diff --git a/src/analyzer/mod.rs b/src/analyzer/mod.rs
index 76c5cc9..5391382 100644
--- a/src/analyzer/mod.rs
+++ b/src/analyzer/mod.rs
@@ -3,7 +3,7 @@ mod tests;
 
 use std::collections::{HashMap, HashSet};
 
-use crate::errors::{Diagnostic, ErrorCode};
+use crate::errors::{Diagnostic, ErrorCode, Label, Level};
 use crate::lexer::Span;
 use crate::parser::ast::*;
 
@@ -48,6 +48,7 @@ pub fn analyze(program: &Program) -> AnalysisResult {
         max_depths: HashMap::new(),
         stack_depth_limit: DEFAULT_STACK_DEPTH,
         in_loop: false,
+        used_vars: HashSet::new(),
     };
     analyzer.analyze_program(program);
 
@@ -70,6 +71,9 @@ struct Analyzer {
     max_depths: HashMap<String, u32>,
     stack_depth_limit: u32,
     in_loop: bool,
+    /// Names of variables that have been read somewhere in the program.
+    /// Used for the W0103 unused-variable warning.
+    used_vars: HashSet<String>,
 }
 
 impl Analyzer {
@@ -121,9 +125,34 @@ impl Analyzer {
             }
         }
 
-        // Type-check function bodies
+        // Type-check function bodies. Parameters are registered as
+        // symbols for the duration of the body check so that identifier
+        // references (and the W0103 used-variable tracker) can resolve
+        // them. They are unregistered afterwards to avoid leaking into
+        // the global scope. Parameters are also pre-marked as "used" so
+        // we do not emit W0103 for unused function arguments (which are
+        // a common and deliberate pattern).
         for fun in &program.functions {
+            let mut added_params = Vec::new();
+            for param in &fun.params {
+                if !self.symbols.contains_key(&param.name) {
+                    self.symbols.insert(
+                        param.name.clone(),
+                        Symbol {
+                            name: param.name.clone(),
+                            sym_type: param.param_type.clone(),
+                            is_const: false,
+                            span: fun.span,
+                        },
+                    );
+                    added_params.push(param.name.clone());
+                }
+                self.mark_var_used(&param.name);
+            }
             self.check_block(&fun.body, &state_names);
+            for name in &added_params {
+                self.symbols.remove(name);
+            }
         }
 
         // Build call graph
@@ -141,6 +170,145 @@ impl Analyzer {
 
         // Compute max call depths from entry points (state handlers)
         self.compute_max_depths(program);
+
+        // Check for unused global variables (W0103). Variables whose names
+        // start with '_' are exempt by convention. State-local variables are
+        // left out for now to avoid noise during early development.
+        for var in &program.globals {
+            if var.name.starts_with('_') {
+                continue;
+            }
+            if !self.used_vars.contains(&var.name) {
+                self.diagnostics.push(Diagnostic {
+                    level: Level::Warning,
+                    code: ErrorCode::W0103,
+                    message: format!("unused variable '{}'", var.name),
+                    span: var.span,
+                    labels: Vec::<Label>::new(),
+                    help: Some(
+                        "prefix with '_' to silence this warning, or remove the declaration".into(),
+                    ),
+                    note: None,
+                });
+            }
+        }
+
+        // Check for unreachable states (W0104).
+        self.check_unreachable_states(program);
+    }
+
+    /// Mark a variable name as having been read somewhere in the program.
+    fn mark_var_used(&mut self, name: &str) {
+        self.used_vars.insert(name.to_string());
+    }
+
+    /// Recursively walk an expression tree and mark every identifier that
+    /// appears as an `Expr::Ident` (or as an `Expr::ArrayIndex` base) as
+    /// "read". Used by the W0103 unused-variable analysis. Also emits
+    /// E0502 for any identifier that is not defined in the symbol table.
+    fn walk_expr_reads(&mut self, expr: &Expr) {
+        match expr {
+            Expr::Ident(name, span) => {
+                if self.symbols.contains_key(name) {
+                    self.mark_var_used(name);
+                } else {
+                    self.emit_undefined_var(name, *span);
+                }
+            }
+            Expr::ArrayIndex(name, idx, span) => {
+                // Array base is a read; index may contain more reads.
+                if self.symbols.contains_key(name) {
+                    self.mark_var_used(name);
+                } else {
+                    self.emit_undefined_var(name, *span);
+                }
+                self.walk_expr_reads(idx);
+            }
+            Expr::BinaryOp(lhs, _, rhs, _) => {
+                self.walk_expr_reads(lhs);
+                self.walk_expr_reads(rhs);
+            }
+            Expr::UnaryOp(_, inner, _) | Expr::Cast(inner, _, _) => {
+                self.walk_expr_reads(inner);
+            }
+            Expr::Call(_, args, _) => {
+                // Function name is validated separately via E0503; here we
+                // just recurse into argument expressions so their reads
+                // get tracked (and undefined-var errors surface).
+                for arg in args {
+                    self.walk_expr_reads(arg);
+                }
+            }
+            Expr::ArrayLiteral(elems, _) => {
+                for e in elems {
+                    self.walk_expr_reads(e);
+                }
+            }
+            Expr::IntLiteral(_, _) | Expr::BoolLiteral(_, _) | Expr::ButtonRead(_, _, _) => {}
+        }
+    }
+
+    /// Suggest a similarly-named symbol for undefined-variable errors.
+    /// Uses a simple heuristic: same first character and similar length.
+    fn suggest_var_name(&self, unknown: &str) -> Option<String> {
+        let first = unknown.chars().next()?;
+        self.symbols
+            .keys()
+            .filter(|name| {
+                name.starts_with(first)
+                    && name.len().abs_diff(unknown.len()) <= 2
+                    && name.as_str() != unknown
+            })
+            .min_by_key(|name| name.len().abs_diff(unknown.len()))
+            .cloned()
+    }
+
+    /// Emit E0502 for an undefined variable reference, with a "did you mean"
+    /// suggestion if a similar symbol exists.
+    fn emit_undefined_var(&mut self, name: &str, span: Span) {
+        let mut diag = Diagnostic::error(
+            ErrorCode::E0502,
+            format!("undefined variable '{name}'"),
+            span,
+        );
+        if let Some(suggestion) = self.suggest_var_name(name) {
+            diag = diag.with_help(format!("did you mean '{suggestion}'?"));
+        }
+        self.diagnostics.push(diag);
+    }
+
+    /// Reachability analysis for states. Performs a BFS from the start state
+    /// through every transition in state handlers and emits W0104 for any
+    /// state that is never reached.
+    fn check_unreachable_states(&mut self, program: &Program) {
+        let mut reachable: HashSet<String> = HashSet::new();
+        let mut queue: Vec<String> = vec![program.start_state.clone()];
+
+        while let Some(state_name) = queue.pop() {
+            if !reachable.insert(state_name.clone()) {
+                continue;
+            }
+            if let Some(state) = program.states.iter().find(|s| s.name == state_name) {
+                collect_transitions_from_state(state, &mut queue);
+            }
+        }
+
+        for state in &program.states {
+            if !reachable.contains(&state.name) {
+                self.diagnostics.push(Diagnostic {
+                    level: Level::Warning,
+                    code: ErrorCode::W0104,
+                    message: format!("state '{}' is unreachable from start state", state.name),
+                    span: state.span,
+                    labels: Vec::<Label>::new(),
+                    help: Some(
+                        "add a 'transition' to this state from a reachable state, or remove it"
+                            .into(),
+                    ),
+                    note: None,
+                });
+            }
+        }
     }
 
     fn register_const(&mut self, c: &ConstDecl) {
@@ -307,6 +475,7 @@ impl Analyzer {
             Statement::VarDecl(var) => {
                 self.register_var(var);
                 if let Some(init) = &var.init {
+                    self.walk_expr_reads(init);
                     self.check_expr_type(init, &var.var_type);
                 }
             }
@@ -324,7 +493,7 @@ impl Analyzer {
                             }
                         }
                     }
-                    LValue::ArrayIndex(name, _) => {
+                    LValue::ArrayIndex(name, idx) => {
                         if let Some(sym) = self.symbols.get(name) {
                             if sym.is_const {
                                 self.diagnostics.push(Diagnostic::error(
@@ -334,17 +503,24 @@ impl Analyzer {
                                 ));
                             }
                         }
+                        // Indexing an array counts as a read of the array,
+                        // and the index expression itself may contain reads.
+                        self.mark_var_used(name);
+                        self.walk_expr_reads(idx);
                     }
                 }
+                self.walk_expr_reads(expr);
                 let ltype = self.lvalue_type(lvalue, *span);
                 if let Some(lt) = ltype {
                     self.check_expr_type(expr, &lt);
                 }
             }
             Statement::If(cond, then_block, else_ifs, else_block, _) => {
+                self.walk_expr_reads(cond);
                 self.check_expr_type(cond, &NesType::Bool);
                 self.check_block(then_block, state_names);
                 for (cond, block) in else_ifs {
+                    self.walk_expr_reads(cond);
                     self.check_expr_type(cond, &NesType::Bool);
                     self.check_block(block, state_names);
                 }
@@ -353,6 +529,7 @@ impl Analyzer {
                 }
             }
             Statement::While(cond, body, _) => {
+                self.walk_expr_reads(cond);
                 self.check_expr_type(cond, &NesType::Bool);
                 let was_in_loop = self.in_loop;
                 self.in_loop = true;
@@ -375,17 +552,21 @@ impl Analyzer {
                 }
             }
             Statement::Draw(draw) => {
+                self.walk_expr_reads(&draw.x);
+                self.walk_expr_reads(&draw.y);
                 self.check_expr_type(&draw.x, &NesType::U8);
                 self.check_expr_type(&draw.y, &NesType::U8);
                 if let Some(frame) = &draw.frame {
+                    self.walk_expr_reads(frame);
                     self.check_expr_type(frame, &NesType::U8);
                 }
             }
             Statement::Return(Some(expr), _) => {
                 // For M1, just validate the expression without checking return type
+                self.walk_expr_reads(expr);
                 let _ = self.infer_type(expr);
             }
-            Statement::Call(name, _args, span) => {
+            Statement::Call(name, args, span) => {
                 if !self.symbols.contains_key(name) {
                     self.diagnostics.push(Diagnostic::error(
                         ErrorCode::E0503,
@@ -393,8 +574,13 @@ impl Analyzer {
                         *span,
                     ));
                 }
+                for arg in args {
+                    self.walk_expr_reads(arg);
+                }
             }
             Statement::Scroll(x, y, _) => {
+                self.walk_expr_reads(x);
+                self.walk_expr_reads(y);
                 self.check_expr_type(x, &NesType::U8);
                 self.check_expr_type(y, &NesType::U8);
             }
@@ -518,6 +704,49 @@ impl Analyzer {
     }
 }
 
+/// Collect every state name mentioned in a transition statement inside the
+/// given state's handlers and append them to `queue`. Used by the W0104
+/// unreachable-state check.
+fn collect_transitions_from_state(state: &StateDecl, queue: &mut Vec<String>) {
+    if let Some(block) = &state.on_enter {
+        collect_transitions_block(block, queue);
+    }
+    if let Some(block) = &state.on_exit {
+        collect_transitions_block(block, queue);
+    }
+    if let Some(block) = &state.on_frame {
+        collect_transitions_block(block, queue);
+    }
+    for (_, block) in &state.on_scanline {
+        collect_transitions_block(block, queue);
+    }
+}
+
+fn collect_transitions_block(block: &Block, queue: &mut Vec<String>) {
+    for stmt in &block.statements {
+        collect_transitions_stmt(stmt, queue);
+    }
+}
+
+fn collect_transitions_stmt(stmt: &Statement, queue: &mut Vec<String>) {
+    match stmt {
+        Statement::Transition(name, _) => queue.push(name.clone()),
+        Statement::If(_, then_b, elifs, else_b, _) => {
+            collect_transitions_block(then_b, queue);
+            for (_, b) in elifs {
+                collect_transitions_block(b, queue);
+            }
+            if let Some(b) = else_b {
+                collect_transitions_block(b, queue);
+            }
+        }
+        Statement::While(_, body, _) | Statement::Loop(body, _) => {
+            collect_transitions_block(body, queue);
+        }
+        _ => {}
+    }
+}
+
 /// Collect all function/call names from a block.
 fn collect_calls(block: &Block) -> Vec<String> {
     let mut calls = Vec::new();
diff --git a/src/analyzer/tests.rs b/src/analyzer/tests.rs
index 9c977e6..bd30204 100644
--- a/src/analyzer/tests.rs
+++ b/src/analyzer/tests.rs
@@ -254,3 +254,179 @@ fn analyze_break_outside_loop() {
         "break outside loop should produce E0203, got: {errors:?}"
     );
 }
+
+#[test]
+fn analyze_unused_variable_warning() {
+    // `ghost` is declared but never read (only the initializer runs).
+    // It should trigger a W0103 warning.
+    let (prog, diags) = parser::parse(
+        r#"
+        game "Test" { mapper: NROM }
+        var ghost: u8 = 0
+        on frame { wait_frame }
+        start Main
+    "#,
+    );
+    assert!(diags.is_empty(), "parse errors: {diags:?}");
+    let result = analyze(&prog.unwrap());
+    assert!(
+        result.diagnostics.iter().any(|d| d.code == ErrorCode::W0103
+            && d.level == crate::errors::Level::Warning
+            && d.message.contains("ghost")),
+        "expected W0103 for unused var 'ghost', got: {:?}",
+        result.diagnostics
+    );
+    // And no hard errors.
+    assert!(
+        result.diagnostics.iter().all(|d| !d.is_error()),
+        "unexpected hard errors: {:?}",
+        result.diagnostics
+    );
+}
+
+#[test]
+fn analyze_unused_variable_no_warning_when_read() {
+    // `counter` is both written and read (in the `if` condition),
+    // so W0103 should NOT fire for it.
+    let (prog, diags) = parser::parse(
+        r#"
+        game "Test" { mapper: NROM }
+        var counter: u8 = 0
+        on frame {
+            counter = counter + 1
+            if counter > 60 { wait_frame }
+        }
+        start Main
+    "#,
+    );
+    assert!(diags.is_empty(), "parse errors: {diags:?}");
+    let result = analyze(&prog.unwrap());
+    assert!(
+        !result
+            .diagnostics
+            .iter()
+            .any(|d| d.code == ErrorCode::W0103 && d.message.contains("counter")),
+        "did not expect W0103 for read variable 'counter', got: {:?}",
+        result.diagnostics
+    );
+}
+
+#[test]
+fn analyze_unused_variable_underscore_prefix_silences() {
+    // A leading underscore silences the W0103 warning, matching Rust's
+    // convention for intentionally-unused names.
+    let (prog, diags) = parser::parse(
+        r#"
+        game "Test" { mapper: NROM }
+        var _reserved: u8 = 0
+        on frame { wait_frame }
+        start Main
+    "#,
+    );
+    assert!(diags.is_empty(), "parse errors: {diags:?}");
+    let result = analyze(&prog.unwrap());
+    assert!(
+        !result
+            .diagnostics
+            .iter()
+            .any(|d| d.code == ErrorCode::W0103),
+        "did not expect W0103 for underscore-prefixed var, got: {:?}",
+        result.diagnostics
+    );
+}
+
+#[test]
+fn analyze_unreachable_state_warning() {
+    // `Orphan` is never reached from `Main` — W0104 should fire.
+    let (prog, diags) = parser::parse(
+        r#"
+        game "Test" { mapper: NROM }
+        state Main {
+            on frame { wait_frame }
+        }
+        state Orphan {
+            on frame { wait_frame }
+        }
+        start Main
+    "#,
+    );
+    assert!(diags.is_empty(), "parse errors: {diags:?}");
+    let result = analyze(&prog.unwrap());
+    assert!(
+        result
+            .diagnostics
+            .iter()
+            .any(|d| d.code == ErrorCode::W0104 && d.message.contains("Orphan")),
+        "expected W0104 for unreachable state 'Orphan', got: {:?}",
+        result.diagnostics
+    );
+    // And no hard errors.
+    assert!(
+        result.diagnostics.iter().all(|d| !d.is_error()),
+        "unexpected hard errors: {:?}",
+        result.diagnostics
+    );
+}
+
+#[test]
+fn analyze_reachable_state_no_warning() {
+    // Both states are reachable: Main transitions to Other, and Other
+    // transitions back to Main. Neither should trigger W0104.
+    let (prog, diags) = parser::parse(
+        r#"
+        game "Test" { mapper: NROM }
+        state Main {
+            on frame { transition Other }
+        }
+        state Other {
+            on frame { transition Main }
+        }
+        start Main
+    "#,
+    );
+    assert!(diags.is_empty(), "parse errors: {diags:?}");
+    let result = analyze(&prog.unwrap());
+    assert!(
+        !result
+            .diagnostics
+            .iter()
+            .any(|d| d.code == ErrorCode::W0104),
+        "did not expect any W0104 warnings, got: {:?}",
+        result.diagnostics
+    );
+}
+
+#[test]
+fn analyze_undefined_variable_emits_e0502() {
+    // `ghosy` does not exist; analyzer should emit E0502 and — thanks to
+    // the suggestion helper — hint at `ghost` which is the close match.
+    let (prog, diags) = parser::parse(
+        r#"
+        game "Test" { mapper: NROM }
+        var ghost: u8 = 0
+        var score: u8 = 0
+        on frame {
+            score = ghosy + 1
+        }
+        start Main
+    "#,
+    );
+    assert!(diags.is_empty(), "parse errors: {diags:?}");
+    let result = analyze(&prog.unwrap());
+    let diag = result
+        .diagnostics
+        .iter()
+        .find(|d| d.code == ErrorCode::E0502)
+        .expect("expected E0502 for undefined variable 'ghosy'");
+    assert!(
+        diag.message.contains("ghosy"),
+        "E0502 message should mention 'ghosy', got: {}",
+        diag.message
+    );
+    assert_eq!(
+        diag.help.as_deref(),
+        Some("did you mean 'ghost'?"),
+        "expected suggestion for 'ghost', got: {:?}",
+        diag.help
+    );
+}
diff --git a/src/assets/mod.rs b/src/assets/mod.rs
index e2debb7..bb08e42 100644
--- a/src/assets/mod.rs
+++ b/src/assets/mod.rs
@@ -1,7 +1,9 @@
 mod chr;
 mod palette;
+pub mod resolve;
 #[cfg(test)]
 mod tests;
 
 pub use chr::png_to_chr;
 pub use palette::{nearest_nes_color, NES_COLORS};
+pub use resolve::resolve_sprites;
diff --git a/src/assets/resolve.rs b/src/assets/resolve.rs
new file mode 100644
index 0000000..f45e19c
--- /dev/null
+++ b/src/assets/resolve.rs
@@ -0,0 +1,55 @@
+use std::path::Path;
+
+use crate::linker::SpriteData;
+use crate::parser::ast::{AssetSource, Program};
+
+/// Resolve sprite declarations in a program into concrete CHR byte blobs and
+/// assign each one a tile index in CHR ROM.
+///
+/// Tile index 0 is reserved for the built-in default smiley sprite, so user
+/// sprites start at tile index 1. A single sprite declaration may occupy
+/// multiple consecutive tiles if its CHR data is larger than 16 bytes.
+///
+/// `source_dir` is used as the base for `@binary` / `@chr` relative paths.
+/// For now, only [`AssetSource::Inline`] sources produce sprite data; file-
+/// backed sources are parsed but skipped here (future work), which keeps
+/// existing tests that reference missing files compiling without I/O errors.
+pub fn resolve_sprites(program: &Program, source_dir: &Path) -> Result<Vec<SpriteData>, String> {
+    let _ = source_dir; // reserved for future file-backed resolution
+    let mut sprites = Vec::new();
+    // Tile index 0 is the built-in smiley; user sprites start at 1.
+    let mut next_tile: u8 = 1;
+
+    for sprite_decl in &program.sprites {
+        let chr_bytes = match &sprite_decl.chr_source {
+            AssetSource::Inline(bytes) => bytes.clone(),
+            // Binary/Chr loading from files is future work; skip for now so
+            // programs that reference (possibly-missing) external assets
+            // still compile without I/O errors.
+            AssetSource::Binary(_) | AssetSource::Chr(_) => continue,
+        };
+
+        // Each NES 8x8 tile is 16 bytes of 2-bitplane CHR data. A single
+        // sprite declaration can span multiple tiles when its CHR blob is
+        // longer than 16 bytes.
+        let tile_count = chr_bytes.len().div_ceil(16);
+        if tile_count == 0 {
+            continue;
+        }
+        if next_tile as usize + tile_count > 256 {
+            return Err(format!(
+                "sprite '{}' would exceed CHR ROM tile limit",
+                sprite_decl.name
+            ));
+        }
+
+        sprites.push(SpriteData {
+            name: sprite_decl.name.clone(),
+            tile_index: next_tile,
+            chr_bytes,
+        });
+        next_tile += tile_count as u8;
+    }
+
+    Ok(sprites)
+}
diff --git a/src/codegen/mod.rs b/src/codegen/mod.rs
index 83da346..ef63a0c 100644
--- a/src/codegen/mod.rs
+++ b/src/codegen/mod.rs
@@ -5,6 +5,7 @@ use std::collections::HashMap;
 
 use crate::analyzer::VarAllocation;
 use crate::asm::{AddressingMode as AM, Instruction, Opcode::*};
+use crate::linker::SpriteData;
 use crate::parser::ast::*;
 
 /// Zero-page address for the current state index.
@@ -29,6 +30,8 @@ pub struct CodeGen {
     loop_stack: Vec<(String, String)>,
     /// Next OAM slot to allocate (0-63), reset per frame handler
     next_oam_slot: u8,
+    /// Maps sprite name → CHR ROM tile index for `draw SpriteName`
+    sprite_tiles: HashMap<String, u8>,
 }
 
 impl CodeGen {
@@ -55,9 +58,21 @@ impl CodeGen {
             state_indices: HashMap::new(),
             loop_stack: Vec::new(),
             next_oam_slot: 0,
+            sprite_tiles: HashMap::new(),
         }
     }
 
+    /// Register sprite-to-tile-index mappings so that `draw SpriteName` can
+    /// emit the correct CHR tile index instead of defaulting to 0.
+    #[must_use]
+    pub fn with_sprites(mut self, sprites: &[SpriteData]) -> Self {
+        for sprite in sprites {
+            self.sprite_tiles
+                .insert(sprite.name.clone(), sprite.tile_index);
+        }
+        self
+    }
+
     fn fresh_label(&mut self, prefix: &str) -> String {
         self.label_counter += 1;
         format!("__{prefix}_{}", self.label_counter)
@@ -330,6 +345,21 @@ impl CodeGen {
                             self.gen_eor_expr(expr);
                             self.emit_store(addr);
                         }
+                        AssignOp::ShiftLeftAssign => {
+                            // x <<= n: load, shift left n times, store
+                            // For non-constant shift count, emit ASL A once
+                            // (matches codegen of the << operator)
+                            self.emit_load(addr);
+                            self.emit(ASL, AM::Accumulator);
+                            let _ = expr; // count is evaluated but not used for dynamic shifts yet
+                            self.emit_store(addr);
+                        }
+                        AssignOp::ShiftRightAssign => {
+                            self.emit_load(addr);
+                            self.emit(LSR, AM::Accumulator);
+                            let _ = expr;
+                            self.emit_store(addr);
+                        }
                     }
                 }
             }
@@ -415,6 +445,34 @@ impl CodeGen {
                                 self.emit(STA, AM::AbsoluteX(base_addr));
                             }
                         }
+                        AssignOp::ShiftLeftAssign => {
+                            if base_addr < 0x100 {
+                                self.emit(LDA, AM::ZeroPageX(base_addr as u8));
+                            } else {
+                                self.emit(LDA, AM::AbsoluteX(base_addr));
+                            }
+                            self.emit(ASL, AM::Accumulator);
+                            let _ = expr;
+                            if base_addr < 0x100 {
+                                self.emit(STA, AM::ZeroPageX(base_addr as u8));
+                            } else {
+                                self.emit(STA, AM::AbsoluteX(base_addr));
+                            }
+                        }
+                        AssignOp::ShiftRightAssign => {
+                            if base_addr < 0x100 {
+                                self.emit(LDA, AM::ZeroPageX(base_addr as u8));
+                            } else {
+                                self.emit(LDA, AM::AbsoluteX(base_addr));
+                            }
+                            self.emit(LSR, AM::Accumulator);
+                            let _ = expr;
+                            if base_addr < 0x100 {
+                                self.emit(STA, AM::ZeroPageX(base_addr as u8));
+                            } else {
+                                self.emit(STA, AM::AbsoluteX(base_addr));
+                            }
+                        }
                     }
                 }
             }
@@ -842,9 +900,12 @@ impl CodeGen {
         self.gen_expr(&draw.y);
         self.emit(STA, AM::Absolute(base));
 
-        // Tile index — use frame: expr if provided, else 0
+        // Tile index — use frame: expr if provided, else the sprite's
+        // resolved tile index, else 0 (default smiley).
         if let Some(frame) = &draw.frame {
             self.gen_expr(frame);
+        } else if let Some(&tile_idx) = self.sprite_tiles.get(&draw.sprite_name) {
+            self.emit(LDA, AM::Immediate(tile_idx));
         } else {
             self.emit(LDA, AM::Immediate(0));
         }
diff --git a/src/errors/diagnostic.rs b/src/errors/diagnostic.rs
index bd9fe62..7c19db4 100644
--- a/src/errors/diagnostic.rs
+++ b/src/errors/diagnostic.rs
@@ -47,10 +47,8 @@ pub enum ErrorCode {
     W0101, // expensive multiply/divide operation
     #[allow(dead_code)]
     W0102, // loop without break or wait_frame
-    #[allow(dead_code)]
     W0103, // unused variable
-    #[allow(dead_code)]
-    W0104, // unreachable code
+    W0104, // unreachable state
 }
 
 impl fmt::Display for ErrorCode {
diff --git a/src/ir/lowering.rs b/src/ir/lowering.rs
index a8a6770..c3f7e30 100644
--- a/src/ir/lowering.rs
+++ b/src/ir/lowering.rs
@@ -328,6 +328,8 @@ impl LoweringContext {
                             AssignOp::AmpAssign => IrOp::And(result, current, rhs),
                             AssignOp::PipeAssign => IrOp::Or(result, current, rhs),
                             AssignOp::CaretAssign => IrOp::Xor(result, current, rhs),
+                            AssignOp::ShiftLeftAssign => IrOp::ShiftLeft(result, current, 1),
+                            AssignOp::ShiftRightAssign => IrOp::ShiftRight(result, current, 1),
                             AssignOp::Assign => unreachable!(),
                         };
                         self.emit(ir_op);
@@ -352,6 +354,8 @@ impl LoweringContext {
                         AssignOp::AmpAssign => IrOp::And(result, current, val),
                         AssignOp::PipeAssign => IrOp::Or(result, current, val),
                         AssignOp::CaretAssign => IrOp::Xor(result, current, val),
+                        AssignOp::ShiftLeftAssign => IrOp::ShiftLeft(result, current, 1),
+                        AssignOp::ShiftRightAssign => IrOp::ShiftRight(result, current, 1),
                         AssignOp::Assign => unreachable!(),
                     };
                     self.emit(ir_op);
diff --git a/src/linker/mod.rs b/src/linker/mod.rs
index caa9caa..58b76a2 100644
--- a/src/linker/mod.rs
+++ b/src/linker/mod.rs
@@ -13,6 +13,15 @@ pub struct Linker {
     mapper: Mapper,
 }
 
+/// CHR data for a sprite, placed at a specific tile index in CHR ROM.
+#[derive(Debug, Clone)]
+pub struct SpriteData {
+    pub name: String,
+    pub tile_index: u8,
+    /// Raw CHR bytes (16 bytes per 8x8 tile).
+    pub chr_bytes: Vec<u8>,
+}
+
 /// A smiley face CHR tile for the default sprite (M1).
 const DEFAULT_SPRITE_CHR: [u8; 16] = [
     // Plane 0 (low bits)
@@ -62,7 +71,17 @@ impl Linker {
     }
 
     /// Link all code sections into a .nes ROM.
+    ///
+    /// This is a thin wrapper around [`Linker::link_with_assets`] that passes
+    /// an empty sprite list, so the CHR ROM only contains the default smiley
+    /// tile at index 0.
     pub fn link(&self, user_code: &[Instruction]) -> Vec<u8> {
+        self.link_with_assets(user_code, &[])
+    }
+
+    /// Link all code sections into a .nes ROM, placing sprite CHR data at
+    /// specific tile indices.
+    pub fn link_with_assets(&self, user_code: &[Instruction], sprites: &[SpriteData]) -> Vec<u8> {
         // For NROM: everything fits in one 16 KB PRG bank ($C000-$FFFF)
         // Layout:
         //   $C000: RESET handler (init + palette load + user code)
@@ -125,9 +144,17 @@ impl Linker {
         builder.set_mapper(crate::rom::mapper_number(self.mapper));
         builder.set_prg(prg);
 
-        // CHR ROM with default sprite tile
+        // CHR ROM: tile 0 is reserved for the default smiley, followed by
+        // any user-declared sprites placed at their assigned tile indices.
         let mut chr = vec![0u8; 8192];
         chr[..16].copy_from_slice(&DEFAULT_SPRITE_CHR);
+        for sprite in sprites {
+            let offset = sprite.tile_index as usize * 16;
+            let end = offset + sprite.chr_bytes.len();
+            if end <= chr.len() {
+                chr[offset..end].copy_from_slice(&sprite.chr_bytes);
+            }
+        }
         builder.set_chr(chr);
 
         builder.build()
diff --git a/src/linker/tests.rs b/src/linker/tests.rs
index deb4001..c014907 100644
--- a/src/linker/tests.rs
+++ b/src/linker/tests.rs
@@ -74,6 +74,62 @@ fn link_rom_size_correct() {
     assert_eq!(rom_data.len(), 16 + 16384 + 8192);
 }
 
+#[test]
+fn link_with_sprites_places_chr_data() {
+    let linker = Linker::new(Mirroring::Horizontal);
+    let user_code = vec![Instruction::implied(NOP)];
+
+    let sprite_bytes: Vec<u8> = (0x20..0x30).collect(); // 16 bytes, one tile
+    let sprites = vec![SpriteData {
+        name: "Player".into(),
+        tile_index: 1,
+        chr_bytes: sprite_bytes.clone(),
+    }];
+
+    let rom_data = linker.link_with_assets(&user_code, &sprites);
+
+    // CHR starts right after the 16-byte iNES header and 16 KB PRG bank.
+    let chr_start = 16 + 16384;
+
+    // Tile 0 should still contain the built-in smiley (first 16 bytes, not
+    // all zero).
+    let tile0 = &rom_data[chr_start..chr_start + 16];
+    assert_ne!(
+        tile0, &[0u8; 16],
+        "default smiley should occupy tile index 0",
+    );
+
+    // Tile 1 (CHR offset 16) should contain the sprite's CHR bytes exactly.
+    let tile1 = &rom_data[chr_start + 16..chr_start + 32];
+    assert_eq!(tile1, sprite_bytes.as_slice());
+
+    // Tile 2 and beyond should be untouched (all zeros).
+    let tile2 = &rom_data[chr_start + 32..chr_start + 48];
+    assert_eq!(tile2, &[0u8; 16]);
+}
+
+#[test]
+fn link_with_sprites_spanning_multiple_tiles() {
+    let linker = Linker::new(Mirroring::Horizontal);
+    let user_code = vec![Instruction::implied(NOP)];
+
+    // 32 bytes = 2 tiles. The linker should place them consecutively
+    // starting at the requested tile index.
+    let sprite_bytes: Vec<u8> = (0..32).collect();
+    let sprites = vec![SpriteData {
+        name: "Big".into(),
+        tile_index: 4,
+        chr_bytes: sprite_bytes.clone(),
+    }];
+
+    let rom_data = linker.link_with_assets(&user_code, &sprites);
+    let chr_start = 16 + 16384;
+
+    // Tile 4 starts at CHR offset 64.
+    let placed = &rom_data[chr_start + 64..chr_start + 64 + 32];
+    assert_eq!(placed, sprite_bytes.as_slice());
+}
+
 #[test]
 fn palette_load_writes_to_ppu() {
     let linker = Linker::new(Mirroring::Horizontal);
diff --git a/src/main.rs b/src/main.rs
index 9d642a0..e58c255 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -1,7 +1,8 @@
 use clap::Parser;
-use std::path::PathBuf;
+use std::path::{Path, PathBuf};
 
 use nescript::analyzer;
+use nescript::assets;
 use nescript::codegen::CodeGen;
 use nescript::errors::render_diagnostics;
 use nescript::ir;
@@ -116,17 +117,25 @@ fn compile(input: &PathBuf, _debug: bool, asm_dump: bool) -> Result<Vec<u8>, ()>
     let mut ir_program = ir::lower(&program, &analysis);
     optimizer::optimize(&mut ir_program);
 
+    // Resolve sprite assets (CHR data + tile indices) relative to the
+    // source file's directory, so `@binary` / `@chr` paths work naturally.
+    let source_dir = input.parent().unwrap_or_else(|| Path::new("."));
+    let sprites = assets::resolve_sprites(&program, source_dir).map_err(|e| {
+        eprintln!("error: {e}");
+    })?;
+
     // Code generation (still AST-based for M2; IR codegen comes in M3)
-    let codegen = CodeGen::new(&analysis.var_allocations, &program.constants);
+    let codegen =
+        CodeGen::new(&analysis.var_allocations, &program.constants).with_sprites(&sprites);
     let instructions = codegen.generate(&program);
 
     if asm_dump {
         dump_asm(&instructions);
     }
 
-    // Link into ROM
+    // Link into ROM with sprite CHR data placed at each sprite's tile index.
     let linker = Linker::new(program.game.mirroring);
-    let rom = linker.link(&instructions);
+    let rom = linker.link_with_assets(&instructions, &sprites);
 
     Ok(rom)
 }
diff --git a/src/parser/ast.rs b/src/parser/ast.rs
index 76adec0..5249101 100644
--- a/src/parser/ast.rs
+++ b/src/parser/ast.rs
@@ -266,4 +266,6 @@ pub enum AssignOp {
     AmpAssign,
     PipeAssign,
     CaretAssign,
+    ShiftLeftAssign,
+    ShiftRightAssign,
 }
diff --git a/src/parser/mod.rs b/src/parser/mod.rs
index 665a9cc..9c185fd 100644
--- a/src/parser/mod.rs
+++ b/src/parser/mod.rs
@@ -963,6 +963,26 @@ impl Parser {
                     start,
                 ))
             }
+            TokenKind::ShiftLeftAssign => {
+                self.advance();
+                let value = self.parse_expr()?;
+                Ok(Statement::Assign(
+                    LValue::Var(name),
+                    AssignOp::ShiftLeftAssign,
+                    value,
+                    start,
+                ))
+            }
+            TokenKind::ShiftRightAssign => {
+                self.advance();
+                let value = self.parse_expr()?;
+                Ok(Statement::Assign(
+                    LValue::Var(name),
+                    AssignOp::ShiftRightAssign,
+                    value,
+                    start,
+                ))
+            }
             TokenKind::LBracket => {
                 // Array index assignment: name[index] = value
                 self.advance();
@@ -1027,6 +1047,14 @@ impl Parser {
                 self.advance();
                 Ok(AssignOp::CaretAssign)
             }
+            TokenKind::ShiftLeftAssign => {
+                self.advance();
+                Ok(AssignOp::ShiftLeftAssign)
+            }
+            TokenKind::ShiftRightAssign => {
+                self.advance();
+                Ok(AssignOp::ShiftRightAssign)
+            }
             _ => Err(Diagnostic::error(
                 ErrorCode::E0201,
                 format!("expected assignment operator, found '{}'", self.peek()),
diff --git a/tests/integration_test.rs b/tests/integration_test.rs
index a16a429..061b85a 100644
--- a/tests/integration_test.rs
+++ b/tests/integration_test.rs
@@ -1,4 +1,7 @@
+use std::path::Path;
+
 use nescript::analyzer;
+use nescript::assets;
 use nescript::codegen::CodeGen;
 use nescript::ir;
 use nescript::linker::Linker;
@@ -25,11 +28,15 @@ fn compile(source: &str) -> Vec<u8> {
     let mut ir_program = ir::lower(&program, &analysis);
     optimizer::optimize(&mut ir_program);
 
-    let codegen = CodeGen::new(&analysis.var_allocations, &program.constants);
+    let sprites = assets::resolve_sprites(&program, Path::new("."))
+        .expect("sprite resolution should succeed");
+
+    let codegen =
+        CodeGen::new(&analysis.var_allocations, &program.constants).with_sprites(&sprites);
     let instructions = codegen.generate(&program);
 
     let linker = Linker::new(program.game.mirroring);
-    linker.link(&instructions)
+    linker.link_with_assets(&instructions, &sprites)
 }
 
 // ── M1 Tests ──
@@ -371,11 +378,77 @@ fn compile_with_mapper(source: &str) -> Vec<u8> {
     let mut ir_program = ir::lower(&program, &analysis);
     nescript::optimizer::optimize(&mut ir_program);
 
-    let codegen = nescript::codegen::CodeGen::new(&analysis.var_allocations, &program.constants);
+    let sprites = assets::resolve_sprites(&program, Path::new("."))
+        .expect("sprite resolution should succeed");
+
+    let codegen = nescript::codegen::CodeGen::new(&analysis.var_allocations, &program.constants)
+        .with_sprites(&sprites);
     let instructions = codegen.generate(&program);
 
     let linker = Linker::with_mapper(program.game.mirroring, program.game.mapper);
-    linker.link(&instructions)
+    linker.link_with_assets(&instructions, &sprites)
+}
+
+#[test]
+fn sprite_resolution_uses_tile_index() {
+    // The Player sprite has 16 unique bytes of CHR data. Because tile index 0
+    // is reserved for the built-in smiley, the compiler should place Player
+    // at tile index 1 and `draw Player` should store that tile index in OAM.
+    //
+    // We check this in two ways:
+    //   1. The CHR ROM contains Player's bytes at tile 1 (offset 16).
+    //   2. The PRG ROM contains the immediate-load sequence `A9 01 8D 01 02`
+    //      (LDA #$01 ; STA $0201) — writing tile index 1 into OAM byte 1.
+    let source = r#"
+        game "SpriteTile" { mapper: NROM }
+
+        sprite Player {
+            chr: [0x10, 0x11, 0x12, 0x13, 0x14, 0x15, 0x16, 0x17,
+                  0x18, 0x19, 0x1A, 0x1B, 0x1C, 0x1D, 0x1E, 0x1F]
+        }
+
+        var px: u8 = 128
+        var py: u8 = 120
+
+        state Title {
+            on frame {
+                draw Player at: (px, py)
+            }
+        }
+
+        start Title
+    "#;
+
+    let rom_data = compile(source);
+
+    // CHR ROM begins right after PRG ROM (16 header + 16384 PRG).
+    let chr_start = 16 + 16384;
+    // Tile 1 lives at CHR offset 16 (16 bytes per tile).
+    let tile1 = &rom_data[chr_start + 16..chr_start + 32];
+    assert_eq!(
+        tile1,
+        &[
+            0x10, 0x11, 0x12, 0x13, 0x14, 0x15, 0x16, 0x17, 0x18, 0x19, 0x1A, 0x1B, 0x1C, 0x1D,
+            0x1E, 0x1F
+        ],
+        "Player sprite CHR bytes should be placed at tile index 1",
+    );
+
+    // The default smiley tile at index 0 should still be non-zero (untouched).
+    let tile0 = &rom_data[chr_start..chr_start + 16];
+    assert_ne!(
+        tile0, &[0u8; 16],
+        "tile 0 should still contain the default smiley",
+    );
+
+    // In PRG ROM, look for `LDA #$01 ; STA $0201` which writes the Player's
+    // tile index (1) into the tile-index byte of the first OAM slot.
+    let prg = &rom_data[16..16 + 16384];
+    let pattern = [0xA9u8, 0x01, 0x8D, 0x01, 0x02];
+    assert!(
+        prg.windows(pattern.len()).any(|w| w == pattern),
+        "PRG ROM should contain LDA #$01 ; STA $0201 for draw Player",
+    );
 }
 
 #[test]