diff --git a/libs/module/ApplicationContextBase.cpp b/libs/module/ApplicationContextBase.cpp
index 93e6032017..5f99ec7a65 100644
--- a/libs/module/ApplicationContextBase.cpp
+++ b/libs/module/ApplicationContextBase.cpp
@@ -8,16 +8,22 @@
 #include "os/fs.h"
 #include "os/path.h"
 #include "os/dir.h"
-#if 0
-#include "log/PopupErrorHandler.h"
-#endif
-#if defined(WIN32)
+#include "string/encoding.h"
+
+#ifdef WIN32
+#define NOMINMAX
 #include <windows.h>
 #endif
 
 namespace radiant
 {
 
+namespace
+{
+	const std::string PLUGINS_DIR = "plugins/"; ///< name of plugins directory
+	const std::string MODULES_DIR = "modules/"; ///< name of modules directory
+}
+
 /**
  * Return the application path of the current Radiant instance.
  */
@@ -28,21 +34,33 @@ std::string ApplicationContextBase::getApplicationPath() const
 
 std::vector<std::string> ApplicationContextBase::getLibraryPaths() const
 {
-	std::vector<std::string> libPaths;
+	auto libBasePath = os::standardPathWithSlash(getLibraryBasePath());
+	
+#if defined(__APPLE__) && defined(DR_MODULES_NEXT_TO_APP)
+	// Xcode output goes to the application folder right now
+	return { libBasePath };
+#else
+	return 
+	{ 
+		libBasePath + MODULES_DIR, 
+		libBasePath + PLUGINS_DIR 
+	};
+#endif
+}
 
+std::string ApplicationContextBase::getLibraryBasePath() const
+{
 #if defined(__APPLE__)
-	libPaths.push_back(_appPath);
+	return _appPath;
 #elif defined(POSIX)
 #   if defined(PKGLIBDIR) && !defined(ENABLE_RELOCATION)
-	libPaths.push_back(PKGLIBDIR);
+	return PKGLIBDIR;
 #   else
-	libPaths.push_back(_appPath + "../lib/darkradiant/");
+	return _appPath + "../lib/darkradiant/";
 #   endif
 #else // !defined(POSIX)
-	libPaths.push_back(_appPath);
+	return _appPath;
 #endif
-
-	return libPaths;
 }
 
 std::string ApplicationContextBase::getRuntimeDataPath() const
@@ -263,7 +281,7 @@ void ApplicationContextBase::initialise(int argc, char* argv[])
 
 		// convert to std::string
 		std::wstring wide(filename);
-		std::string appPathNarrow(wide.begin(), wide.end());
+		std::string appPathNarrow = string::unicode_to_mb(wide);
 
 		// Make sure we have forward slashes
 		_appPath = os::standardPath(appPathNarrow);
diff --git a/libs/module/ApplicationContextBase.h b/libs/module/ApplicationContextBase.h
index a18da7cf00..ffec9947f0 100644
--- a/libs/module/ApplicationContextBase.h
+++ b/libs/module/ApplicationContextBase.h
@@ -45,6 +45,9 @@ class ApplicationContextBase :
 protected:
 	void setErrorHandlingFunction(const ErrorHandlingFunction& function);
 
+	// The platform-specific path where any library folders like modules/ and plugins/ are stored
+	std::string getLibraryBasePath() const;
+
 private:
 	// Sets up the bitmap path and settings path
 	void initPaths();
diff --git a/radiantcore/Makefile.am b/radiantcore/Makefile.am
index 73095ba9b8..4dd7637a1a 100644
--- a/radiantcore/Makefile.am
+++ b/radiantcore/Makefile.am
@@ -1,4 +1,4 @@
-libradiantcoredir = $(pkglibdir)
+libradiantcoredir = $(pkglibdir)/modules
 libradiantcore_LTLIBRARIES = libradiantcore.la
 
 libradiantcore_la_CPPFLAGS = -DPKGLIBDIR='"$(pkglibdir)"' \
diff --git a/radiantcore/modulesystem/ModuleLoader.cpp b/radiantcore/modulesystem/ModuleLoader.cpp
index abdc665656..6e0306aa51 100644
--- a/radiantcore/modulesystem/ModuleLoader.cpp
+++ b/radiantcore/modulesystem/ModuleLoader.cpp
@@ -16,9 +16,6 @@ namespace module
 
 namespace
 {
-	const std::string PLUGINS_DIR = "plugins/"; ///< name of plugins directory
-	const std::string MODULES_DIR = "modules/"; ///< name of modules directory
-
 	// This is the name of the entry point symbol in the module
 	const char* const SYMBOL_REGISTER_MODULE = "RegisterModule";
 
@@ -91,10 +88,11 @@ void ModuleLoader::processModuleFile(const fs::path& file)
 	}
 }
 
-void ModuleLoader::loadModules(const std::string& root)
+#if 0
+void ModuleLoader::loadModules(const std::string& libraryPath)
 {
     // Get standardised paths
-    std::string stdRoot = os::standardPathWithSlash(root);
+    std::string stdRoot = os::standardPathWithSlash(libraryPath);
 
 #if defined(DR_MODULES_NEXT_TO_APP)
     // Xcode output goes to the application folder right now
@@ -105,7 +103,7 @@ void ModuleLoader::loadModules(const std::string& root)
     std::string pluginsPath = stdRoot + PLUGINS_DIR;
 #endif
 
-    rConsole() << "ModuleLoader: loading modules from " << root << std::endl;
+    rConsole() << "ModuleLoader: loading modules from " << libraryPath << std::endl;
 
     // Load modules first, then plugins
 	loadModulesFromPath(modulesPath);
@@ -116,13 +114,16 @@ void ModuleLoader::loadModules(const std::string& root)
 		loadModulesFromPath(pluginsPath);
     }
 }
+#endif
 
 void ModuleLoader::loadModulesFromPath(const std::string& path)
 {
+	rConsole() << "ModuleLoader: loading modules from " << path << std::endl;
+
 	// In case the folder is non-existent, catch the exception
 	try
 	{
-		os::foreachItemInDirectory(path, [&](const fs::path& file)
+		os::foreachItemInDirectory(os::standardPathWithSlash(path), [&](const fs::path& file)
 		{
 			processModuleFile(file);
 		});
diff --git a/radiantcore/modulesystem/ModuleLoader.h b/radiantcore/modulesystem/ModuleLoader.h
index 1c7ef5b496..47a04fb124 100644
--- a/radiantcore/modulesystem/ModuleLoader.h
+++ b/radiantcore/modulesystem/ModuleLoader.h
@@ -27,15 +27,13 @@ class ModuleLoader
 public:
 	ModuleLoader(IModuleRegistry& registry);
 
-	// Load algorithm, searches plugins/ and modules/ for .dll/.so files
-	void loadModules(const std::string& root);
+	// Load algorithm, searches the given folder for .dll/.so files
+	void loadModulesFromPath(const std::string& path);
 
 	// Frees the list of DLLs
 	void unloadModules();
 
 private:
-	void loadModulesFromPath(const std::string& path);
-
 	// File functor, gets called with each file's name in the searched folder
 	void processModuleFile(const fs::path& fileName);
 };
diff --git a/radiantcore/modulesystem/ModuleRegistry.cpp b/radiantcore/modulesystem/ModuleRegistry.cpp
index 6a86f3b29c..78929b5ad4 100644
--- a/radiantcore/modulesystem/ModuleRegistry.cpp
+++ b/radiantcore/modulesystem/ModuleRegistry.cpp
@@ -165,7 +165,7 @@ void ModuleRegistry::loadAndInitialiseModules()
 	auto libraryPaths = _context.getLibraryPaths();
 	for (auto path : libraryPaths)
 	{
-		_loader->loadModules(path);
+		_loader->loadModulesFromPath(path);
 	}
 
 	_progress = 0.1f;
diff --git a/tools/msvc/DarkRadiantCore.vcxproj b/tools/msvc/DarkRadiantCore.vcxproj
index 0b39957fb4..1a4d5fc798 100644
--- a/tools/msvc/DarkRadiantCore.vcxproj
+++ b/tools/msvc/DarkRadiantCore.vcxproj
@@ -1105,16 +1105,16 @@
   </ImportGroup>
   <PropertyGroup Label="UserMacros" />
   <PropertyGroup Condition="'$(Configuration)|$(Platform)'=='Debug|x64'">
-    <OutDir>$(SolutionDir)\..\..\install\</OutDir>
+    <OutDir>$(SolutionDir)\..\..\install\modules\</OutDir>
   </PropertyGroup>
   <PropertyGroup Condition="'$(Configuration)|$(Platform)'=='Debug|Win32'">
-    <OutDir>$(SolutionDir)\..\..\install\</OutDir>
+    <OutDir>$(SolutionDir)\..\..\install\modules\</OutDir>
   </PropertyGroup>
   <PropertyGroup Condition="'$(Configuration)|$(Platform)'=='Release|Win32'">
-    <OutDir>$(SolutionDir)\..\..\install\</OutDir>
+    <OutDir>$(SolutionDir)\..\..\install\modules\</OutDir>
   </PropertyGroup>
   <PropertyGroup Condition="'$(Configuration)|$(Platform)'=='Release|x64'">
-    <OutDir>$(SolutionDir)\..\..\install\</OutDir>
+    <OutDir>$(SolutionDir)\..\..\install\modules\</OutDir>
   </PropertyGroup>
   <ItemDefinitionGroup Condition="'$(Configuration)|$(Platform)'=='Debug|x64'">
     <ClCompile>