diff --git a/demo/main.fnl b/demo/main.fnl
index 51543c1..7c025af 100644
--- a/demo/main.fnl
+++ b/demo/main.fnl
@@ -26,11 +26,11 @@
     (pxl8.transition_start transition)))
 
 (global init (fn []
-  (cube3d.init)
-  (worldgen.init)
   (pxl8.load_palette "res/sprites/pxl8_logo.ase")
   (set logo-sprite (pxl8.load_sprite "res/sprites/pxl8_logo.ase"))
-  (set particles (pxl8.particles_new 1000))))
+  (set particles (pxl8.particles_new 1000))
+  (cube3d.init)
+  (worldgen.init)))
 
 (global update (fn [dt]
   (set time (+ time dt))
diff --git a/demo/mod/worldgen.fnl b/demo/mod/worldgen.fnl
index a99f0c3..b05d013 100644
--- a/demo/mod/worldgen.fnl
+++ b/demo/mod/worldgen.fnl
@@ -10,7 +10,7 @@
 (var cam-z 1000)
 (local cell-size 64)
 (local gravity -800)
-(local grid-size 32)
+(local grid-size 64)
 (var grounded? true)
 (local ground-y 64)
 (local jump-force 175)
@@ -24,18 +24,20 @@
 (local turn-speed 2.0)
 (var velocity-y 0)
 (var world nil)
+(var auto-run? false)
 
 (fn init []
   (set world (pxl8.world_new))
   (let [result (pxl8.world_generate world {
-                 :type pxl8.PROCGEN_CAVE
-                 :width 32
-                 :height 32
+                 :type pxl8.PROCGEN_ROOMS
+                 :width 64
+                 :height 64
                  :seed 42
-                 :density 0.45
-                 :iterations 4})]
+                 :min_room_size 5
+                 :max_room_size 10
+                 :num_rooms 20})]
     (if (< result 0)
-        (pxl8.error (.. "Failed to generate cave - result: " result))
+        (pxl8.error (.. "Failed to generate rooms - result: " result))
         (let [floor-tex (pxl8.procgen_tex {:name "floor"
                                            :seed 11111
                                            :width 64
@@ -73,6 +75,9 @@
   (when (pxl8.key_pressed "escape")
     (set mouse-look? (not mouse-look?)))
 
+  (when (pxl8.key_pressed "`")
+    (set auto-run? (not auto-run?)))
+
   (when (pxl8.world_is_loaded world)
     (let [forward-x (- (math.sin cam-yaw))
           forward-z (- (math.cos cam-yaw))
@@ -85,7 +90,7 @@
       (var move-forward 0)
       (var move-right 0)
 
-      (when (pxl8.key_down "w")
+      (when (or (pxl8.key_down "w") auto-run?)
         (set move-forward (+ move-forward 1)))
 
       (when (pxl8.key_down "s")
diff --git a/src/lua/pxl8.lua b/src/lua/pxl8.lua
index 3e6a97b..c1174a2 100644
--- a/src/lua/pxl8.lua
+++ b/src/lua/pxl8.lua
@@ -135,8 +135,7 @@ pxl8.world_is_loaded = world.is_loaded
 pxl8.world_generate = world.generate
 pxl8.world_apply_textures = world.apply_textures
 pxl8.procgen_tex = world.procgen_tex
-pxl8.PROCGEN_CAVE = world.PROCGEN_CAVE
-pxl8.PROCGEN_DUNGEON = world.PROCGEN_DUNGEON
+pxl8.PROCGEN_ROOMS = world.PROCGEN_ROOMS
 pxl8.PROCGEN_TERRAIN = world.PROCGEN_TERRAIN
 
 pxl8.transition_create = transition.create
diff --git a/src/lua/pxl8/world.lua b/src/lua/pxl8/world.lua
index c0b7296..f86e4f3 100644
--- a/src/lua/pxl8/world.lua
+++ b/src/lua/pxl8/world.lua
@@ -4,8 +4,7 @@ local core = require("pxl8.core")
 
 local world = {}
 
-world.PROCGEN_CAVE = C.PXL8_PROCGEN_CAVE
-world.PROCGEN_DUNGEON = C.PXL8_PROCGEN_DUNGEON
+world.PROCGEN_ROOMS = C.PXL8_PROCGEN_ROOMS
 world.PROCGEN_TERRAIN = C.PXL8_PROCGEN_TERRAIN
 
 function world.new()
@@ -35,14 +34,14 @@ end
 
 function world.generate(w, params)
     local c_params = ffi.new("pxl8_procgen_params")
-    c_params.type = params.type or C.PXL8_PROCGEN_CAVE
+    c_params.type = params.type or C.PXL8_PROCGEN_ROOMS
     c_params.width = params.width or 32
     c_params.height = params.height or 32
     c_params.depth = params.depth or 0
     c_params.seed = params.seed or 0
-    c_params.density = params.density or 0.45
-    c_params.iterations = params.iterations or 4
-    c_params.type_params = nil
+    c_params.min_room_size = params.min_room_size or 5
+    c_params.max_room_size = params.max_room_size or 10
+    c_params.num_rooms = params.num_rooms or 8
     return C.pxl8_world_generate(w, core.gfx, c_params)
 end
 
diff --git a/src/pxl8_io.c b/src/pxl8_io.c
index 7d63133..75d515c 100644
--- a/src/pxl8_io.c
+++ b/src/pxl8_io.c
@@ -116,7 +116,7 @@ static i32 pxl8_key_code(const char* key_name) {
         {"1", 30}, {"2", 31}, {"3", 32}, {"4", 33}, {"5", 34},
         {"6", 35}, {"7", 36}, {"8", 37}, {"9", 38}, {"0", 39},
         {"return", 40}, {"escape", 41}, {"backspace", 42}, {"tab", 43}, {"space", 44},
-        {"-", 45}, {"=", 46},
+        {"-", 45}, {"=", 46}, {"`", 53},
         {"left", 80}, {"right", 79}, {"up", 82}, {"down", 81},
         {"f1", 58}, {"f2", 59}, {"f3", 60}, {"f4", 61}, {"f5", 62}, {"f6", 63},
         {"f7", 64}, {"f8", 65}, {"f9", 66}, {"f10", 67}, {"f11", 68}, {"f12", 69},
diff --git a/src/pxl8_procgen.c b/src/pxl8_procgen.c
index 1c6ce2a..96f5e01 100644
--- a/src/pxl8_procgen.c
+++ b/src/pxl8_procgen.c
@@ -5,11 +5,11 @@
 
 #include "pxl8_macros.h"
 
-typedef struct cave_grid {
+typedef struct room_grid {
     u8* cells;
     i32 width;
     i32 height;
-} cave_grid;
+} room_grid;
 
 static u32 prng_state = 0;
 
@@ -24,11 +24,7 @@ static u32 prng_next(void) {
     return prng_state;
 }
 
-static f32 prng_float(void) {
-    return (f32)prng_next() / (f32)0xFFFFFFFF;
-}
-
-static bool cave_grid_init(cave_grid* grid, i32 width, i32 height) {
+static bool room_grid_init(room_grid* grid, i32 width, i32 height) {
     grid->width = width;
     grid->height = height;
     grid->cells = calloc(width * height, sizeof(u8));
@@ -36,33 +32,20 @@ static bool cave_grid_init(cave_grid* grid, i32 width, i32 height) {
     return grid->cells != NULL;
 }
 
-static u8 cave_grid_get(const cave_grid* grid, i32 x, i32 y) {
+static u8 room_grid_get(const room_grid* grid, i32 x, i32 y) {
     if (x < 0 || x >= grid->width || y < 0 || y >= grid->height) {
         return 1;
     }
     return grid->cells[y * grid->width + x];
 }
 
-static void cave_grid_set(cave_grid* grid, i32 x, i32 y, u8 value) {
+static void room_grid_set(room_grid* grid, i32 x, i32 y, u8 value) {
     if (x < 0 || x >= grid->width || y < 0 || y >= grid->height) {
         return;
     }
     grid->cells[y * grid->width + x] = value;
 }
 
-static i32 cave_grid_count_neighbors(const cave_grid* grid, i32 x, i32 y) {
-    i32 count = 0;
-    for (i32 dy = -1; dy <= 1; dy++) {
-        for (i32 dx = -1; dx <= 1; dx++) {
-            if (dx == 0 && dy == 0) continue;
-            if (cave_grid_get(grid, x + dx, y + dy)) {
-                count++;
-            }
-        }
-    }
-    return count;
-}
-
 static inline void compute_face_aabb(pxl8_bsp_face* face, const pxl8_bsp_vertex* verts, u32 vert_idx) {
     face->aabb_min = (pxl8_vec3){1e30f, 1e30f, 1e30f};
     face->aabb_max = (pxl8_vec3){-1e30f, -1e30f, -1e30f};
@@ -78,43 +61,26 @@ static inline void compute_face_aabb(pxl8_bsp_face* face, const pxl8_bsp_vertex*
     }
 }
 
-static void cave_grid_initialize(cave_grid* grid, f32 density) {
+static void room_grid_fill(room_grid* grid, u8 value) {
     for (i32 y = 0; y < grid->height; y++) {
         for (i32 x = 0; x < grid->width; x++) {
-            u8 value = (prng_float() < density) ? 1 : 0;
-            cave_grid_set(grid, x, y, value);
+            room_grid_set(grid, x, y, value);
         }
     }
 }
 
-static void cave_grid_smooth(cave_grid* grid) {
-    cave_grid temp;
-    if (!cave_grid_init(&temp, grid->width, grid->height)) return;
-
-    for (i32 y = 0; y < grid->height; y++) {
-        for (i32 x = 0; x < grid->width; x++) {
-            i32 neighbors = cave_grid_count_neighbors(grid, x, y);
-            u8 value = (neighbors > 4) ? 1 : 0;
-            cave_grid_set(&temp, x, y, value);
-        }
-    }
-
-    memcpy(grid->cells, temp.cells, grid->width * grid->height);
-    free(temp.cells);
-}
-
-static pxl8_result cave_to_bsp(pxl8_bsp* bsp, const cave_grid* grid) {
+static pxl8_result grid_to_bsp(pxl8_bsp* bsp, const room_grid* grid) {
     i32 vertex_count = 0;
     i32 face_count = 0;
     i32 floor_ceiling_count = 0;
 
     for (i32 y = 0; y < grid->height; y++) {
         for (i32 x = 0; x < grid->width; x++) {
-            if (cave_grid_get(grid, x, y) == 0) {
-                if (cave_grid_get(grid, x - 1, y) == 1) face_count++;
-                if (cave_grid_get(grid, x + 1, y) == 1) face_count++;
-                if (cave_grid_get(grid, x, y - 1) == 1) face_count++;
-                if (cave_grid_get(grid, x, y + 1) == 1) face_count++;
+            if (room_grid_get(grid, x, y) == 0) {
+                if (room_grid_get(grid, x - 1, y) == 1) face_count++;
+                if (room_grid_get(grid, x + 1, y) == 1) face_count++;
+                if (room_grid_get(grid, x, y - 1) == 1) face_count++;
+                if (room_grid_get(grid, x, y + 1) == 1) face_count++;
                 floor_ceiling_count++;
             }
         }
@@ -148,11 +114,11 @@ static pxl8_result cave_to_bsp(pxl8_bsp* bsp, const cave_grid* grid) {
 
     for (i32 y = 0; y < grid->height; y++) {
         for (i32 x = 0; x < grid->width; x++) {
-            if (cave_grid_get(grid, x, y) == 0) {
+            if (room_grid_get(grid, x, y) == 0) {
                 f32 fx = (f32)x * cell_size;
                 f32 fy = (f32)y * cell_size;
 
-                if (cave_grid_get(grid, x - 1, y) == 1) {
+                if (room_grid_get(grid, x - 1, y) == 1) {
                     bsp->vertices[vert_idx + 0].position = (pxl8_vec3){fx, 0, fy};
                     bsp->vertices[vert_idx + 1].position = (pxl8_vec3){fx, wall_height, fy};
                     bsp->vertices[vert_idx + 2].position = (pxl8_vec3){fx, wall_height, fy + cell_size};
@@ -179,7 +145,7 @@ static pxl8_result cave_to_bsp(pxl8_bsp* bsp, const cave_grid* grid) {
                     face_idx++;
                 }
 
-                if (cave_grid_get(grid, x + 1, y) == 1) {
+                if (room_grid_get(grid, x + 1, y) == 1) {
                     bsp->vertices[vert_idx + 0].position = (pxl8_vec3){fx + cell_size, 0, fy};
                     bsp->vertices[vert_idx + 1].position = (pxl8_vec3){fx + cell_size, 0, fy + cell_size};
                     bsp->vertices[vert_idx + 2].position = (pxl8_vec3){fx + cell_size, wall_height, fy + cell_size};
@@ -206,7 +172,7 @@ static pxl8_result cave_to_bsp(pxl8_bsp* bsp, const cave_grid* grid) {
                     face_idx++;
                 }
 
-                if (cave_grid_get(grid, x, y - 1) == 1) {
+                if (room_grid_get(grid, x, y - 1) == 1) {
                     bsp->vertices[vert_idx + 0].position = (pxl8_vec3){fx, 0, fy};
                     bsp->vertices[vert_idx + 1].position = (pxl8_vec3){fx + cell_size, 0, fy};
                     bsp->vertices[vert_idx + 2].position = (pxl8_vec3){fx + cell_size, wall_height, fy};
@@ -233,7 +199,7 @@ static pxl8_result cave_to_bsp(pxl8_bsp* bsp, const cave_grid* grid) {
                     face_idx++;
                 }
 
-                if (cave_grid_get(grid, x, y + 1) == 1) {
+                if (room_grid_get(grid, x, y + 1) == 1) {
                     bsp->vertices[vert_idx + 0].position = (pxl8_vec3){fx, 0, fy + cell_size};
                     bsp->vertices[vert_idx + 1].position = (pxl8_vec3){fx, wall_height, fy + cell_size};
                     bsp->vertices[vert_idx + 2].position = (pxl8_vec3){fx + cell_size, wall_height, fy + cell_size};
@@ -265,7 +231,7 @@ static pxl8_result cave_to_bsp(pxl8_bsp* bsp, const cave_grid* grid) {
 
     for (i32 y = 0; y < grid->height; y++) {
         for (i32 x = 0; x < grid->width; x++) {
-            if (cave_grid_get(grid, x, y) == 0) {
+            if (room_grid_get(grid, x, y) == 0) {
                 f32 fx = (f32)x * cell_size;
                 f32 fy = (f32)y * cell_size;
 
@@ -349,21 +315,96 @@ static pxl8_result cave_to_bsp(pxl8_bsp* bsp, const cave_grid* grid) {
     return PXL8_OK;
 }
 
-static pxl8_result procgen_cave(pxl8_bsp* bsp, const pxl8_procgen_params* params) {
+static bool bounds_intersects(const pxl8_bounds* a, const pxl8_bounds* b) {
+    return !(a->x + a->w <= b->x || b->x + b->w <= a->x ||
+             a->y + a->h <= b->y || b->y + b->h <= a->y);
+}
+
+static void carve_corridor_h(room_grid* grid, i32 x1, i32 x2, i32 y) {
+    i32 start = (x1 < x2) ? x1 : x2;
+    i32 end = (x1 > x2) ? x1 : x2;
+    for (i32 x = start; x <= end; x++) {
+        room_grid_set(grid, x, y, 0);
+        room_grid_set(grid, x, y - 1, 0);
+        room_grid_set(grid, x, y + 1, 0);
+    }
+}
+
+static void carve_corridor_v(room_grid* grid, i32 y1, i32 y2, i32 x) {
+    i32 start = (y1 < y2) ? y1 : y2;
+    i32 end = (y1 > y2) ? y1 : y2;
+    for (i32 y = start; y <= end; y++) {
+        room_grid_set(grid, x, y, 0);
+        room_grid_set(grid, x - 1, y, 0);
+        room_grid_set(grid, x + 1, y, 0);
+    }
+}
+
+static pxl8_result procgen_rooms(pxl8_bsp* bsp, const pxl8_procgen_params* params) {
+    pxl8_debug("procgen_rooms called: %dx%d, seed=%u, min=%d, max=%d, num=%d",
+               params->width, params->height, params->seed,
+               params->min_room_size, params->max_room_size, params->num_rooms);
+
     prng_seed(params->seed);
 
-    cave_grid grid;
-    if (!cave_grid_init(&grid, params->width, params->height)) {
+    room_grid grid;
+    if (!room_grid_init(&grid, params->width, params->height)) {
+        pxl8_error("Failed to allocate room grid");
         return PXL8_ERROR_OUT_OF_MEMORY;
     }
 
-    cave_grid_initialize(&grid, params->density);
+    room_grid_fill(&grid, 1);
 
-    for (i32 i = 0; i < params->iterations; i++) {
-        cave_grid_smooth(&grid);
+    pxl8_bounds rooms[256];
+    i32 room_count = 0;
+    i32 max_attempts = params->num_rooms * 10;
+
+    for (i32 attempt = 0; attempt < max_attempts && room_count < params->num_rooms && room_count < 256; attempt++) {
+        i32 w = params->min_room_size + (prng_next() % (params->max_room_size - params->min_room_size + 1));
+        i32 h = params->min_room_size + (prng_next() % (params->max_room_size - params->min_room_size + 1));
+        i32 x = 1 + (prng_next() % (params->width - w - 2));
+        i32 y = 1 + (prng_next() % (params->height - h - 2));
+
+        pxl8_bounds new_room = {x, y, w, h};
+
+        bool overlaps = false;
+        for (i32 i = 0; i < room_count; i++) {
+            if (bounds_intersects(&new_room, &rooms[i])) {
+                overlaps = true;
+                break;
+            }
+        }
+
+        if (!overlaps) {
+            for (i32 ry = y; ry < y + h; ry++) {
+                for (i32 rx = x; rx < x + w; rx++) {
+                    room_grid_set(&grid, rx, ry, 0);
+                }
+            }
+
+            if (room_count > 0) {
+                i32 new_cx = x + w / 2;
+                i32 new_cy = y + h / 2;
+                i32 prev_cx = rooms[room_count - 1].x + rooms[room_count - 1].w / 2;
+                i32 prev_cy = rooms[room_count - 1].y + rooms[room_count - 1].h / 2;
+
+                if (prng_next() % 2 == 0) {
+                    carve_corridor_h(&grid, prev_cx, new_cx, prev_cy);
+                    carve_corridor_v(&grid, prev_cy, new_cy, new_cx);
+                } else {
+                    carve_corridor_v(&grid, prev_cy, new_cy, prev_cx);
+                    carve_corridor_h(&grid, prev_cx, new_cx, new_cy);
+                }
+            }
+
+            rooms[room_count++] = new_room;
+        }
     }
 
-    pxl8_result result = cave_to_bsp(bsp, &grid);
+    pxl8_debug("Room generation: %dx%d grid -> %d rooms created",
+               params->width, params->height, room_count);
+
+    pxl8_result result = grid_to_bsp(bsp, &grid);
     free(grid.cells);
 
     return result;
@@ -375,12 +416,8 @@ pxl8_result pxl8_procgen(pxl8_bsp* bsp, const pxl8_procgen_params* params) {
     }
 
     switch (params->type) {
-        case PXL8_PROCGEN_CAVE:
-            return procgen_cave(bsp, params);
-
-        case PXL8_PROCGEN_DUNGEON:
-            pxl8_error("Dungeon generation not yet implemented");
-            return PXL8_ERROR_NOT_INITIALIZED;
+        case PXL8_PROCGEN_ROOMS:
+            return procgen_rooms(bsp, params);
 
         case PXL8_PROCGEN_TERRAIN:
             pxl8_error("Terrain generation not yet implemented");
diff --git a/src/pxl8_procgen.h b/src/pxl8_procgen.h
index 01fc15a..a887eb1 100644
--- a/src/pxl8_procgen.h
+++ b/src/pxl8_procgen.h
@@ -4,8 +4,7 @@
 #include "pxl8_types.h"
 
 typedef enum pxl8_procgen_type {
-    PXL8_PROCGEN_CAVE,
-    PXL8_PROCGEN_DUNGEON,
+    PXL8_PROCGEN_ROOMS,
     PXL8_PROCGEN_TERRAIN
 } pxl8_procgen_type;
 
@@ -17,22 +16,10 @@ typedef struct pxl8_procgen_params {
     i32 depth;
     u32 seed;
 
-    f32 density;
-    i32 iterations;
-
-    void* type_params;
-} pxl8_procgen_params;
-
-typedef struct pxl8_procgen_cave_params {
-    i32 min_cave_size;
-} pxl8_procgen_cave_params;
-
-typedef struct pxl8_procgen_dungeon_params {
-    i32 room_count;
     i32 min_room_size;
     i32 max_room_size;
-    i32 corridor_width;
-} pxl8_procgen_dungeon_params;
+    i32 num_rooms;
+} pxl8_procgen_params;
 
 typedef struct pxl8_procgen_tex_params {
     char name[16];
diff --git a/src/pxl8_script.c b/src/pxl8_script.c
index 36d56c1..260a268 100644
--- a/src/pxl8_script.c
+++ b/src/pxl8_script.c
@@ -255,9 +255,8 @@ static const char* pxl8_ffi_cdefs =
 "pxl8_mat4 pxl8_mat4_translate(float x, float y, float z);\n"
 "\n"
 "typedef enum pxl8_procgen_type {\n"
-"    PXL8_PROCGEN_CAVE = 0,\n"
-"    PXL8_PROCGEN_DUNGEON = 1,\n"
-"    PXL8_PROCGEN_TERRAIN = 2\n"
+"    PXL8_PROCGEN_ROOMS = 0,\n"
+"    PXL8_PROCGEN_TERRAIN = 1\n"
 "} pxl8_procgen_type;\n"
 "\n"
 "typedef struct pxl8_procgen_params {\n"
@@ -266,9 +265,9 @@ static const char* pxl8_ffi_cdefs =
 "    int height;\n"
 "    int depth;\n"
 "    unsigned int seed;\n"
-"    float density;\n"
-"    int iterations;\n"
-"    void* type_params;\n"
+"    int min_room_size;\n"
+"    int max_room_size;\n"
+"    int num_rooms;\n"
 "} pxl8_procgen_params;\n"
 "\n"
 "typedef struct pxl8_procgen_tex_params {\n"
diff --git a/src/pxl8_world.c b/src/pxl8_world.c
index 23a610f..38047f2 100644
--- a/src/pxl8_world.c
+++ b/src/pxl8_world.c
@@ -38,7 +38,12 @@ void pxl8_world_destroy(pxl8_world* world) {
 }
 
 pxl8_result pxl8_world_generate(pxl8_world* world, pxl8_gfx* gfx, const pxl8_procgen_params* params) {
-    if (!world || !gfx || !params) return PXL8_ERROR_INVALID_ARGUMENT;
+    pxl8_debug("pxl8_world_generate called");
+
+    if (!world || !gfx || !params) {
+        pxl8_error("Invalid arguments to pxl8_world_generate");
+        return PXL8_ERROR_INVALID_ARGUMENT;
+    }
 
     if (world->loaded) {
         pxl8_bsp_destroy(&world->bsp);
@@ -49,11 +54,12 @@ pxl8_result pxl8_world_generate(pxl8_world* world, pxl8_gfx* gfx, const pxl8_pro
 
     pxl8_result result = pxl8_procgen(&world->bsp, params);
     if (result != PXL8_OK) {
-        pxl8_error("Failed to generate world");
+        pxl8_error("Failed to generate world: %d", result);
         pxl8_bsp_destroy(&world->bsp);
         return result;
     }
 
+    pxl8_debug("World generation succeeded, setting loaded=true");
     world->loaded = true;
     return PXL8_OK;
 }