diff --git a/client/src/components/shared/theme-toggle.tsx b/client/src/components/shared/theme-toggle.tsx
index 78e641e..f3d40c1 100644
--- a/client/src/components/shared/theme-toggle.tsx
+++ b/client/src/components/shared/theme-toggle.tsx
@@ -1,24 +1,39 @@
 import { Button } from "@/components/ui/button";
+import {
+  DropdownMenu,
+  DropdownMenuContent,
+  DropdownMenuItem,
+  DropdownMenuTrigger,
+} from "@/components/ui/dropdown-menu";
 import { useTheme } from "@/hooks/use-theme";
-import { Moon, Sun } from "lucide-react";
+import { Moon, Sun, Laptop } from "lucide-react";
 
 export function ThemeToggle() {
   const { theme, setTheme } = useTheme();
 
-  const toggleTheme = () => {
-    setTheme(theme === "dark" ? "light" : "dark");
-  };
-
   return (
-    <Button 
-      variant="outline" 
-      size="icon" 
-      onClick={toggleTheme}
-      title={theme === "dark" ? "Switch to light mode" : "Switch to dark mode"}
-    >
-      <Sun className="h-[1.2rem] w-[1.2rem] rotate-0 scale-100 transition-all dark:-rotate-90 dark:scale-0" />
-      <Moon className="absolute h-[1.2rem] w-[1.2rem] rotate-90 scale-0 transition-all dark:rotate-0 dark:scale-100" />
-      <span className="sr-only">Toggle theme</span>
-    </Button>
+    <DropdownMenu>
+      <DropdownMenuTrigger asChild>
+        <Button variant="outline" size="icon" title="Change theme">
+          <Sun className="h-[1.2rem] w-[1.2rem] rotate-0 scale-100 transition-all dark:rotate-90 dark:scale-0" />
+          <Moon className="absolute h-[1.2rem] w-[1.2rem] rotate-90 scale-0 transition-all dark:rotate-0 dark:scale-100" />
+          <span className="sr-only">Toggle theme</span>
+        </Button>
+      </DropdownMenuTrigger>
+      <DropdownMenuContent align="end">
+        <DropdownMenuItem onClick={() => setTheme("light")}>
+          <Sun className="mr-2 h-4 w-4" />
+          <span>Light</span>
+        </DropdownMenuItem>
+        <DropdownMenuItem onClick={() => setTheme("dark")}>
+          <Moon className="mr-2 h-4 w-4" />
+          <span>Dark</span>
+        </DropdownMenuItem>
+        <DropdownMenuItem onClick={() => setTheme("system")}>
+          <Laptop className="mr-2 h-4 w-4" />
+          <span>System</span>
+        </DropdownMenuItem>
+      </DropdownMenuContent>
+    </DropdownMenu>
   );
 }
diff --git a/client/src/context/organization-context.tsx b/client/src/context/organization-context.tsx
index 27d5d46..d1ddf67 100644
--- a/client/src/context/organization-context.tsx
+++ b/client/src/context/organization-context.tsx
@@ -1,19 +1,23 @@
 import { createContext, useContext, useState, useEffect, ReactNode } from "react";
-import { useQuery } from "@tanstack/react-query";
-import { Organization } from "@shared/schema";
+import { useQuery, useMutation, UseMutationResult } from "@tanstack/react-query";
+import { Organization, InsertOrganization } from "@shared/schema";
 import { useAuth } from "@/hooks/use-auth";
+import { apiRequest, queryClient } from "@/lib/queryClient";
+import { useToast } from "@/hooks/use-toast";
 
 type OrganizationContextType = {
   organizations: Organization[];
   currentOrganization: Organization | null;
   setCurrentOrganization: (organization: Organization) => void;
   isLoading: boolean;
+  createOrganizationMutation: UseMutationResult<Organization, Error, InsertOrganization>;
 };
 
 const OrganizationContext = createContext<OrganizationContextType | undefined>(undefined);
 
 export function OrganizationProvider({ children }: { children: ReactNode }) {
   const { user } = useAuth();
+  const { toast } = useToast();
   const [currentOrganization, setCurrentOrganization] = useState<Organization | null>(null);
 
   const { data: organizations = [], isLoading } = useQuery<Organization[]>({
@@ -21,6 +25,28 @@ export function OrganizationProvider({ children }: { children: ReactNode }) {
     // Only fetch if user is logged in
     enabled: !!user,
   });
+  
+  const createOrganizationMutation = useMutation({
+    mutationFn: async (orgData: InsertOrganization) => {
+      const res = await apiRequest("POST", "/api/organizations", orgData);
+      return await res.json();
+    },
+    onSuccess: (newOrg: Organization) => {
+      queryClient.invalidateQueries({ queryKey: ["/api/organizations"] });
+      toast({
+        title: "Organization created",
+        description: `Organization '${newOrg.name}' has been created successfully.`,
+      });
+      setCurrentOrganization(newOrg);
+    },
+    onError: (error: Error) => {
+      toast({
+        title: "Failed to create organization",
+        description: error.message,
+        variant: "destructive",
+      });
+    },
+  });
 
   // Set default organization when organizations are loaded
   useEffect(() => {
@@ -41,7 +67,13 @@ export function OrganizationProvider({ children }: { children: ReactNode }) {
 
   return (
     <OrganizationContext.Provider
-      value={{ organizations, currentOrganization, setCurrentOrganization, isLoading }}
+      value={{ 
+        organizations, 
+        currentOrganization, 
+        setCurrentOrganization, 
+        isLoading,
+        createOrganizationMutation 
+      }}
     >
       {children}
     </OrganizationContext.Provider>
diff --git a/client/src/pages/settings.tsx b/client/src/pages/settings.tsx
index 017c21c..2385db2 100644
--- a/client/src/pages/settings.tsx
+++ b/client/src/pages/settings.tsx
@@ -53,7 +53,7 @@ import { Button } from "@/components/ui/button";
 import { Input } from "@/components/ui/input";
 import { Switch } from "@/components/ui/switch";
 import { Separator } from "@/components/ui/separator";
-import { Loader2, Moon, Sun, Lock } from "lucide-react";
+import { Loader2, Moon, Sun, Lock, Laptop } from "lucide-react";
 
 // Organization form schema
 const organizationFormSchema = z.object({
@@ -61,6 +61,12 @@ const organizationFormSchema = z.object({
   isActive: z.boolean().default(true),
 });
 
+// Create organization form schema
+const createOrganizationFormSchema = z.object({
+  name: z.string().min(1, "Organization name is required"),
+  isActive: z.boolean().default(true),
+});
+
 // Account form schema
 const accountFormSchema = z.object({
   username: z.string().min(3, "Username must be at least 3 characters"),
@@ -82,10 +88,19 @@ export default function SettingsPage() {
   const { toast } = useToast();
   const { user } = useAuth();
   const { theme, setTheme } = useTheme();
-  const { currentOrganization, setCurrentOrganization } = useOrganization();
+  const { currentOrganization, setCurrentOrganization, createOrganizationMutation } = useOrganization();
   
   const [isDeleteDialogOpen, setIsDeleteDialogOpen] = useState(false);
   
+  // Create organization form
+  const createOrganizationForm = useForm<z.infer<typeof createOrganizationFormSchema>>({
+    resolver: zodResolver(createOrganizationFormSchema),
+    defaultValues: {
+      name: "",
+      isActive: true,
+    },
+  });
+  
   // Fetch organization data
   const { data: organization } = useQuery<Organization>({
     queryKey: ["/api/organizations", currentOrganization?.id],
@@ -434,6 +449,77 @@ export default function SettingsPage() {
             </Card>
           ) : (
             <>
+              {user?.role === "admin" && (
+                <Card>
+                  <CardHeader>
+                    <CardTitle>Create New Organization</CardTitle>
+                    <CardDescription>
+                      Add a new organization to your account
+                    </CardDescription>
+                  </CardHeader>
+                  <CardContent>
+                    <Form {...createOrganizationForm}>
+                      <form 
+                        onSubmit={createOrganizationForm.handleSubmit((data) => {
+                          createOrganizationMutation.mutate(data);
+                          createOrganizationForm.reset();
+                        })} 
+                        className="space-y-4"
+                      >
+                        <FormField
+                          control={createOrganizationForm.control}
+                          name="name"
+                          render={({ field }) => (
+                            <FormItem>
+                              <FormLabel>Organization Name</FormLabel>
+                              <FormControl>
+                                <Input {...field} placeholder="Enter organization name" />
+                              </FormControl>
+                              <FormMessage />
+                            </FormItem>
+                          )}
+                        />
+                        
+                        <FormField
+                          control={createOrganizationForm.control}
+                          name="isActive"
+                          render={({ field }) => (
+                            <FormItem className="flex flex-row items-center justify-between rounded-lg border p-4">
+                              <div className="space-y-0.5">
+                                <FormLabel className="text-base">Active Status</FormLabel>
+                                <FormDescription>
+                                  Enable this organization upon creation
+                                </FormDescription>
+                              </div>
+                              <FormControl>
+                                <Switch
+                                  checked={field.value}
+                                  onCheckedChange={field.onChange}
+                                />
+                              </FormControl>
+                            </FormItem>
+                          )}
+                        />
+                        
+                        <Button 
+                          type="submit" 
+                          disabled={createOrganizationMutation.isPending}
+                        >
+                          {createOrganizationMutation.isPending ? (
+                            <>
+                              <Loader2 className="mr-2 h-4 w-4 animate-spin" />
+                              Creating...
+                            </>
+                          ) : (
+                            "Create Organization"
+                          )}
+                        </Button>
+                      </form>
+                    </Form>
+                  </CardContent>
+                </Card>
+              )}
+            
               <Card>
                 <CardHeader>
                   <CardTitle>Organization Details</CardTitle>
@@ -546,7 +632,7 @@ export default function SettingsPage() {
                 <p className="text-sm text-muted-foreground">
                   Select your preferred theme appearance
                 </p>
-                <div className="grid grid-cols-2 gap-4 pt-2">
+                <div className="grid grid-cols-3 gap-4 pt-2">
                   <div
                     className={`flex flex-col items-center justify-between rounded-md border-2 border-muted bg-popover p-4 hover:bg-accent hover:text-accent-foreground cursor-pointer ${
                       theme === "light" ? "border-primary" : ""
@@ -571,6 +657,18 @@ export default function SettingsPage() {
                       <p className="text-xs text-muted-foreground">Dark background with light text</p>
                     </div>
                   </div>
+                  <div
+                    className={`flex flex-col items-center justify-between rounded-md border-2 border-muted bg-popover p-4 hover:bg-accent hover:text-accent-foreground cursor-pointer ${
+                      theme === "system" ? "border-primary" : ""
+                    }`}
+                    onClick={() => setTheme("system")}
+                  >
+                    <Laptop className="h-6 w-6 mb-3" />
+                    <div className="space-y-1 text-center">
+                      <h3 className="font-medium">System</h3>
+                      <p className="text-xs text-muted-foreground">Follow your system preference</p>
+                    </div>
+                  </div>
                 </div>
               </div>
             </CardContent>
diff --git a/theme.json b/theme.json
index 4db1e19..295ea89 100644
--- a/theme.json
+++ b/theme.json
@@ -1,6 +1,6 @@
 {
   "variant": "professional",
   "primary": "hsl(221.2 83.2% 53.3%)",
-  "appearance": "light",
+  "appearance": "system",
   "radius": 0.5
 }