diff --git a/apps/openmw/mwrender/renderingmanager.cpp b/apps/openmw/mwrender/renderingmanager.cpp
index 7569cea1f..6b5cf460c 100644
--- a/apps/openmw/mwrender/renderingmanager.cpp
+++ b/apps/openmw/mwrender/renderingmanager.cpp
@@ -168,6 +168,7 @@ namespace MWRender
         , mFieldOfViewOverridden(false)
     {
         resourceSystem->getSceneManager()->setParticleSystemMask(MWRender::Mask_ParticleSystem);
+        resourceSystem->getSceneManager()->setShaderPath(resourcePath + "/shaders");
 
         osg::ref_ptr<SceneUtil::LightManager> sceneRoot = new SceneUtil::LightManager;
         sceneRoot->setLightingMask(Mask_Lighting);
diff --git a/components/CMakeLists.txt b/components/CMakeLists.txt
index 0ac32f65e..2508cdc82 100644
--- a/components/CMakeLists.txt
+++ b/components/CMakeLists.txt
@@ -44,6 +44,10 @@ add_component_dir (resource
     scenemanager keyframemanager imagemanager bulletshapemanager bulletshape niffilemanager objectcache multiobjectcache resourcesystem resourcemanager
     )
 
+add_component_dir (shader
+    shadermanager shadervisitor
+    )
+
 add_component_dir (sceneutil
     clone attach visitor util statesetupdater controller skeleton riggeometry lightcontroller
     lightmanager lightutil positionattitudetransform workqueue unrefqueue
diff --git a/components/resource/scenemanager.cpp b/components/resource/scenemanager.cpp
index e78cc7cb2..f4846a8a0 100644
--- a/components/resource/scenemanager.cpp
+++ b/components/resource/scenemanager.cpp
@@ -22,6 +22,9 @@
 #include <components/sceneutil/util.hpp>
 #include <components/sceneutil/controller.hpp>
 
+#include <components/shader/shadervisitor.hpp>
+#include <components/shader/shadermanager.hpp>
+
 #include "imagemanager.hpp"
 #include "niffilemanager.hpp"
 #include "objectcache.hpp"
@@ -205,6 +208,7 @@ namespace Resource
 
     SceneManager::SceneManager(const VFS::Manager *vfs, Resource::ImageManager* imageManager, Resource::NifFileManager* nifFileManager)
         : ResourceManager(vfs)
+        , mShaderManager(new Shader::ShaderManager)
         , mInstanceCache(new MultiObjectCache)
         , mImageManager(imageManager)
         , mNifFileManager(nifFileManager)
@@ -221,6 +225,11 @@ namespace Resource
         // this has to be defined in the .cpp file as we can't delete incomplete types
     }
 
+    void SceneManager::setShaderPath(const std::string &path)
+    {
+        mShaderManager->setShaderPath(path);
+    }
+
     /// @brief Callback to read image files from the VFS.
     class ImageReadCallback : public osgDB::ReadFileCallback
     {
@@ -329,6 +338,9 @@ namespace Resource
             SetFilterSettingsControllerVisitor setFilterSettingsControllerVisitor(mMinFilter, mMagFilter, mMaxAnisotropy);
             loaded->accept(setFilterSettingsControllerVisitor);
 
+            Shader::ShaderVisitor shaderVisitor(*mShaderManager.get(), "objects_vertex.glsl", "objects_fragment.glsl");
+            loaded->accept(shaderVisitor);
+
             // share state
             mSharedStateMutex.lock();
             osgDB::Registry::instance()->getOrCreateSharedStateManager()->share(loaded.get());
diff --git a/components/resource/scenemanager.hpp b/components/resource/scenemanager.hpp
index 987b7898e..d86c746d7 100644
--- a/components/resource/scenemanager.hpp
+++ b/components/resource/scenemanager.hpp
@@ -3,6 +3,7 @@
 
 #include <string>
 #include <map>
+#include <memory>
 
 #include <osg/ref_ptr>
 #include <osg/Node>
@@ -21,6 +22,11 @@ namespace osgUtil
     class IncrementalCompileOperation;
 }
 
+namespace Shader
+{
+    class ShaderManager;
+}
+
 namespace Resource
 {
 
@@ -34,6 +40,8 @@ namespace Resource
         SceneManager(const VFS::Manager* vfs, Resource::ImageManager* imageManager, Resource::NifFileManager* nifFileManager);
         ~SceneManager();
 
+        void setShaderPath(const std::string& path);
+
         /// Get a read-only copy of this scene "template"
         /// @note If the given filename does not exist or fails to load, an error marker mesh will be used instead.
         ///  If even the error marker mesh can not be found, an exception is thrown.
@@ -97,6 +105,7 @@ namespace Resource
 
         osg::ref_ptr<osg::Node> createInstance(const std::string& name);
 
+        std::auto_ptr<Shader::ShaderManager> mShaderManager;
         osg::ref_ptr<MultiObjectCache> mInstanceCache;
 
         OpenThreads::Mutex mSharedStateMutex;
diff --git a/components/shader/shadermanager.cpp b/components/shader/shadermanager.cpp
new file mode 100644
index 000000000..fc9a1f722
--- /dev/null
+++ b/components/shader/shadermanager.cpp
@@ -0,0 +1,81 @@
+#include "shadermanager.hpp"
+
+#include <fstream>
+#include <iostream>
+
+#include <boost/lexical_cast.hpp>
+#include <boost/filesystem/path.hpp>
+#include <boost/filesystem/fstream.hpp>
+
+#include <OpenThreads/ScopedLock>
+
+namespace Shader
+{
+
+    void ShaderManager::setShaderPath(const std::string &path)
+    {
+        mPath = path;
+    }
+
+    osg::ref_ptr<osg::Shader> ShaderManager::getShader(const std::string &shaderTemplate, const ShaderManager::DefineMap &defines, osg::Shader::Type shaderType)
+    {
+        OpenThreads::ScopedLock<OpenThreads::Mutex> lock(mMutex);
+
+        // read the template if we haven't already
+        TemplateMap::iterator templateIt = mShaderTemplates.find(shaderTemplate);
+        if (templateIt == mShaderTemplates.end())
+        {
+            boost::filesystem::path p = (boost::filesystem::path(mPath) / shaderTemplate);
+            boost::filesystem::ifstream stream;
+            stream.open(p);
+            if (stream.fail())
+            {
+                std::cerr << "Failed to open " << p.string() << std::endl;
+                return NULL;
+            }
+            std::stringstream buffer;
+            buffer << stream.rdbuf();
+
+            templateIt = mShaderTemplates.insert(std::make_pair(shaderTemplate, buffer.str())).first;
+        }
+
+        ShaderMap::iterator shaderIt = mShaders.find(std::make_pair(shaderTemplate, defines));
+        if (shaderIt == mShaders.end())
+        {
+            std::string shaderSource = templateIt->second;
+
+            const char escapeCharacter = '@';
+            size_t foundPos = 0;
+            while ((foundPos = shaderSource.find(escapeCharacter)) != std::string::npos)
+            {
+                size_t endPos = shaderSource.find_first_of(" \n\r()[].;", foundPos);
+                if (endPos == std::string::npos)
+                {
+                    std::cerr << "Unexpected EOF" << std::endl;
+                    return NULL;
+                }
+                std::string define = shaderSource.substr(foundPos+1, endPos - (foundPos+1));
+                DefineMap::const_iterator defineFound = defines.find(define);
+                if (defineFound == defines.end())
+                {
+                    std::cerr << "Undefined " << define << " in shader " << shaderTemplate << std::endl;
+                    return NULL;
+                }
+                else
+                {
+                    shaderSource.replace(foundPos, endPos-foundPos, defineFound->second);
+                }
+            }
+
+            osg::ref_ptr<osg::Shader> shader (new osg::Shader(shaderType));
+            shader->setShaderSource(shaderSource);
+            // Assign a unique name to allow the SharedStateManager to compare shaders efficiently
+            static unsigned int counter = 0;
+            shader->setName(boost::lexical_cast<std::string>(counter++));
+
+            shaderIt = mShaders.insert(std::make_pair(std::make_pair(shaderTemplate, defines), shader)).first;
+        }
+        return shaderIt->second;
+    }
+
+}
diff --git a/components/shader/shadermanager.hpp b/components/shader/shadermanager.hpp
new file mode 100644
index 000000000..e0ec3fe5f
--- /dev/null
+++ b/components/shader/shadermanager.hpp
@@ -0,0 +1,49 @@
+#ifndef OPENMW_COMPONENTS_SHADERMANAGER_H
+#define OPENMW_COMPONENTS_SHADERMANAGER_H
+
+#include <string>
+#include <map>
+
+#include <osg/ref_ptr>
+
+#include <osg/Shader>
+
+#include <OpenThreads/Mutex>
+
+namespace Shader
+{
+
+    /// @brief Reads shader template files and turns them into a concrete shader, based on a list of define's.
+    /// @par Shader templates can get the value of a define with the syntax @define.
+    class ShaderManager
+    {
+    public:
+        void setShaderPath(const std::string& path);
+
+        typedef std::map<std::string, std::string> DefineMap;
+
+        /// Create or retrieve a shader instance.
+        /// @param shaderTemplate The filename of the shader template.
+        /// @param defines Define values that can be retrieved by the shader template.
+        /// @param shaderType The type of shader (usually vertex or fragment shader).
+        /// @note May return NULL on failure.
+        /// @note Thread safe.
+        osg::ref_ptr<osg::Shader> getShader(const std::string& shaderTemplate, const DefineMap& defines, osg::Shader::Type shaderType);
+
+    private:
+        std::string mPath;
+
+        // <name, code>
+        typedef std::map<std::string, std::string> TemplateMap;
+        TemplateMap mShaderTemplates;
+
+        typedef std::pair<std::string, DefineMap> MapKey;
+        typedef std::map<MapKey, osg::ref_ptr<osg::Shader> > ShaderMap;
+        ShaderMap mShaders;
+
+        OpenThreads::Mutex mMutex;
+    };
+
+}
+
+#endif
diff --git a/components/shader/shadervisitor.cpp b/components/shader/shadervisitor.cpp
new file mode 100644
index 000000000..235e63d95
--- /dev/null
+++ b/components/shader/shadervisitor.cpp
@@ -0,0 +1,195 @@
+#include "shadervisitor.hpp"
+
+#include <iostream>
+
+#include <osg/Texture>
+#include <osg/Material>
+#include <osg/Geometry>
+
+#include <osgUtil/TangentSpaceGenerator>
+
+#include <boost/lexical_cast.hpp>
+
+#include "shadermanager.hpp"
+
+namespace Shader
+{
+
+    ShaderVisitor::ShaderRequirements::ShaderRequirements()
+        : mColorMaterial(false)
+        , mVertexColorMode(GL_AMBIENT_AND_DIFFUSE)
+        , mTexStageRequiringTangents(-1)
+    {
+    }
+
+    ShaderVisitor::ShaderVisitor(ShaderManager& shaderManager, const std::string &defaultVsTemplate, const std::string &defaultFsTemplate)
+        : osg::NodeVisitor(TRAVERSE_ALL_CHILDREN)
+        , mShaderManager(shaderManager)
+        , mDefaultVsTemplate(defaultVsTemplate)
+        , mDefaultFsTemplate(defaultFsTemplate)
+    {
+        mRequirements.push_back(ShaderRequirements());
+    }
+
+    void ShaderVisitor::apply(osg::Node& node)
+    {
+        if (node.getStateSet())
+        {
+            pushRequirements();
+            applyStateSet(node.getStateSet());
+            traverse(node);
+            popRequirements();
+        }
+        else
+            traverse(node);
+    }
+
+    void ShaderVisitor::applyStateSet(osg::StateSet* stateset)
+    {
+        const osg::StateSet::TextureAttributeList& texAttributes = stateset->getTextureAttributeList();
+        for(unsigned int unit=0;unit<texAttributes.size();++unit)
+        {
+            const osg::StateAttribute *attr = stateset->getTextureAttribute(unit, osg::StateAttribute::TEXTURE);
+            if (attr)
+            {
+                const osg::Texture* texture = attr->asTexture();
+                if (texture)
+                {
+                    if (!texture->getName().empty())
+                    {
+                        mRequirements.back().mTextures[unit] = texture->getName();
+                        if (texture->getName() == "normalMap")
+                        {
+                            mRequirements.back().mTexStageRequiringTangents = unit;
+                            // normal maps are by default off since the FFP can't render them, now that we'll use shaders switch to On
+                            stateset->setTextureMode(unit, GL_TEXTURE_2D, osg::StateAttribute::ON);
+                        }
+                    }
+                    else
+                        std::cerr << "ShaderVisitor encountered unknown texture " << texture << std::endl;
+                }
+            }
+            // remove state that has no effect when rendering with shaders
+            stateset->removeTextureAttribute(unit, osg::StateAttribute::TEXENV);
+        }
+
+        const osg::StateSet::AttributeList& attributes = stateset->getAttributeList();
+        for (osg::StateSet::AttributeList::const_iterator it = attributes.begin(); it != attributes.end(); ++it)
+        {
+            if (it->first.first == osg::StateAttribute::MATERIAL)
+            {
+                const osg::Material* mat = static_cast<const osg::Material*>(it->second.first.get());
+                mRequirements.back().mVertexColorMode = mat->getColorMode();
+            }
+        }
+    }
+
+    void ShaderVisitor::pushRequirements()
+    {
+        mRequirements.push_back(mRequirements.back());
+    }
+
+    void ShaderVisitor::popRequirements()
+    {
+        mRequirements.pop_back();
+    }
+
+    void ShaderVisitor::createProgram(const ShaderRequirements &reqs, osg::StateSet *stateset)
+    {
+        ShaderManager::DefineMap defineMap;
+        const char* defaultTextures[] = { "diffuseMap", "normalMap", "emissiveMap", "darkMap", "detailMap" };
+        for (unsigned int i=0; i<sizeof(defaultTextures)/sizeof(defaultTextures[0]); ++i)
+        {
+            defineMap[defaultTextures[i]] = "0";
+            defineMap[std::string(defaultTextures[i]) + std::string("UV")] = "0";
+        }
+        for (std::map<int, std::string>::const_iterator texIt = reqs.mTextures.begin(); texIt != reqs.mTextures.end(); ++texIt)
+        {
+            defineMap[texIt->second] = "1";
+            defineMap[texIt->second + std::string("UV")] = boost::lexical_cast<std::string>(texIt->first);
+        }
+
+        if (!reqs.mColorMaterial)
+            defineMap["colorMode"] = "0";
+        else
+        {
+            switch (reqs.mVertexColorMode)
+            {
+            default:
+            case GL_AMBIENT_AND_DIFFUSE:
+                defineMap["colorMode"] = "2";
+                break;
+            case GL_AMBIENT:
+                defineMap["colorMode"] = "1";
+                break;
+            }
+        }
+
+        osg::ref_ptr<osg::Shader> vertexShader (mShaderManager.getShader(mDefaultVsTemplate, defineMap, osg::Shader::VERTEX));
+        osg::ref_ptr<osg::Shader> fragmentShader (mShaderManager.getShader(mDefaultFsTemplate, defineMap, osg::Shader::FRAGMENT));
+
+        if (vertexShader && fragmentShader)
+        {
+            osg::ref_ptr<osg::Program> program (new osg::Program);
+            program->addShader(vertexShader);
+            program->addShader(fragmentShader);
+
+            stateset->setAttributeAndModes(program, osg::StateAttribute::ON);
+
+            for (std::map<int, std::string>::const_iterator texIt = reqs.mTextures.begin(); texIt != reqs.mTextures.end(); ++texIt)
+            {
+                stateset->addUniform(new osg::Uniform(texIt->second.c_str(), texIt->first), osg::StateAttribute::ON);
+            }
+        }
+    }
+
+    void ShaderVisitor::apply(osg::Geometry& geometry)
+    {
+        bool needPop = (geometry.getStateSet() != NULL);
+        if (geometry.getStateSet())
+        {
+            pushRequirements();
+            applyStateSet(geometry.getStateSet());
+        }
+
+        if (!mRequirements.empty())
+        {
+            const ShaderRequirements& reqs = mRequirements.back();
+            if (reqs.mTexStageRequiringTangents != -1)
+            {
+                osg::ref_ptr<osgUtil::TangentSpaceGenerator> generator (new osgUtil::TangentSpaceGenerator);
+                generator->generate(&geometry, reqs.mTexStageRequiringTangents);
+
+                geometry.setTexCoordArray(7, generator->getTangentArray(), osg::Array::BIND_PER_VERTEX);
+            }
+
+            // TODO: find a better place for the stateset
+            createProgram(reqs, geometry.getOrCreateStateSet());
+        }
+
+        if (needPop)
+            popRequirements();
+    }
+
+    void ShaderVisitor::apply(osg::Drawable& drawable)
+    {
+        // non-Geometry drawable (e.g. particle system)
+        bool needPop = (drawable.getStateSet() != NULL);
+
+        if (drawable.getStateSet())
+        {
+            pushRequirements();
+            applyStateSet(drawable.getStateSet());
+        }
+
+        if (!mRequirements.empty())
+        {
+            // TODO: find a better place for the stateset
+            createProgram(mRequirements.back(), drawable.getOrCreateStateSet());
+        }
+
+        if (needPop)
+            popRequirements();
+    }
+
+}
diff --git a/components/shader/shadervisitor.hpp b/components/shader/shadervisitor.hpp
new file mode 100644
index 000000000..507f1417e
--- /dev/null
+++ b/components/shader/shadervisitor.hpp
@@ -0,0 +1,54 @@
+#ifndef OPENMW_COMPONENTS_SHADERVISITOR_H
+#define OPENMW_COMPONENTS_SHADERVISITOR_H
+
+#include <osg/NodeVisitor>
+
+namespace Shader
+{
+
+    class ShaderManager;
+
+    /// @brief Adjusts the given subgraph to render using shaders.
+    class ShaderVisitor : public osg::NodeVisitor
+    {
+    public:
+        ShaderVisitor(ShaderManager& shaderManager, const std::string& defaultVsTemplate, const std::string& defaultFsTemplate);
+
+        virtual void apply(osg::Node& node);
+
+        virtual void apply(osg::Drawable& drawable);
+        virtual void apply(osg::Geometry& geometry);
+
+        void applyStateSet(osg::StateSet* stateset);
+
+        void pushRequirements();
+        void popRequirements();
+
+    private:
+        ShaderManager& mShaderManager;
+
+        struct ShaderRequirements
+        {
+            ShaderRequirements();
+
+            // <texture stage, texture name>
+            std::map<int, std::string> mTextures;
+
+            bool mColorMaterial;
+            // osg::Material::ColorMode
+            int mVertexColorMode;
+
+            // -1 == no tangents required
+            int mTexStageRequiringTangents;
+        };
+        std::vector<ShaderRequirements> mRequirements;
+
+        std::string mDefaultVsTemplate;
+        std::string mDefaultFsTemplate;
+
+        void createProgram(const ShaderRequirements& reqs, osg::StateSet* stateset);
+    };
+
+}
+
+#endif
diff --git a/files/shaders/CMakeLists.txt b/files/shaders/CMakeLists.txt
index fc4706c1f..edb5b51f2 100644
--- a/files/shaders/CMakeLists.txt
+++ b/files/shaders/CMakeLists.txt
@@ -6,6 +6,8 @@ set(SHADER_FILES
     water_vertex.glsl
     water_fragment.glsl
     water_nm.png
+    objects_vertex.glsl
+    objects_fragment.glsl
 )
 
 copy_all_files(${CMAKE_CURRENT_SOURCE_DIR} ${DDIR} "${SHADER_FILES}")
diff --git a/files/shaders/objects_fragment.glsl b/files/shaders/objects_fragment.glsl
new file mode 100644
index 000000000..9b42c30a7
--- /dev/null
+++ b/files/shaders/objects_fragment.glsl
@@ -0,0 +1,15 @@
+#version 120
+
+#if @diffuseMap
+uniform sampler2D diffuseMap;
+varying vec2 diffuseMapUV;
+#endif
+
+void main()
+{
+#if @diffuseMap
+    gl_FragData[0] = texture2D(diffuseMap, diffuseMapUV);
+#else
+    gl_FragData[0] = vec4(1,1,1,1);
+#endif
+}
diff --git a/files/shaders/objects_vertex.glsl b/files/shaders/objects_vertex.glsl
new file mode 100644
index 000000000..17e8f3fc4
--- /dev/null
+++ b/files/shaders/objects_vertex.glsl
@@ -0,0 +1,14 @@
+#version 120
+
+#if @diffuseMap
+varying vec2 diffuseMapUV;
+#endif
+    
+void main(void)
+{
+    gl_Position = gl_ModelViewProjectionMatrix * gl_Vertex;
+
+#if @diffuseMap
+    diffuseMapUV = gl_MultiTexCoord@diffuseMapUV.xy;
+#endif
+}