diff --git a/data/map.tmj b/data/map.tmj
index 3ad4579..1e39f4c 100644
--- a/data/map.tmj
+++ b/data/map.tmj
@@ -289,8 +289,8 @@
                 {
                  "id":3,
                  "template":"templates\/NPC.tx",
-                 "x":6535.25,
-                 "y":6728.5
+                 "x":6527.97727272727,
+                 "y":6736.13636363636
                 }, 
                 {
                  "id":4,
diff --git a/tools/mapcompile/mapcompile.py b/tools/mapcompile/mapcompile.py
index 6d5a690..44e6ee1 100644
--- a/tools/mapcompile/mapcompile.py
+++ b/tools/mapcompile/mapcompile.py
@@ -9,6 +9,8 @@ CHUNK_WIDTH = 8
 CHUNK_HEIGHT = 8
 CHUNK_TILE_COUNT = CHUNK_WIDTH * CHUNK_HEIGHT
 CHUNK_ENTITY_COUNT_MAX = 8
+TILE_WIDTH = 16
+TILE_HEIGHT = 16
 
 ENTITY_TYPE_MAP = {
   "npc": "ENTITY_TYPE_NPC",
@@ -78,6 +80,10 @@ if objectLayer is None:
   print(f"Error: Input file '{inputFile}' does not contain an object layer.")
   sys.exit(1)
 
+if 'objects' not in objectLayer or not isinstance(objectLayer['objects'], list):
+  print(f"Error: Object layer in '{inputFile}' does not contain 'objects' key or it is not a list.")
+  sys.exit(1)
+
 # Tile Layers
 tileLayers = []
 for layer in layers:
@@ -176,6 +182,28 @@ for layerIndex, layer in enumerate(tileLayers):
 
   layers[layerIndex] = layer
 
+
+# Pre generate entity data
+nextEntityId = 1
+for obIndex, ob in enumerate(objectLayer['objects']):
+  if 'x' not in ob or 'y' not in ob:
+    print(f"Error: Object in object layer does not contain 'x' or 'y' key.")
+    sys.exit(1)
+  
+  ob['x'] -= inputMapLowestX * TILE_WIDTH
+  ob['y'] -= inputMapLowestY * TILE_HEIGHT
+
+  # Objects are bottom aligned in tiled, so we need to adjust the Y coordinate.
+  ob['y'] -= TILE_HEIGHT
+
+  # Round off the coordinates
+  ob['x'] = round(ob['x'])
+  ob['y'] = round(ob['y'])
+  ob['id'] = nextEntityId
+  nextEntityId += 1
+
+  objectLayer['objects'][obIndex] = ob
+
 mapWidthInTiles = inputMapHighestX - inputMapLowestX
 mapHeightInTiles = inputMapHighestY - inputMapLowestY
 mapWidthInRealChunks =  math.ceil(float(mapWidthInTiles) / float(CHUNK_WIDTH))
@@ -201,9 +229,8 @@ for chunkY in range(mapHeightInRealChunks):
     inputTopLeftTileX = math.floor(float(topLeftTileX) / float(inputLayerWidthInTiles)) * inputLayerWidthInTiles
     inputTopLeftTileY = math.floor(float(topLeftTileY) / float(inputLayerHeightInTiles)) * inputLayerHeightInTiles
 
+    # Get the layers for this chunk.
     chunkLayers = []
-
-    # For each layer...
     for layerIndex, layer in enumerate(tileLayers):
       foundChunk = None
       if 'chunks' not in layer or not isinstance(layer['chunks'], list):
@@ -249,6 +276,24 @@ for chunkY in range(mapHeightInRealChunks):
     if len(chunkLayers) > 2:
       print(f"Error: Expected 2 layers for chunk at ({chunkX}, {chunkY}), found {len(chunkLayers)}.")
       sys.exit(1)
+
+    entities = []
+    for ob in objectLayer['objects']:
+      if 'x' not in ob or 'y' not in ob:
+        print(f"Error: Object in object layer does not contain 'x' or 'y' key.")
+        sys.exit(1)
+        
+      # Is this object within the chunk?
+      if ob['x'] < topLeftTileX * TILE_WIDTH:
+        continue
+      if ob['x'] >= (topLeftTileX + CHUNK_WIDTH) * TILE_WIDTH:
+        continue
+      if ob['y'] < topLeftTileY * TILE_HEIGHT:
+        continue
+      if ob['y'] >= (topLeftTileY + CHUNK_HEIGHT) * TILE_HEIGHT:
+        continue
+      
+      entities.append(ob)
     
     # Shorthand functions
     def getInputLocalTileX(absoluteTileX):
@@ -295,40 +340,28 @@ for chunkY in range(mapHeightInRealChunks):
           f.write(f"0x{byte:02x}, ")
         f.write(f"\n")
       f.write("  },\n\n")
+
       f.write(f"  .layerOverlay = {{}},\n")
+
       f.write(f"  .entities = {{\n")
+      for entity in entities:
+        # Entities are center aligned in tiled.
+        localX = entity['x'] - (topLeftTileX * TILE_WIDTH)
+        localY = entity['y'] - (topLeftTileY * TILE_HEIGHT)
+
+        print(f"Entity at ({entity['x']}, {entity['y']}) in chunk ({chunkX}, {chunkY}) is at local position ({localX}, {localY})")
+
+        f.write("    {\n")
+        f.write(f"      .id = {entity['id']},\n")
+        f.write(f"      .type = ENTITY_TYPE_NPC,\n")
+        f.write(f"      .x = {localX},\n")
+        f.write(f"      .y = {localY},\n")
+        f.write(f"      .dir = ENTITY_DIR_SOUTH,\n")
+        f.write("    },\n")
       f.write(f"  }},\n")
+
       f.write("};\n\n")
 
-
-#     f.write(f"  .entities = {{\n")
-#     for entity in entities:
-#       if 'id' in entity:
-#         entityId = entity['id']
-#       else:
-#         entityId = entityIdNext
-#         entityIdNext += 1
-
-#       if 'type' not in entity:
-#         print(f"Error: Entity in chunk ({x}, {y}) does not have 'type' key.")
-#         exit(1)
-
-#       if 'x' not in entity or 'y' not in entity:
-#         print(f"Error: Entity in chunk ({x}, {y}) does not have 'x' or 'y' key.")
-#         exit(1)
-
-#       f.write("    {\n")
-#       f.write(f"      .id = {entityId},\n")
-#       f.write(f"      .type = {ENTITY_TYPE_MAP.get(entity['type'], 'ENTITY_TYPE_UNKNOWN')},\n"),
-#       f.write(f"      .x = {entity['x']},\n")
-#       f.write(f"      .y = {entity['y']},\n")
-#       f.write(f"    }},\n")
-#       pass
-#     f.write("  },\n\n")
-
-#     f.write("};\n\n")
-#   pass
-
 # Output header file.
 headerPath = os.path.join(worldDir, "world.h")
 with open(headerPath, 'w') as f: