diff --git a/src/App.tsx b/src/App.tsx
index a399287bd..2f0e68e32 100644
--- a/src/App.tsx
+++ b/src/App.tsx
@@ -1,156 +1,29 @@
 /* eslint-disable jsx-a11y/control-has-associated-label */
 import React from 'react';
 
+import { Footer } from './components/Footer';
+import { Header } from './components/Header';
+import { TodoList } from './components/TodoList';
+import { useTodoContext } from './hooks/useTodoContext';
+
 export const App: React.FC = () => {
+  const {
+    state: { todos },
+  } = useTodoContext();
+
   return (
     <div className="todoapp">
       <h1 className="todoapp__title">todos</h1>
 
       <div className="todoapp__content">
-        <header className="todoapp__header">
-          {/* this button should have `active` class only if all todos are completed */}
-          <button
-            type="button"
-            className="todoapp__toggle-all active"
-            data-cy="ToggleAllButton"
-          />
-
-          {/* Add a todo on form submit */}
-          <form>
-            <input
-              data-cy="NewTodoField"
-              type="text"
-              className="todoapp__new-todo"
-              placeholder="What needs to be done?"
-            />
-          </form>
-        </header>
-
-        <section className="todoapp__main" data-cy="TodoList">
-          {/* This is a completed todo */}
-          <div data-cy="Todo" className="todo completed">
-            <label className="todo__status-label">
-              <input
-                data-cy="TodoStatus"
-                type="checkbox"
-                className="todo__status"
-                checked
-              />
-            </label>
-
-            <span data-cy="TodoTitle" className="todo__title">
-              Completed Todo
-            </span>
-
-            {/* Remove button appears only on hover */}
-            <button type="button" className="todo__remove" data-cy="TodoDelete">
-              ×
-            </button>
-          </div>
-
-          {/* This todo is an active todo */}
-          <div data-cy="Todo" className="todo">
-            <label className="todo__status-label">
-              <input
-                data-cy="TodoStatus"
-                type="checkbox"
-                className="todo__status"
-              />
-            </label>
-
-            <span data-cy="TodoTitle" className="todo__title">
-              Not Completed Todo
-            </span>
-
-            <button type="button" className="todo__remove" data-cy="TodoDelete">
-              ×
-            </button>
-          </div>
-
-          {/* This todo is being edited */}
-          <div data-cy="Todo" className="todo">
-            <label className="todo__status-label">
-              <input
-                data-cy="TodoStatus"
-                type="checkbox"
-                className="todo__status"
-              />
-            </label>
-
-            {/* This form is shown instead of the title and remove button */}
-            <form>
-              <input
-                data-cy="TodoTitleField"
-                type="text"
-                className="todo__title-field"
-                placeholder="Empty todo will be deleted"
-                value="Todo is being edited now"
-              />
-            </form>
-          </div>
-
-          {/* This todo is in loadind state */}
-          <div data-cy="Todo" className="todo">
-            <label className="todo__status-label">
-              <input
-                data-cy="TodoStatus"
-                type="checkbox"
-                className="todo__status"
-              />
-            </label>
-
-            <span data-cy="TodoTitle" className="todo__title">
-              Todo is being saved now
-            </span>
-
-            <button type="button" className="todo__remove" data-cy="TodoDelete">
-              ×
-            </button>
-          </div>
-        </section>
-
-        {/* Hide the footer if there are no todos */}
-        <footer className="todoapp__footer" data-cy="Footer">
-          <span className="todo-count" data-cy="TodosCounter">
-            3 items left
-          </span>
-
-          {/* Active link should have the 'selected' class */}
-          <nav className="filter" data-cy="Filter">
-            <a
-              href="#/"
-              className="filter__link selected"
-              data-cy="FilterLinkAll"
-            >
-              All
-            </a>
-
-            <a
-              href="#/active"
-              className="filter__link"
-              data-cy="FilterLinkActive"
-            >
-              Active
-            </a>
-
-            <a
-              href="#/completed"
-              className="filter__link"
-              data-cy="FilterLinkCompleted"
-            >
-              Completed
-            </a>
-          </nav>
-
-          {/* this button should be disabled if there are no completed todos */}
-          <button
-            type="button"
-            className="todoapp__clear-completed"
-            data-cy="ClearCompletedButton"
-          >
-            Clear completed
-          </button>
-        </footer>
+        <Header />
+
+        {todos.length > 0 && (
+          <>
+            <TodoList />
+            <Footer />
+          </>
+        )}
       </div>
     </div>
   );
diff --git a/src/components/Footer.tsx b/src/components/Footer.tsx
new file mode 100644
index 000000000..14cbe3334
--- /dev/null
+++ b/src/components/Footer.tsx
@@ -0,0 +1,69 @@
+import React from 'react';
+
+import { Filter } from '../enums/Filter';
+import { useTodoContext } from '../hooks/useTodoContext';
+
+export const Footer: React.FC = () => {
+  const {
+    state: { todos, filter },
+    dispatch,
+  } = useTodoContext();
+
+  const activeTodosCount = todos.filter(todo => !todo.completed).length;
+  const completedTodosCount = todos.filter(todo => todo.completed).length;
+
+  return (
+    <footer className="todoapp__footer" data-cy="Footer">
+      <span className="todo-count" data-cy="TodosCounter">
+        {activeTodosCount} items left
+      </span>
+
+      <nav className="filter" data-cy="Filter">
+        <a
+          href="#/"
+          className={`filter__link ${filter === Filter.All ? 'selected' : ''}`}
+          data-cy="FilterLinkAll"
+          onClick={() => dispatch({ type: 'setFilter', payload: Filter.All })}
+        >
+          All
+        </a>
+
+        <a
+          href="#/active"
+          className={`filter__link ${
+            filter === Filter.Active ? 'selected' : ''
+          }`}
+          data-cy="FilterLinkActive"
+          onClick={() =>
+            dispatch({ type: 'setFilter', payload: Filter.Active })
+          }
+        >
+          Active
+        </a>
+
+        <a
+          href="#/completed"
+          className={`filter__link ${
+            filter === Filter.Completed ? 'selected' : ''
+          }`}
+          data-cy="FilterLinkCompleted"
+          onClick={() =>
+            dispatch({ type: 'setFilter', payload: Filter.Completed })
+          }
+        >
+          Completed
+        </a>
+      </nav>
+
+      <button
+        type="button"
+        className="todoapp__clear-completed"
+        data-cy="ClearCompletedButton"
+        disabled={completedTodosCount === 0}
+        onClick={() => dispatch({ type: 'clearCompleted' })}
+      >
+        Clear completed
+      </button>
+    </footer>
+  );
+};
diff --git a/src/components/Header.tsx b/src/components/Header.tsx
new file mode 100644
index 000000000..b6d95841d
--- /dev/null
+++ b/src/components/Header.tsx
@@ -0,0 +1,72 @@
+import React, {
+  FormEvent,
+  useContext,
+  useEffect,
+  useRef,
+  useState,
+} from 'react';
+
+import { TodoContext } from '../context/TodoContext';
+
+export const Header: React.FC = () => {
+  const {
+    state: { todos },
+    dispatch,
+  } = useContext(TodoContext);
+
+  const [title, setTitle] = useState('');
+
+  const newTodoFieldRef = useRef<HTMLInputElement>(null);
+
+  const allCompleted = todos.length > 0 && todos.every(todo => todo.completed);
+
+  useEffect(() => {
+    newTodoFieldRef.current?.focus();
+  }, [todos]);
+
+  const handleSubmit = (event: FormEvent) => {
+    event.preventDefault();
+
+    const trimmedTitle = title.trim();
+
+    if (!trimmedTitle) {
+      return;
+    }
+
+    dispatch({
+      type: 'addTodo',
+      payload: {
+        id: +new Date(),
+        title: trimmedTitle,
+        completed: false,
+      },
+    });
+
+    setTitle('');
+  };
+
+  return (
+    <header className="todoapp__header">
+      {todos.length > 0 && (
+        <button
+          type="button"
+          className={`todoapp__toggle-all ${allCompleted ? 'active' : ''}`}
+          data-cy="ToggleAllButton"
+          onClick={() => dispatch({ type: 'toggleAll' })}
+        />
+      )}
+
+      <form onSubmit={handleSubmit}>
+        <input
+          ref={newTodoFieldRef}
+          data-cy="NewTodoField"
+          type="text"
+          className="todoapp__new-todo"
+          placeholder="What needs to be done?"
+          value={title}
+          onChange={event => setTitle(event.target.value)}
+        />
+      </form>
+    </header>
+  );
+};
diff --git a/src/components/TodoItem.tsx b/src/components/TodoItem.tsx
new file mode 100644
index 000000000..bf91141fe
--- /dev/null
+++ b/src/components/TodoItem.tsx
@@ -0,0 +1,105 @@
+import React, { useState } from 'react';
+
+import { useTodoContext } from '../hooks/useTodoContext';
+import { Todo } from '../types/Todo';
+
+type Props = {
+  todo: Todo;
+};
+
+export const TodoItem: React.FC<Props> = ({ todo }) => {
+  const [isEditing, setIsEditing] = useState(false);
+  const [title, setTitle] = useState(todo.title);
+
+  const { dispatch } = useTodoContext();
+
+  const saveTodo = () => {
+    const preparedTitle = title.trim();
+
+    if (!preparedTitle) {
+      dispatch({ type: 'deleteTodo', payload: todo.id });
+
+      return;
+    }
+
+    dispatch({
+      type: 'updateTodo',
+      payload: {
+        id: todo.id,
+        title: preparedTitle,
+      },
+    });
+
+    setIsEditing(false);
+  };
+
+  const cancelEditing = () => {
+    setTitle(todo.title);
+    setIsEditing(false);
+  };
+
+  const handleSubmit = (event: React.FormEvent) => {
+    event.preventDefault();
+    saveTodo();
+  };
+
+  const handleKeyUp = (event: React.KeyboardEvent) => {
+    if (event.key === 'Escape') {
+      cancelEditing();
+    }
+  };
+
+  return (
+    <div data-cy="Todo" className={`todo ${todo.completed ? 'completed' : ''}`}>
+      <label className="todo__status-label" aria-label="Toggle todo">
+        <input
+          data-cy="TodoStatus"
+          type="checkbox"
+          className="todo__status"
+          checked={todo.completed}
+          onChange={() =>
+            dispatch({
+              type: 'toggleTodo',
+              payload: todo.id,
+            })
+          }
+        />
+      </label>
+
+      {isEditing ? (
+        <form onSubmit={handleSubmit}>
+          <input
+            data-cy="TodoTitleField"
+            type="text"
+            className="todo__title-field"
+            placeholder="Empty todo will be deleted"
+            value={title}
+            onChange={event => setTitle(event.target.value)}
+            onBlur={saveTodo}
+            onKeyUp={handleKeyUp}
+            autoFocus
+          />
+        </form>
+      ) : (
+        <>
+          <span
+            data-cy="TodoTitle"
+            className="todo__title"
+            onDoubleClick={() => setIsEditing(true)}
+          >
+            {todo.title}
+          </span>
+
+          <button
+            type="button"
+            className="todo__remove"
+            data-cy="TodoDelete"
+            onClick={() => dispatch({ type: 'deleteTodo', payload: todo.id })}
+          >
+            ×
+          </button>
+        </>
+      )}
+    </div>
+  );
+};
diff --git a/src/components/TodoList.tsx b/src/components/TodoList.tsx
new file mode 100644
index 000000000..922849230
--- /dev/null
+++ b/src/components/TodoList.tsx
@@ -0,0 +1,31 @@
+import React from 'react';
+
+import { Filter } from '../enums/Filter';
+import { useTodoContext } from '../hooks/useTodoContext';
+import { TodoItem } from './TodoItem';
+
+export const TodoList: React.FC = () => {
+  const {
+    state: { todos, filter },
+  } = useTodoContext();
+
+  const visibleTodos = todos.filter(todo => {
+    if (filter === Filter.Active) {
+      return !todo.completed;
+    }
+
+    if (filter === Filter.Completed) {
+      return todo.completed;
+    }
+
+    return true;
+  });
+
+  return (
+    <section className="todoapp__main" data-cy="TodoList">
+      {visibleTodos.map(todo => (
+        <TodoItem todo={todo} key={todo.id} />
+      ))}
+    </section>
+  );
+};
diff --git a/src/context/TodoContext.tsx b/src/context/TodoContext.tsx
new file mode 100644
index 000000000..11dc51a01
--- /dev/null
+++ b/src/context/TodoContext.tsx
@@ -0,0 +1,46 @@
+import React, { createContext, useEffect, useReducer } from 'react';
+
+import { Filter } from '../enums/Filter';
+import { Action, reducer, RootState } from '../store/reducer';
+
+const STORAGE_KEY = 'todos';
+
+type ContextType = {
+  state: RootState;
+  dispatch: React.Dispatch<Action>;
+};
+
+export const TodoContext = createContext<ContextType>({} as ContextType);
+
+type ProviderProps = {
+  children: React.ReactNode;
+};
+
+const getInitialTodos = () => {
+  const todosFromStorage = localStorage.getItem(STORAGE_KEY);
+
+  if (!todosFromStorage) {
+    return [];
+  }
+
+  return JSON.parse(todosFromStorage);
+};
+
+const initialState: RootState = {
+  todos: getInitialTodos(),
+  filter: Filter.All,
+};
+
+export const TodoProvider: React.FC<ProviderProps> = ({ children }) => {
+  const [state, dispatch] = useReducer(reducer, initialState);
+
+  useEffect(() => {
+    localStorage.setItem(STORAGE_KEY, JSON.stringify(state.todos));
+  }, [state.todos]);
+
+  return (
+    <TodoContext.Provider value={{ state, dispatch }}>
+      {children}
+    </TodoContext.Provider>
+  );
+};
diff --git a/src/enums/Filter.ts b/src/enums/Filter.ts
new file mode 100644
index 000000000..174408fd6
--- /dev/null
+++ b/src/enums/Filter.ts
@@ -0,0 +1,5 @@
+export enum Filter {
+  All = 'all',
+  Active = 'active',
+  Completed = 'completed',
+}
diff --git a/src/hooks/useTodoContext.ts b/src/hooks/useTodoContext.ts
new file mode 100644
index 000000000..ded89fb91
--- /dev/null
+++ b/src/hooks/useTodoContext.ts
@@ -0,0 +1,7 @@
+import { useContext } from 'react';
+
+import { TodoContext } from '../context/TodoContext';
+
+export const useTodoContext = () => {
+  return useContext(TodoContext);
+};
diff --git a/src/index.tsx b/src/index.tsx
index b2c38a17a..a4207b1fc 100644
--- a/src/index.tsx
+++ b/src/index.tsx
@@ -3,7 +3,12 @@ import { createRoot } from 'react-dom/client';
 import './styles/index.scss';
 
 import { App } from './App';
+import { TodoProvider } from './context/TodoContext';
 
 const container = document.getElementById('root') as HTMLDivElement;
 
-createRoot(container).render(<App />);
+createRoot(container).render(
+  <TodoProvider>
+    <App />
+  </TodoProvider>,
+);
diff --git a/src/store/reducer.ts b/src/store/reducer.ts
new file mode 100644
index 000000000..359c1cd7d
--- /dev/null
+++ b/src/store/reducer.ts
@@ -0,0 +1,79 @@
+import { Filter } from '../enums/Filter';
+import { Todo } from '../types/Todo';
+
+export type RootState = {
+  todos: Todo[];
+  filter: Filter;
+};
+
+export type Action =
+  | { type: 'addTodo'; payload: Todo }
+  | { type: 'deleteTodo'; payload: number }
+  | { type: 'toggleTodo'; payload: number }
+  | { type: 'toggleAll' }
+  | { type: 'clearCompleted' }
+  | { type: 'updateTodo'; payload: { id: number; title: string } }
+  | { type: 'setFilter'; payload: Filter };
+
+export const reducer = (state: RootState, action: Action): RootState => {
+  switch (action.type) {
+    case 'addTodo':
+      return {
+        ...state,
+        todos: [...state.todos, action.payload],
+      };
+
+    case 'deleteTodo':
+      return {
+        ...state,
+        todos: state.todos.filter(todo => todo.id !== action.payload),
+      };
+
+    case 'toggleTodo':
+      return {
+        ...state,
+        todos: state.todos.map(todo =>
+          todo.id === action.payload
+            ? { ...todo, completed: !todo.completed }
+            : todo,
+        ),
+      };
+
+    case 'toggleAll': {
+      const allCompleted = state.todos.every(todo => todo.completed);
+
+      return {
+        ...state,
+        todos: state.todos.map(todo => ({
+          ...todo,
+          completed: !allCompleted,
+        })),
+      };
+    }
+
+    case 'clearCompleted':
+      return {
+        ...state,
+        todos: state.todos.filter(todo => !todo.completed),
+      };
+
+    case 'updateTodo':
+      return {
+        ...state,
+        todos: state.todos.map(todo =>
+          todo.id === action.payload.id
+            ? { ...todo, title: action.payload.title }
+            : todo,
+        ),
+      };
+
+    case 'setFilter':
+      return {
+        ...state,
+        filter: action.payload,
+      };
+
+    default:
+      return state;
+  }
+};
diff --git a/src/types/Todo.ts b/src/types/Todo.ts
new file mode 100644
index 000000000..d94ea1bff
--- /dev/null
+++ b/src/types/Todo.ts
@@ -0,0 +1,5 @@
+export type Todo = {
+  id: number;
+  title: string;
+  completed: boolean;
+};