diff --git a/UndertaleModLib/Util/GMImage.cs b/UndertaleModLib/Util/GMImage.cs
index eef1eb7a7..87bf450f9 100644
--- a/UndertaleModLib/Util/GMImage.cs
+++ b/UndertaleModLib/Util/GMImage.cs
@@ -1,8 +1,8 @@
-using ICSharpCode.SharpZipLib.BZip2;
-using ImageMagick;
-using System;
+using System;
 using System.Buffers.Binary;
 using System.IO;
+using ICSharpCode.SharpZipLib.BZip2;
+using ImageMagick;
 
 namespace UndertaleModLib.Util;
 
@@ -34,7 +34,12 @@ public enum ImageFormat
         /// <summary>
         /// BZip2 compression applied on top of GameMaker's custom variant of the QOI image file format.
         /// </summary>
-        Bz2Qoi
+        Bz2Qoi,
+
+        /// <summary>
+        /// DDS file format.
+        /// </summary>
+        Dds,
     }
 
     /// <summary>
@@ -77,6 +82,11 @@ public enum ImageFormat
     /// </summary>
     private static ReadOnlySpan<byte> MagicBz2Footer => new byte[] { 0x17, 0x72, 0x45, 0x38, 0x50, 0x90 };
 
+    /// <summary>
+    /// DDS file format magic.
+    /// </summary>
+    private static ReadOnlySpan<byte> MagicDds => "DDS "u8;
+
     /// <summary>
     /// Backing data for the image, whether compressed or not.
     /// </summary>
@@ -335,6 +345,61 @@ public static GMImage FromBinaryReader(IBinaryReader reader, long maxEndOfStream
             return FromQoi(reader.ReadBytes(12 + (int)compressedLength));
         }
 
+        // DDS
+        if (header.StartsWith(MagicDds))
+        {
+            // Size int skipped because 8 bytes were already read
+            uint flags = reader.ReadUInt32();
+            uint height = reader.ReadUInt32();
+
+            //uint width = reader.ReadUInt32();
+            reader.Position += 4;
+
+            uint pitchOrLinearSize = reader.ReadUInt32();
+
+            //uint depth = reader.ReadUInt32();
+            //uint mipMapCount = reader.ReadUInt32();
+            //byte[] reserved1 = reader.ReadBytes(4 * 11);
+            //uint pixelFormatSize = reader.ReadUInt32();
+            reader.Position += 56;
+
+            uint pixelFormatFlags = reader.ReadUInt32();
+            uint pixelFormatFourCC = reader.ReadUInt32();
+
+            // TODO: Check caps for DDSCAPS_COMPLEX (when there's extra data afterwards)
+
+            // Skip to end of header
+            reader.Position += 40;
+
+            // Check if DX10 header is present and skip it
+            // DDPF_FOURCC == 0x4
+            // DX10 == 0x30315844
+            if ((pixelFormatFlags & 0x4) != 0 && pixelFormatFourCC == 0x30315844)
+                reader.Position += 20;
+
+            // Check if that int is the size or pitch
+            // DDSD_LINEARSIZE == 0x80000
+            int size = (int)(reader.Position - startAddress);
+            if ((flags & 0x80000) != 0)
+                size += (int)pitchOrLinearSize;
+            else
+                size += (int)(pitchOrLinearSize * height);
+
+            // Read entire data
+            reader.Position = startAddress;
+            byte[] bytes = reader.ReadBytes(size);
+
+            // Check if rest of bytes are 0x00 padded
+            byte[] paddingBytes = reader.ReadBytes((int)(maxEndOfStreamPosition - reader.Position));
+            for (int i=0; i<paddingBytes.Length; i++)
+            {
+                if (paddingBytes[i] != 0)
+                    throw new IOException("Non-zero bytes in padding");
+            }
+
+            return FromDds(bytes);
+        }
+
         throw new IOException("Failed to recognize any known image header");
     }
 
@@ -452,6 +517,31 @@ public static GMImage FromQoi(byte[] data)
         return new GMImage(ImageFormat.Qoi, width, height, data);
     }
 
+    /// <summary>
+    /// Creates a <see cref="GMImage"/> of DDS format, wrapping around the provided byte array containing DDS data.
+    /// </summary>
+    /// <param name="data">Byte array of DDS data.</param>
+    public static GMImage FromDds(byte[] data)
+    {
+        ArgumentNullException.ThrowIfNull(data);
+
+        ReadOnlySpan<byte> span = data.AsSpan();
+
+        // Get height and width
+        int height = (int)BinaryPrimitives.ReadUInt32LittleEndian(span[12..16]);
+        int width = (int)BinaryPrimitives.ReadUInt32LittleEndian(span[16..20]);
+
+        // Create wrapper image
+        return new GMImage(ImageFormat.Dds, width, height, data);
+    }
+
+    private static void AddMagickToPngSettings(MagickReadSettings settings)
+    {
+        settings.SetDefine(MagickFormat.Png32, "compression-level", 4);
+        settings.SetDefine(MagickFormat.Png32, "compression-filter", 5);
+        settings.SetDefine(MagickFormat.Png32, "compression-strategy", 2);
+    }
+
     // Settings to be used for raw data, and when encoding a PNG
     private MagickReadSettings GetMagickRawToPngSettings()
     {
@@ -462,9 +552,18 @@ private MagickReadSettings GetMagickRawToPngSettings()
             Format = MagickFormat.Bgra,
             Compression = CompressionMethod.NoCompression
         };
-        settings.SetDefine(MagickFormat.Png32, "compression-level", 4);
-        settings.SetDefine(MagickFormat.Png32, "compression-filter", 5);
-        settings.SetDefine(MagickFormat.Png32, "compression-strategy", 2);
+        AddMagickToPngSettings(settings);
+        return settings;
+    }
+
+    // Settings to be used for decoding DDS, and when encoding a PNG
+    private MagickReadSettings GetMagickDdsToPngSettings()
+    {
+        var settings = new MagickReadSettings()
+        {
+            Format = MagickFormat.Dds,
+        };
+        AddMagickToPngSettings(settings);
         return settings;
     }
 
@@ -518,6 +617,15 @@ public void SavePng(Stream stream)
                     rawImage.SavePng(stream);
                     break;
                 }
+            case ImageFormat.Dds:
+                {
+                    // Create image using ImageMagick, and save it as PNG format
+                    using var image = new MagickImage(_data, GetMagickDdsToPngSettings());
+                    image.Alpha(AlphaOption.Set);
+                    image.Format = MagickFormat.Png32;
+                    image.Write(stream);
+                    break;
+                }
             default:
                 throw new InvalidOperationException($"Unknown format {Format}");
         }
@@ -536,6 +644,7 @@ public GMImage ConvertToFormat(ImageFormat format, MemoryStream sharedStream = n
             ImageFormat.Png => ConvertToPng(),
             ImageFormat.Qoi => ConvertToQoi(),
             ImageFormat.Bz2Qoi => ConvertToBz2Qoi(sharedStream),
+            ImageFormat.Dds => ConvertToDds(),
             _ => throw new ArgumentOutOfRangeException(nameof(format)),
         };
     }
@@ -553,6 +662,7 @@ public GMImage ConvertToRawBgra()
                     return this;
                 }
             case ImageFormat.Png:
+            case ImageFormat.Dds:
                 {
                     // Convert image to raw byte array
                     var image = new MagickImage(_data);
@@ -632,6 +742,14 @@ public GMImage ConvertToPng()
                     // Convert raw image to PNG
                     return rawImage.ConvertToPng();
                 }
+            case ImageFormat.Dds:
+                {
+                    // Create image using ImageMagick, and convert it to PNG format
+                    using var image = new MagickImage(_data, GetMagickDdsToPngSettings());
+                    image.Alpha(AlphaOption.Set);
+                    image.Format = MagickFormat.Png32;
+                    return new GMImage(ImageFormat.Png, Width, Height, image.ToByteArray());
+                }
         }
 
         throw new InvalidOperationException($"Unknown source format {Format}");
@@ -647,6 +765,7 @@ public GMImage ConvertToQoi()
             case ImageFormat.RawBgra:
             case ImageFormat.Png:
             case ImageFormat.Bz2Qoi:
+            case ImageFormat.Dds:
                 {
                     // Encode image as QOI
                     return new GMImage(ImageFormat.Qoi, Width, Height, QoiConverter.GetArrayFromImage(this, false));
@@ -706,6 +825,7 @@ public GMImage ConvertToBz2Qoi(MemoryStream sharedStream = null)
         {
             case ImageFormat.RawBgra:
             case ImageFormat.Png:
+            case ImageFormat.Dds:
                 {
                     // Encode image as QOI, first
                     byte[] data = QoiConverter.GetArrayFromImage(this, false);
@@ -726,6 +846,17 @@ public GMImage ConvertToBz2Qoi(MemoryStream sharedStream = null)
         throw new InvalidOperationException($"Unknown source format {Format}");
     }
 
+    /// <summary>
+    /// Same as <see cref="ConvertToPng"/>.
+    /// </summary>
+    /// <remarks>This is supposd to return the image converted to <see cref="ImageFormat.Dds"/> format, but that's not implemented yet.</remarks>
+    /// <returns></returns>
+    public GMImage ConvertToDds()
+    {
+        // TODO: Actually convert to DDS
+        return ConvertToPng();
+    }
+
     /// <summary>
     /// Returns the raw BGRA32 pixel data of this image, which can be modified.
     /// </summary>
@@ -756,6 +887,7 @@ public void WriteToBinaryWriter(BinaryWriter writer, bool gm2022_5)
             case ImageFormat.RawBgra:
             case ImageFormat.Png:
             case ImageFormat.Qoi:
+            case ImageFormat.Dds:
                 // Data is stored identically to file format, so write it verbatim
                 writer.Write(_data);
                 break;
@@ -843,6 +975,16 @@ public MagickImage GetMagickImage()
             case ImageFormat.Bz2Qoi:
                 // Convert to raw data, then parse that
                 return ConvertToRawBgra().GetMagickImage();
+            case ImageFormat.Dds:
+                {
+                    // Parse the DDS data
+                    MagickReadSettings settings = new()
+                    {
+                        Format = MagickFormat.Dds
+                    };
+                    MagickImage image = new(_data, settings);
+                    return image;
+                }
         }
 
         throw new InvalidOperationException($"Unknown format {Format}");
diff --git a/UndertaleModTool/Editors/UndertaleEmbeddedTextureEditor.xaml.cs b/UndertaleModTool/Editors/UndertaleEmbeddedTextureEditor.xaml.cs
index 8950e0885..631e36e96 100644
--- a/UndertaleModTool/Editors/UndertaleEmbeddedTextureEditor.xaml.cs
+++ b/UndertaleModTool/Editors/UndertaleEmbeddedTextureEditor.xaml.cs
@@ -1,28 +1,20 @@
-using Microsoft.Win32;
-using System;
-using System.Collections.Generic;
+using System;
+using System.ComponentModel;
+using System.Globalization;
 using System.IO;
 using System.Linq;
-using System.Text;
-using System.Threading.Tasks;
 using System.Windows;
 using System.Windows.Controls;
 using System.Windows.Data;
-using System.Windows.Documents;
 using System.Windows.Input;
 using System.Windows.Media;
 using System.Windows.Media.Imaging;
-using System.Windows.Navigation;
-using System.Windows.Shapes;
-using System.Drawing;
+using System.Windows.Threading;
+using ImageMagick;
+using Microsoft.Win32;
 using UndertaleModLib.Models;
 using UndertaleModLib.Util;
-using System.Globalization;
-using UndertaleModLib;
 using UndertaleModTool.Windows;
-using System.Windows.Threading;
-using ImageMagick;
-using System.ComponentModel;
 
 namespace UndertaleModTool
 {
@@ -252,9 +244,19 @@ private void Import_Click(object sender, RoutedEventArgs e)
                         mainWindow.ShowWarning("WARNING: Texture page dimensions are not powers of 2. Sprite blurring is very likely in-game.", "Unexpected texture dimensions");
                     }
 
+                    var previousFormat = target.TextureData.Image.Format;
+
                     // Import image
                     target.TextureData.Image = image;
 
+                    var currentFormat = target.TextureData.Image.Format;
+
+                    // If texture was DDS, warn user that texture has been converted to PNG
+                    if (previousFormat == GMImage.ImageFormat.Dds && currentFormat == GMImage.ImageFormat.Png)
+                    {
+                        mainWindow.ShowMessage($"{target} was converted into PNG format since we don't support converting images into DDS format. This might have performance issues in the game.");
+                    }
+
                     // Update width/height properties in the UI
                     TexWidth.GetBindingExpression(TextBox.TextProperty)?.UpdateTarget();
                     TexHeight.GetBindingExpression(TextBox.TextProperty)?.UpdateTarget();
diff --git a/UndertaleModTool/Editors/UndertaleTexturePageItemEditor.xaml.cs b/UndertaleModTool/Editors/UndertaleTexturePageItemEditor.xaml.cs
index 1724def29..102598fa6 100644
--- a/UndertaleModTool/Editors/UndertaleTexturePageItemEditor.xaml.cs
+++ b/UndertaleModTool/Editors/UndertaleTexturePageItemEditor.xaml.cs
@@ -1,15 +1,15 @@
-using Microsoft.Win32;
-using System;
+using System;
+using System.ComponentModel;
 using System.Windows;
-using UndertaleModLib.Models;
-using UndertaleModLib.Util;
 using System.Windows.Controls;
-using System.Windows.Media;
 using System.Windows.Data;
-using UndertaleModTool.Windows;
-using ImageMagick;
+using System.Windows.Media;
 using System.Windows.Media.Imaging;
-using System.ComponentModel;
+using ImageMagick;
+using Microsoft.Win32;
+using UndertaleModLib.Models;
+using UndertaleModLib.Util;
+using UndertaleModTool.Windows;
 
 namespace UndertaleModTool
 {
@@ -150,8 +150,19 @@ private void Import_Click(object sender, RoutedEventArgs e)
             {
                 using MagickImage image = TextureWorker.ReadBGRAImageFromFile(dlg.FileName);
                 UndertaleTexturePageItem item = DataContext as UndertaleTexturePageItem;
+
+                var previousFormat = item.TexturePage.TextureData.Image.Format;
+
                 item.ReplaceTexture(image);
 
+                var currentFormat = item.TexturePage.TextureData.Image.Format;
+
+                // If texture was DDS, warn user that texture has been converted to PNG
+                if (previousFormat == GMImage.ImageFormat.Dds && currentFormat == GMImage.ImageFormat.Png)
+                {
+                    mainWindow.ShowMessage($"{item.TexturePage} was converted into PNG format since we don't support converting images into DDS format. This might have performance issues in the game.");
+                }
+
                 // Refresh the image of "ItemDisplay"
                 if (ItemDisplay.FindName("RenderAreaBorder") is not Border border)
                     return;