diff --git a/data/mapgen.lua b/data/mapgen.lua
index 93b4044..f8bd401 100644
--- a/data/mapgen.lua
+++ b/data/mapgen.lua
@@ -116,7 +116,7 @@ end
 -- END FUNCTIONS
 
 -- BEGIN SCRIPT
-map = create_map() -- 'map' needs to be global
+map = create_map(CURRENT_LEVEL) -- 'map' needs to be global
 room_builder.load_textures(map)
 local map_matrix = generate_path()
 
diff --git a/src/gui.c b/src/gui.c
index 64ff093..fc51cf1 100644
--- a/src/gui.c
+++ b/src/gui.c
@@ -61,13 +61,6 @@ gui_create()
 	return gui;
 }
 
-static void
-clear_sprite_list(LinkedList *list)
-{
-	while (list != NULL)
-		sprite_destroy(linkedlist_pop(&list));
-}
-
 void
 gui_set_max_health(Gui *gui, int max, SDL_Renderer *renderer)
 {
@@ -79,7 +72,9 @@ gui_set_max_health(Gui *gui, int max, SDL_Renderer *renderer)
 	if (((unsigned int) max / 3) == (unsigned int) linkedlist_size(gui->health))
 		return;
 
-	clear_sprite_list(gui->health);
+	// Clear sprite list
+	while (gui->health != NULL)
+		sprite_destroy(linkedlist_pop(&gui->health));
 
 	texture = gui_add_texture(gui, "assets/GUI/GUI0.png", renderer);
 
@@ -87,7 +82,7 @@ gui_set_max_health(Gui *gui, int max, SDL_Renderer *renderer)
 		Sprite *sprite = sprite_create();
 		sprite->fixed = true;
 		sprite->clip = (SDL_Rect) { 0, 16, 16, 16 };
-		sprite->pos = (Position) { 16 + i*16, 16 };
+		sprite->pos = (Position) { 16 + (i%8)*16, 16 + ((i-(i%8))/8)*16 };
 		sprite_set_texture(sprite, texture, 0);
 		linkedlist_append(&gui->health, sprite);
 	}
diff --git a/src/item.c b/src/item.c
index b5d8f34..2f8313a 100644
--- a/src/item.c
+++ b/src/item.c
@@ -41,19 +41,11 @@ item_collected(Item *item, Player *player)
 void
 item_destroy(Item *item)
 {
-	LinkedList *items;
-
 	if (item->sprite)
 		sprite_destroy(item->sprite);
 
-	items = item->items;
-	while (items != NULL) {
-		Item *subitem = items->data;
-		items->data = NULL;
-		items = items->next;
-		item_destroy(subitem);
-	}
-	linkedlist_destroy(&items);
+	while (item->items != NULL)
+		item_destroy(linkedlist_pop(&item->items));
 
 	free(item);
 }
diff --git a/src/item_builder.c b/src/item_builder.c
index 1977611..b2e6655 100644
--- a/src/item_builder.c
+++ b/src/item_builder.c
@@ -39,7 +39,7 @@ static void
 eat_flesh(Item *item, Player *player)
 {
 	int original_hp = player->stats.hp;
-	player->stats.hp += (int) item->value;
+	player->stats.hp += (int) item->value * player->stats.lvl;
 	if (player->stats.hp > player->stats.maxhp)
 		player->stats.hp = player->stats.maxhp;
 
@@ -50,7 +50,7 @@ static void
 drink_health(Item *item, Player *player)
 {
 	int original_hp = player->stats.hp;
-	player->stats.hp += (int) item->value;
+	player->stats.hp += (int) item->value * player->stats.lvl;
 	if (player->stats.hp > player->stats.maxhp)
 		player->stats.hp = player->stats.maxhp;
 
diff --git a/src/main.c b/src/main.c
index 622fac7..f2e4521 100644
--- a/src/main.c
+++ b/src/main.c
@@ -165,6 +165,16 @@ bool handle_events(void)
 	return quit;
 }
 
+static bool
+check_if_dead(void)
+{
+	if (gPlayer->stats.hp <= 0) {
+		gui_log("The dungeon consumed you");
+		return true;
+	}
+	return false;
+}
+
 static void
 check_next_level(void)
 {
@@ -220,6 +230,9 @@ run_game(void)
 
 	SDL_RenderPresent(gRenderer);
 
+	if (check_if_dead())
+		gGameState = GAME_OVER;
+
 	check_next_level();
 }
 
@@ -242,13 +255,13 @@ void run(void)
 				run_game();
 				break;
 			case MENU:
-				error("MENU not implemented");
+				fatal("MENU not implemented");
 				break;
 			case IN_GAME_MENU:
-				error("IN_GAME_MENU not implemented");
+				fatal("IN_GAME_MENU not implemented");
 				break;
 			case GAME_OVER:
-				error("GAME_OVER not implemented");
+				fatal("GAME_OVER not implemented");
 				break;
 			default:
 				break;
diff --git a/src/map.c b/src/map.c
index a100cda..a2f9418 100644
--- a/src/map.c
+++ b/src/map.c
@@ -155,6 +155,7 @@ map_clear_collected_items(Map *map)
 void
 map_add_monster(Map *map, Monster *m)
 {
+	monster_update_stats_for_level(m, map->level);
 	linkedlist_append(&map->monsters, m);
 }
 
diff --git a/src/map_lua.c b/src/map_lua.c
index 9884cb6..1caf232 100644
--- a/src/map_lua.c
+++ b/src/map_lua.c
@@ -22,6 +22,7 @@ static
 int l_create_map(lua_State *L)
 {
 	Map *map = map_create();
+	map->level = luaL_checkinteger(L, 1);
 	lua_pushlightuserdata(L, map);
 	return 1;
 }
diff --git a/src/monster.c b/src/monster.c
index 45c3ff4..3bc0b15 100644
--- a/src/monster.c
+++ b/src/monster.c
@@ -239,6 +239,17 @@ monster_hit(Monster *monster, unsigned int dmg)
 	monster->state.current = monster->state.challenge;
 }
 
+void
+monster_update_stats_for_level(Monster *m, unsigned int level)
+{
+	m->stats.lvl = level;
+	m->stats.maxhp *= level;
+	m->stats.hp = m->stats.maxhp;
+	m->stats.dmg *= level;
+	m->stats.atk *= level;
+	m->stats.def *= level;
+}
+
 void
 monster_drop_loot(Monster *monster, Map *map)
 {
@@ -248,12 +259,12 @@ monster_drop_loot(Monster *monster, Map *map)
 	Item *items[2];
 	unsigned int item_count = 0;
 
-	if ((rand() % treasure_drop_chance) == 0 || true) {
+	if ((rand() % treasure_drop_chance) == 0) {
 		item = item_builder_build_item(TREASURE);
 		item->sprite->pos = monster->sprite->pos;
 		items[item_count++] = item;
 	}
-	if ((rand() % item_drop_chance) == 0 || true) {
+	if ((rand() % item_drop_chance) == 0) {
 		item = item_builder_build_item(rand() % TREASURE);
 		item->sprite->pos = monster->sprite->pos;
 		items[item_count++] = item;
diff --git a/src/monster.h b/src/monster.h
index 1b403e3..ec1f215 100644
--- a/src/monster.h
+++ b/src/monster.h
@@ -26,16 +26,25 @@ typedef struct Monster_t {
 
 Monster* monster_create(SDL_Renderer*);
 
-void monster_update_pos(Monster*, Position);
+void
+monster_update_pos(Monster*, Position);
 
-void monster_move(Monster*, RoomMatrix*);
+void
+monster_move(Monster*, RoomMatrix*);
 
-void monster_render(Monster*, Camera*);
+void
+monster_render(Monster*, Camera*);
 
-void monster_hit(Monster*, unsigned int dmg);
+void
+monster_hit(Monster*, unsigned int dmg);
 
-void monster_drop_loot(Monster*, Map*);
+void
+monster_update_stats_for_level(Monster*, unsigned int level);
 
-void monster_destroy(Monster*);
+void
+monster_drop_loot(Monster*, Map*);
+
+void
+monster_destroy(Monster*);
 
 #endif // MONSTER_H_
diff --git a/src/player.c b/src/player.c
index 8090250..db4c272 100644
--- a/src/player.c
+++ b/src/player.c
@@ -14,6 +14,26 @@
 #define ROGUE_STATS	{ 12, 12, 5, 7, 3, 2, 1 }
 #define WARRIOR_STATS	{ 12, 12, 8, 9, 2, 1, 1 }
 
+static void
+player_levelup(Player *player)
+{
+	player->stats.lvl += 1;
+	player->stats.maxhp += 3;
+	player->stats.dmg += 5;
+	player->stats.atk += 1;
+	player->stats.def += 1;
+}
+
+static void
+player_gain_xp(Player *player, unsigned int xp_gain)
+{
+	player->xp += xp_gain;
+	if (player->xp >= (player->stats.lvl * 50) + ((player->stats.lvl - 1) * 150)) {
+		player_levelup(player);
+		gui_log("You have reached level %u", player->stats.lvl);
+	}
+}
+
 static bool 
 has_collided(Player *player, RoomMatrix *matrix)
 {
@@ -46,12 +66,12 @@ has_collided(Player *player, RoomMatrix *matrix)
 			gui_log("You missed %s", space->monster->lclabel);
 
 		if (space->monster->stats.hp <= 0) {
-			// TODO(Linus): This needs some love later on.
+			unsigned int gained_xp = 5 * space->monster->stats.lvl;
 			player->kills += 1;
-			player->xp += 10;
 
 			gui_log("You killed %s and gained %d xp",
-				space->monster->lclabel, 10);
+				space->monster->lclabel, gained_xp);
+			player_gain_xp(player, gained_xp);
 		}
 	} else if (collided) {
 		gui_log("Ouch! There is something in the way");
diff --git a/src/player.h b/src/player.h
index cdfdd60..625862c 100644
--- a/src/player.h
+++ b/src/player.h
@@ -25,14 +25,19 @@ typedef struct Player_t {
 	void (*handle_event)(struct Player_t*, RoomMatrix*, SDL_Event*);
 } Player;
 
-Player* player_create(class_t, SDL_Renderer*);
+Player*
+player_create(class_t, SDL_Renderer*);
 
-void player_hit(Player*, unsigned int dmg);
+void
+player_hit(Player*, unsigned int dmg);
 
-void player_reset_steps(Player*);
+void
+player_reset_steps(Player*);
 
-void player_render(Player*, Camera*);
+void
+player_render(Player*, Camera*);
 
-void player_destroy(Player*);
+void
+player_destroy(Player*);
 
 #endif // PLAYER_H_