diff --git a/frontend/src/app/settings/settings-content.tsx b/frontend/src/app/settings/settings-content.tsx
index be3a9d2d..03021ba2 100644
--- a/frontend/src/app/settings/settings-content.tsx
+++ b/frontend/src/app/settings/settings-content.tsx
@@ -259,8 +259,7 @@ export default function SettingsContent() {
               </div>
             </div>
 
-            <div className="flex gap-2">
-              {(["light", "dark", "system"] as const).map((t) => (
+            <div className="flex gap-2">                  {(["light", "dark", "system"] as const).map((t) => (
                 <button
                   key={t}
                   onClick={() => handleThemeChange(t)}
diff --git a/frontend/src/hooks/useSettings.test.ts b/frontend/src/hooks/useSettings.test.ts
index f3efa01e..148fe7e2 100644
--- a/frontend/src/hooks/useSettings.test.ts
+++ b/frontend/src/hooks/useSettings.test.ts
@@ -45,14 +45,12 @@ describe('useSettings and formatAmountWithPreference', () => {
         expect(result.current.isHydrated).toBe(true);
       });
 
-      expect(result.current.theme).toBe(DEFAULT_SETTINGS.theme);
       expect(result.current.displayCurrency).toBe(DEFAULT_SETTINGS.displayCurrency);
       expect(result.current.amountFormat).toBe(DEFAULT_SETTINGS.amountFormat);
       expect(result.current.decimalPlaces).toBe(DEFAULT_SETTINGS.decimalPlaces);
     });
 
     it('hydrates settings from pre-seeded localStorage values', async () => {
-      localStorage.setItem(STORAGE_KEYS.theme, 'light');
       localStorage.setItem(STORAGE_KEYS.displayCurrency, 'XLM');
       localStorage.setItem(STORAGE_KEYS.amountFormat, 'compact');
       localStorage.setItem(STORAGE_KEYS.decimalPlaces, '4');
@@ -63,26 +61,11 @@ describe('useSettings and formatAmountWithPreference', () => {
         expect(result.current.isHydrated).toBe(true);
       });
 
-      expect(result.current.theme).toBe('light');
       expect(result.current.displayCurrency).toBe('XLM');
       expect(result.current.amountFormat).toBe('compact');
       expect(result.current.decimalPlaces).toBe(4);
     });
 
-    it('updates state and localStorage when setTheme is called', async () => {
-      const { result } = renderHook(() => useSettings());
-      
-      await waitFor(() => expect(result.current.isHydrated).toBe(true));
-
-      act(() => {
-        result.current.setTheme('light');
-      });
-
-      expect(result.current.theme).toBe('light');
-      expect(localStorage.getItem(STORAGE_KEYS.theme)).toBe('light');
-      expect(document.documentElement.classList.contains('dark')).toBe(false);
-    });
-
     it('updates state and localStorage when setDecimalPlaces is called', async () => {
       const { result } = renderHook(() => useSettings());
       
@@ -146,17 +129,17 @@ describe('useSettings and formatAmountWithPreference', () => {
 
       act(() => {
         // Simulate other tab changing local storage
-        localStorage.setItem(STORAGE_KEYS.theme, 'light');
+        localStorage.setItem(STORAGE_KEYS.displayCurrency, 'EUR');
         
         // Dispatch storage event
         const event = new StorageEvent('storage', {
-          key: STORAGE_KEYS.theme,
-          newValue: 'light'
+          key: STORAGE_KEYS.displayCurrency,
+          newValue: 'EUR'
         });
         window.dispatchEvent(event);
       });
 
-      expect(result.current.theme).toBe('light');
+      expect(result.current.displayCurrency).toBe('EUR');
     });
   });
 
diff --git a/frontend/src/hooks/useSettings.ts b/frontend/src/hooks/useSettings.ts
index 9db352ba..b4c02952 100644
--- a/frontend/src/hooks/useSettings.ts
+++ b/frontend/src/hooks/useSettings.ts
@@ -2,27 +2,23 @@
 
 import { useState, useEffect, useCallback } from "react";
 
-export type Theme = "light" | "dark" | "system";
 export type DisplayCurrency = "USD" | "EUR" | "GBP" | "XLM" | "USDC";
 export type AmountFormat = "full" | "compact";
 export type DecimalPlaces = 2 | 4 | 7;
 
 interface Settings {
-  theme: Theme;
   displayCurrency: DisplayCurrency;
   amountFormat: AmountFormat;
   decimalPlaces: DecimalPlaces;
 }
 
 const DEFAULT_SETTINGS: Settings = {
-  theme: "dark",
   displayCurrency: "USD",
   amountFormat: "full",
   decimalPlaces: 7,
 };
 
 const STORAGE_KEYS = {
-  theme: "flowfi-theme",
   displayCurrency: "flowfi-currency",
   amountFormat: "flowfi-amount-format",
   decimalPlaces: "flowfi-decimal-places",
@@ -38,7 +34,6 @@ function notifyListeners() {
 
 function loadSettingsFromStorage(): Settings {
   if (typeof window === "undefined") return { ...DEFAULT_SETTINGS };
-  const savedTheme = localStorage.getItem(STORAGE_KEYS.theme) as Theme | null;
   const savedCurrency = localStorage.getItem(
     STORAGE_KEYS.displayCurrency
   ) as DisplayCurrency | null;
@@ -48,7 +43,6 @@ function loadSettingsFromStorage(): Settings {
   const savedDecimals = localStorage.getItem(STORAGE_KEYS.decimalPlaces);
 
   return {
-    theme: savedTheme || DEFAULT_SETTINGS.theme,
     displayCurrency: savedCurrency || DEFAULT_SETTINGS.displayCurrency,
     amountFormat: savedFormat || DEFAULT_SETTINGS.amountFormat,
     decimalPlaces: savedDecimals
@@ -102,20 +96,6 @@ export function useSettings() {
     };
   }, []);
 
-  const setTheme = useCallback((theme: Theme) => {
-    sharedSettings = { ...sharedSettings, theme };
-    localStorage.setItem(STORAGE_KEYS.theme, theme);
-    notifyListeners();
-
-    // Apply theme immediately
-    if (theme === "system") {
-      const prefersDark = window.matchMedia("(prefers-color-scheme: dark)").matches;
-      document.documentElement.classList.toggle("dark", prefersDark);
-    } else {
-      document.documentElement.classList.toggle("dark", theme === "dark");
-    }
-  }, []);
-
   const setDisplayCurrency = useCallback((currency: DisplayCurrency) => {
     sharedSettings = { ...sharedSettings, displayCurrency: currency };
     localStorage.setItem(STORAGE_KEYS.displayCurrency, currency);
@@ -137,7 +117,6 @@ export function useSettings() {
   return {
     ...settings,
     isHydrated,
-    setTheme,
     setDisplayCurrency,
     setAmountFormat,
     setDecimalPlaces,
@@ -151,25 +130,6 @@ export function getDecimalPlaces(): DecimalPlaces {
   return saved ? (parseInt(saved, 10) as DecimalPlaces) : 7;
 }
 
-// Helper function to get theme synchronously
-export function getStoredTheme(): Theme {
-  if (typeof window === "undefined") return "dark";
-  return (localStorage.getItem(STORAGE_KEYS.theme) as Theme) || "dark";
-}
-
-// Apply theme immediately (useful for initial page load)
-export function applyStoredTheme(): void {
-  if (typeof window === "undefined") return;
-
-  const theme = getStoredTheme();
-  if (theme === "system") {
-    const prefersDark = window.matchMedia("(prefers-color-scheme: dark)").matches;
-    document.documentElement.classList.toggle("dark", prefersDark);
-  } else {
-    document.documentElement.classList.toggle("dark", theme === "dark");
-  }
-}
-
 // Format amount based on user's decimal places preference
 export function formatAmountWithPreference(
   amount: string | number | bigint,
@@ -228,10 +188,14 @@ export default useSettings;
  * Usage examples:
  *
  * In React components:
- * const { theme, decimalPlaces, setTheme } = useSettings();
+ * const { decimalPlaces, setDecimalPlaces } = useSettings();
  *
  * For non-React code (utils, formatters):
  * const decimals = getDecimalPlaces(); // 2, 4, or 7
  * const formatted = formatAmountWithPreference(rawAmount, 7);
  * const format = getAmountFormat(); // 'full' or 'compact'
+ *
+ * For theme management, use next-themes' useTheme() hook instead:
+ * import { useTheme } from 'next-themes';
+ * const { theme, setTheme } = useTheme();
  */