diff --git a/packages/app/src/App.tsx b/packages/app/src/App.tsx
index dd4bf42c2c..fc2e876468 100644
--- a/packages/app/src/App.tsx
+++ b/packages/app/src/App.tsx
@@ -14,8 +14,6 @@
  * limitations under the License.
  */
 
-import { CssBaseline, ThemeProvider } from '@material-ui/core';
-import { lightTheme, darkTheme } from '@backstage/theme';
 import { createApp } from '@backstage/core';
 import React, { FC } from 'react';
 import { BrowserRouter as Router } from 'react-router-dom';
@@ -23,7 +21,6 @@ import Root from './components/Root';
 import AlertDisplay from './components/AlertDisplay';
 import * as plugins from './plugins';
 import apis, { alertApiForwarder } from './apis';
-import { ThemeContextType, ThemeContext, useThemeType } from './ThemeContext';
 
 const app = createApp({
   apis,
@@ -33,50 +30,15 @@ const app = createApp({
 const AppProvider = app.getProvider();
 const AppComponent = app.getRootComponent();
 
-const App: FC<{}> = () => {
-  const [theme, toggleTheme] = useThemeType(
-    localStorage.getItem('theme') || 'auto',
-  );
-
-  let backstageTheme = lightTheme;
-  switch (theme) {
-    case 'light':
-      backstageTheme = lightTheme;
-      break;
-    case 'dark':
-      backstageTheme = darkTheme;
-      break;
-    default:
-      if (!window.matchMedia) {
-        backstageTheme = lightTheme;
-        break;
-      }
-      backstageTheme = window.matchMedia('(prefers-color-scheme: dark)').matches
-        ? darkTheme
-        : lightTheme;
-      break;
-  }
-
-  const themeContext: ThemeContextType = {
-    theme,
-    toggleTheme,
-  };
-  return (
-    <AppProvider>
-      <ThemeContext.Provider value={themeContext}>
-        <ThemeProvider theme={backstageTheme}>
-          <CssBaseline>
-            <AlertDisplay forwarder={alertApiForwarder} />
-            <Router>
-              <Root>
-                <AppComponent />
-              </Root>
-            </Router>
-          </CssBaseline>
-        </ThemeProvider>
-      </ThemeContext.Provider>
-    </AppProvider>
-  );
-};
+const App: FC<{}> = () => (
+  <AppProvider>
+    <AlertDisplay forwarder={alertApiForwarder} />
+    <Router>
+      <Root>
+        <AppComponent />
+      </Root>
+    </Router>
+  </AppProvider>
+);
 
 export default App;
diff --git a/packages/app/src/ThemeContext.tsx b/packages/app/src/ThemeContext.tsx
deleted file mode 100644
index 3d5a04f22a..0000000000
--- a/packages/app/src/ThemeContext.tsx
+++ /dev/null
@@ -1,69 +0,0 @@
-/*
- * Copyright 2020 Spotify AB
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- *     http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-import React, { useState, useEffect } from 'react';
-export type ThemeContextType = {
-  theme: string;
-  toggleTheme: () => void;
-};
-export const ThemeContext = React.createContext<ThemeContextType>({
-  theme: 'light',
-  toggleTheme: () => {},
-});
-
-export function useThemeType(themeId: string): [string, () => void] {
-  const [theme, setTheme] = useState(themeId);
-  useEffect(() => {
-    if (!window.matchMedia) {
-      return () => {};
-    }
-    const mql = window.matchMedia('(prefers-color-scheme: dark)');
-    const darkListener = (event: MediaQueryListEvent) => {
-      if (localStorage.getItem('theme') === 'auto') {
-        if (event.matches) {
-          setTheme('dark');
-        } else {
-          setTheme('light');
-        }
-        setTheme('auto');
-      }
-    };
-    mql.addListener(darkListener);
-    return () => {
-      mql.removeListener(darkListener);
-    };
-  });
-  function toggleTheme() {
-    if (theme === 'light') {
-      setTheme('dark');
-      localStorage.setItem('theme', 'dark');
-    } else if (theme === 'dark') {
-      if (!window.matchMedia) {
-        setTheme('light');
-        localStorage.setItem('theme', 'light');
-        setTheme('light');
-        return;
-      }
-      setTheme('auto');
-      localStorage.setItem('theme', 'auto');
-      setTheme('auto');
-    } else {
-      setTheme('light');
-      localStorage.setItem('theme', 'light');
-    }
-  }
-  return [theme, toggleTheme];
-}
diff --git a/packages/app/src/components/Root/ToggleThemeSidebarItem.tsx b/packages/app/src/components/Root/ToggleThemeSidebarItem.tsx
index 6c0cd09244..a17e8f7019 100644
--- a/packages/app/src/components/Root/ToggleThemeSidebarItem.tsx
+++ b/packages/app/src/components/Root/ToggleThemeSidebarItem.tsx
@@ -15,42 +15,47 @@
  */
 
 import React, { FC } from 'react';
-import { SidebarItem } from '@backstage/core';
-import { ThemeContext } from '../../ThemeContext';
+import { useObservable } from 'react-use';
+import { SidebarItem, useApi, appThemeApiRef } from '@backstage/core';
 import WbSunnyIcon from '@material-ui/icons/WbSunny';
 import Brightness2Icon from '@material-ui/icons/Brightness2';
 import ToggleOnIcon from '@material-ui/icons/ToggleOn';
-const ToggleThemeSidebarItem: FC<{}> = () => {
-  return (
-    <ThemeContext.Consumer>
-      {themeContext => {
-        let text = 'Auto';
-        let icon = ToggleOnIcon;
-        switch (themeContext.theme) {
-          case 'dark':
-            text = 'Dark mode';
-            icon = Brightness2Icon;
-            break;
-          case 'light':
-            text = 'Light mode';
-            icon = WbSunnyIcon;
-            break;
-          default:
-            text = 'Auto';
-            icon = ToggleOnIcon;
-            break;
-        }
 
-        return (
-          <SidebarItem
-            text={text}
-            onClick={themeContext.toggleTheme}
-            icon={icon}
-          />
-        );
-      }}
-    </ThemeContext.Consumer>
+const ToggleThemeSidebarItem: FC<{}> = () => {
+  const appThemeApi = useApi(appThemeApiRef);
+  const themeId = useObservable(
+    appThemeApi.activeThemeId$(),
+    appThemeApi.getActiveThemeId(),
   );
+
+  let text = 'Auto';
+  let icon = ToggleOnIcon;
+  switch (themeId) {
+    case 'dark':
+      text = 'Dark mode';
+      icon = Brightness2Icon;
+      break;
+    case 'light':
+      text = 'Light mode';
+      icon = WbSunnyIcon;
+      break;
+    default:
+      text = 'Auto';
+      icon = ToggleOnIcon;
+      break;
+  }
+
+  const handleToggle = () => {
+    if (!themeId) {
+      appThemeApi.setActiveThemeId('light');
+    } else if (themeId === 'light') {
+      appThemeApi.setActiveThemeId('dark');
+    } else {
+      appThemeApi.setActiveThemeId(undefined);
+    }
+  };
+
+  return <SidebarItem text={text} onClick={handleToggle} icon={icon} />;
 };
 
 export default ToggleThemeSidebarItem;