diff --git a/Core/FileSystems/DirectoryFileSystem.cpp b/Core/FileSystems/DirectoryFileSystem.cpp
index c35ed2f302..9a4ffca5ee 100644
--- a/Core/FileSystems/DirectoryFileSystem.cpp
+++ b/Core/FileSystems/DirectoryFileSystem.cpp
@@ -18,6 +18,7 @@
 #include "ChunkFile.h"
 #include "FileUtil.h"
 #include "DirectoryFileSystem.h"
+#include "ISOFileSystem.h"
 #include "Core/HLE/sceKernel.h"
 #include "file/zip_read.h"
 
@@ -133,7 +134,17 @@ bool DirectoryFileSystem::FixPathCase(std::string &path, FixPathCaseBehavior beh
 
 #endif
 
-DirectoryFileSystem::DirectoryFileSystem(IHandleAllocator *_hAlloc, std::string _basePath) : basePath(_basePath) {
+DirectoryFileSystem::DirectoryFileSystem(IHandleAllocator *_hAlloc, std::string _basePath, bool _virtualDisc)
+	: basePath(_basePath),virtualDisc(_virtualDisc),currentBlockIndex(0) {
+		
+#ifdef _WIN32
+		if (basePath.size() > 0 && basePath[basePath.size()-1] != '\\')
+			basePath = basePath + "\\";
+#else
+		if (basePath.size() > 0 && basePath[basePath.size()-1] != '/')
+			basePath = basePath + "/";
+#endif
+
 	File::CreateFullPath(basePath);
 	hAlloc = _hAlloc;
 }
@@ -288,6 +299,80 @@ bool DirectoryFileSystem::RemoveFile(const std::string &filename) {
 }
 
 u32 DirectoryFileSystem::OpenFile(std::string filename, FileAccess access, const char *devicename) {
+
+	if (filename.compare(0,8,"/sce_lbn") == 0)
+	{
+		u32 sectorStart = 0xFFFFFFFF, readSize = 0xFFFFFFFF;
+		parseLBN(filename, &sectorStart, &readSize);
+
+		OpenFileEntry entry;
+		entry.lbnFile = true;
+		entry.size = readSize;
+		entry.curOffset = 0;
+
+		std::string actualFileName = "";
+		for (int i = 0; i < fileBlocks.size(); i++)
+		{
+			if (fileBlocks[i].firstBlock <= sectorStart)
+			{
+				u32 sectorOffset = (sectorStart-fileBlocks[i].firstBlock)*2048;
+				u32 endOffset = sectorOffset+readSize;
+				if (endOffset <= fileBlocks[i].totalSize)
+				{
+					entry.startOffset = sectorOffset;
+					actualFileName = fileBlocks[i].fileName;
+					break;
+				}
+			}
+		}
+
+		// no file info has been gathered? shouldn't happen
+		if (actualFileName == "")
+		{
+			ERROR_LOG(FILESYS, "sce_lbn used without calling fileinfo.");
+			return 0;
+		}
+		
+#if HOST_IS_CASE_SENSITIVE
+		if (access & (FILEACCESS_APPEND|FILEACCESS_CREATE|FILEACCESS_WRITE))
+		{
+			DEBUG_LOG(HLE, "Checking case for path %s", filename.c_str());
+			if ( ! FixPathCase(actualFileName, FPC_PATH_MUST_EXIST) )
+				return 0;  // or go on and attempt (for a better error code than just 0?)
+		}
+		// else we try fopen first (in case we're lucky) before simulating case insensitivity
+#endif
+
+		// now we just need an actual file handle
+		std::string fullName = GetLocalPath(actualFileName);
+
+#ifdef _WIN32
+		entry.hFile = CreateFile(fullName.c_str(), GENERIC_READ, FILE_SHARE_READ, 0, OPEN_EXISTING, 0, 0);
+		bool success = entry.hFile != INVALID_HANDLE_VALUE;
+#else
+		entry.hFile = fopen(fullName.c_str(), "rb");
+		bool success = entry.hFile != 0;
+#endif
+
+		if (!success)
+		{
+			ERROR_LOG(HLE, "DiscDirectoryFileSystem::OpenFile: FAILED, %i", GetLastError());
+			return 0;
+		}
+
+		// seek to start
+#ifdef _WIN32
+		DWORD newPos = SetFilePointer(entry.hFile, (LONG)entry.startOffset, 0, FILE_BEGIN);
+#else
+		fseek(entry.hFile, entry.startOffset, SEEK_SET);
+#endif
+
+		u32 newHandle = hAlloc->GetNewHandle();
+		entries[newHandle] = entry;
+
+		return newHandle;
+	}
+
 #if HOST_IS_CASE_SENSITIVE
 	if (access & (FILEACCESS_APPEND|FILEACCESS_CREATE|FILEACCESS_WRITE))
 	{
@@ -303,6 +388,7 @@ u32 DirectoryFileSystem::OpenFile(std::string filename, FileAccess access, const
 	INFO_LOG(HLE,"Actually opening %s (%s)", fullNameC, filename.c_str());
 
 	OpenFileEntry entry;
+	entry.lbnFile = false;
 
 	//TODO: tests, should append seek to end of file? seeking in a file opened for append?
 #ifdef _WIN32
@@ -430,6 +516,11 @@ size_t DirectoryFileSystem::ReadFile(u32 handle, u8 *pointer, s64 size) {
 #else
 		bytesRead = fread(pointer, 1, size, iter->second.hFile);
 #endif
+		if (iter->second.lbnFile)
+		{
+			iter->second.curOffset += bytesRead;
+		}
+
 		return bytesRead;
 	} else {
 		//This shouldn't happen...
@@ -459,6 +550,23 @@ size_t DirectoryFileSystem::WriteFile(u32 handle, const u8 *pointer, s64 size) {
 size_t DirectoryFileSystem::SeekFile(u32 handle, s32 position, FileMove type) {
 	EntryMap::iterator iter = entries.find(handle);
 	if (iter != entries.end()) {
+		if (iter->second.lbnFile)
+		{
+			switch (type) {
+			case FILEMOVE_BEGIN:    iter->second.curOffset = position;    break;
+			case FILEMOVE_CURRENT:  iter->second.curOffset += position;  break;
+			case FILEMOVE_END:      iter->second.curOffset = iter->second.size-position;      break;
+			}
+
+#ifdef _WIN32
+			u32 off = iter->second.startOffset+iter->second.curOffset;
+			DWORD newPos = SetFilePointer((*iter).second.hFile, (LONG)off, 0, FILE_BEGIN);
+#else
+			fseek(iter->second.hFile, iter->second.curOffset+iter->second.startOffset, SEEK_SET);
+#endif
+			return iter->second.curOffset;
+		}
+
 #ifdef _WIN32
 		DWORD moveMethod = 0;
 		switch (type) {
@@ -485,6 +593,19 @@ size_t DirectoryFileSystem::SeekFile(u32 handle, s32 position, FileMove type) {
 	}
 }
 
+u32 DirectoryFileSystem::GetFileLbn(std::string& fileName)
+{
+	if (!virtualDisc) return -1;
+
+	for (int i = 0; i < fileBlocks.size(); i++)
+	{
+		if (fileBlocks[i].fileName == fileName)
+			return fileBlocks[i].firstBlock;
+	}
+
+	return -1;
+}
+
 PSPFileInfo DirectoryFileSystem::GetFileInfo(std::string filename) {
 	PSPFileInfo x;
 	x.name = filename;
@@ -517,6 +638,22 @@ PSPFileInfo DirectoryFileSystem::GetFileInfo(std::string filename) {
 #else
 		x.size = s.st_size;
 #endif
+		if (virtualDisc)
+		{
+			x.startSector = GetFileLbn(filename);
+			x.numSectors = (x.size+2047)/2048;
+			if (x.startSector == -1)
+			{
+				x.startSector = currentBlockIndex;
+				currentBlockIndex += x.numSectors;
+
+				LbnMapEntry entry;
+				entry.fileName = filename;
+				entry.firstBlock = x.startSector;
+				entry.totalSize = x.size;
+				fileBlocks.push_back(entry);
+			}
+		}
 		x.access = s.st_mode & 0x1FF;
 		localtime_r((time_t*)&s.st_atime,&x.atime);
 		localtime_r((time_t*)&s.st_ctime,&x.ctime);
diff --git a/Core/FileSystems/DirectoryFileSystem.h b/Core/FileSystems/DirectoryFileSystem.h
index c0dd2ae17e..08032ec7cc 100644
--- a/Core/FileSystems/DirectoryFileSystem.h
+++ b/Core/FileSystems/DirectoryFileSystem.h
@@ -49,7 +49,7 @@ typedef void * HANDLE;
 
 class DirectoryFileSystem : public IFileSystem {
 public:
-	DirectoryFileSystem(IHandleAllocator *_hAlloc, std::string _basePath);
+	DirectoryFileSystem(IHandleAllocator *_hAlloc, std::string _basePath, bool _virtualDisc = false);
 	~DirectoryFileSystem();
 
 	void DoState(PointerWrap &p);
@@ -69,18 +69,34 @@ public:
 	bool GetHostPath(const std::string &inpath, std::string &outpath);
 
 private:
+	u32 GetFileLbn(std::string& fileName);
+
 	struct OpenFileEntry {
 #ifdef _WIN32
 		HANDLE hFile;
 #else
 		FILE *hFile;
 #endif
+		bool lbnFile;
+		u32 startOffset;	// only used by lbn files
+		u32 curOffset;		// only used by lbn files;
+		u32 size;			// only used by lbn files
 	};
 
 	typedef std::map<u32, OpenFileEntry> EntryMap;
 	EntryMap entries;
 	std::string basePath;
 	IHandleAllocator *hAlloc;
+	bool virtualDisc;
+
+	typedef struct {
+		std::string fileName;
+		u32 firstBlock;
+		u32 totalSize;
+	} LbnMapEntry;
+	
+	std::vector<LbnMapEntry> fileBlocks;
+	u32 currentBlockIndex;
 
 	// In case of Windows: Translate slashes, etc.
 	std::string GetLocalPath(std::string localpath);
diff --git a/Core/FileSystems/ISOFileSystem.cpp b/Core/FileSystems/ISOFileSystem.cpp
index 1f32cc5f1e..2d3d8ea94b 100644
--- a/Core/FileSystems/ISOFileSystem.cpp
+++ b/Core/FileSystems/ISOFileSystem.cpp
@@ -26,7 +26,7 @@
 
 const int sectorSize = 2048;
 
-static bool parseLBN(std::string filename, u32 *sectorStart, u32 *readSize)
+bool parseLBN(std::string filename, u32 *sectorStart, u32 *readSize)
 {
 	// The format of this is: "/sce_lbn" "0x"? HEX* ANY* "_size" "0x"? HEX* ANY*
 	// That means that "/sce_lbn/_size1/" is perfectly valid.
diff --git a/Core/FileSystems/ISOFileSystem.h b/Core/FileSystems/ISOFileSystem.h
index a53fe454b4..a7aca0ca8a 100644
--- a/Core/FileSystems/ISOFileSystem.h
+++ b/Core/FileSystems/ISOFileSystem.h
@@ -24,6 +24,7 @@
 
 #include "BlockDevices.h"
 
+bool parseLBN(std::string filename, u32 *sectorStart, u32 *readSize);
 
 class ISOFileSystem : public IFileSystem
 {
diff --git a/Core/Loaders.cpp b/Core/Loaders.cpp
index 59c32f8437..ec32f612d4 100644
--- a/Core/Loaders.cpp
+++ b/Core/Loaders.cpp
@@ -57,7 +57,14 @@ EmuFileType Identify_File(std::string &filename)
 			if (ebootInfo.exists) {
 				return FILETYPE_PSP_PBP_DIRECTORY;
 			}
-		} 
+		}
+
+		// check if it's a disc directory
+		if (getFileInfo((filename + "/PSP_GAME").c_str(), &ebootInfo)) {
+			if (ebootInfo.exists) {
+				return FILETYPE_PSP_DISC_DIRECTORY;
+			}
+		}
 	}
 
 	FILE *f = fopen(filename.c_str(), "rb");
@@ -157,6 +164,7 @@ bool LoadFile(std::string &filename, std::string *error_string) {
 
 	case FILETYPE_PSP_ISO:
 	case FILETYPE_PSP_ISO_NP:
+	case FILETYPE_PSP_DISC_DIRECTORY:	// behaves the same as the mounting is already done by now
 		pspFileSystem.SetStartingDirectory("disc0:/PSP_GAME/USRDIR");
 		return Load_PSP_ISO(filename.c_str(), error_string);
 
diff --git a/Core/Loaders.h b/Core/Loaders.h
index 8693f88eb2..7e16509693 100644
--- a/Core/Loaders.h
+++ b/Core/Loaders.h
@@ -28,6 +28,8 @@ enum EmuFileType
 	FILETYPE_PSP_ISO,
 	FILETYPE_PSP_ISO_NP,
 
+	FILETYPE_PSP_DISC_DIRECTORY,
+
 	FILETYPE_UNKNOWN_BIN,
 	FILETYPE_UNKNOWN_ELF,
 
diff --git a/Core/PSPLoaders.cpp b/Core/PSPLoaders.cpp
index 6afe7c79e6..b010d30b12 100644
--- a/Core/PSPLoaders.cpp
+++ b/Core/PSPLoaders.cpp
@@ -27,6 +27,7 @@
 #include "MIPS/MIPSAnalyst.h"
 #include "MIPS/MIPSCodeUtils.h"
 
+#include "file/file_util.h"
 #include "StringUtils.h"
 
 #include "Host.h"
@@ -44,11 +45,24 @@
 // to determine if the emulator should enable extra memory and
 // double-sized texture coordinates.
 void InitMemoryForGameISO(std::string fileToStart) {
-	auto bd = constructBlockDevice(fileToStart.c_str());
-	// Can't init anything without a block device...
-	if (!bd)
-		return;
-	ISOFileSystem *umd2 = new ISOFileSystem(&pspFileSystem, bd);
+	IFileSystem* umd2;
+
+	// check if it's a disc directory
+	FileInfo info;
+	if (!getFileInfo(fileToStart.c_str(), &info)) return;
+
+	if (info.isDirectory)
+	{
+		umd2 = new DirectoryFileSystem(&pspFileSystem, fileToStart,true);
+	}
+	else 
+	{
+		auto bd = constructBlockDevice(fileToStart.c_str());
+		// Can't init anything without a block device...
+		if (!bd)
+			return;
+		umd2 = new ISOFileSystem(&pspFileSystem, bd);
+	}
 
 	// Parse PARAM.SFO
 
diff --git a/Core/System.cpp b/Core/System.cpp
index 7a6c48ae92..c9b66bed73 100644
--- a/Core/System.cpp
+++ b/Core/System.cpp
@@ -83,7 +83,7 @@ bool PSP_Init(const CoreParameter &coreParam, std::string *error_string)
 	std::string filename = coreParam.fileToStart;
 	EmuFileType type = Identify_File(filename);
 
-	if(type == FILETYPE_PSP_ISO || type == FILETYPE_PSP_ISO_NP)
+	if(type == FILETYPE_PSP_ISO || type == FILETYPE_PSP_ISO_NP || type == FILETYPE_PSP_DISC_DIRECTORY)
 		InitMemoryForGameISO(filename);
 
 	Memory::Init();
diff --git a/UI/MainScreen.cpp b/UI/MainScreen.cpp
index 3f32666d2b..169c7c00ee 100644
--- a/UI/MainScreen.cpp
+++ b/UI/MainScreen.cpp
@@ -38,7 +38,7 @@
 
 #ifdef _WIN32
 namespace MainWindow {
-	void BrowseAndBoot(std::string defaultPath);
+	void BrowseAndBoot(std::string defaultPath, bool browseDirectory = false);
 }
 #endif
 
diff --git a/UI/MenuScreens.cpp b/UI/MenuScreens.cpp
index 378a296c46..f25ce9414a 100644
--- a/UI/MenuScreens.cpp
+++ b/UI/MenuScreens.cpp
@@ -74,7 +74,7 @@
 #ifdef _WIN32
 namespace MainWindow {
 	extern HWND hwndMain;
-	void BrowseAndBoot(std::string defaultPath);
+	void BrowseAndBoot(std::string defaultPath, bool browseDirectory = false);
 }
 #endif
 
diff --git a/Windows/WndMainWindow.cpp b/Windows/WndMainWindow.cpp
index 186ef02bca..0e8916b80e 100644
--- a/Windows/WndMainWindow.cpp
+++ b/Windows/WndMainWindow.cpp
@@ -303,7 +303,7 @@ namespace MainWindow
 		return TRUE;
 	}
 
-	void BrowseAndBoot(std::string defaultPath)
+	void BrowseAndBoot(std::string defaultPath, bool browseDirectory)
 	{
 		std::string fn;
 		std::string filter = "PSP ROMs (*.iso *.cso *.pbp *.elf)|*.pbp;*.elf;*.iso;*.cso;*.prx|All files (*.*)|*.*||";
@@ -323,7 +323,24 @@ namespace MainWindow
 				Core_EnableStepping(true);
 		}
 
-		if (W32Util::BrowseForFileName(true, GetHWND(), "Load File", defaultPath.size() ? defaultPath.c_str() : 0, filter.c_str(),"*.pbp;*.elf;*.iso;*.cso;",fn))
+		if (browseDirectory)
+		{
+			std::string dir = W32Util::BrowseForFolder(GetHWND(),"Choose directory");
+			if (dir == "" && !isPaused)
+			{
+				Core_EnableStepping(false);
+			}
+			else
+			{
+				if (globalUIState == UISTATE_INGAME || globalUIState == UISTATE_PAUSEMENU)
+				{
+					Core_EnableStepping(false);
+				}
+
+				NativeMessageReceived("boot", dir.c_str());
+			}
+		}
+		else if (W32Util::BrowseForFileName(true, GetHWND(), "Load File", defaultPath.size() ? defaultPath.c_str() : 0, filter.c_str(),"*.pbp;*.elf;*.iso;*.cso;",fn))
 		{
 			if (globalUIState == UISTATE_INGAME || globalUIState == UISTATE_PAUSEMENU)
 			{
@@ -572,6 +589,10 @@ namespace MainWindow
 				BrowseAndBoot("");
 				break;
 
+			case ID_FILE_LOAD_DIR:
+				BrowseAndBoot("",true);
+				break;
+
 			case ID_FILE_LOAD_MEMSTICK:
 				{
 					std::string memStickDir, flash0dir;
diff --git a/Windows/WndMainWindow.h b/Windows/WndMainWindow.h
index 1b0485492a..99f3e97ec2 100644
--- a/Windows/WndMainWindow.h
+++ b/Windows/WndMainWindow.h
@@ -18,7 +18,7 @@ namespace MainWindow
 	HINSTANCE GetHInstance();
 	HWND GetDisplayHWND();
 	void SetPlaying(const char*text);
-	void BrowseAndBoot(std::string defaultPath);
+	void BrowseAndBoot(std::string defaultPath, bool browseDirectory = false);
 	void SaveStateActionFinished(bool result, void *userdata);
 	void _ViewFullScreen(HWND hWnd);
 	void _ViewNormal(HWND hWnd);
diff --git a/Windows/ppsspp.rc b/Windows/ppsspp.rc
index 699669b478..350ab3ccb4 100644
Binary files a/Windows/ppsspp.rc and b/Windows/ppsspp.rc differ
diff --git a/Windows/resource.h b/Windows/resource.h
index f95a7243be..8ebcf38a60 100644
Binary files a/Windows/resource.h and b/Windows/resource.h differ