diff --git a/Assets/RaccoonPreTexturedVer1_Base9.shtex b/Assets/RaccoonPreTexturedVer1_Base9.shtex
new file mode 100644
index 00000000..38e0cd0f
Binary files /dev/null and b/Assets/RaccoonPreTexturedVer1_Base9.shtex differ
diff --git a/SHADE_Application/src/Application/SBApplication.cpp b/SHADE_Application/src/Application/SBApplication.cpp
index 0584d39b..fa626d63 100644
--- a/SHADE_Application/src/Application/SBApplication.cpp
+++ b/SHADE_Application/src/Application/SBApplication.cpp
@@ -84,7 +84,8 @@ namespace Sandbox
     //SHADE::SHAssetManager::LoadDataTemp("../../Assets/racoon.gltf");
     SHADE::SHAssetManager::LoadDataTemp("../../Assets/Cube.012.shmesh");
     //SHADE::SHAssetManager::LoadDataTemp("../../Assets/RaccoonBag_Color_Ver4.dds");
-    SHADE::SHAssetManager::LoadDataTemp("../../Assets/RaccoonPreTexturedVer1_Base9.dds");
+    //SHADE::SHAssetManager::LoadDataTemp("../../Assets/RaccoonPreTexturedVer1_Base9.dds");
+    SHADE::SHAssetManager::LoadDataTemp("../../Assets/RaccoonPreTexturedVer1_Base9.shtex");
     //TODO: REMOVE AFTER PRESENTATION
     
     //SHADE::SHSystemManager::RegisterRoutine<SHADE::SHAudioSystem, SHADE::SHAudioSystem::AudioRoutine>();
diff --git a/SHADE_Engine/src/Assets/Asset Types/SHTextureAsset.h b/SHADE_Engine/src/Assets/Asset Types/SHTextureAsset.h
index 94b1b74c..634d9a9a 100644
--- a/SHADE_Engine/src/Assets/Asset Types/SHTextureAsset.h	
+++ b/SHADE_Engine/src/Assets/Asset Types/SHTextureAsset.h	
@@ -7,6 +7,8 @@ namespace SHADE
 {
 	struct SHTextureAsset
 	{
+		bool compiled;
+
 		uint32_t numBytes;
 		uint32_t width;
 		uint32_t height;
diff --git a/SHADE_Engine/src/Assets/Libraries/SHTextureCompiler.cpp b/SHADE_Engine/src/Assets/Libraries/SHTextureCompiler.cpp
index a2fc3b77..62af4da6 100644
--- a/SHADE_Engine/src/Assets/Libraries/SHTextureCompiler.cpp
+++ b/SHADE_Engine/src/Assets/Libraries/SHTextureCompiler.cpp
@@ -19,7 +19,11 @@ namespace SHADE
 {
 	void SHTextureCompiler::CompileTextureBinary(SHTextureAsset const& asset, AssetPath path)
 	{
-		std::ofstream file{path, std::ios::out | std::ios::binary};
+		std::string newPath{ path.string() };
+		newPath = newPath.substr(0, newPath.find_last_of('.'));
+		newPath += TEXTURE_EXTENSION;
+
+		std::ofstream file{ newPath, std::ios::out | std::ios::binary };
 		if (!file.is_open())
 		{
 			SHLOG_ERROR("Unable to open file for writing texture file: {}", path.string());
@@ -46,18 +50,13 @@ namespace SHADE
 
 		file.write(
 			reinterpret_cast<char const*>(&asset.format),
-			sizeof(SHTexture::PixelChannel)
+			sizeof(SHTexture::TextureFormat)
 		);
 
 		file.write(
 			reinterpret_cast<char const*>(&mipOffsetCount),
 			intBytes
 		);
-		
-		file.write(
-			reinterpret_cast<char const*>(&asset.numBytes),
-			intBytes
-		);
 
 		file.write(
 			reinterpret_cast<char const*>(asset.mipOffsets.data()),
diff --git a/SHADE_Engine/src/Assets/Libraries/SHTextureLoader.cpp b/SHADE_Engine/src/Assets/Libraries/SHTextureLoader.cpp
index 68f86030..1047cdc6 100644
--- a/SHADE_Engine/src/Assets/Libraries/SHTextureLoader.cpp
+++ b/SHADE_Engine/src/Assets/Libraries/SHTextureLoader.cpp
@@ -93,6 +93,7 @@ namespace SHADE
 		std::memcpy(pixel, file.GetImageData()->m_mem, totalBytes);
 		//pixel = std::move(reinterpret_cast<SHTexture::PixelChannel const*>(file.GetDDSData()));
 
+		asset.compiled = false;
 		asset.numBytes = totalBytes;
 		asset.width = file.GetWidth();
 		asset.height = file.GetHeight();
@@ -109,38 +110,25 @@ namespace SHADE
 			SHLOG_ERROR("Error opening SHTexture file: {}", path.string());
 		}
 
-		tinyddsloader::DDSFile::DXGIFormat format;
-		uint32_t formatCarrier;
+		auto const intBytes{ sizeof(uint32_t) };
 		uint32_t mipCount;
-		uint32_t byteCount;
 
-		file >> asset.numBytes;
-		file >> asset.width;
-		file >> asset.height;
-
-		file >> formatCarrier;
-		asset.format = ddsLoaderToVkFormat(static_cast<tinyddsloader::DDSFile::DXGIFormat>(formatCarrier), true);
-
-		file >> mipCount;
-		file >> byteCount;
+		file.read(reinterpret_cast<char*>(&asset.numBytes), intBytes);
+		file.read(reinterpret_cast<char*>(&asset.width), intBytes);
+		file.read(reinterpret_cast<char*>(&asset.height), intBytes);
+		file.read(reinterpret_cast<char*>(&asset.format), sizeof(SHTexture::TextureFormat));
 
+		file.read(reinterpret_cast<char*>(&mipCount), intBytes);
 		std::vector<uint32_t> mips(mipCount);
-		for (auto i {0}; i < mipCount; ++i)
-		{
-			file >> mips[i];
-		}
+		file.read(reinterpret_cast<char*>(mips.data()), intBytes * mipCount);
+
+		auto pixel = new SHTexture::PixelChannel[asset.numBytes];
+		file.read(reinterpret_cast<char*>(pixel), asset.numBytes);
 
 		asset.mipOffsets = std::move(mips);
-
-		auto pixel = new SHTexture::PixelChannel[byteCount];
-		auto pixelIt{ pixel };
-
-		while(!file.eof())
-		{
-			file >> *(pixelIt++);
-		}
 		asset.pixelData = std::move( pixel );
 
+		asset.compiled = true;
 		file.close();
 	}
 
diff --git a/SHADE_Engine/src/Assets/SHAssetManager.cpp b/SHADE_Engine/src/Assets/SHAssetManager.cpp
index dde3b0e2..989cd2ad 100644
--- a/SHADE_Engine/src/Assets/SHAssetManager.cpp
+++ b/SHADE_Engine/src/Assets/SHAssetManager.cpp
@@ -18,6 +18,7 @@
 #include "Libraries/SHTextureLoader.h"
 
 #include "Libraries/SHMeshCompiler.h"
+#include "Libraries/SHTextureCompiler.h"
 
 namespace SHADE
 {
@@ -215,7 +216,8 @@ namespace SHADE
 				}
 			);
 		}
-		else if (path.extension().string() == DDS_EXTENSION)
+		else if (path.extension().string() == DDS_EXTENSION
+			|| path.extension().string() == TEXTURE_EXTENSION)
 		{
 			LoadDDS(
 				{
@@ -319,6 +321,11 @@ namespace SHADE
 		SHTextureLoader::LoadImageAsset(asset.path, image);
 
 		textureCollection.emplace(GenerateAssetID(AssetType::DDS), image);
+
+		if (!image.compiled)
+		{
+			SHTextureCompiler::CompileTextureBinary(image, asset.path);
+		}
 	}
 
 	/****************************************************************************