diff --git a/docs/changelog.md b/docs/changelog.md
index 767566d..cfc362e 100644
--- a/docs/changelog.md
+++ b/docs/changelog.md
@@ -1,5 +1,9 @@
 # Changelog
 
+## next
+- Added support for passing data between components via Context. See the [Usage
+docs](usage.md#passing-data-with-context) for more information. [PR #48](https://github.com/pelme/htpy/pull/48).
+
 ## 24.8.1 - 2024-08-16
  - Added the `comment()` function to render HTML comments.
  [Documentation](usage.md#html-comments) /  [Issue
diff --git a/docs/usage.md b/docs/usage.md
index d75ca7e..f38d6fe 100644
--- a/docs/usage.md
+++ b/docs/usage.md
@@ -393,3 +393,78 @@ got a chunk: '<li>'
 got a chunk: 'b'
 got a chunk: '</li>'
 ```
+
+## Passing Data with Context
+
+Usually, you pass data via regular function calls and arguments via your
+components. Contexts can be used to avoid having to pass the data manually
+between components. Contexts in htpy is conceptually similar to contexts in
+React.
+
+Using contexts in htpy involves:
+
+- Creating a context object with `my_context = Context(name[, *, default])` to
+define the type and optional default value of a context variable.
+- Using `my_context.provider(value, lambda: children)` to set the value of a context variable for a subtree.
+- Adding the `@my_context.consumer` decorator to a component that requires the
+context value. The decorator will add the context value as the first argument to the decorated function.
+
+A context value can be passed arbitrarily deep between components. It is
+possible to nest multiple context provider and different values can be used in
+different subtrees.
+
+The `Context` class is a generic and fully supports static type checking.
+
+The values are passed as part of the tree used to render components without
+using global state. It is safe to use contexts for lazy constructs such as
+callables and generators.
+
+### Example
+
+This example shows how context can be used to pass data between components:
+
+- `theme_context: Context[Theme] = Context("theme", default="light")` creates a
+context object that can later be used to define/retrieve the value. In this
+case, `"light"` acts as the default value if no other value is provided.
+- `theme_context.provider(value, lambda: subtree)` defines the value of the
+`theme_context` for the subtree. In this case the value is set to `"dark"` which
+overrides the default value.
+- The `sidebar` component uses the `@theme_context.consumer` decorator. This
+will make htpy pass the current context value as the first argument to the
+component function.
+- In this example, a `Theme` type is used to ensure that the correct types are
+used when providing the value as well as when it is consumed.
+
+```py
+from typing import Literal
+
+from htpy import Context, Node, div, h1
+
+Theme = Literal["light", "dark"]
+
+theme_context: Context[Theme] = Context("theme", default="light")
+
+
+def my_page() -> Node:
+    return theme_context.provider(
+        "dark",
+        lambda: div[
+            h1["Hello!"],
+            sidebar("The Sidebar!"),
+        ],
+    )
+
+
+@theme_context.consumer
+def sidebar(theme: Theme, title: str) -> Node:
+    return div(class_=f"theme-{theme}")[title]
+
+
+print(my_page())
+```
+
+Output:
+
+```html
+<div><h1>Hello!</h1><div class="theme-dark">The Sidebar!</div></div>
+```
diff --git a/examples/context.py b/examples/context.py
new file mode 100644
index 0000000..a593daa
--- /dev/null
+++ b/examples/context.py
@@ -0,0 +1,25 @@
+from typing import Literal
+
+from htpy import Context, Node, div, h1
+
+Theme = Literal["light", "dark"]
+
+theme_context: Context[Theme] = Context("theme", default="light")
+
+
+def my_page() -> Node:
+    return theme_context.provider(
+        "dark",
+        lambda: div[
+            h1["Hello!"],
+            sidebar("The Sidebar!"),
+        ],
+    )
+
+
+@theme_context.consumer
+def sidebar(theme: Theme, title: str) -> Node:
+    return div(class_=f"theme-{theme}")[title]
+
+
+print(my_page())
diff --git a/htpy/__init__.py b/htpy/__init__.py
index 4001d92..3a2b49c 100644
--- a/htpy/__init__.py
+++ b/htpy/__init__.py
@@ -3,6 +3,7 @@
 __version__ = "24.8.1"
 __all__: list[str] = []
 
+import dataclasses
 import functools
 import typing as t
 from collections.abc import Callable, Iterable, Iterator
@@ -109,7 +110,58 @@ def _attrs_string(attrs: dict[str, Attribute]) -> str:
     return " " + result
 
 
+T = t.TypeVar("T")
+P = t.ParamSpec("P")
+
+
+@dataclasses.dataclass(frozen=True)
+class ContextProvider(t.Generic[T]):
+    context: Context[T]
+    value: T
+    func: Callable[[], Node]
+
+    def __iter__(self) -> Iterator[str]:
+        return iter_node(self)
+
+    def __str__(self) -> str:
+        return render_node(self)
+
+
+@dataclasses.dataclass(frozen=True)
+class ContextConsumer(t.Generic[T]):
+    context: Context[T]
+    debug_name: str
+    func: Callable[[T], Node]
+
+
+class _NO_DEFAULT:
+    pass
+
+
+class Context(t.Generic[T]):
+    def __init__(self, name: str, *, default: T | type[_NO_DEFAULT] = _NO_DEFAULT) -> None:
+        self.name = name
+        self.default = default
+
+    def provider(self, value: T, children_func: Callable[[], Node]) -> ContextProvider[T]:
+        return ContextProvider(self, value, children_func)
+
+    def consumer(
+        self,
+        func: Callable[t.Concatenate[T, P], Node],
+    ) -> Callable[P, ContextConsumer[T]]:
+        @functools.wraps(func)
+        def wrapper(*args: P.args, **kwargs: P.kwargs) -> ContextConsumer[T]:
+            return ContextConsumer(self, func.__name__, lambda value: func(value, *args, **kwargs))
+
+        return wrapper
+
+
 def iter_node(x: Node) -> Iterator[str]:
+    return _iter_node_context(x, {})
+
+
+def _iter_node_context(x: Node, context_dict: dict[Context[t.Any], t.Any]) -> Iterator[str]:
     while not isinstance(x, BaseElement) and callable(x):
         x = x()
 
@@ -123,12 +175,22 @@ def iter_node(x: Node) -> Iterator[str]:
         return
 
     if isinstance(x, BaseElement):
-        yield from x
+        yield from x._iter_context(context_dict)  # pyright: ignore [reportPrivateUsage]
+    elif isinstance(x, ContextProvider):
+        yield from _iter_node_context(x.func(), {**context_dict, x.context: x.value})  # pyright: ignore [reportUnknownMemberType]
+    elif isinstance(x, ContextConsumer):
+        context_value = context_dict.get(x.context, x.context.default)
+        if context_value is _NO_DEFAULT:
+            raise LookupError(
+                f'Context value for "{x.context.name}" does not exist, '
+                f"requested by {x.debug_name}()."
+            )
+        yield from _iter_node_context(x.func(context_value), context_dict)
     elif isinstance(x, str | _HasHtml):
         yield str(_escape(x))
     elif isinstance(x, Iterable):  # pyright: ignore [reportUnnecessaryIsInstance]
         for child in x:
-            yield from iter_node(child)
+            yield from _iter_node_context(child, context_dict)
     else:
         raise ValueError(f"{x!r} is not a valid child element")
 
@@ -201,8 +263,11 @@ def __call__(self: BaseElementSelf, *args: t.Any, **kwargs: t.Any) -> BaseElemen
         )
 
     def __iter__(self) -> Iterator[str]:
+        return self._iter_context({})
+
+    def _iter_context(self, ctx: dict[Context[t.Any], t.Any]) -> Iterator[str]:
         yield f"<{self._name}{_attrs_string(self._attrs)}>"
-        yield from iter_node(self._children)
+        yield from _iter_node_context(self._children, ctx)
         yield f"</{self._name}>"
 
     def __repr__(self) -> str:
@@ -221,13 +286,13 @@ def __getitem__(self: ElementSelf, children: Node) -> ElementSelf:
 
 
 class HTMLElement(Element):
-    def __iter__(self) -> Iterator[str]:
+    def _iter_context(self, ctx: dict[Context[t.Any], t.Any]) -> Iterator[str]:
         yield "<!doctype html>"
-        yield from super().__iter__()
+        yield from super()._iter_context(ctx)
 
 
 class VoidElement(BaseElement):
-    def __iter__(self) -> Iterator[str]:
+    def _iter_context(self, ctx: dict[Context[t.Any], t.Any]) -> Iterator[str]:
         yield f"<{self._name}{_attrs_string(self._attrs)}>"
 
 
@@ -248,7 +313,15 @@ def __html__(self) -> str: ...
 _ClassNamesDict: t.TypeAlias = dict[str, bool]
 _ClassNames: t.TypeAlias = Iterable[str | None | bool | _ClassNamesDict] | _ClassNamesDict
 Node: t.TypeAlias = (
-    None | bool | str | BaseElement | _HasHtml | Iterable["Node"] | Callable[[], "Node"]
+    None
+    | bool
+    | str
+    | BaseElement
+    | _HasHtml
+    | Iterable["Node"]
+    | Callable[[], "Node"]
+    | ContextProvider[t.Any]
+    | ContextConsumer[t.Any]
 )
 
 Attribute: t.TypeAlias = None | bool | str | _HasHtml | _ClassNames
diff --git a/tests/test_context.py b/tests/test_context.py
new file mode 100644
index 0000000..77a88a2
--- /dev/null
+++ b/tests/test_context.py
@@ -0,0 +1,90 @@
+import typing as t
+
+import pytest
+
+from htpy import Context, Node, div
+
+letter_ctx: Context[t.Literal["a", "b", "c"]] = Context("letter", default="a")
+no_default_ctx = Context[str]("no_default")
+
+
+@letter_ctx.consumer
+def display_letter(letter: t.Literal["a", "b", "c"], greeting: str) -> str:
+    return f"{greeting}: {letter}!"
+
+
+@no_default_ctx.consumer
+def display_no_default(value: str) -> str:
+    return f"{value=}"
+
+
+def test_context_default() -> None:
+    result = div[display_letter("Yo")]
+    assert str(result) == "<div>Yo: a!</div>"
+
+
+def test_context_provider() -> None:
+    result = letter_ctx.provider("c", lambda: div[display_letter("Hello")])
+    assert str(result) == "<div>Hello: c!</div>"
+
+
+def test_no_default() -> None:
+    with pytest.raises(
+        LookupError,
+        match='Context value for "no_default" does not exist, requested by display_no_default()',
+    ):
+        str(div[display_no_default()])
+
+
+def test_nested_override() -> None:
+    result = div[
+        letter_ctx.provider(
+            "b",
+            lambda: letter_ctx.provider(
+                "c",
+                lambda: display_letter("Nested"),
+            ),
+        )
+    ]
+    assert str(result) == "<div>Nested: c!</div>"
+
+
+def test_multiple_consumers() -> None:
+    a_ctx: Context[t.Literal["a"]] = Context("a_ctx", default="a")
+    b_ctx: Context[t.Literal["b"]] = Context("b_ctx", default="b")
+
+    @b_ctx.consumer
+    @a_ctx.consumer
+    def ab_display(a: t.Literal["a"], b: t.Literal["b"], greeting: str) -> str:
+        return f"{greeting} a={a}, b={b}"
+
+    result = div[ab_display("Hello")]
+    assert str(result) == "<div>Hello a=a, b=b</div>"
+
+
+def test_nested_consumer() -> None:
+    ctx: Context[str] = Context("ctx")
+
+    @ctx.consumer
+    def outer(value: str) -> Node:
+        return inner(value)
+
+    @ctx.consumer
+    def inner(value: str, from_outer: str) -> Node:
+        return f"outer: {from_outer}, inner: {value}"
+
+    result = div[ctx.provider("foo", outer)]
+
+    assert str(result) == "<div>outer: foo, inner: foo</div>"
+
+
+def test_context_passed_via_iterable() -> None:
+    ctx: Context[str] = Context("ctx")
+
+    @ctx.consumer
+    def echo(value: str) -> str:
+        return value
+
+    result = div[ctx.provider("foo", lambda: [echo()])]
+
+    assert str(result) == "<div>foo</div>"