diff --git a/assets/CMakeLists.txt b/assets/CMakeLists.txt
index 6ef5f59..b7a735e 100644
--- a/assets/CMakeLists.txt
+++ b/assets/CMakeLists.txt
@@ -12,5 +12,6 @@ add_subdirectory(palette)
 add_subdirectory(locale)
 
 add_subdirectory(entity)
+add_subdirectory(script)
 add_subdirectory(map)
 add_subdirectory(ui)
\ No newline at end of file
diff --git a/assets/script/CMakeLists.txt b/assets/script/CMakeLists.txt
new file mode 100644
index 0000000..d273641
--- /dev/null
+++ b/assets/script/CMakeLists.txt
@@ -0,0 +1,6 @@
+# Copyright (c) 2025 Dominic Masters
+# 
+# This software is released under the MIT License.
+# https://opensource.org/licenses/MIT
+
+add_asset(SCRIPT test.lua)
\ No newline at end of file
diff --git a/assets/script/test.lua b/assets/script/test.lua
new file mode 100644
index 0000000..32aca49
--- /dev/null
+++ b/assets/script/test.lua
@@ -0,0 +1 @@
+print("Test Lua script")
\ No newline at end of file
diff --git a/cmake/modules/Findlua.cmake b/cmake/modules/Findlua.cmake
new file mode 100644
index 0000000..a31ceb0
--- /dev/null
+++ b/cmake/modules/Findlua.cmake
@@ -0,0 +1,59 @@
+# Copyright (c) 2025 Dominic Masters
+# 
+# This software is released under the MIT License.
+# https://opensource.org/licenses/MIT
+
+if(NOT TARGET lua)
+  message(STATUS "Looking for Lua...")
+
+  set(LUA_FOUND FALSE CACHE INTERNAL "Lua found")
+  set(LUA_DOWNLOAD_DIR "${CMAKE_BINARY_DIR}/_lua")
+  set(LUA_SEARCH_ROOTS
+    "${LUA_ROOT}"
+    "$ENV{LUADEV}"
+    "$ENV{HOME}/luadev"
+    "/usr/local/luadev"
+    "/opt/luadev"
+    "/usr/luadev"
+    "${LUA_DOWNLOAD_DIR}/luadev"
+  )
+
+  foreach(root IN LISTS LUA_SEARCH_ROOTS)
+    list(APPEND LUA_BIN_HINTS "${root}/bin")
+    list(APPEND LUA_INCLUDE_HINTS "${root}/include")
+    list(APPEND LUA_LIB_HINTS "${root}/lib")
+  endforeach()
+
+  # Find Lua interpreter
+  find_program(LUA_EXECUTABLE NAMES lua HINTS ${LUA_BIN_HINTS})
+
+  # Find Lua headers and library
+  find_path(LUA_INCLUDE_DIR lua.h HINTS ${LUA_INCLUDE_HINTS})
+  find_library(LUA_LIBRARY NAMES lua HINTS ${LUA_LIB_HINTS})
+
+  # If not found, use FetchContent to download and build Lua
+  if(NOT LUA_EXECUTABLE OR NOT LUA_INCLUDE_DIR OR NOT LUA_LIBRARY)
+    message(STATUS "Lua not found in system paths. Using FetchContent to download and build Lua.")
+    include(FetchContent)
+    FetchContent_Declare(
+      lua
+      GIT_REPOSITORY https://github.com/lua/lua.git
+      GIT_TAG v5.4.6 # Change to desired version
+    )
+    FetchContent_MakeAvailable(lua)
+    # Try to locate built Lua
+    set(LUA_INCLUDE_DIR "${lua_SOURCE_DIR}")
+    set(LUA_LIBRARY "${lua_BINARY_DIR}/liblua.a")
+    set(LUA_EXECUTABLE "${lua_BINARY_DIR}/lua")
+  endif()
+
+  if(LUA_EXECUTABLE AND LUA_INCLUDE_DIR AND LUA_LIBRARY)
+    set(LUA_FOUND TRUE CACHE INTERNAL "Lua found")
+    add_library(lua INTERFACE IMPORTED)
+    set_target_properties(lua PROPERTIES
+      INTERFACE_INCLUDE_DIRECTORIES "${LUA_INCLUDE_DIR}"
+      INTERFACE_LINK_LIBRARIES "${LUA_LIBRARY}"
+    )
+    message(STATUS "Lua found: ${LUA_EXECUTABLE}")
+  endif()
+endif()
diff --git a/src/CMakeLists.txt b/src/CMakeLists.txt
index 4ed2b94..98bf274 100644
--- a/src/CMakeLists.txt
+++ b/src/CMakeLists.txt
@@ -5,6 +5,7 @@
 
 find_package(cglm REQUIRED)
 find_package(libzip REQUIRED)
+find_package(lua REQUIRED)
 
 # Libs
 target_link_libraries(${DUSK_TARGET_NAME}
@@ -12,6 +13,7 @@ target_link_libraries(${DUSK_TARGET_NAME}
     m
     cglm
     zip
+    lua
     pthread
 )
 
@@ -41,6 +43,7 @@ add_subdirectory(input)
 add_subdirectory(locale)
 add_subdirectory(rpg)
 add_subdirectory(scene)
+add_subdirectory(script)
 add_subdirectory(thread)
 add_subdirectory(time)
 add_subdirectory(ui)
diff --git a/src/asset/assettype.h b/src/asset/assettype.h
index d232514..de12191 100644
--- a/src/asset/assettype.h
+++ b/src/asset/assettype.h
@@ -11,6 +11,7 @@
 #include "type/assetlanguage.h"
 #include "type/assetmap.h"
 #include "type/assetchunk.h"
+#include "type/assetscript.h"
 #include <zip.h>
 
 typedef enum {
@@ -21,6 +22,7 @@ typedef enum {
   ASSET_TYPE_LANGUAGE,
   ASSET_TYPE_MAP,
   ASSET_TYPE_CHUNK,
+  ASSET_TYPE_SCRIPT,
 
   ASSET_TYPE_COUNT,
 } assettype_t;
@@ -81,5 +83,11 @@ static const assettypedef_t ASSET_TYPE_DEFINITIONS[ASSET_TYPE_COUNT] = {
     .header = "DCF",
     .loadStrategy = ASSET_LOAD_STRAT_CUSTOM,
     .custom = assetChunkLoad
-  }
+  },
+
+  [ASSET_TYPE_SCRIPT] = {
+    .header = "DSF",
+    .loadStrategy = ASSET_LOAD_STRAT_CUSTOM,
+    .custom = assetScriptHandler
+  } 
 };
\ No newline at end of file
diff --git a/src/asset/type/CMakeLists.txt b/src/asset/type/CMakeLists.txt
index 1011933..1acad3d 100644
--- a/src/asset/type/CMakeLists.txt
+++ b/src/asset/type/CMakeLists.txt
@@ -11,4 +11,5 @@ target_sources(${DUSK_TARGET_NAME}
     assetlanguage.c
     assetmap.c
     assetchunk.c
+    assetscript.c
 )
\ No newline at end of file
diff --git a/src/asset/type/assetscript.c b/src/asset/type/assetscript.c
new file mode 100644
index 0000000..9077225
--- /dev/null
+++ b/src/asset/type/assetscript.c
@@ -0,0 +1,58 @@
+/**
+ * Copyright (c) 2025 Dominic Masters
+ * 
+ * This software is released under the MIT License.
+ * https://opensource.org/licenses/MIT
+ */
+
+#include "asset/asset.h"
+#include "assert/assert.h"
+
+errorret_t assetScriptHandler(assetcustom_t custom) {
+  assertNotNull(custom.zipFile, "Custom asset zip file cannot be NULL");
+  assertNotNull(custom.output, "Custom asset output cannot be NULL");
+
+  assetscript_t *script = (assetscript_t *)custom.output;
+  errorChain(assetScriptInit(script, custom.zipFile));
+
+  errorOk();
+}
+
+errorret_t assetScriptInit(
+  assetscript_t *script,
+  zip_file_t *zipFile
+) {
+  assertNotNull(script, "Script asset cannot be NULL");
+  assertNotNull(zipFile, "Zip file cannot be NULL");
+
+  // We now own the zip file handle.
+  script->zip = zipFile;
+
+  errorOk();
+}
+
+const char_t * assetScriptReader(lua_State* lState, void* data, size_t* size) {
+  assetscript_t *script = (assetscript_t *)data;
+  zip_int64_t bytesRead = zip_fread(
+    script->zip, script->buffer, sizeof(script->buffer)
+  );
+
+  if(bytesRead < 0) {
+    *size = 0;
+    return NULL;
+  }
+
+  *size = (size_t)bytesRead;
+  return script->buffer;
+}
+
+errorret_t assetScriptDispose(assetscript_t *script) {
+  assertNotNull(script, "Script asset cannot be NULL");
+
+  if(script->zip != NULL) {
+    zip_fclose(script->zip);
+    script->zip = NULL;
+  }
+
+  errorOk();
+}
\ No newline at end of file
diff --git a/src/asset/type/assetscript.h b/src/asset/type/assetscript.h
new file mode 100644
index 0000000..0a3a2d4
--- /dev/null
+++ b/src/asset/type/assetscript.h
@@ -0,0 +1,57 @@
+/**
+ * Copyright (c) 2025 Dominic Masters
+ * 
+ * This software is released under the MIT License.
+ * https://opensource.org/licenses/MIT
+ */
+
+#pragma once
+#include "error/error.h"
+#include "duskdefs.h"
+#include <zip.h>
+#include <lua.h>
+
+#define ASSET_SCRIPT_BUFFER_SIZE 1024
+
+typedef struct assetscript_s {
+  zip_file_t *zip;
+  char_t buffer[ASSET_SCRIPT_BUFFER_SIZE];
+} assetscript_t;
+
+typedef struct assetcustom_s assetcustom_t;
+
+/**
+ * Receiving function from the asset manager to handle script assets.
+ * 
+ * @param custom Custom asset loading data.
+ * @return Error code.
+ */
+errorret_t assetScriptHandler(assetcustom_t custom);
+
+/**
+ * Initializes a script asset.
+ * 
+ * @param script Script asset to initialize.
+ * @param zipFile Zip file handle for the script asset.
+ * @return Error code.
+ */
+errorret_t assetScriptInit(assetscript_t *script, zip_file_t *zipFile);
+
+/**
+ * Reader function for Lua to read script data from the asset.
+ * 
+ * @param L Lua state.
+ * @param data Pointer to the assetscript_t structure.
+ * @param size Pointer to store the size of the read data.
+ * @return Pointer to the read data buffer.
+ */
+const char_t * assetScriptReader(lua_State* L, void* data, size_t* size);
+
+/**
+ * Disposes of a script asset, freeing any allocated resources.
+ * 
+ * @param script Script asset to dispose of.
+ * @return Error code.
+ */
+errorret_t assetScriptDispose(assetscript_t *script);
+
diff --git a/src/engine/engine.c b/src/engine/engine.c
index f536d65..6aef2de 100644
--- a/src/engine/engine.c
+++ b/src/engine/engine.c
@@ -15,6 +15,7 @@
 #include "asset/asset.h"
 #include "ui/ui.h"
 #include "rpg/rpg.h"
+#include "script/scriptmanager.h"
 #include "debug/debug.h"
 
 engine_t ENGINE;
@@ -35,6 +36,12 @@ errorret_t engineInit(const int32_t argc, const char_t **argv) {
   errorChain(uiInit());
   errorChain(rpgInit());
   errorChain(sceneManagerInit());
+  errorChain(scriptManagerInit());
+
+  // scriptManagerExec(
+  //   "print('Hello from Lua!')\n"
+  //   "luaCallable()\n"
+  // );
 
   errorOk();
 }
diff --git a/src/main.c b/src/main.c
index d62883d..532b238 100644
--- a/src/main.c
+++ b/src/main.c
@@ -11,6 +11,7 @@
 #include "input/input.h"
 
 int main(int argc, char **argv) {
+  // Main applet
   errorret_t ret;
 
   // Init engine
diff --git a/src/script/CMakeLists.txt b/src/script/CMakeLists.txt
new file mode 100644
index 0000000..5d90652
--- /dev/null
+++ b/src/script/CMakeLists.txt
@@ -0,0 +1,10 @@
+# Copyright (c) 2025 Dominic Masters
+# 
+# This software is released under the MIT License.
+# https://opensource.org/licenses/MIT
+
+# Sources
+target_sources(${DUSK_TARGET_NAME}
+  PRIVATE
+    scriptmanager.c
+)
\ No newline at end of file
diff --git a/src/script/scriptmanager.c b/src/script/scriptmanager.c
new file mode 100644
index 0000000..595ab47
--- /dev/null
+++ b/src/script/scriptmanager.c
@@ -0,0 +1,74 @@
+/**
+ * Copyright (c) 2025 Dominic Masters
+ * 
+ * This software is released under the MIT License.
+ * https://opensource.org/licenses/MIT
+ */
+
+#include "scriptmanager.h"
+#include "util/memory.h"
+
+#include "asset/asset.h"
+
+int luaCallable(lua_State *L) {
+  printf("This function was called from Lua!\n");
+  return 0;
+}
+
+scriptmanager_t SCRIPT_MANAGER;
+
+errorret_t scriptManagerInit() {
+  memoryZero(&SCRIPT_MANAGER, sizeof(scriptmanager_t));
+
+  SCRIPT_MANAGER.luaState = luaL_newstate();
+  if(SCRIPT_MANAGER.luaState == NULL) {
+    errorThrow("Failed to init Lua state");
+  }
+
+  luaL_openlibs(SCRIPT_MANAGER.luaState);
+  lua_register(SCRIPT_MANAGER.luaState, "luaCallable", luaCallable);
+
+  // SCript test
+  assetscript_t script;
+  assetLoad("script/test.dsf", &script);
+
+  if(lua_load(SCRIPT_MANAGER.luaState, assetScriptReader, &script, "script/test.dsf", NULL) != LUA_OK) {
+    const char_t *strErr = lua_tostring(SCRIPT_MANAGER.luaState, -1);
+    lua_pop(SCRIPT_MANAGER.luaState, 1);
+    errorThrow("Failed to load Lua script: %s", strErr);
+  }
+
+  if(lua_pcall(SCRIPT_MANAGER.luaState, 0, LUA_MULTRET, 0) != LUA_OK) {
+    const char_t *strErr = lua_tostring(SCRIPT_MANAGER.luaState, -1);
+    lua_pop(SCRIPT_MANAGER.luaState, 1);
+    errorThrow("Failed to execute Lua script: %s", strErr);
+  }
+
+  assetScriptDispose(&script);
+
+
+  errorOk();
+}
+
+errorret_t scriptManagerExec(const char_t *script) {
+  if(SCRIPT_MANAGER.luaState == NULL) {
+    errorThrow("Lua state is not initialized");
+  }
+
+  if(luaL_dostring(SCRIPT_MANAGER.luaState, script) != LUA_OK) {
+    const char_t *strErr = lua_tostring(SCRIPT_MANAGER.luaState, -1);
+    lua_pop(SCRIPT_MANAGER.luaState, 1);
+    errorThrow("Failed to execute Lua: ", strErr);
+  }
+
+  errorOk();
+}
+
+errorret_t scriptManagerDispose() {
+  if(SCRIPT_MANAGER.luaState != NULL) {
+    lua_close(SCRIPT_MANAGER.luaState);
+    SCRIPT_MANAGER.luaState = NULL;
+  }
+
+  errorOk();
+}
\ No newline at end of file
diff --git a/src/script/scriptmanager.h b/src/script/scriptmanager.h
new file mode 100644
index 0000000..72661db
--- /dev/null
+++ b/src/script/scriptmanager.h
@@ -0,0 +1,40 @@
+/**
+ * Copyright (c) 2025 Dominic Masters
+ * 
+ * This software is released under the MIT License.
+ * https://opensource.org/licenses/MIT
+ */
+
+#pragma once
+#include "error/error.h"
+#include <lua.h>
+#include <lauxlib.h>
+#include <lualib.h>
+
+typedef struct scriptmanager_s {
+  lua_State *luaState;
+} scriptmanager_t;
+
+extern scriptmanager_t SCRIPT_MANAGER;
+
+/**
+ * Initialize the script manager.
+ * 
+ * @return The error return value.
+ */
+errorret_t scriptManagerInit();
+
+/**
+ * Execute a Lua script.
+ * 
+ * @param script The script to execute.
+ * @return The error return value.
+ */
+errorret_t scriptManagerExec(const char_t *script);
+
+/**
+ * Dispose of the script manager.
+ * 
+ * @return The error return value.
+ */
+errorret_t scriptManagerDispose();
\ No newline at end of file
diff --git a/tools/assetstool/processasset.py b/tools/assetstool/processasset.py
index f355b91..1cfad1e 100644
--- a/tools/assetstool/processasset.py
+++ b/tools/assetstool/processasset.py
@@ -5,6 +5,7 @@ from assetstool.processpalette import processPalette
 from assetstool.processtileset import processTileset
 from assetstool.processmap import processMap
 from assetstool.processlanguage import processLanguage
+from assetstool.processscript import processScript
 
 processedAssets = []
 
@@ -25,6 +26,8 @@ def processAsset(asset):
     return processMap(asset)
   elif t == 'language':
     return processLanguage(asset)
+  elif t == 'script':
+    return processScript(asset)
   else:
     print(f"Error: Unknown asset type '{asset['type']}' for path '{asset['path']}'")
     sys.exit(1)
\ No newline at end of file
diff --git a/tools/assetstool/processscript.py b/tools/assetstool/processscript.py
new file mode 100644
index 0000000..26eddd5
--- /dev/null
+++ b/tools/assetstool/processscript.py
@@ -0,0 +1,39 @@
+import sys
+import os
+from assetstool.args import args
+from assetstool.assetcache import assetCache, assetGetCache
+from assetstool.assethelpers import getAssetRelativePath
+from dusk.defs import defs
+
+def processScript(asset):
+  cache = assetGetCache(asset['path'])
+  if cache is not None:
+    return cache
+  
+  # Load the lua file as a string
+  with open(asset['path'], 'r', encoding='utf-8') as f:
+    luaCode = f.read()
+    
+  # TODO: I will precompile or minify the Lua code here in the future
+
+  # Create output Dusk Script File (DSF) data
+  data = ""
+  data += "DSF"
+  data += luaCode
+
+  # Write to relative output file path.
+  relative = getAssetRelativePath(asset['path'])
+  fileNameWithoutExt = os.path.splitext(os.path.basename(asset['path']))[0]
+  outputFileRelative = os.path.join(os.path.dirname(relative), f"{fileNameWithoutExt}.dsf")
+  outputFilePath = os.path.join(args.output_assets, outputFileRelative)
+  os.makedirs(os.path.dirname(outputFilePath), exist_ok=True)
+  with open(outputFilePath, "wb") as f:
+    f.write(data.encode('utf-8'))
+
+  outScript = {
+    'data': data,
+    'path': asset['path'],
+    'files': [ outputFilePath ],
+    'scriptPath': outputFileRelative,
+  }
+  return assetCache(asset['path'], outScript)
\ No newline at end of file