diff --git a/README.md b/README.md
index 07cfd31..320eab0 100644
--- a/README.md
+++ b/README.md
@@ -120,7 +120,7 @@ plugins: [windmillPlugin()]
 
 - [x] Button
 - [x] Card
-- [ ] Dropdown
+- [x] Dropdown
 - [x] Form
 - [x] Modal
 - [ ] Table
diff --git a/__tests__/Dropdown.test.js b/__tests__/Dropdown.test.js
new file mode 100644
index 0000000..ab56d13
--- /dev/null
+++ b/__tests__/Dropdown.test.js
@@ -0,0 +1,59 @@
+import React from 'react'
+import { mount } from 'enzyme'
+import Dropdown from '../src/Dropdown'
+
+describe('Dropdown', () => {
+  it('should render without crashing', () => {
+    const onClose = jest.fn()
+    mount(<Dropdown isOpen={true} onClose={onClose} />)
+  })
+
+  it('should render with base styles', () => {
+    const onClose = jest.fn()
+    const expected =
+      'absolute right-0 w-56 p-2 mt-2 text-gray-600 bg-white border border-gray-100 rounded-lg shadow-md min-w-max-content dark:text-gray-300 dark:border-gray-700 dark:bg-gray-700'
+    const wrapper = mount(<Dropdown isOpen={true} onClose={onClose} />)
+
+    expect(wrapper.find('ul').getDOMNode().getAttribute('class')).toContain(expected)
+  })
+
+  it('should call onClose when Esc is pressed', () => {
+    const map = {}
+    document.addEventListener = jest.fn((e, cb) => {
+      map[e] = cb
+    })
+    const onClose = jest.fn()
+    mount(<Dropdown isOpen={true} onClose={onClose} />)
+
+    map.keydown({ key: 'Esc' })
+
+    expect(onClose).toHaveBeenCalled()
+  })
+
+  it('should not call onClose when other key than Esc is pressed', () => {
+    const map = {}
+    document.addEventListener = jest.fn((e, cb) => {
+      map[e] = cb
+    })
+    const onClose = jest.fn()
+    mount(<Dropdown isOpen={true} onClose={onClose} />)
+
+    map.keydown({ key: 'Enter' })
+
+    expect(onClose).not.toHaveBeenCalled()
+  })
+
+  it('should remove the event listener on unmount', () => {
+    const map = {}
+    const removeListener = jest.fn((e, cb) => {
+      map[e] = cb
+    })
+    document.removeEventListener = removeListener
+    const onClose = jest.fn()
+    const wrapper = mount(<Dropdown isOpen={true} onClose={onClose} />)
+
+    wrapper.unmount()
+
+    expect(removeListener).toHaveBeenCalled()
+  })
+})
diff --git a/__tests__/DropdownItem.test.js b/__tests__/DropdownItem.test.js
new file mode 100644
index 0000000..b145c4b
--- /dev/null
+++ b/__tests__/DropdownItem.test.js
@@ -0,0 +1,37 @@
+import React from 'react'
+import { mount } from 'enzyme'
+import DropdownItem from '../src/DropdownItem'
+import Button from '../src/Button'
+
+describe('DropdownItem', () => {
+  it('should render without crashing', () => {
+    mount(<DropdownItem />)
+  })
+
+  it('should render with base styles', () => {
+    const expected = 'mb-2 last:mb-0'
+    const wrapper = mount(<DropdownItem />)
+
+    expect(wrapper.find('li').getDOMNode().getAttribute('class')).toContain(expected)
+  })
+
+  it('should contain a Button child', () => {
+    const wrapper = mount(<DropdownItem />)
+
+    expect(wrapper.find(Button)).toBeTruthy()
+  })
+
+  it('should pass className to the inner button', () => {
+    const expected = 'bg-red-600'
+    const wrapper = mount(<DropdownItem className="bg-red-600" />)
+
+    expect(wrapper.find(Button).getDOMNode().getAttribute('class')).toContain(expected)
+  })
+
+  it('should pass extra props to the inner button', () => {
+    const expected = 'test'
+    const wrapper = mount(<DropdownItem tag="a" href="test" />)
+
+    expect(wrapper.find('a').getDOMNode().getAttribute('href')).toContain(expected)
+  })
+})
diff --git a/src/Dropdown.js b/src/Dropdown.js
new file mode 100644
index 0000000..c1dbf10
--- /dev/null
+++ b/src/Dropdown.js
@@ -0,0 +1,54 @@
+import React, { useEffect, useContext } from 'react'
+import classNames from 'classnames'
+import PropTypes from 'prop-types'
+import { ThemeContext } from './context/ThemeContext'
+import defaultTheme from './themes/default'
+import Transition from './Transition'
+import FocusLock from 'react-focus-lock'
+
+function Dropdown({ children, onClose, isOpen, className, ...other }) {
+  const { dropdown } = useContext(ThemeContext) || defaultTheme
+
+  const baseStyle = dropdown.base
+
+  function handleEsc(e) {
+    if (e.key === 'Esc' || e.key === 'Escape') {
+      onClose()
+    }
+  }
+
+  useEffect(() => {
+    document.addEventListener('keydown', handleEsc)
+    return () => {
+      document.removeEventListener('keydown', handleEsc)
+    }
+  })
+
+  const cls = classNames(baseStyle, className)
+
+  return (
+    <Transition
+      show={isOpen}
+      leave="transition ease-out duration-150"
+      leaveFrom="opacity-100"
+      leaveTo="opacity-0"
+    >
+      <div>
+        <FocusLock returnFocus>
+          <ul className={cls} aria-label="submenu" {...other}>
+            {children}
+          </ul>
+        </FocusLock>
+      </div>
+    </Transition>
+  )
+}
+
+Dropdown.propTypes = {
+  children: PropTypes.node,
+  className: PropTypes.string,
+  onClose: PropTypes.func.isRequired,
+  isOpen: PropTypes.bool.isRequired,
+}
+
+export default Dropdown
diff --git a/src/DropdownItem.js b/src/DropdownItem.js
new file mode 100644
index 0000000..c31dcf7
--- /dev/null
+++ b/src/DropdownItem.js
@@ -0,0 +1,29 @@
+import React, { useContext } from 'react'
+import PropTypes from 'prop-types'
+import { ThemeContext } from './context/ThemeContext'
+import defaultTheme from './themes/default'
+import Button from './Button'
+
+const DropdownItem = React.forwardRef(function DropdownItem(props, ref) {
+  // Note: className is passed to the inner Button
+  const { className, children, ...other } = props
+
+  const { dropdownItem } = useContext(ThemeContext) || defaultTheme
+
+  const baseStyle = dropdownItem.base
+
+  return (
+    <li className={baseStyle}>
+      <Button layout="__dropdownItem" ref={ref} className={className} {...other}>
+        {children}
+      </Button>
+    </li>
+  )
+})
+
+DropdownItem.propTypes = {
+  children: PropTypes.node,
+  className: PropTypes.string,
+}
+
+export default DropdownItem
diff --git a/src/index.js b/src/index.js
index 9c1fcb9..1dae42c 100644
--- a/src/index.js
+++ b/src/index.js
@@ -15,3 +15,4 @@ export { default as ModalBody } from './ModalBody'
 export { default as ModalFooter } from './ModalFooter'
 export { default as ModalHeader } from './ModalHeader'
 export { default as Avatar } from './Avatar'
+export { default as Dropdown } from './Dropdown'
diff --git a/src/themes/default.js b/src/themes/default.js
index cc376e0..a9a14ef 100644
--- a/src/themes/default.js
+++ b/src/themes/default.js
@@ -1,4 +1,15 @@
 export default {
+  // DropdownItem
+  // this is the <li> that lives inside the Dropdown <ul>
+  // you're probably looking for the dropdownItem style inside button
+  dropdownItem: {
+    base: 'mb-2 last:mb-0',
+  },
+  // Dropdown
+  dropdown: {
+    base:
+      'absolute right-0 w-56 p-2 mt-2 text-gray-600 bg-white border border-gray-100 rounded-lg shadow-md min-w-max-content dark:text-gray-300 dark:border-gray-700 dark:bg-gray-700',
+  },
   // Avatar
   avatar: {
     base: 'relative rounded-full',
@@ -117,6 +128,7 @@ export default {
       active: 'hover:bg-gray-100 focus:shadow-outline-gray',
       disabled: 'opacity-50 cursor-not-allowed',
     },
+    // this is the button that lives inside the DropdownItem
     dropdownItem: {
       base:
         'inline-flex items-center cursor-pointer w-full px-2 py-1 text-sm font-medium transition-colors duration-150 rounded-md hover:bg-gray-100 hover:text-gray-800 dark:hover:bg-gray-800 dark:hover:text-gray-200',