diff --git a/reactos/base/services/CMakeLists.txt b/reactos/base/services/CMakeLists.txt
index fa0c0171c9c..41557e9ad63 100644
--- a/reactos/base/services/CMakeLists.txt
+++ b/reactos/base/services/CMakeLists.txt
@@ -4,12 +4,12 @@ add_subdirectory(dhcpcsvc)
 add_subdirectory(eventlog)
 add_subdirectory(rpcss)
 add_subdirectory(schedsvc)
+add_subdirectory(shsvcs)
 add_subdirectory(srvsvc)
 add_subdirectory(svchost)
 add_subdirectory(tcpsvcs)
 add_subdirectory(telnetd)
 #add_subdirectory(tftpd)
-add_subdirectory(thmsvc)
 add_subdirectory(umpnpmgr)
 add_subdirectory(wkssvc)
 add_subdirectory(wlansvc)
diff --git a/reactos/base/services/shsvcs/CMakeLists.txt b/reactos/base/services/shsvcs/CMakeLists.txt
new file mode 100644
index 00000000000..1de1b2637e8
--- /dev/null
+++ b/reactos/base/services/shsvcs/CMakeLists.txt
@@ -0,0 +1,15 @@
+
+spec2def(shsvcs.dll shsvcs.spec ADD_IMPORTLIB)
+
+add_library(shsvcs SHARED
+    shsvcs.c
+    thmsvc.c
+    thmserver.c
+    shsvcs.rc
+    ${CMAKE_CURRENT_BINARY_DIR}/shsvcs_stubs.c
+    ${CMAKE_CURRENT_BINARY_DIR}/shsvcs.def)
+
+set_module_type(shsvcs win32dll UNICODE)
+target_link_libraries(shsvcs wine)
+add_importlibs(shsvcs uxtheme advapi32 msvcrt kernel32 ntdll)
+add_cd_file(TARGET shsvcs DESTINATION reactos/system32 FOR all)
diff --git a/reactos/base/services/shsvcs/shsvcs.c b/reactos/base/services/shsvcs/shsvcs.c
new file mode 100644
index 00000000000..74078a5e648
--- /dev/null
+++ b/reactos/base/services/shsvcs/shsvcs.c
@@ -0,0 +1,60 @@
+/*
+ * COPYRIGHT:        See COPYING in the top level directory
+ * PROJECT:          ReactOS Shell
+ * FILE:             base/services/shsvcs/shsvcs.c
+ * PURPOSE:          ReactOS Shell Services
+ * PROGRAMMER:       Giannis Adamopoulos
+ */
+
+/* INCLUDES *****************************************************************/
+
+#include <windows.h>
+#include <wine/debug.h>
+
+WINE_DEFAULT_DEBUG_CHANNEL(shsvcs);
+
+/* FUNCTIONS *****************************************************************/
+
+HRESULT WINAPI DllInstall(BOOL bInstall, LPCWSTR cmdline)
+{
+    return S_OK;
+}
+
+HRESULT WINAPI DllRegisterServer()
+{
+    return S_OK;
+}
+
+HRESULT WINAPI DllUnregisterServer()
+{
+    return S_OK;
+}
+
+HRESULT WINAPI DllCanUnloadNow()
+{
+    return S_OK;
+}
+
+HRESULT WINAPI DllGetClassObject(REFCLSID rclsid, REFIID riid, LPVOID *ppv)
+{
+    TRACE("%s %s %p\n", debugstr_guid(rclsid), debugstr_guid(riid), ppv);
+    return CLASS_E_CLASSNOTAVAILABLE;
+}
+
+BOOL WINAPI
+DllMain(HINSTANCE hinstDLL,
+        DWORD fdwReason,
+        LPVOID lpvReserved)
+{
+    switch (fdwReason)
+    {
+        case DLL_PROCESS_ATTACH:
+            DisableThreadLibraryCalls(hinstDLL);
+            break;
+
+        case DLL_PROCESS_DETACH:
+            break;
+    }
+
+    return TRUE;
+}
diff --git a/reactos/base/services/shsvcs/shsvcs.rc b/reactos/base/services/shsvcs/shsvcs.rc
new file mode 100644
index 00000000000..16bb9e3f285
--- /dev/null
+++ b/reactos/base/services/shsvcs/shsvcs.rc
@@ -0,0 +1,5 @@
+#define REACTOS_VERSION_DLL
+#define REACTOS_STR_FILE_DESCRIPTION  "Shell Services Dll"
+#define REACTOS_STR_INTERNAL_NAME     "shsvcs"
+#define REACTOS_STR_ORIGINAL_FILENAME "shsvcs.dll"
+#include <reactos/version.rc>
diff --git a/reactos/base/services/shsvcs/shsvcs.spec b/reactos/base/services/shsvcs/shsvcs.spec
new file mode 100644
index 00000000000..e3ef5261f80
--- /dev/null
+++ b/reactos/base/services/shsvcs/shsvcs.spec
@@ -0,0 +1,16 @@
+1 stdcall ThemeWatchForStart()
+2 stdcall ThemeWaitForServiceReady(long)
+#3 stub Stub3
+#4 stub Stub4
+#5 stub Stub5
+#6 stub Stub6
+#7 stub BadApplicationServiceMain
+8 stdcall DllInstall(long wstr)
+9 stdcall DllRegisterServer()
+10 stdcall DllUnregisterServer()
+#11 stub HardwareDetectionServiceMain
+12 stdcall ThemeServiceMain(long ptr)
+#13 stub CreateHardwareEventMoniker
+14 stdcall DllCanUnloadNow()
+15 stdcall DllGetClassObject(ptr ptr ptr)
+#16 stub FUSCompatibilityEntryW
diff --git a/reactos/base/services/shsvcs/thmserver.c b/reactos/base/services/shsvcs/thmserver.c
new file mode 100644
index 00000000000..b40f02dccb8
--- /dev/null
+++ b/reactos/base/services/shsvcs/thmserver.c
@@ -0,0 +1,177 @@
+/*
+ * COPYRIGHT:        See COPYING in the top level directory
+ * PROJECT:          ReactOS kernel
+ * FILE:             base/services/thmsvc/thmserver.c
+ * PURPOSE:          Themes server
+ * PROGRAMMER:       Giannis Adamopoulos
+ */
+
+/* 
+ * NOTE: 
+ * ThemeWaitForServiceReady and ThemeWatchForStart are called from msgina  
+ * so all the functions in this file run in the context of winlogon
+ */
+
+/* INCLUDES *****************************************************************/
+
+#include <windows.h>
+#include <uxtheme.h>
+#include <uxundoc.h>
+#include <wine/debug.h>
+
+WINE_DEFAULT_DEBUG_CHANNEL(shsvcs);
+
+/* GLOBALS ******************************************************************/
+
+static WCHAR ServiceName[] = L"Themes";
+
+HANDLE hThemeStartWaitObject, hThemeStopWaitObject, hThemeServiceWaitObject;
+HANDLE hStartEvent, hStopEvent, hServiceProcess;
+
+BOOL WINAPI ThemeWatchForStart();
+
+/* FUNCTIONS *****************************************************************/
+
+static 
+HANDLE
+GetThemeServiceProcessHandle()
+{
+    SC_HANDLE scm, service;
+    SERVICE_STATUS_PROCESS status;
+    DWORD dummy;
+    HANDLE ret;
+
+    if (!(scm = OpenSCManagerW( NULL, NULL, 0 )))
+    {
+        ERR( "failed to open service manager\n" );
+        return NULL;
+    }
+    if (!(service = OpenServiceW( scm, ServiceName, SERVICE_QUERY_STATUS )))
+    {
+        ERR( "failed to open themes service\n" );
+        CloseServiceHandle( scm );
+        return NULL;
+    }
+
+    if (!QueryServiceStatusEx( service, SC_STATUS_PROCESS_INFO,
+                                  (BYTE *)&status, sizeof(status), &dummy ))
+    {
+        ERR("QueryServiceStatusEx failed\n");
+        CloseServiceHandle( service );
+        CloseServiceHandle( scm );
+        return NULL;
+    }
+
+    ret = OpenProcess(SYNCHRONIZE, FALSE, status.dwProcessId);
+
+    CloseServiceHandle( service );
+    CloseServiceHandle( scm );
+
+    return ret;
+}
+
+static
+VOID
+CALLBACK
+ThemeStopCallback(PVOID lpParameter, BOOLEAN TimerOrWaitFired)
+{
+    CloseHandle(hServiceProcess);
+    UnregisterWait(hThemeStopWaitObject);
+    UnregisterWait(hThemeServiceWaitObject);
+
+    ThemeWatchForStart();
+    ThemeHooksRemove();
+}
+
+static
+VOID
+CALLBACK
+ThemeServiceDiedCallback(PVOID lpParameter, BOOLEAN TimerOrWaitFired)
+{
+    /* The theme service died and we don't know if it could set its events properly */
+    ResetEvent(hStartEvent);
+    ResetEvent(hStopEvent);
+
+    ThemeStopCallback(lpParameter, TimerOrWaitFired);
+}
+
+static
+VOID
+CALLBACK
+ThemeStartCallback(PVOID lpParameter, BOOLEAN TimerOrWaitFired)
+{
+    UnregisterWait(hThemeStartWaitObject);
+
+    hServiceProcess = GetThemeServiceProcessHandle();
+
+    RegisterWaitForSingleObject(&hThemeStopWaitObject, hStopEvent, ThemeStopCallback, NULL, INFINITE, WT_EXECUTEDEFAULT);
+    RegisterWaitForSingleObject(&hThemeServiceWaitObject, hServiceProcess, ThemeServiceDiedCallback, NULL, INFINITE, WT_EXECUTEDEFAULT);
+
+    ThemeHooksInstall();
+}
+
+BOOL
+WINAPI
+ThemeWatchForStart()
+{
+    hStartEvent = CreateEventW(NULL, TRUE, FALSE, L"Global\\ThemeStartEvent");
+    hStopEvent = CreateEventW(NULL, TRUE, FALSE, L"Global\\ThemeStopEvent");
+
+    RegisterWaitForSingleObject(&hThemeStartWaitObject, hStartEvent, ThemeStartCallback, NULL, INFINITE, WT_EXECUTEDEFAULT);
+
+    return TRUE;
+}
+
+DWORD
+WINAPI
+ThemeWaitForServiceReady(DWORD dwTimeout)
+{
+    SC_HANDLE scm, service;
+    SERVICE_STATUS_PROCESS status;
+    BOOL ret = FALSE;
+    DWORD start_time = GetTickCount();
+
+    TRACE("\n");
+
+    if (!(scm = OpenSCManagerW( NULL, NULL, 0 )))
+    {
+        ERR( "failed to open service manager\n" );
+        return FALSE;
+    }
+    if (!(service = OpenServiceW( scm, ServiceName, SERVICE_QUERY_STATUS )))
+    {
+        ERR( "failed to open themes service\n" );
+        CloseServiceHandle( scm );
+        return FALSE;
+    }
+
+    while(TRUE)
+    {
+        DWORD dummy;
+
+        if (!QueryServiceStatusEx( service, SC_STATUS_PROCESS_INFO,
+                                  (BYTE *)&status, sizeof(status), &dummy ))
+            break;
+        if (status.dwCurrentState == SERVICE_RUNNING)
+        {
+            ret = TRUE;
+            break;
+        }
+        if (status.dwCurrentState != SERVICE_START_PENDING)
+        {
+            break;
+        }
+
+        if (GetTickCount() - start_time > dwTimeout) 
+        {
+            break;
+        }
+        Sleep( 100 );
+    };
+
+    CloseServiceHandle( service );
+    CloseServiceHandle( scm );
+    return ret;
+}
+
+/* EOF */
diff --git a/reactos/base/services/thmsvc/thmsvc.c b/reactos/base/services/shsvcs/thmsvc.c
similarity index 79%
rename from reactos/base/services/thmsvc/thmsvc.c
rename to reactos/base/services/shsvcs/thmsvc.c
index 66a8ec6c8d2..ff71ee32e86 100644
--- a/reactos/base/services/thmsvc/thmsvc.c
+++ b/reactos/base/services/shsvcs/thmsvc.c
@@ -1,7 +1,7 @@
 /*
  * COPYRIGHT:        See COPYING in the top level directory
  * PROJECT:          ReactOS kernel
- * FILE:             base/services/thmsvc/thmsvc.c
+ * FILE:             base/services/shsvcs/thmsvc.c
  * PURPOSE:          Themes service
  * PROGRAMMER:       Giannis Adamopoulos
  */
@@ -9,22 +9,13 @@
 /* INCLUDES *****************************************************************/
 
 #include <windows.h>
-#include <uxtheme.h>
-#include <uxundoc.h>
 #include <wine/debug.h>
 
-WINE_DEFAULT_DEBUG_CHANNEL(thmsvc);
-
+WINE_DEFAULT_DEBUG_CHANNEL(shsvcs);
 
 /* GLOBALS ******************************************************************/
 
-static VOID CALLBACK ServiceMain(DWORD argc, LPWSTR *argv);
 static WCHAR ServiceName[] = L"Themes";
-static SERVICE_TABLE_ENTRYW ServiceTable[] =
-{
-    {ServiceName, ServiceMain},
-    {NULL, NULL}
-};
 
 SERVICE_STATUS_HANDLE ServiceStatusHandle;
 SERVICE_STATUS ServiceStatus;
@@ -32,6 +23,8 @@ SERVICE_STATUS ServiceStatus;
 
 /* FUNCTIONS *****************************************************************/
 
+HANDLE StartEvent, StopEvent;
+
 static VOID
 UpdateServiceStatus(DWORD dwState)
 {
@@ -74,7 +67,10 @@ ServiceControlHandler(DWORD dwControl,
     {
         case SERVICE_CONTROL_STOP:
             TRACE("  SERVICE_CONTROL_STOP received\n");
-            ThemeHooksRemove();
+
+            /* Signal the theme server in winlogon to remove theme hooks */
+            ResetEvent(StartEvent);
+            SetEvent(StopEvent);
             UpdateServiceStatus(SERVICE_STOPPED);
             return ERROR_SUCCESS;
 
@@ -105,42 +101,30 @@ ServiceControlHandler(DWORD dwControl,
     }
 }
 
-
-static VOID CALLBACK
-ServiceMain(DWORD argc, LPWSTR *argv)
+VOID
+WINAPI
+ThemeServiceMain(DWORD argc, LPTSTR *argv)
 {
     UNREFERENCED_PARAMETER(argc);
     UNREFERENCED_PARAMETER(argv);
 
-    TRACE("ServiceMain() called\n");
-
     ServiceStatusHandle = RegisterServiceCtrlHandlerExW(ServiceName,
                                                         ServiceControlHandler,
                                                         NULL);
+    if (!ServiceStatusHandle)
+    {
+        ERR("RegisterServiceCtrlHandlerExW() failed! (Error %lu)\n", GetLastError());
+        return;
+    }
+
+    StartEvent = CreateEventW(NULL, TRUE, FALSE, L"Global\\ThemeStartEvent");
+    StopEvent = CreateEventW(NULL, TRUE, FALSE, L"Global\\ThemeStopEvent");
 
-    TRACE("Calling SetServiceStatus()\n");
     UpdateServiceStatus(SERVICE_RUNNING);
-    TRACE("SetServiceStatus() called\n");
 
-    ThemeHooksInstall();
-
-    TRACE("ServiceMain() done\n");
-}
-
-
-int
-wmain(int argc, WCHAR *argv[])
-{
-    UNREFERENCED_PARAMETER(argc);
-    UNREFERENCED_PARAMETER(argv);
-
-    TRACE("thmsvc: main() started\n");
-
-    StartServiceCtrlDispatcher(ServiceTable);
-
-    TRACE("thmsvc: main() done\n");
-
-    return 0;
+    /* Signal the theme server in winlogon to install theme hooks */
+    ResetEvent(StopEvent);
+    SetEvent(StartEvent);
 }
 
 /* EOF */
diff --git a/reactos/base/services/thmsvc/CMakeLists.txt b/reactos/base/services/thmsvc/CMakeLists.txt
deleted file mode 100644
index 6b6360405bc..00000000000
--- a/reactos/base/services/thmsvc/CMakeLists.txt
+++ /dev/null
@@ -1,6 +0,0 @@
-
-add_executable(thmsvc thmsvc.c thmsvc.rc)
-target_link_libraries(thmsvc wine)
-set_module_type(thmsvc win32cui UNICODE)
-add_importlibs(thmsvc uxtheme advapi32 msvcrt kernel32 ntdll)
-add_cd_file(TARGET thmsvc DESTINATION reactos/system32 FOR all)
diff --git a/reactos/base/services/thmsvc/thmsvc.rc b/reactos/base/services/thmsvc/thmsvc.rc
deleted file mode 100644
index 49d935115b2..00000000000
--- a/reactos/base/services/thmsvc/thmsvc.rc
+++ /dev/null
@@ -1,4 +0,0 @@
-#define REACTOS_STR_FILE_DESCRIPTION  "Themes-Service"
-#define REACTOS_STR_INTERNAL_NAME     "thmsvc"
-#define REACTOS_STR_ORIGINAL_FILENAME "thmsvc.exe"
-#include <reactos/version.rc>
diff --git a/reactos/boot/bootdata/hivesft.inf b/reactos/boot/bootdata/hivesft.inf
index 85f1a6e65ff..a2f770c0719 100644
--- a/reactos/boot/bootdata/hivesft.inf
+++ b/reactos/boot/bootdata/hivesft.inf
@@ -1651,7 +1651,7 @@ HKLM,"SOFTWARE\Microsoft\Ole","EnableRemoteConnect",0x00000000,"N"
 ; SvcHost services
 HKLM,"SOFTWARE\Microsoft\Windows NT\CurrentVersion\SvcHost",,0x00000012
 HKLM,"SOFTWARE\Microsoft\Windows NT\CurrentVersion\SvcHost","DcomLaunch",0x00010000,"PlugPlay"
-HKLM,"SOFTWARE\Microsoft\Windows NT\CurrentVersion\SvcHost","netsvcs",0x00010000,"DHCP","BITS","lanmanserver","lanmanworkstation","Schedule","winmgmt"
+HKLM,"SOFTWARE\Microsoft\Windows NT\CurrentVersion\SvcHost","netsvcs",0x00010000,"DHCP","BITS","lanmanserver","lanmanworkstation","Schedule","Themes","winmgmt"
 
 ; Win32 config
 HKLM,"SOFTWARE\Microsoft\Windows NT\CurrentVersion\Windows",,0x00000012
diff --git a/reactos/boot/bootdata/hivesys.inf b/reactos/boot/bootdata/hivesys.inf
index 9c198fe5c33..5fd95fbd6df 100644
--- a/reactos/boot/bootdata/hivesys.inf
+++ b/reactos/boot/bootdata/hivesys.inf
@@ -1982,10 +1982,12 @@ HKLM,"SYSTEM\CurrentControlSet\Services\Themes","FailureActions",0x00000003, \
     80,51,01,00,00,00,00,00,00,00,00,00,03,00,00,00,00,00,00,00, \
     01,00,00,00,60,ea,00,00,01,00,00,00,60,ea,00,00,00,00,00,00,00,00,00,00
 HKLM,"SYSTEM\CurrentControlSet\Services\Themes","Group",0x00000000,"UIGroup"
-HKLM,"SYSTEM\CurrentControlSet\Services\Themes","ImagePath",0x00020000,"%SystemRoot%\system32\thmsvc.exe"
+HKLM,"SYSTEM\CurrentControlSet\Services\Themes","ImagePath",0x00020000,"%SystemRoot%\system32\svchost.exe -k netsvcs"
 HKLM,"SYSTEM\CurrentControlSet\Services\Themes","ObjectName",0x00000000,"LocalSystem"
 HKLM,"SYSTEM\CurrentControlSet\Services\Themes","Start",0x00010001,0x00000002
 HKLM,"SYSTEM\CurrentControlSet\Services\Themes","Type",0x00010001,0x00000020
+HKLM,"SYSTEM\CurrentControlSet\Services\Themes\Parameters","ServiceDll",0x00020000,"%SystemRoot%\system32\shsvcs.dll"
+HKLM,"SYSTEM\CurrentControlSet\Services\Themes\Parameters","ServiceMain",0x00000000,"ThemeServiceMain"
 
 ; ReactOS Installer Service
 HKLM,"SYSTEM\CurrentControlSet\Services\MSIServer","DependOnService",0x00010000,"RPCSS"