diff --git a/package.json b/package.json
index bce2edda..80180f38 100644
--- a/package.json
+++ b/package.json
@@ -21,9 +21,6 @@
     "build": "tsc",
     "release": "auto shipit"
   },
-  "peerDependencies": {
-    "react": "*"
-  },
   "devDependencies": {
     "@types/react": "^16.8.6",
     "@typescript-eslint/eslint-plugin": "^1.4.2",
diff --git a/src/Tool.tsx b/src/Tool.tsx
index 239b6233..7494cc36 100644
--- a/src/Tool.tsx
+++ b/src/Tool.tsx
@@ -1,71 +1,120 @@
 import * as React from 'react';
-import { themes } from '@storybook/theming';
+import { themes, ThemeVars } from '@storybook/theming';
 import { IconButton } from '@storybook/components';
+import equal from 'fast-deep-equal';
 
 import Sun from './icons/Sun';
 import Moon from './icons/Moon';
 
+interface StorybookAPI {
+  getChannel(): { on(event: string, cb: () => void): void };
+  setOptions(options: any): void;
+  on(event: string, callback: (data: any) => void): void;
+  off(event: string, callback: (data: any) => void): void;
+  getCurrentStoryData(): any;
+}
+
 interface DarkModeProps {
+  api: StorybookAPI;
   channel: {
     emit(event: string, value: any): void;
   };
-  api: {
-    setOptions(options: any): void;
-    on(event: string, callback: (data: any) => void): void;
-    off(event: string, callback: (data: any) => void): void;
-    getCurrentStoryData(): any;
-  };
 }
 
-interface DarkModeState {
-  isDark: boolean;
+interface DarkModeStore {
+  current: 'dark' | 'light';
+  dark: ThemeVars;
+  light: ThemeVars;
 }
 
-export default class DarkMode extends React.Component<
-  DarkModeProps,
-  DarkModeState
-  > {
-  state = {
-    isDark: false
-  };
+let defaultStore: DarkModeStore = {
+  current: 'light',
+  dark: themes.dark,
+  light: themes.light
+};
+
+const update = (newStore: DarkModeStore) => {
+  window.localStorage.setItem('sb-addon-themes-3', JSON.stringify(newStore));
+};
 
-  setDarkMode = (isDark: boolean) => {
-    const { parameters } = this.props.api.getCurrentStoryData();
+const store = (themes: Partial<DarkModeStore> = {}): DarkModeStore => {
+  if (window.localStorage.getItem('sb-addon-themes-3')) {
+    const stored = JSON.parse(window.localStorage.getItem(
+      'sb-addon-themes-3'
+    ) as string) as DarkModeStore;
 
-    let darkTheme = themes.dark;
-    let lightTheme = themes.light;
+    if (themes) {
+      if (themes.dark && !equal(stored.dark, themes.dark)) {
+        stored.dark = themes.dark;
+      }
 
-    if (parameters && parameters.darkMode) {
-      darkTheme = parameters.darkMode.dark || darkTheme;
-      lightTheme = parameters.darkMode.light || lightTheme;
+      if (themes.light && !equal(stored.light, themes.light)) {
+        stored.light = themes.light;
+      }
     }
 
-    this.props.api.setOptions({
-      isDark,
-      theme: isDark ? darkTheme : lightTheme
-    });
+    return stored;
+  }
+
+  defaultStore = { ...defaultStore, ...themes };
+  return defaultStore;
+};
+
+export const DarkMode: React.FunctionComponent<DarkModeProps> = props => {
+  const [isDark, setDark] = React.useState(false);
 
-    this.setState({
-      isDark
-    }, () => {
-      this.props.channel.emit('DARK_MODE', isDark);
+  function setDarkMode() {
+    const currentStore = store();
+    const current = currentStore.current === 'dark' ? 'light' : 'dark';
+
+    update({
+      ...currentStore,
+      current
     });
-  };
 
-  render() {
-    const { isDark } = this.state;
-
-    return (
-      <IconButton
-        key="dark-mode"
-        active={isDark}
-        title={
-          isDark ? 'Change theme to light mode' : 'Change theme to dark mode'
-        }
-        onClick={() => this.setDarkMode(!this.state.isDark)}
-      >
-        {isDark ? <Sun /> : <Moon />}
-      </IconButton>
-    );
+    props.api.setOptions({ theme: currentStore[current] });
+    setDark(!isDark);
+    props.channel.emit('DARK_MODE', !isDark);
   }
-}
+
+  React.useEffect(() => {
+    const channel = props.api.getChannel();
+
+    channel.on('storiesConfigured', () => {
+      const { parameters } = props.api.getCurrentStoryData();
+
+      let darkTheme = themes.dark;
+      let lightTheme = themes.light;
+
+      if (parameters && parameters.darkMode) {
+        darkTheme = parameters.darkMode.dark || darkTheme;
+        lightTheme = parameters.darkMode.light || lightTheme;
+      }
+
+      const currentStore = store({
+        light: lightTheme,
+        dark: darkTheme
+      });
+      const { current } = currentStore;
+
+      props.api.setOptions({ theme: currentStore[current] });
+      setDark(current === 'dark');
+      props.channel.emit('DARK_MODE', current === 'dark');
+    });
+  }, []);
+
+  return (
+    <IconButton
+      key="dark-mode"
+      active={isDark}
+      title={
+        isDark ? 'Change theme to light mode' : 'Change theme to dark mode'
+      }
+      onClick={setDarkMode}
+    >
+      {isDark ? <Sun /> : <Moon />}
+    </IconButton>
+  );
+};
+
+export default DarkMode;
diff --git a/tsconfig.json b/tsconfig.json
index eabcf323..87e9440d 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -1,7 +1,7 @@
 {
   "compilerOptions": {
     "declaration": true,
-    "lib": ["es2017"],
+    "lib": ["es2017", "dom"],
     "jsx": "react",
     "moduleResolution": "node",
     // "allowSyntheticDefaultImports": true,