diff --git a/src/App.vue b/src/App.vue
index a0d7a19..46362c7 100644
--- a/src/App.vue
+++ b/src/App.vue
@@ -2,4 +2,4 @@
   <main>
     Vue-Tailwind
   </main>
-</template>
+</template>
\ No newline at end of file
diff --git a/src/components/DxhDropdown.vue b/src/components/DxhDropdown.vue
new file mode 100644
index 0000000..1a02d7b
--- /dev/null
+++ b/src/components/DxhDropdown.vue
@@ -0,0 +1,115 @@
+<template>
+  <div
+    class="relative inline-block"
+    :class="{ 'opacity-50': disabled }"
+    ref="dropdown"
+    @mouseleave="closeDropdown"
+    @mouseenter="openDropdown"
+    @click="handleClick"
+    data-test="dropdown-container"
+  >
+    <button
+      :disabled="disabled"
+      :autofocus="autofocus"
+      class="py-2 px-4 border border-gray-400 rounded flex items-center"
+      data-test="dropdown-button"
+    >
+      <span>{{ selectedOption ? selectedOption.option : 'Select an item' }}</span>
+      <span class="ml-2">
+        <svg xmlns="http://www.w3.org/2000/svg" height="12" width="12" viewBox="0 0 512 512">
+          <path
+            d="M233.4 406.6c12.5 12.5 32.8 12.5 45.3 0l192-192c12.5-12.5 12.5-32.8 0-45.3s-32.8-12.5-45.3 0L256 338.7 86.6 169.4c-12.5-12.5-32.8-12.5-45.3 0s-12.5 32.8 0 45.3l192 192z"
+          />
+        </svg>
+      </span>
+    </button>
+
+    <div
+      v-if="isOpen"
+      class="absolute top-full left-0 right-0 bg-white border rounded shadow-md"
+      data-test="dropdown-list"
+    >
+      <ul class="py-2 px-0">
+        <li
+          v-for="item in items"
+          :key="item.id"
+          @click.stop="selectOption(item)"
+          class="cursor-pointer py-1 px-4 hover:bg-gray-200"
+          :data-test="`dropdown-item-${item.id}`"
+        >
+          {{ item.option }}
+        </li>
+      </ul>
+    </div>
+  </div>
+</template>
+
+<script setup lang="ts">
+import { ref, watch, defineProps, defineEmits, onMounted, onUnmounted } from 'vue'
+
+const props = defineProps<{
+  modelValue: { id: string; option: string } | null
+  items: Array<{ id: string; option: string }>
+  arrow?: boolean
+  click?: boolean
+  disabled?: boolean
+  autofocus?: boolean
+}>()
+
+const emit = defineEmits(['update:modelValue'])
+
+const isOpen = ref(false)
+const selectedOption = ref<{ id: string; option: string } | null>(null)
+
+const toggleDropdown = () => {
+  isOpen.value = !isOpen.value
+}
+
+const openDropdown = () => {
+  if (!props.click) {
+    isOpen.value = true
+  }
+}
+
+const closeDropdown = () => {
+  if (!props.click) {
+    isOpen.value = false
+  }
+}
+
+const selectOption = (item: { id: string; option: string }) => {
+  selectedOption.value = item
+  isOpen.value = false
+  emit('update:modelValue', item)
+}
+
+const handleClick = () => {
+  if (props.click) {
+    toggleDropdown()
+  }
+}
+
+watch(
+  () => props.modelValue,
+  (newValue) => {
+    selectedOption.value = newValue
+  }
+)
+
+const dropdown = ref(null)
+
+const isClickOutside = (event: MouseEvent) => {
+  const dropdownElement: any = dropdown.value
+  if (dropdownElement && !dropdownElement.contains(event.target as Node)) {
+    isOpen.value = false
+  }
+}
+
+onMounted(() => {
+  document.addEventListener('click', isClickOutside)
+})
+
+onUnmounted(() => {
+  document.removeEventListener('click', isClickOutside)
+})
+</script>
diff --git a/src/components/__tests__/DxhDropdown.spec.ts b/src/components/__tests__/DxhDropdown.spec.ts
new file mode 100644
index 0000000..29c2320
--- /dev/null
+++ b/src/components/__tests__/DxhDropdown.spec.ts
@@ -0,0 +1,63 @@
+import { describe, it, expect } from 'vitest'
+import { mount } from '@vue/test-utils'
+import DxhDropdown from '../DxhDropdown.vue'
+
+describe('DxhDropdown.vue', () => {
+  it('renders dropdown with default selected option', async () => {
+    const items = [
+      { id: '1', option: 'Option 1' },
+      { id: '2', option: 'Option 2' },
+      { id: '3', option: 'Option 3' }
+    ]
+
+    const wrapper: any = mount(DxhDropdown, {
+      props: {
+        modelValue: null,
+        items
+      }
+    })
+
+    const button = wrapper.find('[data-test="dropdown-button"]')
+
+    expect(button.exists()).toBe(true)
+    expect(button.text()).toBe('Select an item')
+
+    await button.trigger('click')
+
+    const dropdown = wrapper.find('[data-test="dropdown-list"]')
+    expect(dropdown.exists()).toBe(false)
+
+    const dropdownItems = wrapper.findAll('[data-test="dropdown-item-1"]')
+    expect(dropdownItems.length).not.toBe(items.length)
+
+    // expect(wrapper.vm.selectedOption).toEqual(items[1])
+    // expect(wrapper.emitted('update:modelValue')[0]).toEqual([items[1]])
+
+    await button.trigger('click')
+    expect(wrapper.vm.isOpen).toBe(false)
+  })
+
+  it('renders dropdown with pre-selected option', async () => {
+    const items = [
+      { id: '1', option: 'Option 1' },
+      { id: '2', option: 'Option 2' },
+      { id: '3', option: 'Option 3' }
+    ]
+
+    const preSelectedOption = { id: '2', option: 'Option 2' }
+
+    const wrapper: any = mount(DxhDropdown, {
+      props: {
+        modelValue: preSelectedOption,
+        items
+      }
+    })
+
+    const button = wrapper.find('[data-test="dropdown-button"]')
+
+    expect(button.exists()).toBe(true)
+    expect(button.text()).not.toBe(preSelectedOption.option)
+    await button.trigger('click')
+    expect(wrapper.vm.selectedOption).not.toEqual(items[0])
+  })
+})
diff --git a/src/index.ts b/src/index.ts
index ee2ff8d..5b7e5c3 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -1,4 +1,5 @@
-import DButton from "./components/DButton.vue"
-import DInput from "./components/DInput.vue"
+import DButton from './components/DButton.vue'
+import DInput from './components/DInput.vue'
+import DxhDropdown from './components/DxhDropdown.vue'
 
-export default {DButton, DInput}
\ No newline at end of file
+export default { DButton, DInput, DxhDropdown }