diff --git a/src/App.tsx b/src/App.tsx
index a399287bd..57cf4fd0b 100644
--- a/src/App.tsx
+++ b/src/App.tsx
@@ -1,156 +1,28 @@
 /* eslint-disable jsx-a11y/control-has-associated-label */
+
 import React from 'react';
 
+import { useTodo } from './context/TodoContext';
+import { TodoHeader } from './components/TodoHeader';
+import { TodoList } from './components/TodoList';
+import { Footer } from './components/Footer';
+
 export const App: React.FC = () => {
+  const { todos } = useTodo();
+
   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>
+        <TodoHeader />
+
+        {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..b0df7373f
--- /dev/null
+++ b/src/components/Footer.tsx
@@ -0,0 +1,60 @@
+import React from 'react';
+
+import { useTodo } from '../context/TodoContext';
+
+export const Footer: React.FC = () => {
+  const { todos, filter, setFilter, clearCompleted, focusNewTodo } = useTodo();
+
+  const activeTodos = todos.filter(todo => !todo.completed);
+  const completedTodos = todos.filter(todo => todo.completed);
+
+  return (
+    <footer className="todoapp__footer" data-cy="Footer">
+      <span className="todo-count" data-cy="TodosCounter">
+        {activeTodos.length} items left
+      </span>
+
+      <nav className="filter" data-cy="Filter">
+        <a
+          href="#/"
+          className={`filter__link ${filter === 'all' ? 'selected' : ''}`}
+          data-cy="FilterLinkAll"
+          onClick={() => setFilter('all')}
+        >
+          All
+        </a>
+
+        <a
+          href="#/active"
+          className={`filter__link ${filter === 'active' ? 'selected' : ''}`}
+          data-cy="FilterLinkActive"
+          onClick={() => setFilter('active')}
+        >
+          Active
+        </a>
+
+        <a
+          href="#/completed"
+          className={`filter__link ${filter === 'completed' ? 'selected' : ''}`}
+          data-cy="FilterLinkCompleted"
+          onClick={() => setFilter('completed')}
+        >
+          Completed
+        </a>
+      </nav>
+
+      <button
+        type="button"
+        className="todoapp__clear-completed"
+        data-cy="ClearCompletedButton"
+        disabled={!completedTodos.length}
+        onClick={() => {
+          clearCompleted();
+          focusNewTodo();
+        }}
+      >
+        Clear completed
+      </button>
+    </footer>
+  );
+};
diff --git a/src/components/TodoHeader.tsx b/src/components/TodoHeader.tsx
new file mode 100644
index 000000000..a70de9de0
--- /dev/null
+++ b/src/components/TodoHeader.tsx
@@ -0,0 +1,46 @@
+import React, { useState, useRef } from 'react';
+
+import { useTodo } from '../context/TodoContext';
+
+export const TodoHeader: React.FC = () => {
+  const [title, setTitle] = useState('');
+
+  const { addTodo, todos, toggleAll } = useTodo();
+
+  const inputRef = useRef<HTMLInputElement>(null);
+
+  const allCompleted = todos.length > 0 && todos.every(todo => todo.completed);
+
+  const handleSubmit = (event: React.FormEvent) => {
+    event.preventDefault();
+
+    addTodo(title);
+    setTitle('');
+  };
+
+  return (
+    <header className="todoapp__header">
+      {todos.length > 0 && (
+        <button
+          type="button"
+          className={`todoapp__toggle-all ${allCompleted ? 'active' : ''}`}
+          data-cy="ToggleAllButton"
+          onClick={toggleAll}
+        />
+      )}
+
+      <form onSubmit={handleSubmit}>
+        <input
+          ref={inputRef}
+          data-cy="NewTodoField"
+          type="text"
+          className="todoapp__new-todo"
+          placeholder="What needs to be done?"
+          value={title}
+          onChange={e => setTitle(e.target.value)}
+          autoFocus
+        />
+      </form>
+    </header>
+  );
+};
diff --git a/src/components/TodoItem.tsx b/src/components/TodoItem.tsx
new file mode 100644
index 000000000..9030b7f0d
--- /dev/null
+++ b/src/components/TodoItem.tsx
@@ -0,0 +1,95 @@
+/* eslint-disable jsx-a11y/label-has-associated-control */
+import React, { useEffect, useRef, useState } from 'react';
+
+import { Todo } from '../types/Todo';
+import { useTodo } from '../context/TodoContext';
+
+type Props = {
+  todo: Todo;
+};
+
+export const TodoItem: React.FC<Props> = ({ todo }) => {
+  const { deleteTodo, toggleTodo, updateTodo, focusNewTodo } = useTodo();
+
+  const [isEditing, setIsEditing] = useState(false);
+  const [value, setValue] = useState(todo.title);
+
+  const inputRef = useRef<HTMLInputElement>(null);
+
+  useEffect(() => {
+    if (isEditing) {
+      inputRef.current?.focus();
+    }
+  }, [isEditing]);
+
+  const handleSubmit = (event: React.FormEvent) => {
+    event.preventDefault();
+
+    updateTodo(todo.id, value);
+    setIsEditing(false);
+  };
+
+  const handleBlur = () => {
+    updateTodo(todo.id, value);
+    setIsEditing(false);
+  };
+
+  const handleKeyUp = (event: React.KeyboardEvent<HTMLInputElement>) => {
+    if (event.key === 'Escape') {
+      setValue(todo.title);
+      setIsEditing(false);
+    }
+  };
+
+  return (
+    <div data-cy="Todo" className={`todo ${todo.completed ? 'completed' : ''}`}>
+      <label className="todo__status-label">
+        <input
+          data-cy="TodoStatus"
+          type="checkbox"
+          className="todo__status"
+          checked={todo.completed}
+          onChange={() => toggleTodo(todo.id)}
+        />
+      </label>
+
+      {isEditing ? (
+        <form onSubmit={handleSubmit}>
+          <input
+            ref={inputRef}
+            data-cy="TodoTitleField"
+            type="text"
+            className="todo__title-field"
+            placeholder="Empty todo will be deleted"
+            value={value}
+            onChange={e => setValue(e.target.value)}
+            onBlur={handleBlur}
+            onKeyUp={handleKeyUp}
+          />
+        </form>
+      ) : (
+        <>
+          <span
+            data-cy="TodoTitle"
+            className="todo__title"
+            onDoubleClick={() => setIsEditing(true)}
+          >
+            {todo.title}
+          </span>
+
+          <button
+            type="button"
+            className="todo__remove"
+            data-cy="TodoDelete"
+            onClick={() => {
+              deleteTodo(todo.id);
+              focusNewTodo();
+            }}
+          >
+            ×
+          </button>
+        </>
+      )}
+    </div>
+  );
+};
diff --git a/src/components/TodoList.tsx b/src/components/TodoList.tsx
new file mode 100644
index 000000000..39b2eaeb5
--- /dev/null
+++ b/src/components/TodoList.tsx
@@ -0,0 +1,29 @@
+import React from 'react';
+
+import { useTodo } from '../context/TodoContext';
+import { TodoItem } from './TodoItem';
+
+export const TodoList: React.FC = () => {
+  const { todos, filter } = useTodo();
+
+  const visibleTodos = todos.filter(todo => {
+    switch (filter) {
+      case 'active':
+        return !todo.completed;
+
+      case 'completed':
+        return todo.completed;
+
+      default:
+        return true;
+    }
+  });
+
+  return (
+    <section className="todoapp__main" data-cy="TodoList">
+      {visibleTodos.map(todo => (
+        <TodoItem key={todo.id} todo={todo} />
+      ))}
+    </section>
+  );
+};
diff --git a/src/context/TodoContext.tsx b/src/context/TodoContext.tsx
new file mode 100644
index 000000000..9a011fecc
--- /dev/null
+++ b/src/context/TodoContext.tsx
@@ -0,0 +1,134 @@
+import React, { createContext, useContext, useEffect, useState } from 'react';
+
+import { Todo } from '../types/Todo';
+
+type Filter = 'all' | 'active' | 'completed';
+
+type TodoContextType = {
+  todos: Todo[];
+  filter: Filter;
+
+  addTodo: (title: string) => void;
+  deleteTodo: (id: number) => void;
+  toggleTodo: (id: number) => void;
+  clearCompleted: () => void;
+  toggleAll: () => void;
+  updateTodo: (id: number, title: string) => void;
+
+  setFilter: (value: Filter) => void;
+  focusNewTodo: () => void;
+};
+
+const TodoContext = createContext<TodoContextType | null>(null);
+
+const storedTodos = localStorage.getItem('todos');
+
+export const TodoProvider: React.FC<{ children: React.ReactNode }> = ({
+  children,
+}) => {
+  const [todos, setTodos] = useState<Todo[]>(
+    storedTodos ? JSON.parse(storedTodos) : [],
+  );
+
+  const [filter, setFilter] = useState<Filter>('all');
+
+  useEffect(() => {
+    localStorage.setItem('todos', JSON.stringify(todos));
+  }, [todos]);
+
+  const addTodo = (title: string) => {
+    const trimmed = title.trim();
+
+    if (!trimmed) {
+      return;
+    }
+
+    const newTodo: Todo = {
+      id: +new Date(),
+      title: trimmed,
+      completed: false,
+    };
+
+    setTodos(current => [...current, newTodo]);
+  };
+
+  const deleteTodo = (id: number) => {
+    setTodos(current => current.filter(todo => todo.id !== id));
+  };
+
+  const toggleTodo = (id: number) => {
+    setTodos(current =>
+      current.map(todo =>
+        todo.id === id ? { ...todo, completed: !todo.completed } : todo,
+      ),
+    );
+  };
+
+  const clearCompleted = () => {
+    setTodos(current => current.filter(todo => !todo.completed));
+  };
+
+  const toggleAll = () => {
+    const allCompleted = todos.every(todo => todo.completed);
+
+    setTodos(current =>
+      current.map(todo => ({
+        ...todo,
+        completed: !allCompleted,
+      })),
+    );
+  };
+
+  const updateTodo = (id: number, title: string) => {
+    const trimmed = title.trim();
+
+    if (!trimmed) {
+      deleteTodo(id);
+
+      return;
+    }
+
+    setTodos(current =>
+      current.map(todo =>
+        todo.id === id ? { ...todo, title: trimmed } : todo,
+      ),
+    );
+  };
+
+  const focusNewTodo = () => {
+    const field = document.querySelector(
+      '[data-cy="NewTodoField"]',
+    ) as HTMLInputElement | null;
+
+    field?.focus();
+  };
+
+  return (
+    <TodoContext.Provider
+      value={{
+        todos,
+        filter,
+        addTodo,
+        deleteTodo,
+        toggleTodo,
+        clearCompleted,
+        toggleAll,
+        updateTodo,
+        setFilter,
+        focusNewTodo,
+      }}
+    >
+      {children}
+    </TodoContext.Provider>
+  );
+};
+
+export const useTodo = () => {
+  const context = useContext(TodoContext);
+
+  if (!context) {
+    throw new Error('No TodoProvider');
+  }
+
+  return context;
+};
diff --git a/src/index.tsx b/src/index.tsx
index b2c38a17a..2c0f47214 100644
--- a/src/index.tsx
+++ b/src/index.tsx
@@ -1,9 +1,15 @@
-import { createRoot } from 'react-dom/client';
+import React from 'react';
+import ReactDOM 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 />);
+ReactDOM.createRoot(container).render(
+  <TodoProvider>
+    <App />
+  </TodoProvider>,
+);
diff --git a/src/types/Todo.ts b/src/types/Todo.ts
new file mode 100644
index 000000000..f9e06b381
--- /dev/null
+++ b/src/types/Todo.ts
@@ -0,0 +1,5 @@
+export interface Todo {
+  id: number;
+  title: string;
+  completed: boolean;
+}