           <button
             onClick={signOut}
             className="flex w-full items-center gap-3 rounded-lg px-3 py-2.5 text-sm font-semibold text-slate-600 transition-colors hover:bg-red-50 hover:text-red-600 dark:text-slate-300 dark:hover:bg-red-950/30 dark:hover:text-red-300"
@@ -95,9 +88,7 @@ export function Layout({ children, currentPage, onNavigate }: LayoutProps) {
             </div>
           </div>
           <div className="flex items-center gap-1">
-            <button onClick={toggleTheme} className="rounded-lg p-2 text-slate-500 hover:bg-slate-100 dark:text-slate-300 dark:hover:bg-slate-900" aria-label="Toggle theme">
-              {theme === 'light' ? <Moon className="h-5 w-5" /> : <Sun className="h-5 w-5" />}
-            </button>
+            <ThemeToggle variant="pill" />
             <button onClick={signOut} className="rounded-lg p-2 text-slate-500 hover:bg-red-50 hover:text-red-600 dark:text-slate-300 dark:hover:bg-red-950/30 dark:hover:text-red-300" aria-label="Logout">
               <LogOut className="h-5 w-5" />
             </button>
diff --git a/app/components/ui/LegalNav.tsx b/app/components/ui/LegalNav.tsx
new file mode 100644
index 0000000..e9a40a7
--- /dev/null
+++ b/app/components/ui/LegalNav.tsx
@@ -0,0 +1,29 @@
+'use client'
+
+import { ArrowLeft } from 'lucide-react'
+import Link from 'next/link'
+import { ThemeToggle } from './ThemeToggle'
+
+export function LegalNav() {
+  return (
+    <header className="sticky top-0 z-50 border-b border-slate-200 bg-white/90 backdrop-blur-md dark:border-slate-800 dark:bg-slate-950/90">
+      <div className="mx-auto flex max-w-5xl items-center justify-between px-4 py-3 sm:px-6 lg:px-8">
+        <Link href="/" className="flex items-center gap-2.5">
+          <img src="/logo.png" alt="DumpIt" className="h-8 w-8 object-contain" />
+          <span className="text-base font-bold text-slate-900 dark:text-white">DumpIt</span>
+        </Link>
+        <div className="flex items-center gap-2">
+          <ThemeToggle variant="pill" />
+          <Link
+            href="/"
+            className="inline-flex items-center gap-1.5 rounded-lg border border-slate-200 bg-white px-3 py-1.5 text-sm font-medium text-slate-700 shadow-sm transition hover:bg-slate-50 dark:border-slate-700 dark:bg-slate-900 dark:text-slate-200 dark:hover:bg-slate-800"
+          >
+            <ArrowLeft className="h-3.5 w-3.5" />
+            <span className="hidden sm:inline">Back to Home</span>
+            <span className="sm:hidden">Home</span>
+          </Link>
+        </div>
+      </div>
+    </header>
+  )
+}
diff --git a/app/components/ui/ThemeToggle.tsx b/app/components/ui/ThemeToggle.tsx
new file mode 100644
index 0000000..afe44ab
--- /dev/null
+++ b/app/components/ui/ThemeToggle.tsx
@@ -0,0 +1,78 @@
+'use client'
+
+import { Monitor, Moon, Sun } from 'lucide-react'
+import { useTheme, type ThemeMode } from '../../contexts/ThemeContext'
+
+const options: { mode: ThemeMode; Icon: typeof Sun; label: string }[] = [
+  { mode: 'light', Icon: Sun, label: 'Light mode' },
+  { mode: 'system', Icon: Monitor, label: 'System mode' },
+  { mode: 'dark', Icon: Moon, label: 'Dark mode' },
+]
+
+interface ThemeToggleProps {
+  /** 'pill' = compact 3-icon pill (default for navbars). 'row' = full-width row items for sidebars. */
+  variant?: 'pill' | 'row'
+  className?: string
+}
+
+export function ThemeToggle({ variant = 'pill', className = '' }: ThemeToggleProps) {
+  const { themeMode, setThemeMode } = useTheme()
+
+  if (variant === 'row') {
+    return (
+      <div className={`space-y-0.5 ${className}`}>
+        {options.map(({ mode, Icon, label }) => {
+          const active = themeMode === mode
+          return (
+            <button
+              key={mode}
+              onClick={() => setThemeMode(mode)}
+              aria-pressed={active}
+              aria-label={label}
+              className={`flex w-full items-center gap-3 rounded-lg px-3 py-2.5 text-sm font-semibold transition-colors ${
+                active
+                  ? 'bg-slate-100 text-slate-950 dark:bg-slate-800 dark:text-white'
+                  : 'text-slate-500 hover:bg-slate-100 hover:text-slate-950 dark:text-slate-400 dark:hover:bg-slate-900 dark:hover:text-white'
+              }`}
+            >
+              <Icon className="h-4 w-4 shrink-0" />
+              {label}
+              {active && (
+                <span className="ml-auto h-1.5 w-1.5 rounded-full bg-blue-500" />
+              )}
+            </button>
+          )
+        })}
+      </div>
+    )
+  }
+
+  // Pill variant
+  return (
+    <div
+      className={`inline-flex items-center rounded-lg border border-slate-200 bg-slate-100 p-0.5 dark:border-slate-700 dark:bg-slate-800 ${className}`}
+      role="group"
+      aria-label="Theme selector"
+    >
+      {options.map(({ mode, Icon, label }) => {
+        const active = themeMode === mode
+        return (
+          <button
+            key={mode}
+            onClick={() => setThemeMode(mode)}
+            aria-pressed={active}
+            aria-label={label}
+            title={label}
+            className={`relative flex h-7 w-7 items-center justify-center rounded-md transition-all ${
+              active
+                ? 'bg-white text-slate-900 shadow-sm dark:bg-slate-700 dark:text-white'
+                : 'text-slate-400 hover:text-slate-600 dark:text-slate-500 dark:hover:text-slate-300'
+            }`}
+          >
+            <Icon className="h-3.5 w-3.5" />
+          </button>
+        )
+      })}
+    </div>
+  )
+}
diff --git a/app/contexts/ThemeContext.tsx b/app/contexts/ThemeContext.tsx
index 54aad7e..878014d 100644
--- a/app/contexts/ThemeContext.tsx
+++ b/app/contexts/ThemeContext.tsx
@@ -2,36 +2,70 @@
 
 import { createContext, useContext, useEffect, useState, ReactNode } from 'react';
 
-type Theme = 'light' | 'dark';
+export type ThemeMode = 'light' | 'dark' | 'system';
 
 interface ThemeContextType {
-  theme: Theme;
+  /** The currently active rendered theme (always 'light' or 'dark') */
+  resolvedTheme: 'light' | 'dark';
+  /** The user's saved preference, including 'system' */
+  themeMode: ThemeMode;
+  setThemeMode: (mode: ThemeMode) => void;
+  /** Legacy: kept for backwards compatibility with components that used toggleTheme */
   toggleTheme: () => void;
 }
 
 const ThemeContext = createContext<ThemeContextType | undefined>(undefined);
 
+function getSystemTheme(): 'light' | 'dark' {
+  if (typeof window === 'undefined') return 'light';
+  return window.matchMedia('(prefers-color-scheme: dark)').matches ? 'dark' : 'light';
+}
+
+function applyTheme(resolved: 'light' | 'dark') {
+  document.documentElement.classList.toggle('dark', resolved === 'dark');
+}
+
 export function ThemeProvider({ children }: { children: ReactNode }) {
-  const [theme, setTheme] = useState<Theme>('light');
+  const [themeMode, setThemeModeState] = useState<ThemeMode>('system');
+  const [resolvedTheme, setResolvedTheme] = useState<'light' | 'dark'>('light');
 
+  // On mount: read saved preference, apply it
   useEffect(() => {
-    // Check for saved theme preference or system preference
-    const savedTheme = localStorage.getItem('theme') as Theme;
-    const systemTheme = window.matchMedia('(prefers-color-scheme: dark)').matches ? 'dark' : 'light';
-    const initialTheme = savedTheme || systemTheme;
-    setTheme(initialTheme);
-    document.documentElement.classList.toggle('dark', initialTheme === 'dark');
+    const saved = (localStorage.getItem('theme-mode') as ThemeMode) || 'system';
+    const resolved = saved === 'system' ? getSystemTheme() : saved;
+    setThemeModeState(saved);
+    setResolvedTheme(resolved);
+    applyTheme(resolved);
   }, []);
 
+  // Listen for system preference changes when in 'system' mode
+  useEffect(() => {
+    if (themeMode !== 'system') return;
+    const mq = window.matchMedia('(prefers-color-scheme: dark)');
+    const handler = (e: MediaQueryListEvent) => {
+      const resolved = e.matches ? 'dark' : 'light';
+      setResolvedTheme(resolved);
+      applyTheme(resolved);
+    };
+    mq.addEventListener('change', handler);
+    return () => mq.removeEventListener('change', handler);
+  }, [themeMode]);
+
+  const setThemeMode = (mode: ThemeMode) => {
+    const resolved = mode === 'system' ? getSystemTheme() : mode;
+    setThemeModeState(mode);
+    setResolvedTheme(resolved);
+    localStorage.setItem('theme-mode', mode);
+    applyTheme(resolved);
+  };
+
+  // Legacy compat: toggle between light and dark (skips system)
   const toggleTheme = () => {
-    const newTheme = theme === 'light' ? 'dark' : 'light';
-    setTheme(newTheme);
-    localStorage.setItem('theme', newTheme);
-    document.documentElement.classList.toggle('dark', newTheme === 'dark');
+    setThemeMode(resolvedTheme === 'light' ? 'dark' : 'light');
   };
 
   return (
-    <ThemeContext.Provider value={{ theme, toggleTheme }}>
+    <ThemeContext.Provider value={{ resolvedTheme, themeMode, setThemeMode, toggleTheme }}>
       {children}
     </ThemeContext.Provider>
   );
diff --git a/app/privacy/page.tsx b/app/privacy/page.tsx
index 44f03b1..c4cec1c 100644
--- a/app/privacy/page.tsx
+++ b/app/privacy/page.tsx
@@ -1,6 +1,6 @@
 import type { Metadata } from 'next'
-import { ArrowLeft, Shield, Lock, Eye, FileText, Database, ShieldAlert } from 'lucide-react'
-import Link from 'next/link'
+import { Shield, Lock, Eye, FileText, Database, ShieldAlert } from 'lucide-react'
+import { LegalNav } from '../components/ui/LegalNav'
 import Footer from '../components/landing/Footer'
 
 export const metadata: Metadata = {
@@ -82,22 +82,7 @@ const sections = [
 export default function PrivacyPolicy() {
   return (
     <div className="min-h-screen bg-stone-50 text-slate-950 dark:bg-slate-950 dark:text-slate-50 flex flex-col">
-      {/* Sticky Header */}
-      <header className="sticky top-0 z-50 border-b border-slate-200 bg-white/90 backdrop-blur-md dark:border-slate-800 dark:bg-slate-950/90">
-        <div className="mx-auto flex max-w-5xl items-center justify-between px-4 py-3 sm:px-6 lg:px-8">
-          <Link href="/" className="flex items-center gap-2.5 group">
-            <img src="/logo.png" alt="DumpIt" className="h-8 w-8 object-contain" />
-            <span className="text-base font-bold text-slate-900 dark:text-white">DumpIt</span>
-          </Link>
-          <Link
-            href="/"
-            className="inline-flex items-center gap-1.5 rounded-lg border border-slate-200 bg-white px-3 py-1.5 text-sm font-medium text-slate-700 shadow-sm transition hover:bg-slate-50 dark:border-slate-700 dark:bg-slate-900 dark:text-slate-200 dark:hover:bg-slate-800"
-          >
-            <ArrowLeft className="h-3.5 w-3.5" />
-            Back to Home
-          </Link>
-        </div>
-      </header>
+      <LegalNav />
 
       {/* Hero */}
       <section className="border-b border-slate-200 bg-gradient-to-b from-white to-stone-50 py-10 dark:border-slate-800 dark:from-slate-900 dark:to-slate-950">
diff --git a/app/terms/page.tsx b/app/terms/page.tsx
index c06f409..9a1c905 100644
--- a/app/terms/page.tsx
+++ b/app/terms/page.tsx
@@ -1,6 +1,6 @@
 import type { Metadata } from 'next'
-import { ArrowLeft, Scale, ShieldAlert, Key, UserCheck, AlertTriangle, HelpCircle } from 'lucide-react'
-import Link from 'next/link'
+import { Scale, ShieldAlert, Key, UserCheck, AlertTriangle, HelpCircle } from 'lucide-react'
+import { LegalNav } from '../components/ui/LegalNav'
 import Footer from '../components/landing/Footer'
 
 export const metadata: Metadata = {
@@ -79,22 +79,7 @@ const sections = [
 export default function TermsOfService() {
   return (
     <div className="min-h-screen bg-stone-50 text-slate-950 dark:bg-slate-950 dark:text-slate-50 flex flex-col">
-      {/* Sticky Header */}
-      <header className="sticky top-0 z-50 border-b border-slate-200 bg-white/90 backdrop-blur-md dark:border-slate-800 dark:bg-slate-950/90">
-        <div className="mx-auto flex max-w-5xl items-center justify-between px-4 py-3 sm:px-6 lg:px-8">
-          <Link href="/" className="flex items-center gap-2.5">
-            <img src="/logo.png" alt="DumpIt" className="h-8 w-8 object-contain" />
-            <span className="text-base font-bold text-slate-900 dark:text-white">DumpIt</span>
-          </Link>
-          <Link
-            href="/"
-            className="inline-flex items-center gap-1.5 rounded-lg border border-slate-200 bg-white px-3 py-1.5 text-sm font-medium text-slate-700 shadow-sm transition hover:bg-slate-50 dark:border-slate-700 dark:bg-slate-900 dark:text-slate-200 dark:hover:bg-slate-800"
-          >
-            <ArrowLeft className="h-3.5 w-3.5" />
-            Back to Home
-          </Link>
-        </div>
-      </header>
+      <LegalNav />
 
       {/* Hero */}
       <section className="border-b border-slate-200 bg-gradient-to-b from-white to-stone-50 py-10 dark:border-slate-800 dark:from-slate-900 dark:to-slate-950">