diff --git a/Scripts/RigidbodyTest.cpp b/Scripts/RigidbodyTest.cpp
index 06ff79b..e626871 100644
--- a/Scripts/RigidbodyTest.cpp
+++ b/Scripts/RigidbodyTest.cpp
@@ -76,13 +76,4 @@ void Begin(ScriptContext& ctx, float /*deltaTime*/) {
     if (autoLaunch) {
         Launch(ctx);
     }
-}
-
-void Spec(ScriptContext& ctx, float /*deltaTime*/) {
-}
-
-void TestEditor(ScriptContext& ctx, float /*deltaTime*/) {
-}
-
-void TickUpdate(ScriptContext& ctx, float /*deltaTime*/) {
-}
+}
\ No newline at end of file
diff --git a/src/Engine.cpp b/src/Engine.cpp
index 088517a..3c6e645 100644
--- a/src/Engine.cpp
+++ b/src/Engine.cpp
@@ -1102,8 +1102,11 @@ void Engine::OpenProjectPath(const std::string& path) {
             }
 
             loadRecentScenes();
-            fileBrowser.setProjectRoot(projectManager.currentProject.projectPath);
-            fileBrowser.currentPath = projectManager.currentProject.projectPath;
+            fs::path contentRoot = projectManager.currentProject.usesNewLayout
+                ? projectManager.currentProject.assetsPath
+                : projectManager.currentProject.projectPath;
+            fileBrowser.setProjectRoot(contentRoot);
+            fileBrowser.currentPath = contentRoot;
             fileBrowser.needsRefresh = true;
             scriptEditorWindowsDirty = true;
             scriptEditorWindows.clear();
@@ -1148,8 +1151,11 @@ void Engine::createNewProject(const char* name, const char* location) {
 
         addObject(ObjectType::Cube, "Cube");
 
-        fileBrowser.setProjectRoot(projectManager.currentProject.projectPath);
-        fileBrowser.currentPath = projectManager.currentProject.projectPath;
+        fs::path contentRoot = projectManager.currentProject.usesNewLayout
+            ? projectManager.currentProject.assetsPath
+            : projectManager.currentProject.projectPath;
+        fileBrowser.setProjectRoot(contentRoot);
+        fileBrowser.currentPath = contentRoot;
         fileBrowser.needsRefresh = true;
         scriptEditorWindowsDirty = true;
         scriptEditorWindows.clear();
@@ -1189,8 +1195,11 @@ void Engine::loadRecentScenes() {
     }
     recordState("sceneLoaded");
 
-    fileBrowser.setProjectRoot(projectManager.currentProject.projectPath);
-    fileBrowser.currentPath = projectManager.currentProject.projectPath;
+    fs::path contentRoot = projectManager.currentProject.usesNewLayout
+        ? projectManager.currentProject.assetsPath
+        : projectManager.currentProject.projectPath;
+    fileBrowser.setProjectRoot(contentRoot);
+    fileBrowser.currentPath = contentRoot;
     fileBrowser.needsRefresh = true;
 }
 
diff --git a/src/PackageManager.cpp b/src/PackageManager.cpp
index 390b86a..bb11c2b 100644
--- a/src/PackageManager.cpp
+++ b/src/PackageManager.cpp
@@ -408,6 +408,10 @@ std::string PackageManager::join(const std::vector<std::string>& vals, char deli
 }
 
 fs::path PackageManager::packagesFolder() const {
+    fs::path newFolder = projectRoot / "Library" / "InstalledPackages";
+    if (fs::exists(newFolder) || fs::exists(projectRoot / "scripts.modu")) {
+        return newFolder;
+    }
     return projectRoot / "Packages";
 }
 
diff --git a/src/ProjectManager.cpp b/src/ProjectManager.cpp
index 7d92a24..b4ec0c1 100644
--- a/src/ProjectManager.cpp
+++ b/src/ProjectManager.cpp
@@ -6,32 +6,39 @@
 Project::Project(const std::string& projectName, const fs::path& basePath)
     : name(projectName) {
     projectPath = basePath / projectName;
-    scenesPath = projectPath / "Scenes";
     assetsPath = projectPath / "Assets";
-    scriptsPath = projectPath / "Scripts";
-    scriptsConfigPath = projectPath / "Scripts.modu";
+    scenesPath = assetsPath / "Scenes";
+    scriptsPath = assetsPath / "Scripts";
+    scriptsConfigPath = projectPath / "scripts.modu";
+    usesNewLayout = true;
 }
 
 bool Project::create() {
     try {
         fs::create_directories(projectPath);
-        fs::create_directories(scenesPath);
         fs::create_directories(assetsPath);
-        fs::create_directories(assetsPath / "Textures");
+        fs::create_directories(assetsPath / "Scenes");
+        fs::create_directories(assetsPath / "Scripts" / "Runtime");
+        fs::create_directories(assetsPath / "Scripts" / "Editor");
         fs::create_directories(assetsPath / "Models");
         fs::create_directories(assetsPath / "Shaders");
-        fs::create_directories(scriptsPath);
-        fs::create_directories(projectPath / "Cache" / "ScriptBin");
+        fs::create_directories(assetsPath / "Materials");
+        fs::create_directories(projectPath / "Library" / "CompiledScripts");
+        fs::create_directories(projectPath / "Library" / "InstalledPackages");
+        fs::create_directories(projectPath / "Library" / "ScriptTemp");
+        fs::create_directories(projectPath / "Library" / "Temp");
+        fs::create_directories(projectPath / "ProjectUserSettings" / "ProjectLayout");
+        fs::create_directories(projectPath / "ProjectUserSettings" / "ScriptSettings");
 
         saveProjectFile();
 
         // Initialize a default scripting build file
         fs::path engineRoot = fs::current_path();
         std::ofstream scriptCfg(scriptsConfigPath);
-        scriptCfg << "# Scripts.modu\n";
+        scriptCfg << "# scripts.modu\n";
         scriptCfg << "cppStandard=c++20\n";
-        scriptCfg << "scriptsDir=Scripts\n";
-        scriptCfg << "outDir=Cache/ScriptBin\n";
+        scriptCfg << "scriptsDir=Assets/Scripts\n";
+        scriptCfg << "outDir=Library/CompiledScripts\n";
         scriptCfg << "includeDir=" << (engineRoot / "src").string() << "\n";
         scriptCfg << "includeDir=" << (engineRoot / "include").string() << "\n";
         scriptCfg << "includeDir=" << (engineRoot / "src/ThirdParty").string() << "\n";
@@ -44,8 +51,13 @@ bool Project::create() {
         scriptCfg << "win.linkLib=Advapi32.lib\n";
         scriptCfg.close();
 
+        std::ofstream packageManifest(projectPath / "packages.modu");
+        packageManifest << "# Modularity package manifest\n";
+        packageManifest.close();
+
         currentSceneName = "Main";
         isLoaded = true;
+        usesNewLayout = true;
         return true;
     } catch (const std::exception& e) {
         std::cerr << "Failed to create project: " << e.what() << std::endl;
@@ -56,10 +68,39 @@ bool Project::create() {
 bool Project::load(const fs::path& projectFilePath) {
     try {
         projectPath = projectFilePath.parent_path();
-        scenesPath = projectPath / "Scenes";
         assetsPath = projectPath / "Assets";
-        scriptsPath = projectPath / "Scripts";
-        scriptsConfigPath = projectPath / "Scripts.modu";
+
+        fs::path oldScenes = projectPath / "Scenes";
+        fs::path oldScripts = projectPath / "Scripts";
+        fs::path oldConfig = projectPath / "Scripts.modu";
+        fs::path newScenes = assetsPath / "Scenes";
+        fs::path newScripts = assetsPath / "Scripts";
+        fs::path newConfig = projectPath / "scripts.modu";
+
+        bool hasOldScenes = fs::exists(oldScenes);
+        bool hasOldScripts = fs::exists(oldScripts);
+        bool hasOldConfig = fs::exists(oldConfig);
+        bool hasNewScenes = fs::exists(newScenes);
+        bool hasNewScripts = fs::exists(newScripts);
+        bool hasNewConfig = fs::exists(newConfig);
+
+        bool useNewLayout = false;
+        if (hasOldScenes || hasOldScripts || hasOldConfig) {
+            useNewLayout = false;
+        } else if (hasNewScenes || hasNewScripts || hasNewConfig) {
+            useNewLayout = true;
+        }
+
+        if (useNewLayout) {
+            scenesPath = newScenes;
+            scriptsPath = newScripts;
+            scriptsConfigPath = hasNewConfig ? newConfig : (hasOldConfig ? oldConfig : newConfig);
+        } else {
+            scenesPath = oldScenes;
+            scriptsPath = oldScripts;
+            scriptsConfigPath = hasOldConfig ? oldConfig : (hasNewConfig ? newConfig : oldConfig);
+        }
+        usesNewLayout = useNewLayout;
 
         std::ifstream file(projectFilePath);
         if (!file.is_open()) return false;
diff --git a/src/ProjectManager.h b/src/ProjectManager.h
index ded45da..9d3df97 100644
--- a/src/ProjectManager.h
+++ b/src/ProjectManager.h
@@ -20,6 +20,7 @@ public:
     std::string currentSceneName;
     bool isLoaded = false;
     bool hasUnsavedChanges = false;
+    bool usesNewLayout = false;
 
     Project() = default;
     Project(const std::string& projectName, const fs::path& basePath);