diff --git a/packages/vue/src/composables/useContextFactory/index.test.ts b/packages/vue/src/composables/useContextFactory/index.test.ts
new file mode 100644
index 0000000..0dc5033
--- /dev/null
+++ b/packages/vue/src/composables/useContextFactory/index.test.ts
@@ -0,0 +1,69 @@
+import { describe, it, expect } from 'vitest';
+import { defineComponent } from 'vue';
+import { useContextFactory } from './index';
+import { mount } from '@vue/test-utils';
+import { VueToolsError } from '../../utils';
+
+function testFactory<Data>(
+  data: Data,
+  options?: { contextName?: string, fallback?: Data },
+) {
+  const contextName = options?.contextName ?? 'TestContext';
+
+  const [inject, provide] = useContextFactory(contextName);
+
+  const Child = defineComponent({
+    setup() {
+      const value = inject(options?.fallback);
+      return { value };
+    },
+    template: `{{ value }}`,
+  });
+
+  const Parent = defineComponent({
+    components: { Child },
+    setup() {
+      provide(data);
+    },
+    template: `<Child />`,
+  });
+
+  return {
+    Parent,
+    Child,
+  };
+}
+
+// TODO: maybe replace template with passing mock functions to setup
+
+describe('useContextFactory', () => {
+  it('should provide and inject context correctly', () => {
+    const { Parent } = testFactory('test');
+
+    const component = mount(Parent);
+
+    expect(component.text()).toBe('test');
+  });
+
+  it('should throw an error when context is not provided', () => {
+    const { Child } = testFactory('test');
+
+    expect(() => mount(Child)).toThrow(VueToolsError);
+  });
+
+  it('should inject a fallback value when context is not provided', () => {
+    const { Child } = testFactory('test', { fallback: 'fallback' });
+
+    const component = mount(Child);
+
+    expect(component.text()).toBe('fallback');
+  });
+
+  it('should correctly handle null values', () => {
+    const { Parent } = testFactory(null);
+
+    const component = mount(Parent);
+
+    expect(component.text()).toBe('');
+  });
+});
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diff --git a/packages/vue/src/composables/useContextFactory/index.ts b/packages/vue/src/composables/useContextFactory/index.ts
new file mode 100644
index 0000000..773162e
--- /dev/null
+++ b/packages/vue/src/composables/useContextFactory/index.ts
@@ -0,0 +1,34 @@
+import { inject, provide, type InjectionKey } from 'vue';
+import { VueToolsError } from '../../utils';
+
+/**
+ * @name useContextFactory
+ * @category Utilities
+ * @description A composable that provides a factory for creating context with unique key
+ * 
+ * @param {string} name The name of the context
+ * @returns {readonly [injectContext, provideContext]} The context factory
+ * @throws {VueToolsError} when the context is not provided
+ * 
+ * @example
+ * const [injectContext, provideContext] = useContextFactory('MyContext');
+ */
+export function useContextFactory<ContextValue>(name: string) {  
+    const injectionKey: InjectionKey<ContextValue> = Symbol(name);
+
+    const injectContext = <Fallback extends ContextValue = ContextValue>(fallback?: Fallback) => {
+        const context = inject(injectionKey, fallback);
+
+        if (context !== undefined)
+          return context;
+
+        throw new VueToolsError(`useContextFactory: '${name}' context is not provided`);
+    };
+
+    const provideContext = (context: ContextValue) => {
+        provide(injectionKey, context);
+        return context;
+    };
+
+    return [injectContext, provideContext] as const;
+  }
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