diff --git a/client/contexts/AuthContext.tsx b/client/contexts/AuthContext.tsx
new file mode 100644
index 00000000..86e49c01
--- /dev/null
+++ b/client/contexts/AuthContext.tsx
@@ -0,0 +1,201 @@
+import React, { createContext, useContext, useEffect, useState } from 'react';
+import { User, Session } from '@supabase/supabase-js';
+import { supabase } from '@/lib/supabase';
+import { UserProfile } from '@/lib/database.types';
+import { aethexToast } from '@/lib/aethex-toast';
+
+interface AuthContextType {
+  user: User | null;
+  profile: UserProfile | null;
+  session: Session | null;
+  loading: boolean;
+  signIn: (email: string, password: string) => Promise<void>;
+  signUp: (email: string, password: string, userData?: Partial<UserProfile>) => Promise<void>;
+  signOut: () => Promise<void>;
+  updateProfile: (updates: Partial<UserProfile>) => Promise<void>;
+}
+
+const AuthContext = createContext<AuthContextType | undefined>(undefined);
+
+export const useAuth = () => {
+  const context = useContext(AuthContext);
+  if (context === undefined) {
+    throw new Error('useAuth must be used within an AuthProvider');
+  }
+  return context;
+};
+
+export const AuthProvider: React.FC<{ children: React.ReactNode }> = ({ children }) => {
+  const [user, setUser] = useState<User | null>(null);
+  const [profile, setProfile] = useState<UserProfile | null>(null);
+  const [session, setSession] = useState<Session | null>(null);
+  const [loading, setLoading] = useState(true);
+
+  useEffect(() => {
+    // Get initial session
+    supabase.auth.getSession().then(({ data: { session } }) => {
+      setSession(session);
+      setUser(session?.user ?? null);
+      if (session?.user) {
+        fetchUserProfile(session.user.id);
+      }
+      setLoading(false);
+    });
+
+    // Listen for auth changes
+    const {
+      data: { subscription },
+    } = supabase.auth.onAuthStateChange(async (event, session) => {
+      setSession(session);
+      setUser(session?.user ?? null);
+      
+      if (session?.user) {
+        await fetchUserProfile(session.user.id);
+      } else {
+        setProfile(null);
+      }
+      setLoading(false);
+
+      // Show toast notifications for auth events
+      if (event === 'SIGNED_IN') {
+        aethexToast.success({ 
+          title: 'Welcome back!', 
+          description: 'Successfully signed in to AeThex OS' 
+        });
+      } else if (event === 'SIGNED_OUT') {
+        aethexToast.info({ 
+          title: 'Signed out', 
+          description: 'Come back soon!' 
+        });
+      }
+    });
+
+    return () => subscription.unsubscribe();
+  }, []);
+
+  const fetchUserProfile = async (userId: string) => {
+    try {
+      const { data, error } = await supabase
+        .from('user_profiles')
+        .select('*')
+        .eq('id', userId)
+        .single();
+
+      if (error && error.code !== 'PGRST116') {
+        throw error;
+      }
+
+      setProfile(data);
+    } catch (error) {
+      console.error('Error fetching user profile:', error);
+    }
+  };
+
+  const signIn = async (email: string, password: string) => {
+    try {
+      const { error } = await supabase.auth.signInWithPassword({
+        email,
+        password,
+      });
+
+      if (error) throw error;
+    } catch (error: any) {
+      aethexToast.error({ 
+        title: 'Sign in failed', 
+        description: error.message 
+      });
+      throw error;
+    }
+  };
+
+  const signUp = async (email: string, password: string, userData?: Partial<UserProfile>) => {
+    try {
+      const { data, error } = await supabase.auth.signUp({
+        email,
+        password,
+      });
+
+      if (error) throw error;
+
+      if (data.user && userData) {
+        // Create user profile after successful signup
+        const { error: profileError } = await supabase
+          .from('user_profiles')
+          .insert({
+            id: data.user.id,
+            ...userData,
+          });
+
+        if (profileError) throw profileError;
+
+        aethexToast.success({ 
+          title: 'Account created!', 
+          description: 'Please check your email to verify your account' 
+        });
+      }
+    } catch (error: any) {
+      aethexToast.error({ 
+        title: 'Sign up failed', 
+        description: error.message 
+      });
+      throw error;
+    }
+  };
+
+  const signOut = async () => {
+    try {
+      const { error } = await supabase.auth.signOut();
+      if (error) throw error;
+    } catch (error: any) {
+      aethexToast.error({ 
+        title: 'Sign out failed', 
+        description: error.message 
+      });
+      throw error;
+    }
+  };
+
+  const updateProfile = async (updates: Partial<UserProfile>) => {
+    if (!user) throw new Error('No user logged in');
+
+    try {
+      const { data, error } = await supabase
+        .from('user_profiles')
+        .update(updates)
+        .eq('id', user.id)
+        .select()
+        .single();
+
+      if (error) throw error;
+
+      setProfile(data);
+      aethexToast.success({ 
+        title: 'Profile updated', 
+        description: 'Your profile has been updated successfully' 
+      });
+    } catch (error: any) {
+      aethexToast.error({ 
+        title: 'Update failed', 
+        description: error.message 
+      });
+      throw error;
+    }
+  };
+
+  const value = {
+    user,
+    profile,
+    session,
+    loading,
+    signIn,
+    signUp,
+    signOut,
+    updateProfile,
+  };
+
+  return (
+    <AuthContext.Provider value={value}>
+      {children}
+    </AuthContext.Provider>
+  );
+};