diff --git a/assets/CMakeLists.txt b/assets/CMakeLists.txt
index 9a17f3d..660e4ad 100644
--- a/assets/CMakeLists.txt
+++ b/assets/CMakeLists.txt
@@ -3,8 +3,8 @@
 # This software is released under the MIT License.
 # https://opensource.org/licenses/MIT
 
-add_asset(PALETTE first.palette.png)
-add_asset(TILESET font_minogram.png type=ALPHA tileWidth=6 tileHeight=10 columns=16 rows=6)
-add_asset(TILESET entities.png type=PALETTIZED tileWidth=16 tileHeight=16)
-add_asset(CONFIG init.dcf)
-add_asset(CONFIG init_psp.dcf)
\ No newline at end of file
+add_subdirectory(palette)# Palette asset needs to be added before any images.
+
+add_subdirectory(config)
+add_subdirectory(entity)
+add_subdirectory(ui)
\ No newline at end of file
diff --git a/assets/config/CMakeLists.txt b/assets/config/CMakeLists.txt
new file mode 100644
index 0000000..bd115c1
--- /dev/null
+++ b/assets/config/CMakeLists.txt
@@ -0,0 +1,7 @@
+# Copyright (c) 2025 Dominic Masters
+# 
+# This software is released under the MIT License.
+# https://opensource.org/licenses/MIT
+
+add_asset(CONFIG init.dcf)
+add_asset(CONFIG init_psp.dcf)
\ No newline at end of file
diff --git a/assets/init.dcf b/assets/config/init.dcf
similarity index 100%
rename from assets/init.dcf
rename to assets/config/init.dcf
diff --git a/assets/init_psp.dcf b/assets/config/init_psp.dcf
similarity index 100%
rename from assets/init_psp.dcf
rename to assets/config/init_psp.dcf
diff --git a/assets/entity/CMakeLists.txt b/assets/entity/CMakeLists.txt
new file mode 100644
index 0000000..6cee926
--- /dev/null
+++ b/assets/entity/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(TILESET entities.tsx)
\ No newline at end of file
diff --git a/assets/entities.png b/assets/entity/entities.png
similarity index 100%
rename from assets/entities.png
rename to assets/entity/entities.png
diff --git a/assets/entities.tsx b/assets/entity/entities.tsx
similarity index 100%
rename from assets/entities.tsx
rename to assets/entity/entities.tsx
diff --git a/assets/palette/CMakeLists.txt b/assets/palette/CMakeLists.txt
new file mode 100644
index 0000000..947af28
--- /dev/null
+++ b/assets/palette/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(PALETTE pallet0.png)
\ No newline at end of file
diff --git a/assets/first.palette.png b/assets/palette/pallet0.png
similarity index 100%
rename from assets/first.palette.png
rename to assets/palette/pallet0.png
diff --git a/assets/ui/CMakeLists.txt b/assets/ui/CMakeLists.txt
new file mode 100644
index 0000000..ffe622f
--- /dev/null
+++ b/assets/ui/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(TILESET minogram.png type=ALPHA tileWidth=6 tileHeight=10 columns=16 rows=6)
\ No newline at end of file
diff --git a/assets/font_minogram.png b/assets/ui/minogram.png
similarity index 100%
rename from assets/font_minogram.png
rename to assets/ui/minogram.png
diff --git a/src/display/ui/uiconsole.c b/src/display/ui/uiconsole.c
index 3164ae2..f3a3d9e 100644
--- a/src/display/ui/uiconsole.c
+++ b/src/display/ui/uiconsole.c
@@ -21,7 +21,7 @@ void uiConsoleRender(void) {
       i--;
       continue;
     }
-    uiTextDraw(0, i * TILESET_FONT_MINOGRAM.tileHeight, line, COLOR_WHITE);
+    uiTextDraw(0, i * TILESET_MINOGRAM.tileHeight, line, COLOR_WHITE);
     i--;
   } while(i > 0);
 }
\ No newline at end of file
diff --git a/src/display/ui/uitext.c b/src/display/ui/uitext.c
index c3de09d..197a705 100644
--- a/src/display/ui/uitext.c
+++ b/src/display/ui/uitext.c
@@ -17,7 +17,7 @@ errorret_t uiTextInit(void) {
   memoryZero(&UI_TEXT, sizeof(uitext_t));
 
   errorChain(assetManagerLoadAsset(
-    TILESET_FONT_MINOGRAM.image, &UI_TEXT.asset, &UI_TEXT.assetRef
+    TILESET_MINOGRAM.image, &UI_TEXT.asset, &UI_TEXT.assetRef
   ));
   errorOk();
 }
@@ -35,23 +35,23 @@ void uiTextDrawChar(
   const color_t color
 ) {
   int32_t tileIndex = (int32_t)(c) - UI_TEXT_CHAR_START;
-  if(tileIndex < 0 || tileIndex >= TILESET_FONT_MINOGRAM.tileCount) {
+  if(tileIndex < 0 || tileIndex >= TILESET_MINOGRAM.tileCount) {
     tileIndex = ((int32_t)'@') - UI_TEXT_CHAR_START;
   }
 
   assertTrue(
-    tileIndex >= 0 && tileIndex <= TILESET_FONT_MINOGRAM.tileCount,
+    tileIndex >= 0 && tileIndex <= TILESET_MINOGRAM.tileCount,
     "Character is out of bounds for font tiles"
   );
 
   vec4 uv;
-  tilesetTileGetUV(&TILESET_FONT_MINOGRAM, tileIndex, uv);
+  tilesetTileGetUV(&TILESET_MINOGRAM, tileIndex, uv);
 
   spriteBatchPush(
     &UI_TEXT.asset->alphaImage.texture,
     x, y,
-    x + TILESET_FONT_MINOGRAM.tileWidth,
-    y + TILESET_FONT_MINOGRAM.tileHeight,
+    x + TILESET_MINOGRAM.tileWidth,
+    y + TILESET_MINOGRAM.tileHeight,
     color,
     uv[0], uv[1], uv[2], uv[3]
   );
@@ -73,17 +73,17 @@ void uiTextDraw(
   while((c = text[i++]) != '\0') {
     if(c == '\n') {
       posX = x;
-      posY += TILESET_FONT_MINOGRAM.tileHeight;
+      posY += TILESET_MINOGRAM.tileHeight;
       continue;
     }
 
     if(c == ' ') {
-      posX += TILESET_FONT_MINOGRAM.tileWidth;
+      posX += TILESET_MINOGRAM.tileWidth;
       continue;
     }
 
     uiTextDrawChar(posX, posY, c, color);
-    posX += TILESET_FONT_MINOGRAM.tileWidth;
+    posX += TILESET_MINOGRAM.tileWidth;
   }
 }
 
@@ -97,7 +97,7 @@ void uiTextMeasure(
   assertNotNull(outHeight, "Output height pointer cannot be NULL");
 
   int32_t width = 0;
-  int32_t height = TILESET_FONT_MINOGRAM.tileHeight;
+  int32_t height = TILESET_MINOGRAM.tileHeight;
   int32_t lineWidth = 0;
 
   char_t c;
@@ -108,11 +108,11 @@ void uiTextMeasure(
         width = lineWidth;
       }
       lineWidth = 0;
-      height += TILESET_FONT_MINOGRAM.tileHeight;
+      height += TILESET_MINOGRAM.tileHeight;
       continue;
     }
 
-    lineWidth += TILESET_FONT_MINOGRAM.tileWidth;
+    lineWidth += TILESET_MINOGRAM.tileWidth;
   }
 
   if(lineWidth > width) {
diff --git a/src/display/ui/uitext.h b/src/display/ui/uitext.h
index 973606e..c6581f8 100644
--- a/src/display/ui/uitext.h
+++ b/src/display/ui/uitext.h
@@ -7,7 +7,7 @@
 
 #pragma once
 #include "asset/assetmanager.h"
-#include "display/tileset/tileset_font_minogram.h"
+#include "display/tileset/tileset_minogram.h"
 
 #define UI_TEXT_CHAR_START '!'
 
diff --git a/src/engine/engine.c b/src/engine/engine.c
index f89312d..0f569e7 100644
--- a/src/engine/engine.c
+++ b/src/engine/engine.c
@@ -33,9 +33,9 @@ errorret_t engineInit(void) {
 
   // Init scripts
   #if PSP
-    consoleExec("exec init_psp.dcf");
+    consoleExec("exec config/init_psp.dcf");
   #else
-    consoleExec("exec init.dcf");
+    consoleExec("exec config/init.dcf");
   #endif
 
   errorOk();
diff --git a/tools/assetstool/processimage.py b/tools/assetstool/processimage.py
index 7940c12..85b0ed4 100644
--- a/tools/assetstool/processimage.py
+++ b/tools/assetstool/processimage.py
@@ -8,8 +8,11 @@ from assethelpers import getAssetRelativePath
 images = []
 
 def processImage(asset):
-  type = asset['options'].get('type', 'PALETTIZED').upper()
-  if type == 'PALETTIZED':
+  type = None
+  if 'type' in asset['options']:
+    type = asset['options'].get('type', 'PALETTIZED').upper()
+
+  if type == 'PALETTIZED' or type is None:
     return processPalettizedImage(asset)
   elif type == 'ALPHA':
     return processAlphaImage(asset)
diff --git a/tools/assetstool/processtileset.py b/tools/assetstool/processtileset.py
index 5f5baca..a10d119 100644
--- a/tools/assetstool/processtileset.py
+++ b/tools/assetstool/processtileset.py
@@ -5,15 +5,55 @@ from assethelpers import getAssetRelativePath
 import os
 import datetime
 from args import args
+from xml.etree import ElementTree
 
-def processTileset(asset):
-  print(f"Processing tileset: {asset['path']}")
+def loadTilesetFromTSX(asset):
+  # Load the TSX file
+  tree = ElementTree.parse(asset['path'])
+  root = tree.getroot()
 
+  # Expect tileheight, tilewidth, columns and tilecount attributes
+  if 'tilewidth' not in root.attrib or 'tileheight' not in root.attrib or 'columns' not in root.attrib or 'tilecount' not in root.attrib:
+    print(f"Error: TSX file {asset['path']} is missing required attributes (tilewidth, tileheight, columns, tilecount)")
+    sys.exit(1)
+
+  tileWidth = int(root.attrib['tilewidth'])
+  tileHeight = int(root.attrib['tileheight'])
+  columns = int(root.attrib['columns'])
+  tileCount = int(root.attrib['tilecount'])
+  rows = (tileCount + columns - 1) // columns  # Calculate rows based on tileCount and columns
+
+  # Find the image element
+  imageElement = root.find('image')
+  if imageElement is None or 'source' not in imageElement.attrib:
+    print(f"Error: TSX file {asset['path']} is missing an image element with a source attribute")
+    sys.exit(1)
+
+  imagePath = imageElement.attrib['source']
+
+  # Image is relative to the TSX file
+  imageAssetPath = os.path.join(os.path.dirname(asset['path']), imagePath)
+
+  image = processImage({
+    'path': imageAssetPath,
+    'options': asset['options'],
+  })
+
+  return {
+    "image": image,
+    "tileWidth": tileWidth,
+    "tileHeight": tileHeight,
+    "columns": columns,
+    "rows": rows,
+    "originalWidth": tileWidth * columns,
+    "originalHeight": tileHeight * rows,
+  }
+
+def loadTilesetFromArgs(asset):
   # We need to determine how big each tile is. This can either be provided as
   # an arg of tileWidth/tileHeight or as a count of rows/columns.
   # Additionally, if the image has been factored, then the user can provide both
   # tile sizes AND cols/rows to indicate the original size of the image.
-
   image = processImage(asset)
 
   tileWidth, tileHeight = None, None
@@ -47,27 +87,46 @@ def processTileset(asset):
   else:
     print(f"Error: Tileset {asset['path']} must specify either tileHeight or rows")
     sys.exit(1)
+    
+  return {
+    "image": image,
+    "tileWidth": tileWidth,
+    "tileHeight": tileHeight,
+    "columns": columns,
+    "rows": rows,
+    "originalWidth": originalWidth,
+    "originalHeight": originalHeight,
+  }
+
+def processTileset(asset):
+  print(f"Processing tileset: {asset['path']}")
+
+  tilesetData = None
+  if asset['path'].endswith('.tsx'):
+    tilesetData = loadTilesetFromTSX(asset)
+  else:
+    tilesetData = loadTilesetFromArgs(asset)
   
   fileNameWithoutExtension = os.path.splitext(os.path.basename(asset['path']))[0]
   now = datetime.datetime.now().strftime("%Y-%m-%d %H:%M:%S")
   tilesetName = fileNameWithoutExtension
   tilesetNameUpper = tilesetName.upper()
 
-  widthScale = originalWidth / image['width']
-  heightScale = originalHeight / image['height']
+  widthScale = tilesetData['originalWidth'] / tilesetData['image']['width']
+  heightScale = tilesetData['originalHeight'] / tilesetData['image']['height']
 
   # Create header
   data = f"// Tileset Generated for {asset['path']} at {now}\n"
   data += f"#pragma once\n"
   data += f"#include \"display/tileset.h\"\n\n"
   data += f"static const tileset_t TILESET_{tilesetNameUpper} = {{\n"
-  data += f"  .tileWidth = {tileWidth},\n"
-  data += f"  .tileHeight = {tileHeight},\n"
-  data += f"  .tileCount = {columns * rows},\n"
-  data += f"  .columns = {columns},\n"
-  data += f"  .rows = {rows},\n"
-  data += f"  .uv = {{ {widthScale / columns}f, {heightScale / rows}f }},\n"
-  data += f"  .image = {json.dumps(image['imagePath'])},\n"
+  data += f"  .tileWidth = {tilesetData['tileWidth']},\n"
+  data += f"  .tileHeight = {tilesetData['tileHeight']},\n"
+  data += f"  .tileCount = {tilesetData['columns'] * tilesetData['rows']},\n"
+  data += f"  .columns = {tilesetData['columns']},\n"
+  data += f"  .rows = {tilesetData['rows']},\n"
+  data += f"  .uv = {{ {widthScale / tilesetData['columns']}f, {heightScale / tilesetData['rows']}f }},\n"
+  data += f"  .image = {json.dumps(tilesetData['image']['imagePath'])},\n"
   data += f"}};\n"
 
   # Write Header
@@ -77,8 +136,8 @@ def processTileset(asset):
     f.write(data)
   
   outTileset = {
-    "image": image,
+    "image": tilesetData['image'],
     "headerFile": outputFile,
-    "files": image['files'],
+    "files": tilesetData['image']['files'],
   }
   return outTileset
\ No newline at end of file