We study the variation of the dielectric response of a dielectric liquid (e.g. water) when a salt is added to the solution. Employing field-theoretical methods we expand the Gibbs free-energy to first order in a loop expansion and calculate self-consistently the dielectric constant. We predict analytically the dielectric decrement which depends on the ionic strength in a complex way. Furthermore, a qualitative description of the hydration shell is found and is characterized by a single length scale. Our prediction fits rather well a large range of concentrations for different salts using only one fit parameter related to the size of ions and dipoles.Electrostatic interactions in aqueous media between dipoles and charged objects such as ions, colloidal particles and interfaces, play an important role in electrochemistry, biology and materials science. The centuryold Poisson-Boltzmann (PB) theory gives a simple and powerful description for numerous systems, taking into account only Coulombic interactions on a mean-field level, treating ions as point-like particles and the aqueous solution as a continuous and homogeneous dielectric medium with a constant dielectric constant, ε w . The PB theory succeeded over the years in capturing much of the underlying physics of electrolyte solutions, and, in particular, is successful when applied to monovalent ions and weak surface charges [1][2][3][4].The PB theory has several limitations. It does not take into account neither the correlations between the charges, nor does it allow for any fluctuations beyond mean field. This leads to significant unaccounted corrections in cases of high charge density, especially near charged surfaces and interfaces [5]. In order to improve upon the PB theory, several extensions have been offered in recent years, and effects of correlations and fluctuations for charged interfaces were considered, for example, by using integral equation theories [6]. In other approaches [7], the PB theory was modified in a simple and elegant way to include steric and other ionic-specific effects preventing ions from accumulating near charged surface for very high ionic concentrations. Furthermore, in the well known Deryagin-Landau-Verwey-Overbeek (DLVO) theory [8], van der Waals attractive interactions were added to the electrostatic repulsion in order to explain charged colloidal stability. More recently, Monte-Carlo (MC) simulations and Molecular Dynamics (MD) were employed in order to study specific solvents and solutes and the interaction between them [9-13].The PB theory as well as others primitive models of ionic solutions [14] assumes that the ions are immersed in a continuum dielectric background characterized by the dielectric constant of water, ε w . Hence, in order to model the experimentally known dielectric decrement phenomenon [7,[15][16][17], one needs to employ more refined theories, which take into account ion-dipole correlations and fluctuations. The electric decrement stems from the fact that the local electric field around each ion is greate...