diff --git a/README.md b/README.md
index b4d79625..460934bb 100644
--- a/README.md
+++ b/README.md
@@ -18,16 +18,16 @@ Neovim 0.8.0+
 
 # Installing
 
-Using `packer`
+## Using `packer`
 
 ```lua
 use { "ellisonleao/gruvbox.nvim" }
 ```
 
-Using `lazy.nvim`
+## Using `lazy.nvim`
 
 ```lua
-{ "ellisonleao/gruvbox.nvim", priority = 1000 }
+{ "ellisonleao/gruvbox.nvim", priority = 1000 , setup = true, opts = ...}
 ```
 
 # Basic Usage
@@ -51,7 +51,6 @@ vim.cmd([[colorscheme gruvbox]])
 Additional settings for gruvbox are:
 
 ```lua
--- setup must be called before loading the colorscheme
 -- Default options:
 require("gruvbox").setup({
   terminal_colors = true, -- add neovim terminal colors
@@ -80,6 +79,8 @@ require("gruvbox").setup({
 vim.cmd("colorscheme gruvbox")
 ```
 
+**VERY IMPORTANT**: Make sure to call setup() **BEFORE** calling the colorscheme command, to use your custom configs
+
 ## Overriding
 
 ### Palette
@@ -95,8 +96,6 @@ require("gruvbox").setup({
 vim.cmd("colorscheme gruvbox")
 ```
 
-More colors in the [palette.lua](lua/gruvbox/palette.lua) file
-
 ### Highlight groups
 
 If you don't enjoy the current color for a specific highlight group, now you can just override it in the setup. For
diff --git a/lua/gruvbox/groups.lua b/lua/gruvbox.lua
similarity index 88%
rename from lua/gruvbox/groups.lua
rename to lua/gruvbox.lua
index 9a2c55ab..68eb8897 100644
--- a/lua/gruvbox/groups.lua
+++ b/lua/gruvbox.lua
@@ -1,11 +1,192 @@
-local M = {}
+---@class Gruvbox
+---@field config GruvboxConfig
+---@field palette GruvboxPalette
+local Gruvbox = {}
 
--- setup Gruvbox groups
----@param config GruvboxConfig
-M.setup = function(config)
-  local colors = require("gruvbox.palette").get_base_colors(config.palette_overrides, vim.o.background, config.contrast)
+---@alias Contrast "hard" | "soft" | ""
 
-  if config.terminal_colors then
+---@class ItalicConfig
+---@field strings boolean
+---@field comments boolean
+---@field operators boolean
+---@field folds boolean
+---@field emphasis boolean
+
+---@class HighlightDefinition
+---@field fg string?
+---@field bg string?
+---@field sp string?
+---@field blend integer?
+---@field bold boolean?
+---@field standout boolean?
+---@field underline boolean?
+---@field undercurl boolean?
+---@field underdouble boolean?
+---@field underdotted boolean?
+---@field strikethrough boolean?
+---@field italic boolean?
+---@field reverse boolean?
+---@field nocombine boolean?
+
+---@class GruvboxConfig
+---@field terminal_colors boolean?
+---@field undercurl boolean?
+---@field underline boolean?
+---@field bold boolean?
+---@field italic ItalicConfig?
+---@field strikethrough boolean?
+---@field contrast Contrast?
+---@field invert_selection boolean?
+---@field invert_signs boolean?
+---@field invert_tabline boolean?
+---@field invert_intend_guides boolean?
+---@field inverse boolean?
+---@field overrides table<string, HighlightDefinition>?
+---@field palette_overrides table<string, string>?
+Gruvbox.config = {
+  terminal_colors = true,
+  undercurl = true,
+  underline = true,
+  bold = true,
+  italic = {
+    strings = true,
+    emphasis = true,
+    comments = true,
+    operators = false,
+    folds = true,
+  },
+  strikethrough = true,
+  invert_selection = false,
+  invert_signs = false,
+  invert_tabline = false,
+  invert_intend_guides = false,
+  inverse = true,
+  contrast = "",
+  palette_overrides = {},
+  overrides = {},
+  dim_inactive = false,
+  transparent_mode = false,
+}
+
+-- main gruvbox color palette
+---@class GruvboxPalette
+Gruvbox.palette = {
+  dark0_hard = "#1d2021",
+  dark0 = "#282828",
+  dark0_soft = "#32302f",
+  dark1 = "#3c3836",
+  dark2 = "#504945",
+  dark3 = "#665c54",
+  dark4 = "#7c6f64",
+  light0_hard = "#f9f5d7",
+  light0 = "#fbf1c7",
+  light0_soft = "#f2e5bc",
+  light1 = "#ebdbb2",
+  light2 = "#d5c4a1",
+  light3 = "#bdae93",
+  light4 = "#a89984",
+  bright_red = "#fb4934",
+  bright_green = "#b8bb26",
+  bright_yellow = "#fabd2f",
+  bright_blue = "#83a598",
+  bright_purple = "#d3869b",
+  bright_aqua = "#8ec07c",
+  bright_orange = "#fe8019",
+  neutral_red = "#cc241d",
+  neutral_green = "#98971a",
+  neutral_yellow = "#d79921",
+  neutral_blue = "#458588",
+  neutral_purple = "#b16286",
+  neutral_aqua = "#689d6a",
+  neutral_orange = "#d65d0e",
+  faded_red = "#9d0006",
+  faded_green = "#79740e",
+  faded_yellow = "#b57614",
+  faded_blue = "#076678",
+  faded_purple = "#8f3f71",
+  faded_aqua = "#427b58",
+  faded_orange = "#af3a03",
+  gray = "#928374",
+}
+
+-- get a hex list of gruvbox colors based on current bg and constrast config
+local function get_colors()
+  local p = Gruvbox.palette
+
+  for color, hex in pairs(Gruvbox.config.palette_overrides) do
+    p[color] = hex
+  end
+
+  local bg = vim.o.background
+  local contrast = Gruvbox.config.contrast
+
+  local color_groups = {
+    dark = {
+      bg0 = p.dark0,
+      bg1 = p.dark1,
+      bg2 = p.dark2,
+      bg3 = p.dark3,
+      bg4 = p.dark4,
+      fg0 = p.light0,
+      fg1 = p.light1,
+      fg2 = p.light2,
+      fg3 = p.light3,
+      fg4 = p.light4,
+      red = p.bright_red,
+      green = p.bright_green,
+      yellow = p.bright_yellow,
+      blue = p.bright_blue,
+      purple = p.bright_purple,
+      aqua = p.bright_aqua,
+      orange = p.bright_orange,
+      neutral_red = p.neutral_red,
+      neutral_green = p.neutral_green,
+      neutral_yellow = p.neutral_yellow,
+      neutral_blue = p.neutral_blue,
+      neutral_purple = p.neutral_purple,
+      neutral_aqua = p.neutral_aqua,
+      gray = p.gray,
+    },
+    light = {
+      bg0 = p.light0,
+      bg1 = p.light1,
+      bg2 = p.light2,
+      bg3 = p.light3,
+      bg4 = p.light4,
+      fg0 = p.dark0,
+      fg1 = p.dark1,
+      fg2 = p.dark2,
+      fg3 = p.dark3,
+      fg4 = p.dark4,
+      red = p.faded_red,
+      green = p.faded_green,
+      yellow = p.faded_yellow,
+      blue = p.faded_blue,
+      purple = p.faded_purple,
+      aqua = p.faded_aqua,
+      orange = p.faded_orange,
+      neutral_red = p.neutral_red,
+      neutral_green = p.neutral_green,
+      neutral_yellow = p.neutral_yellow,
+      neutral_blue = p.neutral_blue,
+      neutral_purple = p.neutral_purple,
+      neutral_aqua = p.neutral_aqua,
+      gray = p.gray,
+    },
+  }
+
+  if contrast ~= nil and contrast ~= "" then
+    color_groups[bg].bg0 = p[bg .. string.format("0_%s", contrast)]
+  end
+
+  return color_groups[bg]
+end
+
+local function get_groups()
+  local colors = get_colors()
+  local config = Gruvbox.config
+
+  if Gruvbox.config.terminal_colors then
     local term_colors = {
       colors.bg0,
       colors.neutral_red,
@@ -835,4 +1016,31 @@ M.setup = function(config)
   return groups
 end
 
-return M
+---@param config GruvboxConfig?
+Gruvbox.setup = function(config)
+  Gruvbox.config = vim.tbl_deep_extend("force", Gruvbox.config, config or {})
+end
+
+--- main load function
+Gruvbox.load = function()
+  if vim.version().minor < 8 then
+    vim.notify_once("gruvbox.nvim: you must use neovim 0.8 or higher")
+    return
+  end
+
+  -- reset colors
+  if vim.g.colors_name then
+    vim.cmd.hi("clear")
+  end
+  vim.g.colors_name = "gruvbox"
+  vim.o.termguicolors = true
+
+  local groups = get_groups()
+
+  -- add highlights
+  for group, settings in pairs(groups) do
+    vim.api.nvim_set_hl(0, group, settings)
+  end
+end
+
+return Gruvbox
diff --git a/lua/gruvbox/init.lua b/lua/gruvbox/init.lua
deleted file mode 100644
index e3aef5e9..00000000
--- a/lua/gruvbox/init.lua
+++ /dev/null
@@ -1,97 +0,0 @@
----@class Gruvbox
----@field config GruvboxConfig
-local Gruvbox = {}
-
----@alias Contrast "hard" | "soft" | ""
-
----@class ItalicConfig
----@field strings boolean
----@field comments boolean
----@field operators boolean
----@field folds boolean
----@field emphasis boolean
-
----@class HighlightDefinition
----@field fg string?
----@field bg string?
----@field sp string?
----@field blend integer?
----@field bold boolean?
----@field standout boolean?
----@field underline boolean?
----@field undercurl boolean?
----@field underdouble boolean?
----@field underdotted boolean?
----@field strikethrough boolean?
----@field italic boolean?
----@field reverse boolean?
----@field nocombine boolean?
-
----@class GruvboxConfig
----@field terminal_colors boolean?
----@field undercurl boolean?
----@field underline boolean?
----@field bold boolean?
----@field italic ItalicConfig?
----@field strikethrough boolean?
----@field contrast Contrast?
----@field invert_selection boolean?
----@field invert_signs boolean?
----@field invert_tabline boolean?
----@field invert_intend_guides boolean?
----@field inverse boolean?
----@field overrides table<string, HighlightDefinition>?
----@field palette_overrides table<string, string>?
-Gruvbox.config = {
-  terminal_colors = true,
-  undercurl = true,
-  underline = true,
-  bold = true,
-  italic = {
-    strings = true,
-    emphasis = true,
-    comments = true,
-    operators = false,
-    folds = true,
-  },
-  strikethrough = true,
-  invert_selection = false,
-  invert_signs = false,
-  invert_tabline = false,
-  invert_intend_guides = false,
-  inverse = true,
-  contrast = "",
-  palette_overrides = {},
-  overrides = {},
-  dim_inactive = false,
-  transparent_mode = false,
-}
-
----@param config GruvboxConfig?
-function Gruvbox.setup(config)
-  Gruvbox.config = vim.tbl_deep_extend("force", Gruvbox.config, config or {})
-end
-
---- main load function
-Gruvbox.load = function()
-  if vim.version().minor < 8 then
-    vim.notify_once("gruvbox.nvim: you must use neovim 0.8 or higher")
-    return
-  end
-
-  -- reset colors
-  if vim.g.colors_name then
-    vim.cmd.hi("clear")
-  end
-  vim.g.colors_name = "gruvbox"
-  vim.o.termguicolors = true
-
-  local groups = require("gruvbox.groups").setup(Gruvbox.config)
-
-  -- add highlights
-  for group, settings in pairs(groups) do
-    vim.api.nvim_set_hl(0, group, settings)
-  end
-end
-
-return Gruvbox
diff --git a/lua/gruvbox/palette.lua b/lua/gruvbox/palette.lua
deleted file mode 100644
index 8270c0f7..00000000
--- a/lua/gruvbox/palette.lua
+++ /dev/null
@@ -1,121 +0,0 @@
-local M = {}
-
--- main gruvbox colors
----@class GruvboxColors
-local colors = {
-  dark0_hard = "#1d2021",
-  dark0 = "#282828",
-  dark0_soft = "#32302f",
-  dark1 = "#3c3836",
-  dark2 = "#504945",
-  dark3 = "#665c54",
-  dark4 = "#7c6f64",
-  light0_hard = "#f9f5d7",
-  light0 = "#fbf1c7",
-  light0_soft = "#f2e5bc",
-  light1 = "#ebdbb2",
-  light2 = "#d5c4a1",
-  light3 = "#bdae93",
-  light4 = "#a89984",
-  bright_red = "#fb4934",
-  bright_green = "#b8bb26",
-  bright_yellow = "#fabd2f",
-  bright_blue = "#83a598",
-  bright_purple = "#d3869b",
-  bright_aqua = "#8ec07c",
-  bright_orange = "#fe8019",
-  neutral_red = "#cc241d",
-  neutral_green = "#98971a",
-  neutral_yellow = "#d79921",
-  neutral_blue = "#458588",
-  neutral_purple = "#b16286",
-  neutral_aqua = "#689d6a",
-  neutral_orange = "#d65d0e",
-  faded_red = "#9d0006",
-  faded_green = "#79740e",
-  faded_yellow = "#b57614",
-  faded_blue = "#076678",
-  faded_purple = "#8f3f71",
-  faded_aqua = "#427b58",
-  faded_orange = "#af3a03",
-  gray = "#928374",
-}
-
--- get a hex list of gruvbox colors based on config, bg and contrast
----@param color_overrides GruvboxColors
----@param bg? string
----@param contrast Contrast
-M.get_base_colors = function(color_overrides, bg, contrast)
-  local p = colors
-
-  for color, hex in pairs(color_overrides) do
-    p[color] = hex
-  end
-
-  if bg == nil then
-    bg = vim.o.background
-  end
-
-  local color_groups = {
-    dark = {
-      bg0 = p.dark0,
-      bg1 = p.dark1,
-      bg2 = p.dark2,
-      bg3 = p.dark3,
-      bg4 = p.dark4,
-      fg0 = p.light0,
-      fg1 = p.light1,
-      fg2 = p.light2,
-      fg3 = p.light3,
-      fg4 = p.light4,
-      red = p.bright_red,
-      green = p.bright_green,
-      yellow = p.bright_yellow,
-      blue = p.bright_blue,
-      purple = p.bright_purple,
-      aqua = p.bright_aqua,
-      orange = p.bright_orange,
-      neutral_red = p.neutral_red,
-      neutral_green = p.neutral_green,
-      neutral_yellow = p.neutral_yellow,
-      neutral_blue = p.neutral_blue,
-      neutral_purple = p.neutral_purple,
-      neutral_aqua = p.neutral_aqua,
-      gray = p.gray,
-    },
-    light = {
-      bg0 = p.light0,
-      bg1 = p.light1,
-      bg2 = p.light2,
-      bg3 = p.light3,
-      bg4 = p.light4,
-      fg0 = p.dark0,
-      fg1 = p.dark1,
-      fg2 = p.dark2,
-      fg3 = p.dark3,
-      fg4 = p.dark4,
-      red = p.faded_red,
-      green = p.faded_green,
-      yellow = p.faded_yellow,
-      blue = p.faded_blue,
-      purple = p.faded_purple,
-      aqua = p.faded_aqua,
-      orange = p.faded_orange,
-      neutral_red = p.neutral_red,
-      neutral_green = p.neutral_green,
-      neutral_yellow = p.neutral_yellow,
-      neutral_blue = p.neutral_blue,
-      neutral_purple = p.neutral_purple,
-      neutral_aqua = p.neutral_aqua,
-      gray = p.gray,
-    },
-  }
-
-  if contrast ~= nil and contrast ~= "" then
-    color_groups[bg].bg0 = p[bg .. string.format("0_%s", contrast)]
-  end
-
-  return color_groups[bg]
-end
-
-return M
diff --git a/tests/gruvbox/gruvbox_spec.lua b/tests/gruvbox/gruvbox_spec.lua
index 387a034f..e4db89f9 100644
--- a/tests/gruvbox/gruvbox_spec.lua
+++ b/tests/gruvbox/gruvbox_spec.lua
@@ -137,10 +137,8 @@ describe("tests", function()
 
   it("does not set terminal colors when terminal_colors is false", function()
     clear_term_colors()
-    print("vim.g color before =>", vim.g.terminal_color_0, type(vim.g.terminal_color_0))
     gruvbox.setup({ terminal_colors = false })
     gruvbox.load()
-    print("vim.g color after =>", vim.g.terminal_color_0, type(vim.g.terminal_color_0))
     assert.is_nil(vim.g.terminal_color_0)
   end)
 
@@ -148,7 +146,16 @@ describe("tests", function()
     clear_term_colors()
     gruvbox.setup({ terminal_colors = true })
     gruvbox.load()
-    local colors = require("gruvbox.palette").get_base_colors({}, "dark", "")
-    assert.are.same(vim.g.terminal_color_0, colors.bg0)
+
+    -- dark bg
+    local colors = require("gruvbox").palette
+    vim.opt.background = "dark"
+    assert.are.same(vim.g.terminal_color_0, colors.dark0)
+
+    -- light bg
+    clear_term_colors()
+    gruvbox.load()
+    vim.opt.background = "light"
+    assert.are.same(vim.g.terminal_color_0, colors.light0)
   end)
 end)