diff --git a/examples/nextjs/src/app/layout.tsx b/examples/nextjs/src/app/layout.tsx
index ec8ff0f19a7..d193b551f09 100644
--- a/examples/nextjs/src/app/layout.tsx
+++ b/examples/nextjs/src/app/layout.tsx
@@ -1,5 +1,6 @@
 import './global.css'
-import {BaseStyles, ThemeProvider} from '@primer/react'
+import {ThemeProvider} from '@primer/styled-react'
+import {BaseStyles} from '@primer/react'
 import {StyledComponentsRegistry} from './registry'
 
 export const metadata = {
diff --git a/examples/nextjs/src/app/page.tsx b/examples/nextjs/src/app/page.tsx
index 7b9ad9f2e0d..a9519617d97 100644
--- a/examples/nextjs/src/app/page.tsx
+++ b/examples/nextjs/src/app/page.tsx
@@ -1,5 +1,24 @@
-import {Button} from '@primer/react'
+'use client'
+
+import {Box, Button, Stack} from '@primer/react'
+import styled from 'styled-components'
+
+const StyledDiv = styled.div(({theme}) => {
+  console.log({styledTheme: theme})
+  return {
+    padding: theme.space[5],
+    backgroundColor: theme.colors.btn.primary.bg,
+  }
+})
 
 export default function IndexPage() {
-  return <Button>Hello world</Button>
+  return (
+    <Stack direction="horizontal">
+      <Button variant="primary" sx={{padding: 5}}>
+        Hello world
+      </Button>
+      <Box sx={{padding: 5, backgroundColor: 'btn.primary.bg'}}>Hello world</Box>
+      <StyledDiv>Hello world</StyledDiv>
+    </Stack>
+  )
 }
diff --git a/packages/styled-react/rollup.config.js b/packages/styled-react/rollup.config.js
index 8aae93d5045..743ab953efe 100644
--- a/packages/styled-react/rollup.config.js
+++ b/packages/styled-react/rollup.config.js
@@ -26,7 +26,109 @@ export default defineConfig({
       extensions: ['.ts', '.tsx'],
       babelHelpers: 'bundled',
     }),
+
+    /**
+     * This custom rollup plugin allows us to preserve directives in source
+     * code, such as "use client", in order to support React Server Components.
+     *
+     * The source for this plugin is inspired by:
+     * https://github.com/Ephem/rollup-plugin-preserve-directives
+     */
+    {
+      name: 'preserve-directives',
+      transform(code) {
+        const ast = this.parse(code)
+        if (ast.type !== 'Program' || !ast.body) {
+          return {
+            code,
+            ast,
+            map: null,
+          }
+        }
+
+        let hasClientDirective = false
+
+        for (const node of ast.body) {
+          if (!node) {
+            continue
+          }
+
+          if (node.type !== 'ExpressionStatement') {
+            continue
+          }
+
+          if (node.directive === 'use client') {
+            hasClientDirective = true
+            break
+          }
+        }
+
+        if (hasClientDirective) {
+          return {
+            code,
+            ast,
+            map: null,
+            meta: {
+              hasClientDirective: true,
+            },
+          }
+        }
+
+        return {
+          code,
+          ast,
+          map: null,
+        }
+      },
+      renderChunk: {
+        order: 'post',
+        handler(code, chunk, options) {
+          // If `preserveModules` is not set to true, we can't be sure if the client
+          // directive corresponds to the whole chunk or just a part of it.
+          if (!options.preserveModules) {
+            return undefined
+          }
+
+          let chunkHasClientDirective = false
+
+          for (const moduleId of Object.keys(chunk.modules)) {
+            const hasClientDirective = this.getModuleInfo(moduleId)?.meta?.hasClientDirective
+            if (hasClientDirective) {
+              chunkHasClientDirective = true
+              break
+            }
+          }
+
+          if (chunkHasClientDirective) {
+            const transformed = new MagicString(code)
+            transformed.prepend(`"use client";\n`)
+            const sourcemap = transformed.generateMap({
+              includeContent: true,
+            })
+            return {
+              code: transformed.toString(),
+              map: sourcemap,
+            }
+          }
+
+          return null
+        },
+      },
+    },
   ],
+  onwarn(warning, defaultHandler) {
+    // Dependencies or modules may use "use client" as an indicator for React
+    // Server Components that this module should only be loaded on the client.
+    if (warning.code === 'MODULE_LEVEL_DIRECTIVE' && warning.message.includes('use client')) {
+      return
+    }
+
+    if (warning.code === 'CIRCULAR_DEPENDENCY') {
+      throw warning
+    }
+
+    defaultHandler(warning)
+  },
   output: {
     dir: 'dist',
     format: 'esm',
diff --git a/packages/styled-react/src/components/ThemeProvider.tsx b/packages/styled-react/src/components/ThemeProvider.tsx
new file mode 100644
index 00000000000..70a172a91f2
--- /dev/null
+++ b/packages/styled-react/src/components/ThemeProvider.tsx
@@ -0,0 +1,20 @@
+import React, {type PropsWithChildren} from 'react'
+import {ThemeProvider as SCThemeProvider} from 'styled-components'
+import {
+  ThemeProvider as PRCThemeProvider,
+  type ThemeProviderProps,
+  useTheme,
+  theme as fallbackTheme,
+} from '@primer/react'
+
+export const ThemeProvider = (props: PropsWithChildren<ThemeProviderProps>) => {
+  const {children, ...rest} = props
+  const {theme} = useTheme()
+
+  console.log({theme})
+  return (
+    <SCThemeProvider theme={theme || fallbackTheme}>
+      <PRCThemeProvider {...rest}>{children}</PRCThemeProvider>
+    </SCThemeProvider>
+  )
+}
diff --git a/packages/styled-react/src/index.tsx b/packages/styled-react/src/index.tsx
index 88e659b1ab6..136697450f8 100644
--- a/packages/styled-react/src/index.tsx
+++ b/packages/styled-react/src/index.tsx
@@ -1,3 +1,5 @@
+'use client'
+
 export {Box, type BoxProps} from './components/Box'
 export {Button} from '@primer/react'
 export {Details} from '@primer/react'
@@ -8,10 +10,10 @@ export {PageLayout} from '@primer/react'
 export {Select} from '@primer/react'
 export {Textarea} from '@primer/react'
 export {TextInput} from '@primer/react'
-export {type TextInputProps} from '@primer/react'
+// export {type TextInputProps} from '@primer/react'
 
 // theming depends on styled-components
-export {ThemeProvider} from '@primer/react'
+export {ThemeProvider} from './components/ThemeProvider'
 export {merge} from '@primer/react'
 export {theme} from '@primer/react'
 export {themeGet} from '@primer/react'