diff --git a/callbacks.py b/callbacks.py
new file mode 100644
index 0000000..f0771a4
--- /dev/null
+++ b/callbacks.py
@@ -0,0 +1,97 @@
+import asyncio
+from cgitb import handler
+from copy import deepcopy
+from logging import Logger
+from typing import TYPE_CHECKING, Any, Literal
+
+import appdaemon.utils as utils
+
+if TYPE_CHECKING:
+    from appdaemon.appdaemon import AppDaemon
+
+
+class Callbacks:
+    """Container for storing callbacks. Modified by :class:`~.events.Events` and :class:`~.state.State`"""
+
+    AD: "AppDaemon"
+    """Reference to the AppDaemon container object
+    """
+    logger: Logger
+    """Standard python logger named ``AppDaemon._callbacks``
+    """
+    diag: Logger
+    """Standard python logger named ``Diag``
+    """
+    callbacks: dict[str, dict[str, dict[str, Any]]]
+    """Nested dictionary to internally track the callbacks.
+
+    Arranged by app_name.handle.properties
+    """
+    callbacks_lock: asyncio.Lock
+
+    def __init__(self, ad: "AppDaemon"):
+        self.AD = ad
+        self.logger = ad.logging.get_child("_callbacks")
+        self.diag = ad.logging.get_diag()
+        self.callbacks = {}
+        self.callbacks_lock = asyncio.Lock()
+    
+    #
+    # Diagnostic
+    #
+
+    async def add_callback(self):
+        return
+    
+    async def cancel_callback(self, handle: str, name: str, silent: bool = False):
+        async with self.callbacks_lock:
+            if (callbacks := self.callbacks.get(name)) \
+            and (callback := callbacks.pop(handle, False)):
+                await self.AD.state.remove_entity("admin", f"{callback['type']}_callback.{handle}")
+                return True
+            elif not silent:
+                self.logger.warning(f"Invalid callback handle '{handle}' in cancel_callback()")
+    
+    async def cancel_all_callbacks(self, name: str, silent: bool = False):
+        async with self.callbacks_lock:
+            if callbacks := self.callbacks.pop(name, False):
+                self.logger.debug("Clearing %s callbacks for %s", len(callbacks), name)
+                for handle, cb_info in callbacks.items():
+                    cb_type: Literal["event", "state", "log"] = cb_info['type']
+                    await self.AD.state.remove_entity("admin", f"{cb_type}_callback.{handle}")
+            elif not silent:
+                self.logger.debug("cancel_all_callbacks() called for %s", name)
+
+    async def get_callback_entries(self, type: str = "all"):
+        async with self.callbacks_lock:
+            return {
+                app_name: {
+                    handle: {
+                        "entity": cb_info.get("entity"),
+                        "event": cb_info.get("event"),
+                        "type": cb_info["type"],
+                        "kwargs": deepcopy(cb_info["kwargs"]),
+                        "function": cb_info["function"].__name__,
+                        "name": cb_info["name"],
+                        "pin_app": cb_info["pin_app"],
+                        "pin_thread": cb_info["pin_thread"] if cb_info["pin_thread"] != -1 else None,
+                    }
+                    for handle, cb_info in app_callbacks.items()
+                    if type == 'all' or type == cb_info["type"]
+                }
+                for app_name, app_callbacks in self.callbacks.items()
+            }
+    
+    async def get_callback_handles(self, app: str = 'all', type: str = 'all', entity_id: str = 'all'):
+        async with self.callbacks_lock:
+            handles = set(
+                handle
+                for app_name, app_callbacks in self.callbacks.items()
+                if app == 'all' or app == app_name
+                for handle, cb_info in app_callbacks.items()
+                if (type == 'all' or type == cb_info["type"])
+                and (entity_id == 'all' or entity_id == cb_info["entity"])
+            )
+            self.logger.debug(f"Got {len(handles)} callbacks for app={app}, type={type}, entity_id={entity_id}")
+            return handles
+
diff --git a/state.py b/state.py
new file mode 100644
index 0000000..eadef00
--- /dev/null
+++ b/state.py
@@ -0,0 +1,58 @@
+
+from logging import Logger
+from typing import Any
+
+from appdaemon import AppDaemon
+
+
+class States:
+    AD: AppDaemon
+    logger: Logger
+
+    async def process_state_callbacks(self, namespace: str, state: dict[str, Any]):
+        data: dict[str, Any] = state["data"]
+        self.logger.debug(data)
+
+        entity_id: str = data["entity_id"]
+        device, entity = entity_id.split(".")
+
+        async def _generate_dispatch_kwargs():
+            state_callback_dict = await self.AD.callbacks.get_callbacks(namespace, type="state")
+            for uuid_, callback in state_callback_dict.items():
+                dispatch_kwargs = {
+                    'name': callback["name"],
+                    'funcref': callback["function"],
+                    'entity': entity_id,
+                    'attribute': callback['kwargs'].get('attribute', 'state'),
+                    'new_state': data["new_state"],
+                    'old_state': data["old_state"],
+                    'cold': callback["kwargs"].get("old"),
+                    'cnew': callback["kwargs"].get("new"),
+                    'kwargs': callback["kwargs"],
+                    'uuid_': uuid_,
+                    'pin_app': callback["pin_app"],
+                    'pin_thread': callback["pin_thread"],
+                }
+                is_oneshot = callback["kwargs"].get("oneshot", False)
+                remove = {'name': callback["name"], 'handle': uuid_}
+
+                if (centity := callback.get('entity')) and "." in centity:
+                    cdevice, centity = centity.split(".")
+                else:
+                    cdevice = None
+
+                if (
+                    (cdevice is None)
+                    or (centity is None and device == cdevice)
+                    or (centity == entity and device == cdevice)
+                ):
+                    yield dispatch_kwargs, is_oneshot, remove
+
+        async def _send_dispatches():
+            async for dispatch_kwargs, is_oneshot, remove in _generate_dispatch_kwargs():
+                executed = await self.AD.threading.check_and_dispatch_state(**dispatch_kwargs)
+                if executed and is_oneshot:
+                    yield remove
+
+        async for remove in _send_dispatches():
+            await self.cancel_state_callback(**remove)