diff --git a/src/web/src/components/charts/AreaChart.tsx b/src/web/src/components/charts/AreaChart.tsx
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+/**
+ * Area Chart Component for visualizing time-series data in Mint Replica Lite
+ * Addresses requirements:
+ * - Investment Portfolio Tracking (Technical Specification/1.2 Scope/Core Features)
+ * - Budget Monitoring (Technical Specification/1.2 Scope/Core Features)
+ * - Analytics and Reporting (Technical Specification/1.1 System Overview)
+ */
+
+// Third-party imports
+// @version: react ^18.0.0
+import React, { useRef, useEffect, memo } from 'react';
+// @version: chart.js ^4.0.0
+import { Chart, ChartType } from 'chart.js';
+// @version: lodash ^4.17.21
+import merge from 'lodash/merge';
+
+// Internal imports
+import { formatChartData, generateChartOptions, createChartGradient } from '../../utils/chart.utils';
+import { CHART_COLORS, CHART_DIMENSIONS } from '../../constants/chart.constants';
+import type { ChartProps } from '../../types/components.types';
+
+// Human Tasks:
+// 1. Verify Chart.js and required plugins are installed in package.json
+// 2. Ensure chart theme colors match application theme
+// 3. Test responsive behavior across different screen sizes
+// 4. Validate data formatting matches backend API response structure
+// 5. Configure Chart.js performance optimizations if needed
+
+interface AreaChartProps extends ChartProps {
+  data: Array<{ x: string | number; y: number }>;
+  options: ChartOptions;
+  height?: string | number;
+  fillColor?: string;
+  lineColor?: string;
+}
+
+/**
+ * Custom hook for chart initialization and cleanup
+ */
+const useChartSetup = (
+  canvasRef: React.RefObject<HTMLCanvasElement>,
+  data: AreaChartProps['data'],
+  options: AreaChartProps['options']
+): Chart | null => {
+  const chartInstance = useRef<Chart | null>(null);
+
+  useEffect(() => {
+    if (!canvasRef.current) return;
+
+    const ctx = canvasRef.current.getContext('2d');
+    if (!ctx) return;
+
+    // Format data for Chart.js consumption
+    const formattedData = formatChartData(data, {
+      type: 'area' as ChartType,
+      customColors: [options.fillColor || CHART_COLORS.primary]
+    });
+
+    // Generate chart options with defaults
+    const chartOptions = generateChartOptions('line', 'light', merge({}, options, {
+      plugins: {
+        tooltip: {
+          intersect: false,
+          mode: 'index'
+        }
+      },
+      scales: {
+        x: {
+          grid: {
+            display: true,
+            color: CHART_COLORS.grid
+          }
+        },
+        y: {
+          grid: {
+            display: true,
+            color: CHART_COLORS.grid
+          },
+          beginAtZero: true
+        }
+      }
+    }));
+
+    // Create and store chart instance
+    chartInstance.current = new Chart(ctx, {
+      type: 'line',
+      data: {
+        ...formattedData,
+        datasets: [{
+          ...formattedData.datasets[0],
+          fill: true,
+          backgroundColor: createChartGradient(ctx, [
+            options.fillColor || CHART_COLORS.primary
+          ]),
+          borderColor: options.lineColor || CHART_COLORS.primary,
+          tension: 0.4,
+          pointRadius: 2,
+          pointHoverRadius: 4
+        }]
+      },
+      options: chartOptions
+    });
+
+    // Cleanup function
+    return () => {
+      if (chartInstance.current) {
+        chartInstance.current.destroy();
+        chartInstance.current = null;
+      }
+    };
+  }, [canvasRef, data, options]);
+
+  return chartInstance.current;
+};
+
+/**
+ * Area Chart component for visualizing time-series data
+ */
+const AreaChart: React.FC<AreaChartProps> = memo(({
+  data,
+  options,
+  height = CHART_DIMENSIONS.defaultHeight,
+  fillColor,
+  lineColor,
+  responsive = true
+}) => {
+  const canvasRef = useRef<HTMLCanvasElement>(null);
+  
+  // Initialize chart using custom hook
+  useChartSetup(canvasRef, data, {
+    ...options,
+    fillColor,
+    lineColor
+  });
+
+  return (
+    <div 
+      style={{ 
+        height: typeof height === 'number' ? `${height}px` : height,
+        width: '100%',
+        position: 'relative'
+      }}
+    >
+      <canvas
+        ref={canvasRef}
+        style={{
+          width: '100%',
+          height: '100%'
+        }}
+        data-testid="area-chart"
+      />
+    </div>
+  );
+});
+
+// Display name for debugging
+AreaChart.displayName = 'AreaChart';
+
+export default AreaChart;
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