diff --git a/cabal.project.local b/cabal.project.local
--- a/cabal.project.local
+++ b/cabal.project.local
@@ -1,3 +1,3 @@
-with-compiler: ghc-8.2.1
+with-compiler: ghc-8.2.2
 optimization: 1
 constraints: madlang +development
diff --git a/demo/bi-update.mad b/demo/bi-update.mad
--- a/demo/bi-update.mad
+++ b/demo/bi-update.mad
@@ -1,4 +1,5 @@
 # inspired by https://twitter.com/biupdatebot
+# install libraries with `madlang install` if necessary.
 :include adverbs.mad
 
 :return
diff --git a/madlang.cabal b/madlang.cabal
--- a/madlang.cabal
+++ b/madlang.cabal
@@ -1,5 +1,5 @@
 name:                madlang
-version:             3.1.1.21
+version:             3.1.2.0
 synopsis:            Randomized templating language DSL
 description:         Madlang is a text templating language written in Haskell,
                      meant to explore computational creativity and generative
diff --git a/src/Text/Madlibs/Ana/Parse.hs b/src/Text/Madlibs/Ana/Parse.hs
--- a/src/Text/Madlibs/Ana/Parse.hs
+++ b/src/Text/Madlibs/Ana/Parse.hs
@@ -8,7 +8,9 @@
   , parseInclusions
   , parseTree
   , parseTreeF
-  , parseTokM ) where
+  , parseTokM
+  , parseTokInternal
+  ) where
 
 import           Control.Composition
 import           Control.Monad
@@ -220,10 +222,17 @@
     -> Either (ParseError Char (ErrorFancy Void)) RandTok -- ^ Result
 parseTok = fmap takeTemplate .*** parseTokF
 
+parseTokInternal :: FilePath
+                 -> [T.Text]
+                 -> [[(Key, RandTok)]]
+                 -> T.Text
+                 -> Either (ParseError Char (ErrorFancy Void)) RandTok
+parseTokInternal path ins ctx = parseTok path (join ctx) ins
+
 -- | Parse text as a token, suitable for printing as a tree..
 parseTree :: FilePath -> [(Key, RandTok)] -> [T.Text] -> T.Text -> Either (ParseError Char (ErrorFancy Void)) RandTok
 parseTree = fmap takeTemplate .*** parseTreeF
 
--- | Parse inclustions
+-- | Parse inclusions
 parseInclusions :: FilePath -> T.Text -> Either (ParseError Char (ErrorFancy Void)) [T.Text]
 parseInclusions = runParser inclusions
diff --git a/src/Text/Madlibs/Ana/Resolve.hs b/src/Text/Madlibs/Ana/Resolve.hs
--- a/src/Text/Madlibs/Ana/Resolve.hs
+++ b/src/Text/Madlibs/Ana/Resolve.hs
@@ -7,6 +7,7 @@
   , makeTree
   , runText
   , runFileN
+  , pathSep
   ) where
 
 import           Control.Arrow               (first)
diff --git a/src/Text/Madlibs/Generate/TH.hs b/src/Text/Madlibs/Generate/TH.hs
--- a/src/Text/Madlibs/Generate/TH.hs
+++ b/src/Text/Madlibs/Generate/TH.hs
@@ -10,16 +10,20 @@
     , madlang
     ) where
 
+import           Control.Arrow               (first)
 import           Control.Monad.IO.Class      (MonadIO, liftIO)
-import           Data.FileEmbed
+import           Data.FileEmbed              (embedStringFile)
+import           Data.Monoid
 import qualified Data.Text                   as T
-import           Data.Text.Encoding
+import qualified Data.Text.IO                as TIO
 import           Data.Void
 import           Language.Haskell.TH         hiding (Dec)
 import           Language.Haskell.TH.Quote
---import           Language.Haskell.TH.Syntax  (Lift, lift)
+import           Language.Haskell.TH.Syntax  (lift)
+import           System.Directory            (doesFileExist)
+import           System.Environment          (getEnv)
 import           Text.Madlibs.Ana.Parse
---import           Text.Madlibs.Ana.Resolve
+import           Text.Madlibs.Internal.Types (Key, RandTok)
 import           Text.Madlibs.Internal.Utils
 import           Text.Megaparsec
 
@@ -59,9 +63,20 @@
 errorgen :: Either (ParseError Char (ErrorFancy Void)) a -> a
 errorgen = either (error . T.unpack . show') id
 
--- embedFancy :: FilePath -> FilePath -> Q Exp
--- embedFancy file folder = parseFile [] file folder >>= ((VarE 'errorgen `AppE`) . lift)
+embedFileCheck :: FilePath -> FilePath -> Q Exp
+embedFileCheck folder path = do
+    let tryPath = folder ++ path
+    local <- runIO $ doesFileExist tryPath
+    home <- runIO $ getEnv "HOME"
+    if local then
+        embedStringFile tryPath
+    else
+        embedStringFile (home ++ "/.madlang/" ++ path) -- FIXME windows
 
+ctx :: [FilePath] -> [[(Key, RandTok)]] -> [[(Key, RandTok)]]
+ctx = zipWith resolveKeys
+    where resolveKeys file = fmap (first (((T.pack . (<> "-")) . dropExtension) file <>))
+
 -- | Splice for embedding a '.mad' file, e.g.
 --
 -- @
@@ -70,10 +85,14 @@
 --     $(madFile "twitter-bot.mad")
 -- @
 --
--- Note that the embedded code cannot have any inclusions
+-- Embedded code can contain inclusions.
 madFile :: FilePath -> Q Exp
 madFile path = do
-    file <- embedFile path
-    -- dependencies <- parse inclusions
-    parse' <- [|parseTok "source" [] [] . decodeUtf8|] -- TODO make this recurse but still work!
-    pure $ VarE 'errorgen `AppE` (parse' `AppE` file)
+    inclusions <- parseInclusions path <$> runIO (TIO.readFile path)
+    file <- embedStringFile path
+    let files = fmap (traverse (embedFileCheck (getDir path))) (fmap T.unpack <$> inclusions)
+    erroredFiles <- errorgen files
+    parse' <- [|parseTokInternal path []|]
+    parseDependency <- [|(fmap (errorgen . parseTokF "source" [] []))|]
+    inclusions' <- lift (fmap T.unpack . errorgen $ inclusions)
+    pure $ VarE 'errorgen `AppE` (parse' `AppE` (VarE 'ctx `AppE` inclusions' `AppE` (parseDependency `AppE` ListE erroredFiles)) `AppE` file)
diff --git a/src/Text/Madlibs/Internal/Utils.hs b/src/Text/Madlibs/Internal/Utils.hs
--- a/src/Text/Madlibs/Internal/Utils.hs
+++ b/src/Text/Madlibs/Internal/Utils.hs
@@ -20,6 +20,7 @@
 -- | Get directory associated to a file
 getDir :: FilePath -> FilePath
 getDir = reverse . dropWhile (/='/') . reverse
+-- FIXME should work on Windows
 
 -- | Function to apply a value on both arguments, e.g.
 --
diff --git a/test/Demo.hs b/test/Demo.hs
--- a/test/Demo.hs
+++ b/test/Demo.hs
@@ -9,7 +9,7 @@
 import           Text.Madlibs
 
 demo :: RandTok
-demo = $(madFile "test/templates/gambling.mad")
+demo = $(madFile "test/templates/include.mad")
 
 -- demoDir :: [(Key, RandTok)]
 -- demoDir = $(madEmbed "test/templates" "gambling.mad")
diff --git a/test/Spec.hs b/test/Spec.hs
--- a/test/Spec.hs
+++ b/test/Spec.hs
@@ -47,7 +47,7 @@
             runFile [] "test/templates/ordered.mad" >>= (`shouldSatisfy` (\a -> elem a ["heads","tails","one","two","three","third","fourth"]))
     describe "readFileQ" $
         parallel $ it "executes embedded code" $
-        runTest >>= (`shouldSatisfy` (\a -> elem a ["HEADS","tails"]))
+        runTest >>= (`shouldSatisfy` (\a -> elem a ["heads","tails", "on its side"]))
     describe "madlang" $
         parallel $ it "provides a quasi-quoter" $
         runTestQQ >>= (`shouldSatisfy` (\a -> elem a ["hello","goodbye"]))