diff --git a/include/Core/Physics/PhysicsSystem.h b/include/Core/Physics/PhysicsSystem.h
new file mode 100644
index 0000000..512f0f7
--- /dev/null
+++ b/include/Core/Physics/PhysicsSystem.h
@@ -0,0 +1,42 @@
+#ifndef DAYDREAM_PHYSICSSYSTEM_H
+#define DAYDREAM_PHYSICSSYSTEM_H
+
+#include "Core/System.h"
+#include <Box2D/Box2D.h>
+
+namespace dd
+{
+
+namespace Systems {
+
+
+class PhysicsSystem : public System {
+    PhysicsSystem(World* world, std::shared_ptr<dd::EventBroker> eventBroker)
+    : System(world, eventBroker) {}
+
+    ~PhysicsSystem();
+
+    void Initialize();
+
+    // Called once per system every tick
+    void Update(double dt);
+    // Called once for every entity in the world every tick
+    void UpdateEntity(double dt, EntityID entity, EntityID parent);
+
+    // Called when components are committed to an entity
+    void OnEntityCommit(EntityID entity);
+
+    // Called when an entity is removed
+    void OnEntityRemoved(EntityID entity);
+
+
+    b2Vec2 m_Gravity;
+    b2World* m_PhysicsWorld;
+    float m_TimeStep;
+    int m_VelocityIterations, m_PositionIterations;
+};
+
+}
+}
+
+#endif //DAYDREAM_PHYSICSSYSTEM_H
diff --git a/src/game/CMakeLists.txt b/src/game/CMakeLists.txt
index fc38081..13b3912 100755
--- a/src/game/CMakeLists.txt
+++ b/src/game/CMakeLists.txt
@@ -69,7 +69,7 @@ set(SOURCE_FILES
     ${SOURCE_FILES_Rendering}
     ${SOURCE_FILES_Transform}
     ${SOURCE_FILES_Game}
-)
+        Physics/PhysicsSystem.cpp ../../include/Core/Physics/PhysicsSystem.h)
 
 if(CMAKE_COMPILER_IS_GNUCXX)
     set(CMAKE_CXX_FLAGS "${CMAKE_CXX_FLAGS} -pthread")
diff --git a/src/game/Physics/PhysicsSystem.cpp b/src/game/Physics/PhysicsSystem.cpp
new file mode 100644
index 0000000..e3bcedc
--- /dev/null
+++ b/src/game/Physics/PhysicsSystem.cpp
@@ -0,0 +1,34 @@
+#include "PrecompiledHeader.h"
+#include "Core/Physics/PhysicsSystem.h"
+
+void dd::Systems::PhysicsSystem::Initialize(){
+    m_Gravity = b2Vec2(0.f, 9.82f);
+    m_PhysicsWorld = new b2World(m_Gravity);
+
+    m_TimeStep = 1.f/60.f;
+    m_VelocityIterations = 6;
+    m_PositionIterations = 2;
+}
+
+void dd::Systems::PhysicsSystem::Update(double dt){
+    m_PhysicsWorld->Step(m_TimeStep, m_VelocityIterations, m_PositionIterations);
+}
+
+void dd::Systems::PhysicsSystem::UpdateEntity(double dt, EntityID entity, EntityID parent){
+
+}
+
+
+void dd::Systems::PhysicsSystem::OnEntityCommit(EntityID entity){
+
+}
+
+
+void dd::Systems::PhysicsSystem::OnEntityRemoved(EntityID entity){
+
+}
+
+dd::Systems::PhysicsSystem::~PhysicsSystem(){
+    delete m_PhysicsWorld;
+}
+