diff --git a/src/constants/Categories.ts b/src/constants/Categories.ts
index 2ceaea5..df46b61 100644
--- a/src/constants/Categories.ts
+++ b/src/constants/Categories.ts
@@ -90,7 +90,8 @@ export const CATEGORIES = [
       'Threads',
       'Grid Motion',
       'Orb',
-      'Ballpit'
+      'Ballpit',
+      'Grid Distortion'
     ]
   }
 ];
diff --git a/src/constants/Components.ts b/src/constants/Components.ts
index a6dba2d..cc64964 100644
--- a/src/constants/Components.ts
+++ b/src/constants/Components.ts
@@ -77,6 +77,7 @@ const backgrounds = {
   'balatro': () => import('../demo/Backgrounds/BalatroDemo.vue'),
   'orb': () => import('../demo/Backgrounds/OrbDemo.vue'),
   'ballpit': () => import('../demo/Backgrounds/BallpitDemo.vue'),
+  'grid-distortion': () => import('../demo/Backgrounds/GridDistortionDemo.vue'),
 };
 
 export const componentMap = {
diff --git a/src/constants/code/Backgrounds/gridDistortionCode.ts b/src/constants/code/Backgrounds/gridDistortionCode.ts
new file mode 100644
index 0000000..fad46f1
--- /dev/null
+++ b/src/constants/code/Backgrounds/gridDistortionCode.ts
@@ -0,0 +1,24 @@
+import code from '@content/Backgrounds/GridDistortion/GridDistortion.vue?raw';
+import type { CodeObject } from '../../../types/code';
+
+export const gridDistortion: CodeObject = {
+  cli: `npx jsrepo add https://vue-bits.dev/ui/Backgrounds/GridDistortion`,
+  installation: `npm i three`,
+  usage: `<template>
+  <div class="relative w-full h-[600px]">
+    <GridDistortion
+      imageSrc="https://picsum.photos/1920/1080?grayscale"
+      :grid="10"
+      :mouse="0.1"
+      :strength="0.15
+      :relaxation="0.9"
+      className="custom-class"
+    />
+  </div>
+</template>
+
+<script setup lang="ts">
+  import GridDistortion from "./GridDistortion.vue";
+</script>`,
+  code
+};
diff --git a/src/content/Backgrounds/GridDistortion/GridDistortion.vue b/src/content/Backgrounds/GridDistortion/GridDistortion.vue
new file mode 100644
index 0000000..7d01da7
--- /dev/null
+++ b/src/content/Backgrounds/GridDistortion/GridDistortion.vue
@@ -0,0 +1,235 @@
+<script setup lang="ts">
+import * as THREE from 'three';
+import { onMounted, onUnmounted, ref, watch } from 'vue';
+
+interface GridDistortionProps {
+  grid?: number;
+  mouse?: number;
+  strength?: number;
+  relaxation?: number;
+  imageSrc: string;
+  className?: string;
+}
+
+const props = withDefaults(defineProps<GridDistortionProps>(), {
+  grid: 15,
+  mouse: 0.1,
+  strength: 0.15,
+  relaxation: 0.9,
+  className: ''
+});
+
+const vertexShader = `
+uniform float time;
+varying vec2 vUv;
+varying vec3 vPosition;
+
+void main() {
+  vUv = uv;
+  vPosition = position;
+  gl_Position = projectionMatrix * modelViewMatrix * vec4(position, 1.0);
+}
+`;
+
+const fragmentShader = `
+uniform sampler2D uDataTexture;
+uniform sampler2D uTexture;
+uniform vec4 resolution;
+varying vec2 vUv;
+
+void main() {
+  vec2 uv = vUv;
+  vec4 offset = texture2D(uDataTexture, vUv);
+  gl_FragColor = texture2D(uTexture, uv - 0.02 * offset.rg);
+}
+`;
+
+const containerRef = ref<HTMLDivElement | null>(null);
+const imageAspectRef = ref(1);
+const cameraRef = ref<THREE.OrthographicCamera | null>(null);
+const initialDataRef = ref<Float32Array | null>(null);
+
+let cleanupAnimation: () => void = () => {};
+
+const setupAnimation = () => {
+  const container = containerRef.value;
+  if (!container) return;
+
+  const scene = new THREE.Scene();
+  const renderer = new THREE.WebGLRenderer({
+    antialias: true,
+    alpha: true,
+    powerPreference: 'high-performance'
+  });
+  renderer.setPixelRatio(Math.min(window.devicePixelRatio, 2));
+  container.appendChild(renderer.domElement);
+
+  const camera = new THREE.OrthographicCamera(0, 0, 0, 0, -1000, 1000);
+  camera.position.z = 2;
+  cameraRef.value = camera;
+
+  const uniforms = {
+    time: { value: 0 },
+    resolution: { value: new THREE.Vector4() },
+    uTexture: { value: null as THREE.Texture | null },
+    uDataTexture: { value: null as THREE.DataTexture | null }
+  };
+
+  const textureLoader = new THREE.TextureLoader();
+  textureLoader.load(props.imageSrc, texture => {
+    texture.minFilter = THREE.LinearFilter;
+    imageAspectRef.value = texture.image.width / texture.image.height;
+    uniforms.uTexture.value = texture;
+    handleResize();
+  });
+
+  const size = props.grid;
+  const data = new Float32Array(4 * size * size);
+  for (let i = 0; i < size * size; i++) {
+    data[i * 4] = Math.random() * 255 - 125;
+    data[i * 4 + 1] = Math.random() * 255 - 125;
+  }
+  initialDataRef.value = new Float32Array(data);
+
+  const dataTexture = new THREE.DataTexture(data, size, size, THREE.RGBAFormat, THREE.FloatType);
+  dataTexture.needsUpdate = true;
+  uniforms.uDataTexture.value = dataTexture;
+
+  const material = new THREE.ShaderMaterial({
+    side: THREE.DoubleSide,
+    uniforms,
+    vertexShader,
+    fragmentShader
+  });
+  const geometry = new THREE.PlaneGeometry(1, 1, size - 1, size - 1);
+  const plane = new THREE.Mesh(geometry, material);
+  scene.add(plane);
+
+  const handleResize = () => {
+    const width = container.offsetWidth;
+    const height = container.offsetHeight;
+    const containerAspect = width / height;
+    const imageAspect = imageAspectRef.value;
+
+    renderer.setSize(width, height);
+
+    const scale = Math.max(containerAspect / imageAspect, 1);
+    plane.scale.set(imageAspect * scale, scale, 1);
+
+    const frustumHeight = 1;
+    const frustumWidth = frustumHeight * containerAspect;
+    camera.left = -frustumWidth / 2;
+    camera.right = frustumWidth / 2;
+    camera.top = frustumHeight / 2;
+    camera.bottom = -frustumHeight / 2;
+    camera.updateProjectionMatrix();
+
+    uniforms.resolution.value.set(width, height, 1, 1);
+  };
+
+  const mouseState = {
+    x: 0,
+    y: 0,
+    prevX: 0,
+    prevY: 0,
+    vX: 0,
+    vY: 0
+  };
+
+  const handleMouseMove = (e: MouseEvent) => {
+    const rect = container.getBoundingClientRect();
+    const x = (e.clientX - rect.left) / rect.width;
+    const y = 1 - (e.clientY - rect.top) / rect.height;
+    mouseState.vX = x - mouseState.prevX;
+    mouseState.vY = y - mouseState.prevY;
+    Object.assign(mouseState, { x, y, prevX: x, prevY: y });
+  };
+
+  const handleMouseLeave = () => {
+    dataTexture.needsUpdate = true;
+    Object.assign(mouseState, {
+      x: 0,
+      y: 0,
+      prevX: 0,
+      prevY: 0,
+      vX: 0,
+      vY: 0
+    });
+  };
+
+  container.addEventListener('mousemove', handleMouseMove);
+  container.addEventListener('mouseleave', handleMouseLeave);
+  window.addEventListener('resize', handleResize);
+  handleResize();
+
+  const animate = () => {
+    requestAnimationFrame(animate);
+    uniforms.time.value += 0.05;
+
+    const data = dataTexture.image.data as Float32Array;
+    for (let i = 0; i < size * size; i++) {
+      data[i * 4] *= props.relaxation;
+      data[i * 4 + 1] *= props.relaxation;
+    }
+
+    const gridMouseX = size * mouseState.x;
+    const gridMouseY = size * mouseState.y;
+    const maxDist = size * props.mouse;
+
+    for (let i = 0; i < size; i++) {
+      for (let j = 0; j < size; j++) {
+        const distSq = Math.pow(gridMouseX - i, 2) + Math.pow(gridMouseY - j, 2);
+        if (distSq < maxDist * maxDist) {
+          const index = 4 * (i + size * j);
+          const power = Math.min(maxDist / Math.sqrt(distSq), 10);
+          data[index] += props.strength * 100 * mouseState.vX * power;
+          data[index + 1] -= props.strength * 100 * mouseState.vY * power;
+        }
+      }
+    }
+
+    dataTexture.needsUpdate = true;
+    renderer.render(scene, camera);
+  };
+  animate();
+
+  cleanupAnimation = () => {
+    container.removeEventListener('mousemove', handleMouseMove);
+    container.removeEventListener('mouseleave', handleMouseLeave);
+    window.removeEventListener('resize', handleResize);
+    renderer.dispose();
+    geometry.dispose();
+    material.dispose();
+    dataTexture.dispose();
+    if (uniforms.uTexture.value) uniforms.uTexture.value.dispose();
+  };
+};
+
+onMounted(() => {
+  cleanupAnimation();
+  setupAnimation();
+});
+
+onUnmounted(() => {
+  const container = containerRef.value;
+  if (container) {
+    container.innerHTML = '';
+  }
+  cleanupAnimation();
+});
+
+watch(
+  () => props,
+  () => {
+    cleanupAnimation();
+    if (containerRef.value) {
+      setupAnimation();
+    }
+  },
+  { immediate: true }
+);
+</script>
+
+<template>
+  <div ref="containerRef" :class="[props.className, 'w-full h-full overflow-hidden']" />
+</template>
diff --git a/src/demo/Backgrounds/GridDistortionDemo.vue b/src/demo/Backgrounds/GridDistortionDemo.vue
new file mode 100644
index 0000000..ed37231
--- /dev/null
+++ b/src/demo/Backgrounds/GridDistortionDemo.vue
@@ -0,0 +1,145 @@
+<template>
+  <TabbedLayout>
+    <template #preview>
+      <div class="relative p-0 h-[600px] overflow-hidden demo-container" ref="containerRef">
+        <GridDistortion
+          :key="key"
+          imageSrc="https://picsum.photos/1920/1080?grayscale"
+          :grid="grid"
+          :mouse="mouse"
+          :strength="0.15"
+          :relaxation="0.9"
+          className="grid-distortion"
+        />
+        <p class="absolute font-black text-8xl text-center select-none mix-blend-difference">Distortion.</p>
+
+        <button
+          class="right-[2em] bottom-[2em] absolute bg-[#060010] hover:bg-[#111] active:bg-[#111] px-6 rounded-[15px] h-16 text-sm"
+          @click="!isFullScreen ? enterFullScreen() : exitFullScreen()"
+        >
+          {{ !isFullScreen ? 'Go Fullscreen!' : 'Exit Fullscreen' }}
+        </button>
+      </div>
+
+      <Customize>
+        <PreviewSlider
+          title="Grid Size"
+          :min="6"
+          :max="200"
+          :step="1"
+          v-model="grid"
+          @onChange="
+            (val: number) => {
+              grid = val;
+            }
+          "
+        />
+
+        <PreviewSlider
+          title="Mouse Size"
+          :min="0.1"
+          :max="0.5"
+          :step="0.01"
+          v-model="mouse"
+          @onChange="
+            (val: number) => {
+              mouse = val;
+            }
+          "
+        />
+      </Customize>
+
+      <PropTable :data="propData" />
+      <Dependencies :dependency-list="['three']" />
+    </template>
+
+    <template #code>
+      <CodeExample :code-object="gridDistortion" />
+    </template>
+
+    <template #cli>
+      <CliInstallation :command="gridDistortion.cli" />
+    </template>
+  </TabbedLayout>
+</template>
+
+<script setup lang="ts">
+import { useForceRerender } from '@/composables/useForceRerender';
+import { ref, watch } from 'vue';
+import CliInstallation from '../../components/code/CliInstallation.vue';
+import CodeExample from '../../components/code/CodeExample.vue';
+import Dependencies from '../../components/code/Dependencies.vue';
+import Customize from '../../components/common/Customize.vue';
+import PreviewSlider from '../../components/common/PreviewSlider.vue';
+import PropTable from '../../components/common/PropTable.vue';
+import TabbedLayout from '../../components/common/TabbedLayout.vue';
+import { gridDistortion } from '../../constants/code/Backgrounds/gridDistortionCode';
+import GridDistortion from '../../content/Backgrounds/GridDistortion/GridDistortion.vue';
+
+const { rerenderKey: key, forceRerender } = useForceRerender();
+
+const grid = ref(10);
+const mouse = ref(0.25);
+const isFullScreen = ref(false);
+
+const containerRef = ref<HTMLDivElement | null>(null);
+
+watch(
+  () => [grid, mouse, isFullScreen],
+  () => {
+    forceRerender();
+  },
+  { deep: true }
+);
+
+const enterFullScreen = () => {
+  if (containerRef.value) {
+    containerRef.value.requestFullscreen().then(() => (isFullScreen.value = true));
+  }
+};
+
+const exitFullScreen = () => {
+  if (document.fullscreenElement) {
+    document.exitFullscreen().then(() => (isFullScreen.value = false));
+  }
+};
+
+const propData = [
+  {
+    name: 'imgageSrc',
+    type: 'string',
+    default: '',
+    description: 'The image you want to render inside the container.'
+  },
+  {
+    name: 'grid',
+    type: 'number',
+    default: '15',
+    description: 'The number of cells present in the distortion grid'
+  },
+  {
+    name: 'mouse',
+    type: 'number',
+    default: '0.1',
+    description: 'The size of the distortion effect that follows the cursor.'
+  },
+  {
+    name: 'relaxation',
+    type: 'number',
+    default: '0.9',
+    description: 'The speed at which grid cells return to their initial state.'
+  },
+  {
+    name: 'strength',
+    type: 'number',
+    default: '0.15',
+    description: 'The overall strength of the distortion effect.'
+  },
+  {
+    name: 'className',
+    type: 'string',
+    default: '',
+    description: 'Any custom class(es) you want to apply to the container.'
+  }
+];
+</script>