diff --git a/lang/en.json b/lang/en.json
index 9ae578d..f3cf520 100644
--- a/lang/en.json
+++ b/lang/en.json
@@ -9,5 +9,9 @@
 
   "SIMPLE.ResourceMin": "Min",
   "SIMPLE.ResourceValue": "Value",
-  "SIMPLE.ResourceMax": "Max"
+  "SIMPLE.ResourceMax": "Max",
+
+  "SIMPLE.DefineTemplate": "Define as Template",
+  "SIMPLE.UnsetTemplate": "Unset Template",
+  "SIMPLE.NoTemplate": "No Template"
 }
\ No newline at end of file
diff --git a/module/actor-sheet.js b/module/actor-sheet.js
index 86a97b1..2a42379 100644
--- a/module/actor-sheet.js
+++ b/module/actor-sheet.js
@@ -1,3 +1,5 @@
+import { ATTRIBUTE_TYPES } from "./constants.js";
+
 /**
  * Extend the basic ActorSheet with some very simple modifications
  * @extends {ActorSheet}
@@ -21,7 +23,7 @@ export class SimpleActorSheet extends ActorSheet {
   /** @override */
   getData() {
     const data = super.getData();
-    data.dtypes = ["String", "Number", "Boolean", "Formula", "Resource"];
+    data.dtypes = ATTRIBUTE_TYPES;
     for ( let attr of Object.values(data.data.attributes) ) {
       attr.isCheckbox = attr.dtype === "Boolean";
       attr.isResource = attr.dtype === "Resource";
diff --git a/module/constants.js b/module/constants.js
new file mode 100644
index 0000000..f2f79f6
--- /dev/null
+++ b/module/constants.js
@@ -0,0 +1 @@
+export const ATTRIBUTE_TYPES = ["String", "Number", "Boolean", "Formula", "Resource"];
\ No newline at end of file
diff --git a/module/item-sheet.js b/module/item-sheet.js
index 44ad27b..fed2f96 100644
--- a/module/item-sheet.js
+++ b/module/item-sheet.js
@@ -1,3 +1,5 @@
+import { ATTRIBUTE_TYPES } from "./constants.js";
+
 /**
  * Extend the basic ItemSheet with some very simple modifications
  * @extends {ItemSheet}
@@ -20,7 +22,7 @@ export class SimpleItemSheet extends ItemSheet {
   /** @override */
   getData() {
     const data = super.getData();
-    data.dtypes = ["String", "Number", "Boolean", "Formula", "Resource"];
+    data.dtypes = ATTRIBUTE_TYPES;
     for ( let attr of Object.values(data.data.attributes) ) {
       attr.isCheckbox = attr.dtype === "Boolean";
       attr.isResource = attr.dtype === "Resource";
diff --git a/module/simple.js b/module/simple.js
index d618abc..e2a04df 100644
--- a/module/simple.js
+++ b/module/simple.js
@@ -8,6 +8,7 @@
 import { SimpleActor } from "./actor.js";
 import { SimpleItemSheet } from "./item-sheet.js";
 import { SimpleActorSheet } from "./actor-sheet.js";
+import { preloadHandlebarsTemplates } from "./templates.js";
 
 /* -------------------------------------------- */
 /*  Foundry VTT Initialization                  */
@@ -89,4 +90,184 @@ Hooks.once("init", async function() {
     return value.slugify({strict: true});
   });
 
+  // Preload template partials.
+  preloadHandlebarsTemplates();
 });
+
+/**
+ * Adds the actor template context menu.
+ */
+Hooks.on("getActorDirectoryEntryContext", (html, options) => {
+  // Define an actor as a template.
+  options.push({
+    name: game.i18n.localize("SIMPLE.DefineTemplate"),
+    icon: '<i class="fas fa-stamp"></i>',
+    condition: li => {
+      const actor = game.actors.get(li.data("entityId"));
+      return !actor.getFlag("worldbuilding", "isTemplate");
+    },
+    callback: li => {
+      const actor = game.actors.get(li.data("entityId"));
+      actor.setFlag("worldbuilding", "isTemplate", true);
+    }
+  });
+
+  // Undefine an actor as a template.
+  options.push({
+    name: game.i18n.localize("SIMPLE.UnsetTemplate"),
+    icon: '<i class="fas fa-times"></i>',
+    condition: li => {
+      const actor = game.actors.get(li.data("entityId"));
+      return actor.getFlag("worldbuilding", "isTemplate");
+    },
+    callback: li => {
+      const actor = game.actors.get(li.data("entityId"));
+      actor.setFlag("worldbuilding", "isTemplate", false);
+    }
+  });
+});
+
+/**
+ * Adds the item template context menu.
+ */
+Hooks.on("getItemDirectoryEntryContext", (html, options) => {
+  // Define an item as a template.
+  options.push({
+    name: game.i18n.localize("SIMPLE.DefineTemplate"),
+    icon: '<i class="fas fa-stamp"></i>',
+    condition: li => {
+      const item = game.items.get(li.data("entityId"));
+      return !item.getFlag("worldbuilding", "isTemplate");
+    },
+    callback: li => {
+      const item = game.items.get(li.data("entityId"));
+      item.setFlag("worldbuilding", "isTemplate", true);
+    }
+  });
+
+  // Undefine an item as a template.
+  options.push({
+    name: game.i18n.localize("SIMPLE.UnsetTemplate"),
+    icon: '<i class="fas fa-times"></i>',
+    condition: li => {
+      const item = game.items.get(li.data("entityId"));
+      return item.getFlag("worldbuilding", "isTemplate");
+    },
+    callback: li => {
+      const item = game.items.get(li.data("entityId"));
+      item.setFlag("worldbuilding", "isTemplate", false);
+    }
+  });
+});
+
+
+/**
+ * Adds the actor template selection dialog.
+ */
+ActorDirectory.prototype._onCreate = async (event) => {
+  // Do not allow the creation event to bubble to other listeners
+  event.preventDefault();
+  event.stopPropagation();
+
+  _simpleDirectoryTemplates('actor');
+}
+
+/**
+ * Adds the item template selection dialog.
+ */
+ItemDirectory.prototype._onCreate = async (event) => {
+  // Do not allow the creation event to bubble to other listeners
+  event.preventDefault();
+  event.stopPropagation();
+
+  _simpleDirectoryTemplates('item');
+}
+
+/**
+ * Display the entity template dialog.
+ *
+ * Helper function to display a dialog if there are multiple template types
+ * defined for the entity type.
+ *
+ * @param {string} entityType - 'actor' or 'item'
+ */
+async function _simpleDirectoryTemplates(entityType = 'actor') {
+  // Retrieve the collection and class.
+  const entityCollection = entityType == 'actor' ? game.actors : game.items;
+  const cls = entityType == 'actor' ? Actor : Item;
+
+  // Query for all entities of this type using the "isTemplate" flag.
+  let entities = entityCollection.filter(a => a.data.flags?.worldbuilding?.isTemplate === true);
+
+  // Initialize variables related to the entity class.
+  let ent = game.i18n.localize(cls.config.label);
+
+  // Setup entity data.
+  let type = entityType == 'actor' ? 'character' : 'item';
+  let createData = {
+    name: `New ${ent}`,
+    type: type,
+    folder: event.currentTarget.dataset.folder
+  };
+
+  // If there's more than one entity template type, create a form.
+  if (entities.length > 0) {
+    // Build an array of types for the form, including an empty default.
+    let types = [{
+      value: null,
+      label: game.i18n.localize("SIMPLE.NoTemplate")
+    }];
+
+    // Append each of the user-defined actor/item types.
+    types = types.concat(entities.map(a => {
+      return {
+        value: a.data.name,
+        label: a.data.name
+      }
+    }));
+
+    // Render the entity creation form
+    let templateData = {upper: ent, lower: ent.toLowerCase(), types: types},
+        dlg = await renderTemplate(`systems/worldbuilding/templates/sidebar/entity-create.html`, templateData);
+
+    // Render the confirmation dialog window
+    new Dialog({
+      title: `Create ${createData.name}`,
+      content: dlg,
+      buttons: {
+        create: {
+          icon: '<i class="fas fa-check"></i>',
+          label: `Create ${ent}`,
+          callback: html => {
+            // Get the form data.
+            const form = html[0].querySelector("form");
+            mergeObject(createData, validateForm(form));
+
+            // Store the type and name values, and retrieve the template entity.
+            let templateActor = entityCollection.getName(createData.type);
+
+            // If there's a template entity, handle the data.
+            if (templateActor) {
+              // Update the object with the existing template's values.
+              createData = mergeObject(templateActor.data, createData, {inplace: false});
+              createData.type = templateActor.data.type;
+              // Clear the flag so that this doesn't become a new template.
+              delete createData.flags.worldbuilding.isTemplate;
+            }
+            // Otherwise, restore to a valid entity type (character/item).
+            else {
+              createData.type = type;
+            }
+
+            cls.create(createData, {renderSheet: true});
+          }
+        }
+      },
+      default: "create"
+    }).render(true);
+  }
+  // Otherwise, just create a blank entity.
+  else {
+    cls.create(createData, {renderSheet: true});
+  }
+}
\ No newline at end of file
diff --git a/module/templates.js b/module/templates.js
new file mode 100644
index 0000000..840f4f0
--- /dev/null
+++ b/module/templates.js
@@ -0,0 +1,16 @@
+/**
+ * Define a set of template paths to pre-load
+ * Pre-loaded templates are compiled and cached for fast access when rendering
+ * @return {Promise}
+ */
+export const preloadHandlebarsTemplates = async function() {
+
+  // Define template paths to load
+  const templatePaths = [
+    // Attribute list partial.
+    "systems/worldbuilding/templates/parts/sheet-attributes.html"
+  ];
+
+  // Load the template parts
+  return loadTemplates(templatePaths);
+};
\ No newline at end of file
diff --git a/templates/actor-sheet.html b/templates/actor-sheet.html
index 555bb86..51656d8 100644
--- a/templates/actor-sheet.html
+++ b/templates/actor-sheet.html
@@ -73,47 +73,8 @@
                 <a class="attribute-control" data-action="create"><i class="fas fa-plus"></i></a>
             </header>
 
-            <ol class="attributes-list">
-            {{#each data.attributes as |attr key|}}
-                <li class="attribute flexrow" data-attribute="{{key}}">
-                    <input class="attribute-key" type="text" name="data.attributes.{{key}}.key" value="{{key}}"/>
-                    {{!-- Handle booleans. --}}
-                    {{#if attr.isCheckbox}}
-                    <label class="attribute-value checkbox"><input type="checkbox" name="data.attributes.{{key}}.value" {{checked attr.value}}/></label>
-                    {{else}}
-                      {{!-- Handle resources. --}}
-                      {{#if attr.isResource}}
-                        <div class="attribute-group flexrow">
-                          <span class="attribute-col flexcol">
-                            <label for="data.attributes.{{key}}.min">{{localize "SIMPLE.ResourceMin"}}</label>
-                            <input class="attribute-value" type="text" name="data.attributes.{{key}}.min" value="{{attr.min}}" data-dtype="{{attr.dtype}}"/>
-                          </span>
-                          <span class="attribute-col flexcol">
-                            <label for="data.attributes.{{key}}.value">{{localize "SIMPLE.ResourceValue"}}</label>
-                            <input class="attribute-value" type="text" name="data.attributes.{{key}}.value" value="{{attr.value}}" data-dtype="{{attr.dtype}}"/>
-                          </span>
-                          <span class="attribute-col flexcol">
-                            <label for="data.attributes.{{key}}.max">{{localize "SIMPLE.ResourceMax"}}</label>
-                            <input class="attribute-value" type="text" name="data.attributes.{{key}}.max" value="{{attr.max}}" data-dtype="{{attr.dtype}}"/>
-                          </span>
-                        </div>
-                      {{!-- Handle other input types. --}}
-                      {{else}}
-                        <input class="attribute-value" type="text" name="data.attributes.{{key}}.value" value="{{attr.value}}" data-dtype="{{attr.dtype}}"/>
-                      {{/if}}
-                    {{/if}}
-                    <input class="attribute-label" type="text" name="data.attributes.{{key}}.label" value="{{attr.label}}"/>
-                    <select class="attribute-dtype" name="data.attributes.{{key}}.dtype">
-                        {{#select attr.dtype}}
-                        {{#each ../dtypes as |t|}}
-                        <option value="{{t}}">{{t}}</option>
-                        {{/each}}
-                        {{/select}}
-                    </select>
-                    <a class="attribute-control" data-action="delete"><i class="fas fa-trash"></i></a>
-                </li>
-            {{/each}}
-            </ol>
+            {{!-- Render the attribute list partial. --}}
+            {{> "systems/worldbuilding/templates/parts/sheet-attributes.html" attributes=data.attributes dtypes=dtypes}}
         </div>
     </section>
 </form>
diff --git a/templates/item-sheet.html b/templates/item-sheet.html
index 4e7712f..e02b092 100644
--- a/templates/item-sheet.html
+++ b/templates/item-sheet.html
@@ -38,47 +38,8 @@
                 <a class="attribute-control" data-action="create"><i class="fas fa-plus"></i></a>
             </header>
 
-            <ol class="attributes-list">
-            {{#each data.attributes as |attr key|}}
-                <li class="attribute flexrow" data-attribute="{{key}}">
-                    <input class="attribute-key" type="text" name="data.attributes.{{key}}.key" value="{{key}}"/>
-                    {{!-- Handle booleans. --}}
-                    {{#if attr.isCheckbox}}
-                    <label class="attribute-value checkbox"><input type="checkbox" name="data.attributes.{{key}}.value" {{checked attr.value}}/></label>
-                    {{else}}
-                      {{!-- Handle resources. --}}
-                      {{#if attr.isResource}}
-                        <div class="attribute-group flexrow">
-                          <span class="attribute-col flexcol">
-                            <label for="data.attributes.{{key}}.min">Min</label>
-                            <input class="attribute-value" type="text" name="data.attributes.{{key}}.min" value="{{attr.min}}" data-dtype="{{attr.dtype}}"/>
-                          </span>
-                          <span class="attribute-col flexcol">
-                            <label for="data.attributes.{{key}}.value">Current</label>
-                            <input class="attribute-value" type="text" name="data.attributes.{{key}}.value" value="{{attr.value}}" data-dtype="{{attr.dtype}}"/>
-                          </span>
-                          <span class="attribute-col flexcol">
-                            <label for="data.attributes.{{key}}.max">Max</label>
-                            <input class="attribute-value" type="text" name="data.attributes.{{key}}.max" value="{{attr.max}}" data-dtype="{{attr.dtype}}"/>
-                          </span>
-                        </div>
-                      {{!-- Handle other input types. --}}
-                      {{else}}
-                        <input class="attribute-value" type="text" name="data.attributes.{{key}}.value" value="{{attr.value}}" data-dtype="{{attr.dtype}}"/>
-                      {{/if}}
-                    {{/if}}
-                    <input class="attribute-label" type="text" name="data.attributes.{{key}}.label" value="{{attr.label}}"/>
-                    <select class="attribute-dtype" name="data.attributes.{{key}}.dtype">
-                        {{#select attr.dtype}}
-                        {{#each ../dtypes as |t|}}
-                        <option value="{{t}}">{{t}}</option>
-                        {{/each}}
-                        {{/select}}
-                    </select>
-                    <a class="attribute-control" data-action="delete"><i class="fas fa-trash"></i></a>
-                </li>
-            {{/each}}
-            </ol>
+            {{!-- Render the attribute list partial. --}}
+            {{> "systems/worldbuilding/templates/parts/sheet-attributes.html" attributes=data.attributes dtypes=dtypes}}
         </div>
     </section>
 </form>
diff --git a/templates/parts/sheet-attributes.html b/templates/parts/sheet-attributes.html
new file mode 100644
index 0000000..aa691d2
--- /dev/null
+++ b/templates/parts/sheet-attributes.html
@@ -0,0 +1,41 @@
+<ol class="attributes-list">
+{{#each attributes as |attr key|}}
+    <li class="attribute flexrow" data-attribute="{{key}}">
+        <input class="attribute-key" type="text" name="data.attributes.{{key}}.key" value="{{key}}"/>
+        {{!-- Handle booleans. --}}
+        {{#if attr.isCheckbox}}
+        <label class="attribute-value checkbox"><input type="checkbox" name="data.attributes.{{key}}.value" {{checked attr.value}}/></label>
+        {{else}}
+          {{!-- Handle resources. --}}
+          {{#if attr.isResource}}
+            <div class="attribute-group flexrow">
+              <span class="attribute-col flexcol">
+                <label for="data.attributes.{{key}}.min">{{localize "SIMPLE.ResourceMin"}}</label>
+                <input class="attribute-value" type="text" name="data.attributes.{{key}}.min" value="{{attr.min}}" data-dtype="{{attr.dtype}}"/>
+              </span>
+              <span class="attribute-col flexcol">
+                <label for="data.attributes.{{key}}.value">{{localize "SIMPLE.ResourceValue"}}</label>
+                <input class="attribute-value" type="text" name="data.attributes.{{key}}.value" value="{{attr.value}}" data-dtype="{{attr.dtype}}"/>
+              </span>
+              <span class="attribute-col flexcol">
+                <label for="data.attributes.{{key}}.max">{{localize "SIMPLE.ResourceMax"}}</label>
+                <input class="attribute-value" type="text" name="data.attributes.{{key}}.max" value="{{attr.max}}" data-dtype="{{attr.dtype}}"/>
+              </span>
+            </div>
+          {{!-- Handle other input types. --}}
+          {{else}}
+            <input class="attribute-value" type="text" name="data.attributes.{{key}}.value" value="{{attr.value}}" data-dtype="{{attr.dtype}}"/>
+          {{/if}}
+        {{/if}}
+        <input class="attribute-label" type="text" name="data.attributes.{{key}}.label" value="{{attr.label}}"/>
+        <select class="attribute-dtype" name="data.attributes.{{key}}.dtype">
+            {{#select attr.dtype}}
+            {{#each ../dtypes as |t|}}
+            <option value="{{t}}">{{t}}</option>
+            {{/each}}
+            {{/select}}
+        </select>
+        <a class="attribute-control" data-action="delete"><i class="fas fa-trash"></i></a>
+    </li>
+  {{/each}}
+</ol>
\ No newline at end of file
diff --git a/templates/sidebar/entity-create.html b/templates/sidebar/entity-create.html
new file mode 100644
index 0000000..4f7ccb2
--- /dev/null
+++ b/templates/sidebar/entity-create.html
@@ -0,0 +1,16 @@
+<form id="entity-create" autocomplete="off" onsubmit="event.preventDefault();">
+    <div class="form-group">
+        <label>{{localize "Name"}}</label>
+        <input type="text" name="name" placeholder="{{localize 'ENTITY.CreateNew'}} {{upper}}"/>
+    </div>
+
+    <div class="form-group">
+        <label>{{localize "Type"}}</label>
+        <select name="type">
+        {{#each types}}
+            <option value="{{this.value}}">{{this.label}}</option>
+        {{/each}}
+        </select>
+        <p class="notes">{{localize "ENTITY.TypeHint"}}</p>
+    </div>
+</form>