diff --git a/dialoguekit/dialogue_manager/dialogue_state_tracker.py b/dialoguekit/dialogue_manager/dialogue_state_tracker.py
new file mode 100644
index 00000000..e6063b8d
--- /dev/null
+++ b/dialoguekit/dialogue_manager/dialogue_state_tracker.py
@@ -0,0 +1,52 @@
+"""A module for tracking the state of a dialogue."""
+
+from collections import defaultdict
+from dataclasses import dataclass, field
+from typing import Dict, List
+
+from dialoguekit.core.annotated_utterance import AnnotatedUtterance
+from dialoguekit.core.annotation import Annotation
+from dialoguekit.participant.participant import DialogueParticipant
+
+
+@dataclass
+class DialogueState:
+    """A class to represent the state of a dialogue."""
+
+    history: List[AnnotatedUtterance] = field(default_factory=list)
+    last_user_intent: str = None
+    slots: Dict[str, List[Annotation]] = field(
+        default_factory=lambda: defaultdict(list)
+    )
+    turn_count: int = 0
+
+
+class DialogueStateTracker:
+    def __init__(self) -> None:
+        """Initializes the dialogue state tracker."""
+        self._dialogue_state = DialogueState()
+
+    def get_state(self) -> DialogueState:
+        """Returns the current state of the dialogue.
+
+        Returns:
+            The current state of the dialogue.
+        """
+        return self._dialogue_state
+
+    def update(self, annotated_utterance: AnnotatedUtterance) -> None:
+        """Updates the dialogue state with the annotated utterance.
+
+        Args:
+            annotated_utterance: The annotated utterance.
+        """
+        self._dialogue_state.history.append(annotated_utterance)
+        if annotated_utterance.participant is not DialogueParticipant.USER:
+            return
+
+        self._dialogue_state.last_user_intent = annotated_utterance.intent
+
+        for annotation in annotated_utterance.annotations:
+            self._dialogue_state.slots[annotation.slot].append(annotation)
+
+        self._dialogue_state.turn_count += 1
diff --git a/tests/dialogue_manager/test_dialogue_state_tracker.py b/tests/dialogue_manager/test_dialogue_state_tracker.py
new file mode 100644
index 00000000..3e6f9459
--- /dev/null
+++ b/tests/dialogue_manager/test_dialogue_state_tracker.py
@@ -0,0 +1,114 @@
+"""Tests for the DialogueStateTracker class."""
+
+
+import pytest
+
+from dialoguekit.core.intent import Intent
+from dialoguekit.dialogue_manager.dialogue_state_tracker import (
+    AnnotatedUtterance,
+    Annotation,
+    DialogueParticipant,
+    DialogueStateTracker,
+)
+
+
+@pytest.fixture
+def annotated_utterance() -> AnnotatedUtterance:
+    """Return an annotated utterance."""
+    return AnnotatedUtterance(
+        "Hello",
+        DialogueParticipant.USER,
+        intent=Intent("greeting"),
+        annotations=[Annotation("name", "John")],
+    )
+
+
+def test_initial_state() -> None:
+    """Test that the initial state is correct."""
+    tracker = DialogueStateTracker()
+    state = tracker.get_state()
+    assert state.history == []
+    assert state.last_user_intent is None
+    assert state.slots == {}
+    assert state.turn_count == 0
+
+
+def test_agent_participant(annotated_utterance: AnnotatedUtterance) -> None:
+    """Test that the agent participant is updated when the user utterance
+    contains annotations.
+
+    Args:
+        annotated_utterance: Annotated utterance.
+    """
+    tracker = DialogueStateTracker()
+    agent_utterance = AnnotatedUtterance(
+        "Hi, how can I assist you?",
+        DialogueParticipant.AGENT,
+        intent=Intent("offer_help"),
+        annotations=[],
+    )
+
+    tracker.update(annotated_utterance)
+    assert tracker.get_state().last_user_intent == Intent("greeting")
+    assert tracker.get_state().turn_count == 1
+
+    tracker.update(agent_utterance)
+    assert tracker.get_state().last_user_intent == Intent("greeting")
+    assert tracker.get_state().turn_count == 1
+    assert tracker.get_state().history[-1] == agent_utterance
+
+
+def test_update_history(annotated_utterance: AnnotatedUtterance) -> None:
+    """Test that the history is updated when the user utterance contains
+    annotations.
+
+    Args:
+        annotated_utterance: Annotated utterance.
+    """
+    tracker = DialogueStateTracker()
+    tracker.update(annotated_utterance)
+    assert tracker.get_state().history == [annotated_utterance]
+
+
+def test_update_intent(annotated_utterance: AnnotatedUtterance) -> None:
+    """Test that the last user intent is updated when the user utterance
+    contains annotations.
+
+    Args:
+        annotated_utterance: Annotated utterance.
+    """
+    tracker = DialogueStateTracker()
+    tracker.update(annotated_utterance)
+    assert tracker.get_state().last_user_intent == Intent("greeting")
+
+
+def test_update_slots(annotated_utterance: AnnotatedUtterance) -> None:
+    """Test that the slots are updated when the user utterance contains
+    annotations.
+
+    Args:
+        annotated_utterance: Annotated utterance.
+    """
+    tracker = DialogueStateTracker()
+    tracker.update(annotated_utterance)
+    assert tracker.get_state().slots == {"name": [Annotation("name", "John")]}
+
+
+def test_turn_count(annotated_utterance: AnnotatedUtterance) -> None:
+    """Test that the turn count is incremented when the user and agent have
+    both acted.
+
+    Args:
+        annotated_utterance: Annotated utterance.
+    """
+    tracker = DialogueStateTracker()
+
+    annotated_utterance_2 = AnnotatedUtterance(
+        "How are you?",
+        DialogueParticipant.USER,
+        Intent("ask_health"),
+        annotations=[],
+    )
+    tracker.update(annotated_utterance)
+    tracker.update(annotated_utterance_2)
+    assert tracker.get_state().turn_count == 2