diff --git a/public/config/desktop.xml b/public/config/desktop.xml
new file mode 100644
index 0000000..5ffb96e
--- /dev/null
+++ b/public/config/desktop.xml
@@ -0,0 +1,4 @@
+<?xml version="1.0"?>
+<options>
+	<wallpaper>/media/wallpapers/Wallpaper1.png</wallpaper>
+</options>
\ No newline at end of file
diff --git a/src/App.jsx b/src/App.jsx
index b6ff532..68d515d 100644
--- a/src/App.jsx
+++ b/src/App.jsx
@@ -3,16 +3,20 @@ import { Taskbar } from "./components/task-bar/TaskBar.jsx";
 import { WindowsManagerProvider } from "./hooks/windows/WindowsManagerContext.js";
 import { WindowsView } from "./components/windows/WindowsView.jsx";
 import { VirtualRootProvider } from "./hooks/virtual-drive/VirtualRootContext.js";
-import { SETTINGS } from "./config/settings.js";
+import { Desktop } from "./components/desktop/Desktop.jsx";
+import { SettingsProvider } from "./hooks/settings/SettingsContext.js";
 
 function App() {
 	return (
 		<VirtualRootProvider>
 			<WindowsManagerProvider>
-				<div className={styles.App} style={{ backgroundImage: `url(${SETTINGS.wallpaper})` }}>
-					<Taskbar/>
-					<WindowsView/>
-				</div>
+				<SettingsProvider>
+					<div className={styles.App}>
+						<Taskbar/>
+						<WindowsView/>
+						<Desktop/>
+					</div>
+				</SettingsProvider>
 			</WindowsManagerProvider>
 		</VirtualRootProvider>
 	);
diff --git a/src/App.module.css b/src/App.module.css
index 919d9db..41192a1 100644
--- a/src/App.module.css
+++ b/src/App.module.css
@@ -4,6 +4,5 @@
 	left: 0;
 	width: 100%;
 	height: 100%;
-	background-size: cover;
 	text-align: center;
 }
diff --git a/src/components/applications/file-explorer/FileExplorer.jsx b/src/components/applications/file-explorer/FileExplorer.jsx
index c037695..e526ff5 100644
--- a/src/components/applications/file-explorer/FileExplorer.jsx
+++ b/src/components/applications/file-explorer/FileExplorer.jsx
@@ -37,6 +37,7 @@ export function FileExplorer({ startPath }) {
 	const [currentDirectory, setCurrentDirectory] = useState(virtualRoot.navigate(startPath ?? "~"));
 	const [path, setPath] = useState(currentDirectory.path);
 	const windowsManager = useWindowsManager();
+	const [showHidden] = useState(true);
 
 	const changeDirectory = (path, absolute = false) => {
 		const directory = absolute ? virtualRoot.navigate(path) : currentDirectory.navigate(path);
@@ -107,7 +108,7 @@ export function FileExplorer({ startPath }) {
 					</button>
 				</div>
 				<div className={styles.Main}>
-					{currentDirectory.files.map((file, index) => 
+					{currentDirectory.getFiles(showHidden).map((file, index) => 
 						<button key={index} title={file.id} className={styles["File-button"]} onClick={(event) => {
 							event.preventDefault();
 							windowsManager.openFile(file);
@@ -116,7 +117,7 @@ export function FileExplorer({ startPath }) {
 							<p>{file.id}</p>
 						</button>
 					)}
-					{currentDirectory.subFolders.map(({ name }, index) => 
+					{currentDirectory.getSubFolders(showHidden).map(({ name }, index) => 
 						<button key={index} title={name} className={styles["Folder-button"]} onClick={() => {
 							changeDirectory(name);
 						}}>
diff --git a/src/components/applications/file-explorer/FileExplorer.module.css b/src/components/applications/file-explorer/FileExplorer.module.css
index 9137d45..59c2755 100644
--- a/src/components/applications/file-explorer/FileExplorer.module.css
+++ b/src/components/applications/file-explorer/FileExplorer.module.css
@@ -115,6 +115,7 @@
 	flex: 1;
 	display: flex;
 	flex-wrap: wrap;
+	align-content: flex-start;
 	height: 100%;
 	padding: 0.5rem;
 	overflow: auto;
diff --git a/src/components/applications/text-editor/TextEditor.jsx b/src/components/applications/text-editor/TextEditor.jsx
index 3f5874f..cee0838 100644
--- a/src/components/applications/text-editor/TextEditor.jsx
+++ b/src/components/applications/text-editor/TextEditor.jsx
@@ -65,7 +65,7 @@ export function TextEditor({ file, setTitle, close, mode }) {
 		if (currentFile == null)
 			return saveTextAs();
 
-		currentFile.content = content;
+		currentFile.setContent(content);
 		onChange({ target: { value: content } });
 	};
 
diff --git a/src/components/desktop/Desktop.jsx b/src/components/desktop/Desktop.jsx
new file mode 100644
index 0000000..53d6138
--- /dev/null
+++ b/src/components/desktop/Desktop.jsx
@@ -0,0 +1,21 @@
+import { useState } from "react";
+import { SettingsManager } from "../../features/settings/settings.js";
+import { useSettings } from "../../hooks/settings/SettingsContext.js";
+import styles from "./Desktop.module.css";
+import { useEffect } from "react";
+
+export function Desktop() {
+	const settingsManager = useSettings();
+	const [wallpaper, setWallpaper] = useState(null);
+
+	useEffect(() => {
+		(async () => {
+			const settings = settingsManager.get(SettingsManager.VIRTUAL_PATHS.desktop);
+			settings.get("wallpaper", setWallpaper);
+		})();
+	}, [settingsManager]);
+
+	return (
+		<div className={styles.Container} style={{ backgroundImage: `url(${wallpaper})` }}/>
+	);
+}
\ No newline at end of file
diff --git a/src/components/desktop/Desktop.module.css b/src/components/desktop/Desktop.module.css
new file mode 100644
index 0000000..8b24ba7
--- /dev/null
+++ b/src/components/desktop/Desktop.module.css
@@ -0,0 +1,10 @@
+.Container {
+	position: fixed;
+	top: 0;
+	left: 0;
+	width: 100%;
+	height: 100%;
+	z-index: -1;
+	background-size: cover;
+	background-position: center;
+}
\ No newline at end of file
diff --git a/src/components/windows/WindowsView.jsx b/src/components/windows/WindowsView.jsx
index 377d027..a15b6d6 100644
--- a/src/components/windows/WindowsView.jsx
+++ b/src/components/windows/WindowsView.jsx
@@ -11,9 +11,9 @@ export function WindowsView() {
 	return (<div>
 		{windows.sort((windowA, windowB) =>
 			windowA.lastInteraction - windowB.lastInteraction
-		).map(({ id, app, size, position, options }, index) => 
+		).map(({ id, app, size, position, options }) => 
 			<Window
-				onInteract={() => { windowsManager.focus(windows[index]); }}
+				onInteract={() => { windowsManager.focus(id); }}
 				id={id}
 				key={id}
 				app={app}
diff --git a/src/config/settings.js b/src/config/settings.js
deleted file mode 100644
index 5021245..0000000
--- a/src/config/settings.js
+++ /dev/null
@@ -1,3 +0,0 @@
-export const SETTINGS = {
-	wallpaper: "/media/wallpapers/Wallpaper1.png"
-};
\ No newline at end of file
diff --git a/src/features/applications/applications.js b/src/features/applications/applications.js
index c2ee45f..78d8816 100644
--- a/src/features/applications/applications.js
+++ b/src/features/applications/applications.js
@@ -51,6 +51,7 @@ export default class ApplicationsManager {
 				break;
 			case "txt":
 			case "md":
+			case "xml":
 				app = this.getApplication("text-editor");
 				break;
 		}
diff --git a/src/features/settings/settings.js b/src/features/settings/settings.js
new file mode 100644
index 0000000..2531283
--- /dev/null
+++ b/src/features/settings/settings.js
@@ -0,0 +1,160 @@
+// eslint-disable-next-line no-unused-vars
+import { VirtualFile } from "../virtual-drive/virtual-file.js";
+// eslint-disable-next-line no-unused-vars
+import { VirtualRoot } from "../virtual-drive/virtual-root.js";
+
+export class Settings {
+	xmlDoc = null;
+
+	/**
+	 * @type {VirtualRoot}
+	 */
+	#virtualRoot = null;
+
+	/**
+	 * @param {VirtualRoot} virtualRoot 
+	 * @param {String} path 
+	 */
+	constructor(virtualRoot, path) {
+		this.#virtualRoot = virtualRoot;
+		this.path = path;
+		this.file = this.#virtualRoot.navigate(this.path);
+
+		if (this.file == null) {
+			console.warn(`Unable to read settings from path: ${this.path}\nNo such file or directory.`);
+			return null;
+		} else if (!(this.file instanceof VirtualFile)) {
+			console.warn(`Unable to read settings from path: ${this.path}\nPath does not point to VirtualFile.`);
+			return null;
+		} else if (this.file.extension !== "xml") {
+			console.warn(`Unable to read settings from path: ${this.path}\nFile does not have extension "xml".`);
+			return null;
+		}
+	}
+
+	/**
+	 * Reads the xml doc from the given path and assigns it to itself
+	 * @returns {Promise<Settings>}
+	 */
+	async read() {
+		if (!this.file)
+			return;
+
+		const text = await this.file.read();
+
+		if (!text)
+			return;
+
+		const parser = new DOMParser();
+    	const xmlDoc = parser.parseFromString(text, "text/xml");
+
+		this.xmlDoc = xmlDoc;
+	}
+
+	async write() {
+		if (!this.file)
+			return;
+
+		const serializer = new XMLSerializer();
+		const xmlString = serializer.serializeToString(this.xmlDoc);
+
+		this.file.setContent(xmlString);
+	}
+
+	/**
+	 * Checks if xml doc is missing
+	 * @returns {Promise<Boolean>}
+	 */
+	async isMissingXmlDoc() {
+		if (this.xmlDoc == null)
+			await this.read();
+
+		return (this.xmlDoc == null);
+	}
+
+	/**
+	 * @callback valueCallback
+	 * @param {String} value
+	 */
+
+	/**
+	 * Gets a value by a given key if it exists or calls a callback function whenever the value changes
+	 * @param {String} key 
+	 * @param {valueCallback} callback
+	 * @returns {Promise<String|null>}
+	 */
+	async get(key, callback) {
+		if (await this.isMissingXmlDoc())
+			return null;
+
+		let value = this.xmlDoc.getElementsByTagName(key)?.[0]?.textContent;
+
+		if (callback) {
+			callback(value);
+
+			this.file.on(VirtualFile.EVENT_NAMES.CONTENT_CHANGE, async () => {
+				await this.read();
+				const newValue = await this.get(key);
+
+				if (newValue !== value) {
+					callback(newValue);
+					value = newValue;
+				}
+			});
+		}
+
+		return value;
+	}
+
+	/**
+	 * @param {String} key 
+	 * @param {String} value 
+	 */
+	async set(key, value) {
+		if (await this.isMissingXmlDoc())
+			return;
+
+		if (this.xmlDoc.getElementsByTagName(key)?.[0])
+			this.xmlDoc.getElementsByTagName(key)[0].textContent = value;
+
+		await this.write();
+	}
+}
+
+export class SettingsManager {
+	/**
+	 * @type {Object<String, String>}
+	 */
+	static VIRTUAL_PATHS = {
+		"desktop": "~/.config/desktop.xml"
+	};
+
+	/**
+	 * @type {Object<String, Settings>}
+	 */
+	#pathToSettings = {};
+
+	/**
+	 * @type {VirtualRoot}
+	 */
+	#virtualRoot = null;
+
+	/**
+	 * @param {VirtualRoot} virtualRoot 
+	 */
+	constructor(virtualRoot) {
+		this.#virtualRoot = virtualRoot;
+
+		Object.values(SettingsManager.VIRTUAL_PATHS).forEach((path) => {
+			this.#pathToSettings[path] = new Settings(this.#virtualRoot, path);
+		});
+	}
+
+	/**
+	 * @param {String} path 
+	 * @returns {Settings}
+	 */
+	get(path) {
+		return this.#pathToSettings[path];
+	}
+}
\ No newline at end of file
diff --git a/src/features/utils/events.js b/src/features/utils/events.js
new file mode 100644
index 0000000..708d899
--- /dev/null
+++ b/src/features/utils/events.js
@@ -0,0 +1,49 @@
+export class EventEmitter {
+	/**
+	 * @type {Object<String, String>}
+	 */
+	static EVENT_NAMES = {};
+
+	/**
+	 * @type {Object<String, Array<Function>>}
+	 */
+	#events = {}
+
+	/**
+	 * Add event listener for an event
+	 * @param {EVENT_NAMES} eventName
+	 * @param {Function} callback
+	 */
+	on(eventName, callback) {
+		if (!this.#events[eventName]) {
+			this.#events[eventName] = [];
+		}
+		this.#events[eventName].push(callback);
+	}
+	
+	/**
+	 * Remove event listener for an event
+	 * @param {EVENT_NAMES} eventName
+	 * @param {Function} callback
+	 */
+	off(eventName, callback) {
+		if (this.#events[eventName]) {
+			this.#events[eventName] = this.#events[eventName].filter(
+				(listener) => listener !== callback
+			);
+		}
+	}
+	
+	/**
+	 * Dispatch event
+	 * @param {EVENT_NAMES} eventName
+	 * @param {*} data
+	 */
+	emit(eventName, data) {
+		if (this.#events[eventName]) {
+			this.#events[eventName].forEach((listener) => {
+				listener(data);
+			});
+		}
+	}
+}
\ No newline at end of file
diff --git a/src/features/virtual-drive/virtual-base.js b/src/features/virtual-drive/virtual-base.js
index 5939894..81d63d5 100644
--- a/src/features/virtual-drive/virtual-base.js
+++ b/src/features/virtual-drive/virtual-base.js
@@ -1,11 +1,13 @@
+import { EventEmitter } from "../utils/events.js";
 // eslint-disable-next-line no-unused-vars
 import { VirtualRoot } from "./virtual-root.js";
 
-export class VirtualBase {
+export class VirtualBase extends EventEmitter {
 	/**
 	 * @param {String} name 
 	 */
 	constructor(name) {
+		super();
 		this.name = name;
 	}
 
diff --git a/src/features/virtual-drive/virtual-file.js b/src/features/virtual-drive/virtual-file.js
index ffffc41..6b3d9d9 100644
--- a/src/features/virtual-drive/virtual-file.js
+++ b/src/features/virtual-drive/virtual-file.js
@@ -4,6 +4,14 @@ import { VirtualBase } from "./virtual-base.js";
  * A virtual file that can be stored inside a folder
  */
 export class VirtualFile extends VirtualBase {
+	static NON_TEXT_EXTENSIONS = [
+		"png"
+	];
+
+	static EVENT_NAMES = {
+		CONTENT_CHANGE: "contentchange"
+	};
+
 	/**
 	 * @param {String} name 
 	 * @param {String=} extension 
@@ -29,6 +37,7 @@ export class VirtualFile extends VirtualBase {
 	setSource(source) {
 		this.source = source;
 		this.content = null;
+		this.emit(VirtualFile.EVENT_NAMES.CONTENT_CHANGE, this);
 		return this;
 	}
 
@@ -40,6 +49,7 @@ export class VirtualFile extends VirtualBase {
 	setContent(content) {
 		this.content = content;
 		this.source = null;
+		this.emit(VirtualFile.EVENT_NAMES.CONTENT_CHANGE, this);
 		return this;
 	}
 
@@ -49,4 +59,25 @@ export class VirtualFile extends VirtualBase {
 
 		return `${this.name}.${this.extension}`;
 	}
+
+	/**
+	 * @return {Promise<String|null>}
+	 */
+	async read() {
+		if (this.content != null)
+			return this.content;
+
+		const isText = !VirtualFile.NON_TEXT_EXTENSIONS.includes(this.extension);
+
+		if (!isText) {
+			return this.source;
+		}
+
+		return await fetch(this.source).then((response) =>
+			response.text()
+		).catch((error) => {
+			console.error(`Error while reading file with id "${this.id}":`, error);
+			return null;
+		});
+	}
 }
\ No newline at end of file
diff --git a/src/features/virtual-drive/virtual-folder.js b/src/features/virtual-drive/virtual-folder.js
index 2b2a7b3..187f1f5 100644
--- a/src/features/virtual-drive/virtual-folder.js
+++ b/src/features/virtual-drive/virtual-folder.js
@@ -268,4 +268,28 @@ export class VirtualFolder extends VirtualBase {
 			item.delete();
 		});
 	}
+
+	/**
+	 * @param {Boolean=false} showHidden 
+	 */
+	getSubFolders(showHidden = false) {
+		if (showHidden)
+			return this.subFolders;
+
+		return this.subFolders.filter(({ name }) => 
+			!name.startsWith(".")
+		);
+	}
+
+	/**
+	 * @param {Boolean=false} showHidden 
+	 */
+	getFiles(showHidden = false) {
+		if (showHidden)
+			return this.files;
+
+		return this.files.filter(({ name }) => 
+			!name.startsWith(".")
+		);
+	}
 }
\ No newline at end of file
diff --git a/src/features/windows/windows.js b/src/features/windows/windows.js
index 7a67e5c..5a28fff 100644
--- a/src/features/windows/windows.js
+++ b/src/features/windows/windows.js
@@ -74,8 +74,17 @@ export default class WindowsManager {
 	/**
 	 * @param {Object} window 
 	 */
-	focus(window) {
+	focus(windowId) {
+		windowId = windowId.toString();
+
+		if (!this.windowIds.includes(windowId)) {
+			console.log(`Failed to focus window ${windowId}: window not found`);
+			return;
+		}
+
+		const window = this.windows[windowId];
 		window.lastInteraction = new Date().valueOf();
+		
 		this.updateWindows(this.windows);
 	}
 
diff --git a/src/hooks/settings/SettingsContext.js b/src/hooks/settings/SettingsContext.js
new file mode 100644
index 0000000..f2446b1
--- /dev/null
+++ b/src/hooks/settings/SettingsContext.js
@@ -0,0 +1,27 @@
+import { createContext, useContext } from "react";
+import { SettingsManager } from "../../features/settings/settings.js";
+import { useVirtualRoot } from "../virtual-drive/VirtualRootContext.js";
+
+const SettingsContext = createContext();
+
+/**
+ * Note: needs to be inside a virtual root provider
+ * @returns {React.Provider<SettingsManager>}
+ */
+export function SettingsProvider({ children }) {
+	const virtualRoot = useVirtualRoot();
+	const settingsManager = new SettingsManager(virtualRoot);
+
+	return (
+		<SettingsContext.Provider value={settingsManager}>
+			{children}
+		</SettingsContext.Provider>
+	);
+}
+
+/**
+ * @returns {SettingsManager}
+ */
+export function useSettings() {
+	return useContext(SettingsContext);
+}
\ No newline at end of file
diff --git a/src/hooks/utils/scrollWithShadows.js b/src/hooks/utils/scrollWithShadows.js
index f33ae52..290bda7 100644
--- a/src/hooks/utils/scrollWithShadows.js
+++ b/src/hooks/utils/scrollWithShadows.js
@@ -57,15 +57,12 @@ export function useScrollWithShadow(options) {
 		if (!element)
 			return;
 
-		console.log(element);
-
 		setScrollStart(horizontal ? element.scrollLeft : element.scrollTop);
 		setScrollLength(horizontal ? element.scrollWidth : element.scrollHeight);
 		setClientLength(horizontal ? element.clientWidth : element.clientHeight);
 	}, [horizontal]);
 
 	const onUpdate = (event) => {
-		console.log(event);
 		updateValues(event.target);
 	};
 
@@ -75,7 +72,6 @@ export function useScrollWithShadow(options) {
 		};
 
 		if (ref.current && !initiated) {
-			console.log(ref.current);
 			setInitiated(true);
 			updateValues(ref.current);
 		}
diff --git a/src/hooks/virtual-drive/VirtualRootContext.js b/src/hooks/virtual-drive/VirtualRootContext.js
index 6a907a9..120c0ff 100644
--- a/src/hooks/virtual-drive/VirtualRootContext.js
+++ b/src/hooks/virtual-drive/VirtualRootContext.js
@@ -37,6 +37,11 @@ function initVirtualRoot(virtualRoot) {
 	virtualRoot.createFolder("home", (folder) => {
 		folder.createFolder("prozilla-os", (folder) => {
 			folder.setAlias("~")
+				.createFolder(".config", (folder) => {
+					folder.createFile("desktop", "xml", (file) => {
+						file.setSource("/config/desktop.xml");
+					});
+				})
 				.createFolder("Images", (folder) => {
 					folder.createFile("Wallpaper1", "png", (file) => {
 						file.setSource("/media/wallpapers/Wallpaper1.png")