diff --git a/shader/cell.as b/assets/shader/cell.as
similarity index 100%
rename from shader/cell.as
rename to assets/shader/cell.as
diff --git a/shader/cell.pipeline b/assets/shader/cell.pipeline
similarity index 100%
rename from shader/cell.pipeline
rename to assets/shader/cell.pipeline
diff --git a/shader/cell_frag.as b/assets/shader/cell_frag.as
similarity index 100%
rename from shader/cell_frag.as
rename to assets/shader/cell_frag.as
diff --git a/shader/cell_frag.glsl b/assets/shader/cell_frag.glsl
similarity index 100%
rename from shader/cell_frag.glsl
rename to assets/shader/cell_frag.glsl
diff --git a/shader/cell_vert.as b/assets/shader/cell_vert.as
similarity index 100%
rename from shader/cell_vert.as
rename to assets/shader/cell_vert.as
diff --git a/shader/cell_vert.glsl b/assets/shader/cell_vert.glsl
similarity index 100%
rename from shader/cell_vert.glsl
rename to assets/shader/cell_vert.glsl
diff --git a/src/runtime/runtime.h b/src/runtime/runtime.h
index 2e8b03a..dd0d23e 100644
--- a/src/runtime/runtime.h
+++ b/src/runtime/runtime.h
@@ -58,6 +58,11 @@ enum {
  * VY_INSUFFICIENT_BUFFER if the provided output buffer is too small */
 VY_DLLEXPORT vy_result vyUTF8ToWStr(const char *utf8, wchar_t *wstr, size_t len);
 
+/* Returns VY_SUCCESS if the string was successfully converted,
+ * VY_INVALID_UNICODE if invalid unicode characters were encountered or
+ * VY_INSUFFICIENT_BUFFER if the provided output buffer is too small */
+VY_DLLEXPORT vy_result vyWStrToUTF8(const wchar_t *wstr, char *utf8, size_t len);
+
 /* Relative pointer */
 typedef struct {
     int32_t off;
diff --git a/src/runtime/text.c b/src/runtime/text.c
index 4929a96..c46e9ad 100644
--- a/src/runtime/text.c
+++ b/src/runtime/text.c
@@ -35,4 +35,24 @@ VY_DLLEXPORT vy_result vyUTF8ToWStr(const char *utf8, wchar_t *wstr, size_t len)
         }
     }
 #endif
+}
+
+
+VY_DLLEXPORT vy_result vyWStrToUTF8(const wchar_t *wstr, char *utf8, size_t len) {
+#ifdef _WIN32
+    int res = WideCharToMultiByte(CP_UTF8, WC_COMPOSITECHECK, wstr, -1, utf8, (int)len, NULL, NULL);
+    if (res > 0) {
+        return VY_SUCCESS;
+    } else {
+        DWORD err = GetLastError();
+        if (err == ERROR_INSUFFICIENT_BUFFER)
+            return VY_INSUFFICIENT_BUFFER;
+        else if (err == ERROR_NO_UNICODE_TRANSLATION)
+            return VY_INVALID_UNICODE;
+        else {
+            vyReportError("CORE", "Unexpected error in vyWStrToUTF8(): %u", err);
+            return VY_UNKNOWN_ERROR;
+        }
+    }
+#endif
 }
\ No newline at end of file
diff --git a/src/tools/assetc/assetc.c b/src/tools/assetc/assetc.c
index 69408cd..631a117 100644
--- a/src/tools/assetc/assetc.c
+++ b/src/tools/assetc/assetc.c
@@ -25,6 +25,8 @@ extern vy_result vyProcessShaderFile(vy_file_id file,
                                      uint32_t flags,
                                      vy_processor_output *output);
 
+extern void vyDiscoverAssets(void);
+
 vy_assetc_options g_assetc_options = {
     .root_directory   = ".",
     .optimization     = VY_ASSET_OPTIMIZATION_NONE,
@@ -121,12 +123,11 @@ int main(int argc, char **argv) {
         return 1;
     }
 
-    vyAddFileToProcessingQueue(vyAddFile("shader\\cell.pipeline"), 0);
+    vyDiscoverAssets();
 
     vyWaitUntilProcessingIsFinished();
 
     vyStopProcessing();
-
     vySaveAssetMeta();
 
     vyShutdownBufferManager();
diff --git a/src/tools/assetc/discovery.c b/src/tools/assetc/discovery.c
index 637a281..8beb381 100644
--- a/src/tools/assetc/discovery.c
+++ b/src/tools/assetc/discovery.c
@@ -1,5 +1,78 @@
+#include "utils.h"
+#include "assetmeta.h"
+#include "processing.h"
 
-void DiscoverAssets(void) {
-    
+#include <string.h>
 
+typedef struct {
+    char path_scratch[1024];
+    unsigned int path_end;
+} vy_discovery_data;
+
+static vy_result DirectoryHandler(const char *name, vyIterateDirElementType type, void *user) {
+    vy_discovery_data *data = user;
+
+    size_t name_len = strlen(name);
+
+    if (type == VY_DIR_ELEMENT_TYPE_FILE) {
+        /* Don't parse .as files */
+        if (name_len >= 3) {
+            if (memcmp(&name[name_len - 3], ".as", 3) == 0) {
+                /* Skip */
+                return VY_SUCCESS;
+            }
+        }
+
+        /* Check if we know that file */
+        data->path_scratch[data->path_end] = '/';
+        memcpy(data->path_scratch + data->path_end + 1, name, name_len);
+        data->path_scratch[data->path_end + 1 + name_len] = '\0';
+
+        vy_file_id fid = vyAddFile(data->path_scratch);
+        if (vyLookupUID(fid) != VY_INVALID_UID) {
+            vy_assetmeta meta;
+            if (!vyGetAssetMeta(fid, &meta) || (meta.last_changed >= meta.compiled_ts)) {
+                /* The file (may have) changed */
+                vy_result res = vyAddFileToProcessingQueue(fid, 0);
+                if (res != VY_SUCCESS)
+                    return res;
+            }
+            else {
+                /* The file is unchanged, we just need to add it to the output again. */
+                vyLog("ASSETC", "File %s is unchanged.", data->path_scratch);
+            }
+        } else {
+            /* Process it */
+            vy_result res = vyAddFileToProcessingQueue(fid, 0);
+            if (res != VY_SUCCESS)
+                return res;
+        }
+    } else if (type == VY_DIR_ELEMENT_TYPE_DIRECTORY) {
+        if (strcmp(name, ".") == 0)
+            return VY_SUCCESS;
+        if (strcmp(name, "..") == 0)
+            return VY_SUCCESS;
+
+        unsigned int path_end_before = data->path_end;
+        data->path_scratch[data->path_end++] = '/';
+        memcpy(data->path_scratch + data->path_end, name, name_len);
+        data->path_scratch[data->path_end + name_len] = '\0';
+        data->path_end += name_len;
+
+        vy_result res = vyIterateDirectory(data->path_scratch, user, DirectoryHandler);
+        if (res != VY_SUCCESS)
+            return res;
+
+        data->path_end = path_end_before;
+    }
+    return VY_SUCCESS;
+}
+
+void vyDiscoverAssets(void) {
+    vy_discovery_data data;
+    data.path_scratch[0] = '.';
+    data.path_scratch[1] = '\0';
+    data.path_end        = 1;
+
+    vyIterateDirectory(".", &data, DirectoryHandler);
 }
\ No newline at end of file
diff --git a/src/tools/assetc/utils.c b/src/tools/assetc/utils.c
index 97e1d06..d9502bb 100644
--- a/src/tools/assetc/utils.c
+++ b/src/tools/assetc/utils.c
@@ -50,4 +50,40 @@ uint64_t vyGetFileModificationTimestamp(vy_file_id fid) {
     ts |= (uint64_t)attribs.ftLastWriteTime.dwHighDateTime << 32;
     return ts;
 #endif
+}
+
+vy_result vyIterateDirectory(const char *path, void *user, vy_iterate_directory_cb_func iterate_cb) {
+#ifdef _WIN32
+    vy_result res;
+    WCHAR wpath[MAX_PATH];
+    char wildcard_path[MAX_PATH];
+    strncpy(wildcard_path, path, MAX_PATH);
+    strncat(wildcard_path, "\\*", MAX_PATH - strlen(path));
+
+    res = vyUTF8ToWStr(wildcard_path, wpath, MAX_PATH);
+    if (res != VY_SUCCESS)
+        return res;
+
+    WIN32_FIND_DATAW find;
+    HANDLE h = FindFirstFileW(wpath, &find);
+    if (h == INVALID_HANDLE_VALUE)
+        return VY_UNKNOWN_ERROR;
+    do {
+        char utf8_file[MAX_PATH];
+        res = vyWStrToUTF8(find.cFileName, utf8_file, MAX_PATH);
+        if (res != VY_SUCCESS)
+            break;
+        vyIterateDirElementType type;
+        if (find.dwFileAttributes & FILE_ATTRIBUTE_DIRECTORY)
+            type = VY_DIR_ELEMENT_TYPE_DIRECTORY;
+        else
+            type = VY_DIR_ELEMENT_TYPE_FILE;
+        res = iterate_cb(utf8_file, type, user);
+        if (res != VY_SUCCESS)
+            break;
+    } while (FindNextFileW(h, &find) != 0);
+
+    FindClose(h);
+    return res;
+#endif
 }
\ No newline at end of file
diff --git a/src/tools/assetc/utils.h b/src/tools/assetc/utils.h
index 02e5158..8b3b79d 100644
--- a/src/tools/assetc/utils.h
+++ b/src/tools/assetc/utils.h
@@ -13,4 +13,13 @@ uint64_t vyGetCurrentTimestamp(void);
 
 uint64_t vyGetFileModificationTimestamp(vy_file_id fid);
 
+typedef enum {
+    VY_DIR_ELEMENT_TYPE_FILE,
+    VY_DIR_ELEMENT_TYPE_DIRECTORY,
+} vyIterateDirElementType;
+
+typedef vy_result vy_iterate_directory_cb_func(const char *name, vyIterateDirElementType type, void *user);
+
+vy_result vyIterateDirectory(const char *path, void *user, vy_iterate_directory_cb_func iterate_cb);
+
 #endif