diff --git a/CHANGELOG.md b/CHANGELOG.md
index 22ba480..003eb63 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,13 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## Unreleased
+
+### Added
+
+- Added support for `init` files in directories, similar to Rojo, or `index.js` or `mod.rs` in JavaScript / Rust. <br/>
+  This means that placing a file named `init.luau` or `init.luau` in a directory will now let you `require` that directory.
+
 ## `0.7.1` - June 17th, 2023
 
 ### Added
diff --git a/packages/lib/src/importer/require.rs b/packages/lib/src/importer/require.rs
index 516e39c..492c4ad 100644
--- a/packages/lib/src/importer/require.rs
+++ b/packages/lib/src/importer/require.rs
@@ -133,11 +133,20 @@ impl<'lua> RequireContext<'lua> {
         ) {
             (Ok(luau), _) => luau,
             (_, Ok(lua)) => lua,
-            _ => {
-                return Err(LuaError::RuntimeError(format!(
-                    "File does not exist at path '{require_path}'"
-                )))
-            }
+            // If we did not find a luau/lua file at the wanted path,
+            // we should also look for "init" files in directories
+            _ => match (
+                canonicalize(path_relative_to_pwd.join("init").with_extension("luau")),
+                canonicalize(path_relative_to_pwd.join("init").with_extension("lua")),
+            ) {
+                (Ok(luau), _) => luau,
+                (_, Ok(lua)) => lua,
+                _ => {
+                    return Err(LuaError::RuntimeError(format!(
+                        "File does not exist at path '{require_path}'"
+                    )))
+                }
+            },
         };
         let absolute = file_path.to_string_lossy().to_string();
         let relative = absolute.trim_start_matches(&self.pwd).to_string();
diff --git a/packages/lib/src/tests.rs b/packages/lib/src/tests.rs
index e398f27..6c32104 100644
--- a/packages/lib/src/tests.rs
+++ b/packages/lib/src/tests.rs
@@ -70,6 +70,7 @@ create_tests! {
     require_async_sequential: "require/tests/async_sequential",
     require_builtins: "require/tests/builtins",
     require_children: "require/tests/children",
+    require_directories: "require/tests/directories",
     require_invalid: "require/tests/invalid",
     require_nested: "require/tests/nested",
     require_parents: "require/tests/parents",
diff --git a/tests/require/modules/init.luau b/tests/require/modules/init.luau
new file mode 100644
index 0000000..cb3159b
--- /dev/null
+++ b/tests/require/modules/init.luau
@@ -0,0 +1,4 @@
+return {
+	Foo = "Bar",
+	Hello = "World",
+}
diff --git a/tests/require/tests/directories.luau b/tests/require/tests/directories.luau
new file mode 100644
index 0000000..c01df2a
--- /dev/null
+++ b/tests/require/tests/directories.luau
@@ -0,0 +1,15 @@
+local module = require("./modules")
+
+assert(type(module) == "table", "Required module did not return a table")
+assert(module.Foo == "Bar", "Required module did not contain correct values")
+assert(module.Hello == "World", "Required module did not contain correct values")
+
+module = require("modules")
+assert(module.Foo == "Bar", "Required module did not contain correct values")
+assert(module.Hello == "World", "Required module did not contain correct values")
+
+module = require("modules/modules")
+assert(module.Foo == "Bar", "Required module did not contain correct values")
+assert(module.Hello == "World", "Required module did not contain correct values")
+
+return true
diff --git a/tests/require/tests/modules/init.luau b/tests/require/tests/modules/init.luau
new file mode 100644
index 0000000..cb3159b
--- /dev/null
+++ b/tests/require/tests/modules/init.luau
@@ -0,0 +1,4 @@
+return {
+	Foo = "Bar",
+	Hello = "World",
+}
diff --git a/tests/require/tests/modules/modules/init.luau b/tests/require/tests/modules/modules/init.luau
new file mode 100644
index 0000000..cb3159b
--- /dev/null
+++ b/tests/require/tests/modules/modules/init.luau
@@ -0,0 +1,4 @@
+return {
+	Foo = "Bar",
+	Hello = "World",
+}