diff --git a/actions.py b/actions.py
index 73d0289..6ed16d8 100644
--- a/actions.py
+++ b/actions.py
@@ -82,9 +82,22 @@ class ItemAction(Action):
 
 class DropItem(ItemAction):
     def perform(self) -> None:
+        if self.entity.equipment.item_is_equipped(self.item):
+            self.entity.equipment.toggle_equip(self.item)
+
         self.entity.inventory.drop(self.item)
 
 
+class EquipAction(Action):
+    def __init__(self, entity: Actor, item: Item):
+        super().__init__(entity)
+
+        self.item = item
+
+    def perform(self) -> None:
+        self.entity.equipment.toggle_equip(self.item)
+
+
 class WaitAction(Action):
     def perform(self) -> None:
         pass
diff --git a/input_handlers.py b/input_handlers.py
index c9df6ec..c334a9e 100644
--- a/input_handlers.py
+++ b/input_handlers.py
@@ -1,15 +1,14 @@
 from __future__ import annotations
 
 import os
-
 from typing import overload, Callable, Optional, Tuple, TYPE_CHECKING, Union
 
 import tcod.event
 
 import actions
-from actions import Action, BumpAction, PickupAction, WaitAction
 import color
 import exceptions
+from actions import Action, BumpAction, PickupAction, WaitAction
 
 if TYPE_CHECKING:
     from engine import Engine
@@ -344,7 +343,15 @@ class InventoryEventHandler(AskUserEventHandler):
         if number_of_items_in_inventory > 0:
             for i, item in enumerate(self.engine.player.inventory.items):
                 item_key = chr(ord("a") + i)
-                console.print(x + 1, y + i + 1, f"({item_key}) {item.name}")
+
+                is_equipped = self.engine.player.equipment.item_is_equipped(item)
+
+                item_string = f"({item_key}) {item.name}"
+
+                if is_equipped:
+                    item_string = f"{item_string} (E)"
+
+                console.print(x + 1, y + i + 1, item_string)
         else:
             console.print(x + 1, y + 1, "(Empty)")
 
@@ -375,8 +382,13 @@ class InventoryActivateHandler(InventoryEventHandler):
     TITLE = "Select an item to use"
 
     def on_item_selected(self, item: Item) -> Optional[ActionOrHandler]:
-        """Return the action for the selected item."""
-        return item.consumable.get_action(self.engine.player)
+        if item.consumable:
+            # Return the action for the selected item.
+            return item.consumable.get_action(self.engine.player)
+        elif item.equippable:
+            return actions.EquipAction(self.engine.player, item)
+        else:
+            return None
 
 
 class InventoryDropHandler(InventoryEventHandler):
diff --git a/procgen.py b/procgen.py
index 02a902e..7468312 100644
--- a/procgen.py
+++ b/procgen.py
@@ -6,8 +6,8 @@ from typing import Dict, Iterator, List, Tuple, TYPE_CHECKING
 import tcod
 
 import entity_factories
-from game_map import GameMap
 import tile_types
+from game_map import GameMap
 
 if TYPE_CHECKING:
     from engine import Engine
@@ -27,8 +27,8 @@ max_monsters_by_floor = [
 item_chances: Dict[int, List[Tuple[Entity, int]]] = {
     0: [(entity_factories.health_potion, 35)],
     2: [(entity_factories.confusion_scroll, 10)],
-    4: [(entity_factories.lightning_scroll, 25)],
-    6: [(entity_factories.fireball_scroll, 25)],
+    4: [(entity_factories.lightning_scroll, 25), (entity_factories.sword, 5)],
+    6: [(entity_factories.fireball_scroll, 25), (entity_factories.chain_mail, 15)],
 }
 
 enemy_chances: Dict[int, List[Tuple[Entity, int]]] = {
diff --git a/setup_game.py b/setup_game.py
index 965a2f0..cb17db5 100644
--- a/setup_game.py
+++ b/setup_game.py
@@ -10,10 +10,10 @@ from typing import Optional
 import tcod
 
 import color
-from engine import Engine
 import entity_factories
-from game_map import GameWorld
 import input_handlers
+from engine import Engine
+from game_map import GameWorld
 
 # Load the background image and remove the alpha channel.
 background_image = tcod.image.load("menu_background.png")[:, :, :3]
@@ -47,6 +47,18 @@ def new_game() -> Engine:
         "Hello and welcome, adventurer, to yet another dungeon!", color.welcome_text
     )
 
+    dagger = copy.deepcopy(entity_factories.dagger)
+    leather_armor = copy.deepcopy(entity_factories.leather_armor)
+
+    dagger.parent = player.inventory
+    leather_armor.parent = player.inventory
+
+    player.inventory.items.append(dagger)
+    player.equipment.toggle_equip(dagger, add_message=False)
+
+    player.inventory.items.append(leather_armor)
+    player.equipment.toggle_equip(leather_armor, add_message=False)
+
     return engine