diff --git a/entities.py b/entities.py
new file mode 100644
index 0000000..5023e5c
--- /dev/null
+++ b/entities.py
@@ -0,0 +1,88 @@
+import logging
+
+from langchain_core.messages import HumanMessage, SystemMessage
+
+from llm_runtime import _format_prompt, _normalize_llm_output, llm
+from memory import EntityMemory, MemoryEntry
+from time_utils import WorldClock
+
+logger = logging.getLogger(__name__)
+
+
+class Entity:
+    def __init__(
+        self,
+        name,
+        traits,
+        stats,
+        voice_sample,
+        current_mood="Neutral",
+        entity_id=None,
+    ):
+        self.name = name
+        self.traits = traits
+        self.stats = stats
+        self.current_mood = current_mood
+        self.memory = EntityMemory()
+        # TIER 1: The Short-Term Buffer (Verbatim)
+        self.chat_buffer = []
+        self.voice_sample = voice_sample
+        self.entity_id = entity_id
+
+    def perceive(self, entry: MemoryEntry):
+        self.memory.save(entry)
+
+    def reflect_and_summarize(self, world_clock: WorldClock, location: str):
+        """Converts Tier 1 (Buffer) into Tier 2 (Long-term Subjective Memory)."""
+        if not self.chat_buffer:
+            return
+
+        dialogue_text = "\n".join(
+            [f"{m['role_name']}: {m['content']}" for m in self.chat_buffer]
+        )
+
+        # The Subjective Filter Prompt
+        summary_prompt = [
+            SystemMessage(
+                content=f"""
+You are the private inner thoughts of {self.name}.
+Traits: {", ".join(self.traits)}.
+Mood: {self.current_mood}.
+Voice Reference: {self.voice_sample}
+                
+Think about what just happened.
+- No META-TALK, Do not use 'player', 'interaction', 'entity', or 'dialogue'
+- BE SUBJECTIVE. If you hated the talk or loved it, then express that.
+- USE YOUR VOICE. Match the style of your Voice Reference
+- Focus only on facts learned or feelings toward the person"""
+            ),
+            HumanMessage(
+                content=f"""
+What just happened? Context:\n{dialogue_text}"""
+            ),
+        ]
+
+        logger.info("LLM prompt (reflection):\n%s", _format_prompt(summary_prompt))
+        summary = _normalize_llm_output(llm.invoke(summary_prompt).content)
+        logger.info("SYSTEM: %s reflected on the talk: '%s'", self.name, summary)
+
+        chat_entities = sorted(
+            {
+                m["role_id"]
+                for m in self.chat_buffer
+                if m.get("role_id") and m.get("role_id") != self.entity_id
+            }
+        )
+        reflection = MemoryEntry(
+            content=f"Past Conversation Summary: {summary}",
+            event_type="reflection",
+            timestamp_str=world_clock.get_time_str(),
+            location=location,
+            entities=chat_entities,
+        )
+        self.perceive(reflection)
+        self.chat_buffer = []  # Clear buffer after archiving
+
+
+class Player(Entity):
+    pass
diff --git a/game_loop.py b/game_loop.py
new file mode 100644
index 0000000..3762b46
--- /dev/null
+++ b/game_loop.py
@@ -0,0 +1,77 @@
+import logging
+
+from entities import Player
+from interaction import ask_entity
+from time_utils import WorldClock
+
+logger = logging.getLogger(__name__)
+
+
+def _build_name_lookup(entities):
+    name_lookup = {}
+    for entity_key, entity in entities.items():
+        name_lookup[entity_key.lower()] = entity_key
+        name_lookup[entity.name.lower()] = entity_key
+    return name_lookup
+
+
+def start_game(entities, player_id=None, world_time=None, location="Unknown"):
+    player = None
+    if player_id:
+        player = entities.get(player_id)
+        if player is None:
+            raise ValueError(f"Player entity '{player_id}' not found in scenario.")
+    else:
+        player = Player(
+            name="Player",
+            traits=["Curious"],
+            stats={},
+            voice_sample="Voice: 'Direct and concise.'",
+            entity_id="player",
+        )
+
+    available_entities = {
+        entity_id: entity
+        for entity_id, entity in entities.items()
+        if entity_id != player_id
+    }
+
+    world_clock = WorldClock.from_time_str(world_time)
+    current_entity = None
+    name_lookup = _build_name_lookup(available_entities)
+    entity_names = "/".join(
+        [entity.name for entity in available_entities.values()] + ["Exit"]
+    )
+    logger.info("--- WORLD INITIALIZED ---")
+    logger.info("World initialized with %s active entities.", len(available_entities))
+    logger.info("Current location: %s", location)
+    logger.info(
+        "World time: %s (%s)", world_clock.get_time_str(), world_clock.get_vibe()
+    )
+
+    while True:
+        target_name = (
+            input(f"\nWho do you want to talk to? ({entity_names}): ").lower().strip()
+        )
+
+        if target_name in ["exit", "quit"]:
+            if current_entity:
+                current_entity.reflect_and_summarize(world_clock, location)
+            break
+
+        target_key = name_lookup.get(target_name)
+        if target_key is None:
+            logger.warning("Target not found.")
+            continue
+
+        new_entity = available_entities[target_key]
+        if current_entity and current_entity != new_entity:
+            logger.info(
+                "You leave %s and approach %s.", current_entity.name, new_entity.name
+            )
+            current_entity.reflect_and_summarize(world_clock, location)
+
+        current_entity = new_entity
+
+        user_msg = input(f"You to {current_entity.name}: ")
+        ask_entity(current_entity, player, user_msg, world_clock, location)
diff --git a/interaction.py b/interaction.py
new file mode 100644
index 0000000..cfb0730
--- /dev/null
+++ b/interaction.py
@@ -0,0 +1,89 @@
+import logging
+
+from langchain_core.messages import HumanMessage, SystemMessage
+
+from entities import Entity
+from llm_runtime import _format_prompt, _normalize_llm_output, llm
+from time_utils import WorldClock, describe_relative_time
+
+logger = logging.getLogger(__name__)
+
+
+def ask_entity(
+    entity: Entity,
+    player: Entity,
+    player_query: str,
+    world_clock: WorldClock,
+    location: str,
+):
+    facts = entity.memory.retrieve(
+        player_query,
+        reference_time=world_clock.current_time,
+    )
+
+    recent_context = "\n".join(
+        [f"{m['role_name']}: {m['content']}" for m in entity.chat_buffer[-5:]]
+    )
+
+    world_time_label = describe_relative_time(
+        world_clock.get_time_str(),
+        world_clock.current_time,
+        prefer_day_part_for_today=True,
+    )
+
+    prompt = [
+        SystemMessage(content=f"WORLD TIME: {world_time_label}"),
+        SystemMessage(
+            content=f"""
+### ROLE
+You are {entity.name}. Persona: {", ".join(entity.traits)}.
+Current Mood: {entity.current_mood}.
+Vibe Time: {world_clock.get_vibe()}.
+Location: {location}.
+
+### WRITING STYLE RULES
+1. NO META-TALK. Never mention "memory," "records," "claims," or "narratives." 
+2. ACT, DON'T EXPLAIN. If you don't know something, just say "Never heard of it" or "I wasn't there." Do not explain WHY you don't know.
+
+### KNOWLEDGE
+MEMORIES: {facts}
+RECENT CHAT: {recent_context} 
+        """
+        ),
+        HumanMessage(content=f"{player.name} speaks to you: {player_query}"),
+    ]
+
+    logger.info("LLM prompt (dialogue):\n%s", _format_prompt(prompt))
+    response = _normalize_llm_output(llm.invoke(prompt).content)
+
+    entity.chat_buffer.append(
+        {
+            "role_id": player.entity_id,
+            "role_name": player.name,
+            "content": player_query,
+        }
+    )
+    entity.chat_buffer.append(
+        {
+            "role_id": entity.entity_id,
+            "role_name": entity.name,
+            "content": response,
+        }
+    )
+
+    player.chat_buffer.append(
+        {
+            "role_id": player.entity_id,
+            "role_name": player.name,
+            "content": player_query,
+        }
+    )
+    player.chat_buffer.append(
+        {
+            "role_id": entity.entity_id,
+            "role_name": entity.name,
+            "content": response,
+        }
+    )
+
+    logger.info("[%s]: %s", entity.name.upper(), response)
diff --git a/llm_runtime.py b/llm_runtime.py
new file mode 100644
index 0000000..8bc227a
--- /dev/null
+++ b/llm_runtime.py
@@ -0,0 +1,32 @@
+import logging
+import multiprocessing
+
+from langchain_community.chat_models import ChatLlamaCpp
+from langchain_community.embeddings import HuggingFaceEmbeddings
+
+DEFAULT_MODEL_PATH = "/home/sortedcord/.cache/huggingface/hub/models--ggml-org--gemma-4-E4B-it-GGUF/snapshots/6b352c53e1d2e4bb974d9f8cafcf85887c224219/gemma-4-e4b-it-Q4_K_M.gguf"
+
+logger = logging.getLogger(__name__)
+
+embeddings = HuggingFaceEmbeddings(model_name="all-MiniLM-L6-v2")
+
+llm = ChatLlamaCpp(
+    temperature=0.2,
+    model_path=DEFAULT_MODEL_PATH,
+    n_ctx=4096,
+    n_gpu_layers=8,
+    max_tokens=512,
+    n_threads=multiprocessing.cpu_count() - 1,
+    repeat_penalty=1.5,
+)
+
+
+def _format_prompt(messages):
+    formatted = []
+    for message in messages:
+        formatted.append(f"{message.__class__.__name__}:\n{message.content}")
+    return "\n\n".join(formatted)
+
+
+def _normalize_llm_output(text: str) -> str:
+    return text.replace("\r", "").replace("\n", "").strip()
diff --git a/main.py b/main.py
index 9d67e66..ad758a2 100644
--- a/main.py
+++ b/main.py
@@ -1,6 +1,6 @@
 from pathlib import Path
 
-from engine import start_game
+from game_loop import start_game
 from logging_setup import configure_logging
 from scenario_loader import load_scenario, save_scenario
 
diff --git a/memory.py b/memory.py
new file mode 100644
index 0000000..b4ac7d7
--- /dev/null
+++ b/memory.py
@@ -0,0 +1,80 @@
+from langchain_community.vectorstores import FAISS
+
+from llm_runtime import embeddings
+from time_utils import describe_relative_time
+
+
+class MemoryEntry:
+    def __init__(self, content, event_type, timestamp_str, location, entities):
+        self.content = content
+        self.event_type = event_type  # 'dialogue', 'observation', 'reflection'
+        self.timestamp = timestamp_str
+        self.location = location
+        self.entities = entities
+
+    def __repr__(self):
+        return f"[{self.timestamp}] ({self.location}): {self.content}"
+
+    def to_dict(self):
+        return {
+            "content": self.content,
+            "event_type": self.event_type,
+            "timestamp": self.timestamp,
+            "location": self.location,
+            "entities": list(self.entities),
+        }
+
+    def to_vector_text(self):
+        entities = ", ".join(self.entities) if self.entities else "Unknown"
+        return (
+            f"{self.content}\n"
+            f"Time: {self.timestamp}\n"
+            f"Location: {self.location}\n"
+            f"Entities: {entities}\n"
+            f"Type: {self.event_type}"
+        )
+
+    def to_relative_string(self, reference_time):
+        time_label = describe_relative_time(self.timestamp, reference_time)
+        return f"[{time_label}] ({self.location}): {self.content}"
+
+
+class EntityMemory:
+    def __init__(self):
+        self.vector_store = None
+        self.entries = []
+
+    def save(self, entry: MemoryEntry):
+        self.entries.append(entry)
+        entry_text = entry.to_vector_text()
+        if self.vector_store is None:
+            self.vector_store = FAISS.from_texts(
+                [entry_text],
+                embeddings,
+                metadatas=[{"entry_index": len(self.entries) - 1}],
+            )
+        else:
+            self.vector_store.add_texts(
+                [entry_text],
+                metadatas=[{"entry_index": len(self.entries) - 1}],
+            )
+
+    def retrieve(self, query: str, k=2, reference_time=None):
+        if self.vector_store is None:
+            return "No long-term memories relevant."
+        docs = self.vector_store.similarity_search(query, k=k)
+        memories = []
+        for doc in docs:
+            entry_index = doc.metadata.get("entry_index")
+            if entry_index is None:
+                memories.append(doc.page_content)
+                continue
+            entry = self.entries[entry_index]
+            if reference_time is None:
+                memories.append(repr(entry))
+            else:
+                memories.append(entry.to_relative_string(reference_time))
+        return "\n".join(memories)
+
+    def dump_entries(self):
+        return list(self.entries)
diff --git a/scenario_loader.py b/scenario_loader.py
index d4505c2..6ef1f8d 100644
--- a/scenario_loader.py
+++ b/scenario_loader.py
@@ -3,7 +3,8 @@ import logging
 from dataclasses import dataclass
 from pathlib import Path
 
-from engine import Entity, MemoryEntry, Player
+from entities import Entity, Player
+from memory import MemoryEntry
 
 logger = logging.getLogger(__name__)
 
diff --git a/time_utils.py b/time_utils.py
new file mode 100644
index 0000000..8900c6c
--- /dev/null
+++ b/time_utils.py
@@ -0,0 +1,96 @@
+from datetime import datetime, timedelta
+
+
+def _time_of_day_label(hour: int, *, for_today: bool) -> str:
+    if 5 <= hour < 12:
+        return "morning"
+    if 12 <= hour < 17:
+        return "afternoon"
+    return "tonight" if for_today else "night"
+
+
+def describe_relative_time(
+    timestamp_str: str,
+    reference_time: datetime,
+    *,
+    prefer_day_part_for_today: bool = False,
+) -> str:
+    try:
+        timestamp = datetime.strptime(timestamp_str, "%Y-%m-%d %H:%M")
+    except ValueError:
+        return "a long time ago"
+
+    delta = reference_time - timestamp
+    seconds = delta.total_seconds()
+    if seconds < 0:
+        return "just now"
+
+    if not prefer_day_part_for_today:
+        if seconds < 120:
+            return "just now"
+        if seconds < 15 * 60:
+            return "a few minutes ago"
+        if seconds < 90 * 60:
+            return "an hour ago"
+        if seconds < 3 * 60 * 60:
+            return "a couple hours ago"
+
+    day_diff = (reference_time.date() - timestamp.date()).days
+    if day_diff == 0:
+        return f"today {_time_of_day_label(timestamp.hour, for_today=True)}"
+    if day_diff == 1:
+        return f"yesterday {_time_of_day_label(timestamp.hour, for_today=False)}"
+    if day_diff == 2:
+        return "2 days ago"
+    if day_diff == 3:
+        return "3 days ago"
+    if day_diff <= 6:
+        return "a couple days ago"
+    if day_diff <= 10:
+        return "a week ago"
+    if day_diff <= 20:
+        return "a couple weeks ago"
+    if day_diff <= 45:
+        return "a month ago"
+    if day_diff <= 75:
+        return "a couple months ago"
+    if day_diff <= 420:
+        return "a year ago"
+    return "a long time ago"
+
+
+class WorldClock:
+    def __init__(self, start_year=1999, month=5, day=14, hour=18, minute=0):
+        # We use a standard datetime object for easy math
+        self.current_time = datetime(start_year, month, day, hour, minute)
+
+    def advance_time(self, minutes=0, hours=0, days=0):
+        self.current_time += timedelta(minutes=minutes, hours=hours, days=days)
+
+    def get_time_str(self):
+        # 1999-05-14 18:00
+        return self.current_time.strftime("%Y-%m-%d %H:%M")
+
+    def get_vibe(self):
+        """Helper to tell the LLM the 'feel' of the time."""
+        hour = self.current_time.hour
+        if 5 <= hour < 12:
+            return "Morning"
+        if 12 <= hour < 17:
+            return "Afternoon"
+        if 17 <= hour < 21:
+            return "Evening"
+        return "Night"
+
+    @classmethod
+    def from_time_str(cls, time_str: str | None):
+        if not time_str:
+            return cls()
+        parsed = datetime.strptime(time_str, "%Y-%m-%d %H:%M")
+        return cls(
+            start_year=parsed.year,
+            month=parsed.month,
+            day=parsed.day,
+            hour=parsed.hour,
+            minute=parsed.minute,
+        )