diff --git a/README.md b/README.md
index 81cc82a..a6dfabc 100644
--- a/README.md
+++ b/README.md
@@ -12,8 +12,9 @@ See the [Examples](#examples) section below for more demos.
 
 ## 🌟 Recent Updates
 
+- Nov 21 - You can now edit code in the code editor and preview changes live thanks to [@clean99](https://github.com/clean99)
 - Nov 20 - Paste in a URL to screenshot and clone (requires [ScreenshotOne free API key](https://screenshotone.com?via=screenshot-to-code))
-- Nov 19 - Support for dark/light code editor theme - thanks https://github.com/kachbit
+- Nov 19 - Support for dark/light code editor theme - thanks [@kachbit](https://github.com/kachbit)
 - Nov 16 - Added a setting to disable DALL-E image generation if you don't need that
 - Nov 16 - View code directly within the app
 - Nov 15 - 🔥 You can now instruct the AI to update the code as you wish. It is helpful if the AI messed up some styles or missed a section.
diff --git a/frontend/src/App.tsx b/frontend/src/App.tsx
index 50bb48a..4bb0728 100644
--- a/frontend/src/App.tsx
+++ b/frontend/src/App.tsx
@@ -22,7 +22,7 @@ import { Textarea } from "@/components/ui/textarea";
 import { Tabs, TabsContent, TabsList, TabsTrigger } from "./components/ui/tabs";
 import CodeMirror from "./components/CodeMirror";
 import SettingsDialog from "./components/SettingsDialog";
-import { AppStatus, Settings } from "@/types";
+import { Settings, EditorTheme, AppState } from "./types";
 import { IS_RUNNING_ON_CLOUD } from "./config";
 import { PicoBadge } from "./components/PicoBadge";
 import { OnboardingNote } from "./components/OnboardingNote";
@@ -44,7 +44,8 @@ function App() {
       openAiApiKey: null,
       screenshotOneApiKey: null,
       isImageGenerationEnabled: true,
-      editorTheme: "cobalt",
+      editorTheme: EditorTheme.COBALT,
+      isTermOfServiceAccepted: false,
     },
     "setting"
   );
@@ -150,10 +151,22 @@ function App() {
     toast.success("Copied to clipboard");
   }, [generatedCode]);
 
+  const handleTermDialogOpenChange = (open: boolean) => {
+    setSettings((s) => ({
+      ...s,
+      isTermOfServiceAccepted: !open,
+    }));
+  };
+
   return (
     <div className="mt-2">
       {IS_RUNNING_ON_CLOUD && <PicoBadge />}
-      {IS_RUNNING_ON_CLOUD && <TermsOfServiceDialog />}
+      {IS_RUNNING_ON_CLOUD && (
+        <TermsOfServiceDialog
+          open={!settings.isTermOfServiceAccepted}
+          onOpenChange={handleTermDialogOpenChange}
+        />
+      )}
 
       <div className="hidden lg:fixed lg:inset-y-0 lg:z-50 lg:flex lg:w-96 lg:flex-col">
         <div className="flex grow flex-col gap-y-2 overflow-y-auto border-r border-gray-200 bg-white px-6">
@@ -301,6 +314,7 @@ function App() {
                   <CodeMirror
                     code={generatedCode}
                     editorTheme={settings.editorTheme}
+                    onCodeChange={setGeneratedCode}
                   />
                   <span
                     title="Copy Code"
diff --git a/frontend/src/components/CodeMirror.tsx b/frontend/src/components/CodeMirror.tsx
index 21008bc..1459dac 100644
--- a/frontend/src/components/CodeMirror.tsx
+++ b/frontend/src/components/CodeMirror.tsx
@@ -1,6 +1,6 @@
-import { useRef, useEffect } from "react";
+import { useRef, useEffect, useMemo } from "react";
 import { EditorState } from "@codemirror/state";
-import { EditorView, keymap, lineNumbers } from "@codemirror/view";
+import { EditorView, keymap, lineNumbers, ViewUpdate } from "@codemirror/view";
 import { espresso, cobalt } from "thememirror";
 import {
   defaultKeymap,
@@ -11,39 +11,42 @@ import {
 } from "@codemirror/commands";
 import { bracketMatching } from "@codemirror/language";
 import { html } from "@codemirror/lang-html";
+import { EditorTheme } from "@/types";
 
 interface Props {
   code: string;
-  editorTheme: string;
+  editorTheme: EditorTheme;
+  onCodeChange: (code: string) => void;
 }
 
-function CodeMirror({ code, editorTheme }: Props) {
+function CodeMirror({ code, editorTheme, onCodeChange }: Props) {
   const ref = useRef<HTMLDivElement>(null);
   const view = useRef<EditorView | null>(null);
-
-  useEffect(() => {
-    let selectedTheme = cobalt;
-    if (editorTheme === "espresso") {
-      selectedTheme = espresso;
-    }
-    view.current = new EditorView({
-      state: EditorState.create({
-        doc: code,
-        extensions: [
-          history(),
-          keymap.of([
-            ...defaultKeymap,
-            indentWithTab,
-            { key: "Mod-z", run: undo, preventDefault: true },
-            { key: "Mod-Shift-z", run: redo, preventDefault: true },
-          ]),
-          lineNumbers(),
-          bracketMatching(),
-          html(),
-          selectedTheme,
-          EditorView.lineWrapping,
-        ],
+  const editorState = useMemo(() => EditorState.create({
+    extensions: [
+      history(),
+      keymap.of([
+        ...defaultKeymap,
+        indentWithTab,
+        { key: "Mod-z", run: undo, preventDefault: true },
+        { key: "Mod-Shift-z", run: redo, preventDefault: true },
+      ]),
+      lineNumbers(),
+      bracketMatching(),
+      html(),
+      editorTheme === EditorTheme.ESPRESSO ? espresso : cobalt,
+      EditorView.lineWrapping,
+      EditorView.updateListener.of((update: ViewUpdate) => {
+        if (update.docChanged) {
+          const updatedCode = update.state.doc.toString();
+          onCodeChange(updatedCode);
+        }
       }),
+    ],
+  }), [editorTheme]);
+  useEffect(() => {
+    view.current = new EditorView({
+      state: editorState,
       parent: ref.current as Element,
     });
 
@@ -53,7 +56,7 @@ function CodeMirror({ code, editorTheme }: Props) {
         view.current = null;
       }
     };
-  }, [code, editorTheme]);
+  }, []);
 
   useEffect(() => {
     if (view.current && view.current.state.doc.toString() !== code) {
@@ -69,3 +72,4 @@ function CodeMirror({ code, editorTheme }: Props) {
 }
 
 export default CodeMirror;
+
diff --git a/frontend/src/components/Preview.tsx b/frontend/src/components/Preview.tsx
index 497bfa9..24f33c0 100644
--- a/frontend/src/components/Preview.tsx
+++ b/frontend/src/components/Preview.tsx
@@ -1,3 +1,4 @@
+import { useEffect, useRef } from 'react';
 import classNames from "classnames";
 import useThrottle from "../hooks/useThrottle";
 
@@ -8,13 +9,23 @@ interface Props {
 
 function Preview({ code, device }: Props) {
   const throttledCode = useThrottle(code, 200);
+  const iframeRef = useRef<HTMLIFrameElement | null>(null);
+
+  useEffect(() => {
+    const iframe = iframeRef.current;
+    if (iframe && iframe.contentDocument) {
+      iframe.contentDocument.open();
+      iframe.contentDocument.write(throttledCode);
+      iframe.contentDocument.close();
+    }
+  }, [throttledCode]);
 
   return (
     <div className="flex justify-center mx-2">
       <iframe
         id={`preview-${device}`}
+        ref={iframeRef}
         title="Preview"
-        srcDoc={throttledCode}
         className={classNames(
           "border-[4px] border-black rounded-[20px] shadow-lg",
           "transform scale-[0.9] origin-top",
@@ -27,4 +38,5 @@ function Preview({ code, device }: Props) {
     </div>
   );
 }
-export default Preview;
+
+export default Preview;
\ No newline at end of file
diff --git a/frontend/src/components/SettingsDialog.tsx b/frontend/src/components/SettingsDialog.tsx
index f7004d3..121c17c 100644
--- a/frontend/src/components/SettingsDialog.tsx
+++ b/frontend/src/components/SettingsDialog.tsx
@@ -9,7 +9,7 @@ import {
   DialogTrigger,
 } from "@/components/ui/dialog";
 import { FaCog } from "react-icons/fa";
-import { Settings } from "../types";
+import { EditorTheme, Settings } from "../types";
 import { Switch } from "./ui/switch";
 import { Label } from "./ui/label";
 import { Input } from "./ui/input";
@@ -21,7 +21,7 @@ interface Props {
 }
 
 function SettingsDialog({ settings, setSettings }: Props) {
-  const handleThemeChange = (theme: string) => {
+  const handleThemeChange = (theme: EditorTheme) => {
     setSettings((s) => ({
       ...s,
       editorTheme: theme,
@@ -110,7 +110,7 @@ function SettingsDialog({ settings, setSettings }: Props) {
               id="editor-theme"
               value={settings.editorTheme}
               onChange={(e: React.ChangeEvent<HTMLSelectElement>) =>
-                handleThemeChange(e.target.value)
+                handleThemeChange(e.target.value as EditorTheme)
               }
             >
               <option value="cobalt">Cobalt</option>
diff --git a/frontend/src/components/TermsOfServiceDialog.tsx b/frontend/src/components/TermsOfServiceDialog.tsx
index 12b90ee..2bd3178 100644
--- a/frontend/src/components/TermsOfServiceDialog.tsx
+++ b/frontend/src/components/TermsOfServiceDialog.tsx
@@ -6,13 +6,14 @@ import {
   DialogHeader,
   DialogTitle,
 } from "@/components/ui/dialog";
-import { useState } from "react";
 
-function TermsOfServiceDialog() {
-  const [isOpen, setIsOpen] = useState(true);
+const TermsOfServiceDialog: React.FC<{
+  open: boolean;
+  onOpenChange: (open: boolean) => void;
+}> = ({ open, onOpenChange }) => {
 
   return (
-    <Dialog open={isOpen} onOpenChange={setIsOpen}>
+    <Dialog open={open} onOpenChange={onOpenChange}>
       <DialogContent>
         <DialogHeader>
           <DialogTitle className="mb-4">Terms of Service</DialogTitle>
@@ -45,6 +46,6 @@ function TermsOfServiceDialog() {
       </DialogContent>
     </Dialog>
   );
-}
+};
 
 export default TermsOfServiceDialog;
diff --git a/frontend/src/types.ts b/frontend/src/types.ts
index 83f578e..d2ea696 100644
--- a/frontend/src/types.ts
+++ b/frontend/src/types.ts
@@ -1,8 +1,14 @@
+export enum EditorTheme {
+  ESPRESSO = "espresso",
+  COBALT = "cobalt",
+}
+
 export interface Settings {
   openAiApiKey: string | null;
   screenshotOneApiKey: string | null;
   isImageGenerationEnabled: boolean;
-  editorTheme: string;
+  editorTheme: EditorTheme;
+  isTermOfServiceAccepted: boolean; // Only relevant for hosted version
 }
 
 export enum AppState {