diff --git a/components/fighter.py b/components/fighter.py
index 79713ae..6705d0a 100644
--- a/components/fighter.py
+++ b/components/fighter.py
@@ -46,6 +46,8 @@ class Fighter(BaseComponent):
 
         self.engine.message_log.add_message(death_message, death_message_color)
 
+        self.engine.player.level.add_xp(self.parent.level.xp_given)
+
     def heal(self, amount: int) -> int:
         if self.hp == self.max_hp:
             return 0
diff --git a/components/level.py b/components/level.py
new file mode 100644
index 0000000..b871a2d
--- /dev/null
+++ b/components/level.py
@@ -0,0 +1,74 @@
+from __future__ import annotations
+
+from typing import TYPE_CHECKING
+
+from components.base_component import BaseComponent
+
+if TYPE_CHECKING:
+    from entity import Actor
+
+
+class Level(BaseComponent):
+    parent: Actor
+
+    def __init__(
+            self,
+            current_level: int = 1,
+            current_xp: int = 0,
+            level_up_base: int = 0,
+            level_up_factor: int = 150,
+            xp_given: int = 0
+    ):
+        self.current_level = current_level
+        self.current_xp = current_xp
+        self.level_up_base = level_up_base
+        self.level_up_factor = level_up_factor
+        self.xp_given = xp_given
+
+    @property
+    def experience_to_next_level(self) -> int:
+        return self.level_up_base + self.current_level * self.level_up_factor
+
+    @property
+    def requires_level_up(self) -> bool:
+        return self.current_xp > self.experience_to_next_level
+
+    def add_xp(self, xp: int) -> None:
+        if xp == 0 or self.level_up_base == 0:
+            return
+
+        self.current_xp += xp
+
+        self.engine.message_log.add_message(f"You gain {xp} experience points.")
+
+        if self.requires_level_up:
+            self.engine.message_log.add_message(
+                f"You advance to level {self.current_level + 1}!"
+            )
+
+    def increase_level(self) -> None:
+        self.current_xp -= self.experience_to_next_level
+
+        self.current_level += 1
+
+    def increase_max_hp(self, amount: int = 20) -> None:
+        self.parent.fighter.max_hp += amount
+        self.parent.fighter.hp += amount
+
+        self.engine.message_log.add_message("Your health improves!")
+
+        self.increase_level()
+
+    def increase_power(self, amount: int = 1) -> None:
+        self.parent.fighter.power += amount
+
+        self.engine.message_log.add_message("You feel stronger!")
+
+        self.increase_level()
+
+    def increase_defense(self, amount: int = 1) -> None:
+        self.parent.fighter.defense += amount
+
+        self.engine.message_log.add_message("Your movements are getting swifter!")
+
+        self.increase_level()
diff --git a/entity.py b/entity.py
index 7122150..90b3690 100644
--- a/entity.py
+++ b/entity.py
@@ -11,6 +11,7 @@ if TYPE_CHECKING:
     from components.consumable import Consumable
     from components.fighter import Fighter
     from components.inventory import Inventory
+    from components.level import Level
     from game_map import GameMap
 
 T = TypeVar("T", bound="Entity")
@@ -95,6 +96,7 @@ class Actor(Entity):
             ai_cls: Type[BaseAI],
             fighter: Fighter,
             inventory: Inventory,
+            level: Level
     ):
         super().__init__(
             x=x,
@@ -114,6 +116,9 @@ class Actor(Entity):
         self.inventory = inventory
         self.inventory.parent = self
 
+        self.level = level
+        self.level.parent = self
+
     @property
     def is_alive(self) -> bool:
         """Returns True as long as this actor can perform actions."""
diff --git a/entity_factories.py b/entity_factories.py
index 8d46696..b90d757 100644
--- a/entity_factories.py
+++ b/entity_factories.py
@@ -2,6 +2,7 @@ from components.ai import HostileEnemy
 from components import consumable
 from components.fighter import Fighter
 from components.inventory import Inventory
+from components.level import Level
 from entity import Actor, Item
 
 player = Actor(
@@ -11,6 +12,7 @@ player = Actor(
     ai_cls=HostileEnemy,
     fighter=Fighter(hp=30, defense=2, power=5),
     inventory=Inventory(capacity=26),
+    level=Level(level_up_base=200),
 )
 
 orc = Actor(
@@ -20,6 +22,7 @@ orc = Actor(
     ai_cls=HostileEnemy,
     fighter=Fighter(hp=10, defense=0, power=3),
     inventory=Inventory(capacity=0),
+    level=Level(xp_given=35),
 )
 troll = Actor(
     char="T",
@@ -28,6 +31,7 @@ troll = Actor(
     ai_cls=HostileEnemy,
     fighter=Fighter(hp=16, defense=1, power=4),
     inventory=Inventory(capacity=0),
+    level=Level(xp_given=100),
 )
 
 confusion_scroll = Item(
diff --git a/input_handlers.py b/input_handlers.py
index 0067ce4..b23a660 100644
--- a/input_handlers.py
+++ b/input_handlers.py
@@ -132,6 +132,8 @@ class EventHandler(BaseEventHandler):
             if not self.engine.player.is_alive:
                 # The player was killed sometime during or after the action.
                 return GameOverEventHandler(self.engine)
+            elif self.engine.player.level.requires_level_up:
+                return LevelUpEventHandler(self.engine)
             return MainGameEventHandler(self.engine)  # Return to the main handler.
         return self
 
@@ -193,6 +195,73 @@ class AskUserEventHandler(EventHandler):
         return MainGameEventHandler(self.engine)
 
 
+class LevelUpEventHandler(AskUserEventHandler):
+    TITLE = "Level Up"
+
+    def on_render(self, console: tcod.Console) -> None:
+        super().on_render(console)
+
+        if self.engine.player.x <= 30:
+            x = 40
+        else:
+            x = 0
+
+        console.draw_frame(
+            x=x,
+            y=0,
+            width=35,
+            height=8,
+            title=self.TITLE,
+            clear=True,
+            fg=(255, 255, 255),
+            bg=(0, 0, 0)
+        )
+
+        console.print(x + 1, 1, "Congratulations! You level up!")
+        console.print(x + 1, 2, "Select an attribut to increase.")
+
+        console.print(
+            x=x + 1,
+            y=4,
+            string=f"a) Constitution (+20 HP, from {self.engine.player.fighter.max_hp})"
+        )
+        console.print(
+            x=x + 1,
+            y=5,
+            string=f"b) Strength (+1 attack, from {self.engine.player.fighter.power})"
+        )
+        console.print(
+            x=x + 1,
+            y=6,
+            string=f"c) Agility (+1 defense, from {self.engine.player.fighter.defense})"
+        )
+
+    def ev_keydown(self, event: tcod.event.KeyDown) -> Optional[ActionOrHandler]:
+        player = self.engine.player
+        key = event.sym
+        index = key - tcod.event.K_a
+
+        if 0 <= index <= 2:
+            if index == 0:
+                player.level.increase_max_hp()
+            elif index == 1:
+                player.level.increase_power()
+            else:
+                player.level.increase_defense()
+        else:
+            self.engine.message_log.add_message("Invalid entry.", color.invalid)
+
+            return None
+
+        return super().ev_keydown(event)
+
+    def ev_mousebuttondown(self, event: tcod.event.MouseButtonDown) -> Optional[ActionOrHandler]:
+        """
+        Don't allow the player to click to exit the menu, like normal
+        """
+        return None
+
+
 class InventoryEventHandler(AskUserEventHandler):
     """This handler lets the user select an item.