diff --git a/packages/spark-tools/rollup.config.ts b/packages/spark-tools/rollup.config.ts
new file mode 100644
index 0000000..563b53f
--- /dev/null
+++ b/packages/spark-tools/rollup.config.ts
@@ -0,0 +1,33 @@
+import typescript from '@rollup/plugin-typescript'
+import resolve from '@rollup/plugin-node-resolve'
+import commonjs from '@rollup/plugin-commonjs'
+import terser from '@rollup/plugin-terser'
+import del from 'rollup-plugin-delete'
+
+export default {
+  input: {
+    index: 'src/index.ts',
+    spark: 'src/spark.ts',
+    sparkVitePlugin: 'src/sparkVitePlugin.ts',
+    vitePhosphorIconProxyPlugin: 'src/vitePhosphorIconProxyPlugin.ts',
+  },
+  output: {
+    dir: 'dist',
+    format: 'es',
+    sourcemap: true,
+    preserveModules: false,
+  },
+  external: ['react', 'react-dom', 'vite'],
+  plugins: [
+    del({ targets: 'dist/*' }),
+    resolve(),
+    commonjs(),
+    typescript({
+      tsconfig: './tsconfig.json',
+      declaration: true,
+      declarationDir: 'dist',
+      rootDir: 'src',
+    }),
+    terser(),
+  ],
+}
diff --git a/packages/spark-tools/src/hooks/index.ts b/packages/spark-tools/src/hooks/index.ts
new file mode 100644
index 0000000..6f1f16b
--- /dev/null
+++ b/packages/spark-tools/src/hooks/index.ts
@@ -0,0 +1,94 @@
+import { useState, useEffect, useCallback } from 'react'
+
+/**
+ * useKV Hook - Persistent key-value storage with localStorage and window.spark.kv integration
+ * 
+ * This hook provides persistent state management that syncs with localStorage
+ * and integrates with the Spark KV storage system if available.
+ * 
+ * @param key - Storage key
+ * @param defaultValue - Default value if key doesn't exist
+ * @returns Tuple of [value, setValue, deleteValue]
+ */
+export function useKV<T>(
+  key: string,
+  defaultValue: T
+): [T, (value: T | ((prev: T) => T)) => void, () => void] {
+  // Initialize state from localStorage or default value
+  const [value, setValueInternal] = useState<T>(() => {
+    try {
+      // Try to get from window.spark.kv first
+      if (typeof window !== 'undefined' && window.spark?.kv) {
+        const sparkValue = window.spark.kv.get(key)
+        if (sparkValue !== undefined) {
+          return sparkValue as T
+        }
+      }
+
+      // Fallback to localStorage
+      const item = localStorage.getItem(key)
+      return item ? JSON.parse(item) : defaultValue
+    } catch (error) {
+      console.error('Error reading from storage:', error)
+      return defaultValue
+    }
+  })
+
+  // Set value and sync to storage
+  const setValue = useCallback(
+    (newValue: T | ((prev: T) => T)) => {
+      try {
+        setValueInternal((prevValue) => {
+          const valueToStore =
+            typeof newValue === 'function'
+              ? (newValue as (prev: T) => T)(prevValue)
+              : newValue
+
+          // Store in localStorage
+          localStorage.setItem(key, JSON.stringify(valueToStore))
+
+          // Store in window.spark.kv if available
+          if (typeof window !== 'undefined' && window.spark?.kv) {
+            window.spark.kv.set(key, valueToStore)
+          }
+
+          return valueToStore
+        })
+      } catch (error) {
+        console.error('Error writing to storage:', error)
+      }
+    },
+    [key]
+  )
+
+  // Delete value from storage
+  const deleteValue = useCallback(() => {
+    try {
+      localStorage.removeItem(key)
+      if (typeof window !== 'undefined' && window.spark?.kv) {
+        window.spark.kv.delete(key)
+      }
+      setValueInternal(defaultValue)
+    } catch (error) {
+      console.error('Error deleting from storage:', error)
+    }
+  }, [key, defaultValue])
+
+  // Sync with localStorage changes from other tabs
+  useEffect(() => {
+    const handleStorageChange = (e: StorageEvent) => {
+      if (e.key === key && e.newValue !== null) {
+        try {
+          setValueInternal(JSON.parse(e.newValue))
+        } catch (error) {
+          console.error('Error parsing storage event:', error)
+        }
+      }
+    }
+
+    window.addEventListener('storage', handleStorageChange)
+    return () => window.removeEventListener('storage', handleStorageChange)
+  }, [key])
+
+  return [value, setValue, deleteValue]
+}
diff --git a/packages/spark-tools/src/index.ts b/packages/spark-tools/src/index.ts
new file mode 100644
index 0000000..4e3669a
--- /dev/null
+++ b/packages/spark-tools/src/index.ts
@@ -0,0 +1,8 @@
+/**
+ * @github/spark - Main Hooks Entry Point
+ * 
+ * This is the entry point for the hooks exports from the Spark package.
+ */
+
+export { useKV } from './hooks/index'
+export { sparkRuntime } from './lib/spark-runtime'
diff --git a/packages/spark-tools/src/lib/spark-runtime.ts b/packages/spark-tools/src/lib/spark-runtime.ts
new file mode 100644
index 0000000..d507e05
--- /dev/null
+++ b/packages/spark-tools/src/lib/spark-runtime.ts
@@ -0,0 +1,87 @@
+/**
+ * Spark Runtime - Core runtime services for Spark applications
+ * 
+ * This module provides mock implementations of Spark services including:
+ * - KV storage (key-value store)
+ * - LLM service (language model integration)
+ * - User authentication
+ */
+
+// Mock KV Storage
+const kvStorage = new Map<string, any>()
+
+// Create llm function with additional properties
+const llmFunction = async (prompt: string, model?: string, jsonMode?: boolean): Promise<any> => {
+  console.log('Mock LLM called with prompt:', prompt, 'model:', model, 'jsonMode:', jsonMode)
+  return 'This is a mock response from the Spark LLM service.'
+}
+
+llmFunction.chat = async (messages: any[]) => {
+  console.log('Mock LLM chat called with messages:', messages)
+  return {
+    role: 'assistant',
+    content: 'This is a mock response from the Spark LLM service.'
+  }
+}
+
+llmFunction.complete = async (prompt: string) => {
+  console.log('Mock LLM complete called with prompt:', prompt)
+  return 'This is a mock completion from the Spark LLM service.'
+}
+
+export const sparkRuntime = {
+  kv: {
+    get: <T = any>(key: string): T | undefined => {
+      try {
+        const value = kvStorage.get(key)
+        if (value !== undefined) {
+          return value as T
+        }
+        const stored = localStorage.getItem(key)
+        return stored ? JSON.parse(stored) : undefined
+      } catch (error) {
+        console.error('Error getting KV value:', error)
+        return undefined
+      }
+    },
+    set: (key: string, value: any) => {
+      try {
+        kvStorage.set(key, value)
+        localStorage.setItem(key, JSON.stringify(value))
+      } catch (error) {
+        console.error('Error setting KV value:', error)
+      }
+    },
+    delete: (key: string) => {
+      try {
+        kvStorage.delete(key)
+        localStorage.removeItem(key)
+      } catch (error) {
+        console.error('Error deleting KV value:', error)
+      }
+    },
+    clear: () => {
+      try {
+        // Get keys before clearing
+        const keysToRemove = Array.from(kvStorage.keys())
+        kvStorage.clear()
+        // Clear corresponding keys from localStorage
+        keysToRemove.forEach(key => localStorage.removeItem(key))
+      } catch (error) {
+        console.error('Error clearing KV storage:', error)
+      }
+    },
+    keys: () => Array.from(kvStorage.keys())
+  },
+  
+  llm: llmFunction,
+  
+  user: {
+    getCurrentUser: () => ({
+      id: 'mock-user-id',
+      name: 'Mock User',
+      email: 'mock@example.com'
+    }),
+    isAuthenticated: () => true
+  }
+}
diff --git a/packages/spark-tools/src/lib/spark.ts b/packages/spark-tools/src/lib/spark.ts
new file mode 100644
index 0000000..893d801
--- /dev/null
+++ b/packages/spark-tools/src/lib/spark.ts
@@ -0,0 +1,22 @@
+/**
+ * Spark Initialization Module
+ * 
+ * This module initializes the Spark runtime and makes it available globally
+ * via window.spark. It should be imported early in the application lifecycle.
+ */
+
+import { sparkRuntime } from './spark-runtime'
+
+// Declare global window.spark
+declare global {
+  interface Window {
+    spark: typeof sparkRuntime
+  }
+}
+
+// Initialize window.spark
+if (typeof window !== 'undefined') {
+  window.spark = sparkRuntime
+}
+
+export default sparkRuntime
diff --git a/packages/spark-tools/src/spark.ts b/packages/spark-tools/src/spark.ts
new file mode 100644
index 0000000..2370340
--- /dev/null
+++ b/packages/spark-tools/src/spark.ts
@@ -0,0 +1,8 @@
+/**
+ * Spark Module - Main export for spark runtime
+ * 
+ * Re-export spark runtime for '@github/spark/spark' imports
+ */
+
+export { default } from './lib/spark'
+export { sparkRuntime } from './lib/spark-runtime'
diff --git a/packages/spark-tools/src/sparkVitePlugin.ts b/packages/spark-tools/src/sparkVitePlugin.ts
new file mode 100644
index 0000000..7cd910e
--- /dev/null
+++ b/packages/spark-tools/src/sparkVitePlugin.ts
@@ -0,0 +1,21 @@
+/**
+ * Spark Vite Plugin
+ * 
+ * This plugin integrates Spark functionality into the Vite build process.
+ * It handles initialization and configuration of Spark features.
+ */
+
+export default function sparkPlugin() {
+  return {
+    name: 'spark-vite-plugin',
+    
+    configResolved(config: any) {
+      // Plugin configuration
+    },
+    
+    transformIndexHtml(html: string) {
+      // Inject Spark initialization if needed
+      return html
+    }
+  }
+}
diff --git a/packages/spark-tools/src/vitePhosphorIconProxyPlugin.ts b/packages/spark-tools/src/vitePhosphorIconProxyPlugin.ts
new file mode 100644
index 0000000..5a5faab
--- /dev/null
+++ b/packages/spark-tools/src/vitePhosphorIconProxyPlugin.ts
@@ -0,0 +1,24 @@
+/**
+ * Vite Phosphor Icon Proxy Plugin
+ * 
+ * This plugin provides a proxy for Phosphor icon imports to improve
+ * build performance and bundle size.
+ */
+
+export default function createIconImportProxy() {
+  return {
+    name: 'vite-phosphor-icon-proxy',
+    
+    resolveId(id: string) {
+      // Handle icon imports
+      if (id.includes('@phosphor-icons/react')) {
+        return null // Let Vite handle it normally
+      }
+    },
+    
+    transform(code: string, id: string) {
+      // Transform icon imports if needed
+      return null
+    }
+  }
+}
diff --git a/packages/spark-tools/tsconfig.json b/packages/spark-tools/tsconfig.json
new file mode 100644
index 0000000..c45bb94
--- /dev/null
+++ b/packages/spark-tools/tsconfig.json
@@ -0,0 +1,21 @@
+{
+  "compilerOptions": {
+    "target": "ES2020",
+    "module": "ESNext",
+    "lib": ["ES2020", "DOM", "DOM.Iterable"],
+    "declaration": true,
+    "declarationMap": true,
+    "outDir": "./dist",
+    "rootDir": "./src",
+    "strict": true,
+    "esModuleInterop": true,
+    "skipLibCheck": true,
+    "forceConsistentCasingInFileNames": true,
+    "moduleResolution": "bundler",
+    "resolveJsonModule": true,
+    "jsx": "react-jsx",
+    "allowSyntheticDefaultImports": true
+  },
+  "include": ["src/**/*"],
+  "exclude": ["node_modules", "dist"]
+}