diff --git a/examples/tests/texture-reload.ts b/examples/tests/texture-reload.ts
new file mode 100644
index 00000000..67932e45
--- /dev/null
+++ b/examples/tests/texture-reload.ts
@@ -0,0 +1,344 @@
+/*
+ * If not stated otherwise in this file or this component's LICENSE file the
+ * following copyright and licenses apply:
+ *
+ * Copyright 2023 Comcast Cable Communications Management, LLC.
+ *
+ * Licensed under the Apache License, Version 2.0 (the License);
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import type { INode, RendererMainSettings } from '@lightningjs/renderer';
+import type { ExampleSettings } from '../common/ExampleSettings.js';
+
+import rockoPng from '../assets/rocko.png';
+
+export function customSettings(): Partial<RendererMainSettings> {
+  return {
+    textureMemory: {
+      cleanupInterval: 5000,
+      debugLogging: true,
+    },
+  };
+}
+
+const COLORS = [
+  0xff0000ff, // Red
+  0x00ff00ff, // Green
+  0x0000ffff, // Blue
+  0xffff00ff, // Yellow
+  0xff00ffff, // Magenta
+  0x00ffffff, // Cyan
+  0xffffffff, // White
+];
+
+/**
+ * Function that chooses a random color from the `COLORS` array
+ */
+function randomColor() {
+  return COLORS[Math.floor(Math.random() * COLORS.length)];
+}
+
+function delay(ms: number) {
+  return new Promise((resolve) => setTimeout(resolve, ms));
+}
+
+export default async function test({ renderer, testRoot }: ExampleSettings) {
+  const screenWidth = renderer.settings.appWidth;
+  const screenHeight = renderer.settings.appHeight;
+  const nodeSize = 128; // Each node will be 128x128 pixels
+  const memoryThreshold = 130 * 1024 * 1024; // 130 MB
+  const textureSize = nodeSize * nodeSize * 3; // RGBA bytes per pixel
+  const maxNodes = Math.ceil(memoryThreshold / textureSize);
+  const nodes: INode[] = [];
+
+  const header = renderer.createTextNode({
+    fontFamily: 'Ubuntu',
+    text: `Texture Reload Test`,
+    fontSize: 45,
+    parent: testRoot,
+    x: 500,
+    y: 50,
+  });
+
+  const finalStatus = renderer.createTextNode({
+    fontFamily: 'Ubuntu',
+    text: `Running...`,
+    fontSize: 30,
+    parent: testRoot,
+    color: 0xffff00ff,
+    x: 500,
+    y: 100,
+  });
+
+  // Create nodes with unique noise textures until the memory threshold is reached
+  for (let i = 0; i < maxNodes; i++) {
+    const x = (i % 27) * 10;
+    const y = ~~(i / 27) * 10;
+
+    const node = renderer.createNode({
+      x,
+      y,
+      width: nodeSize,
+      height: nodeSize,
+      parent: testRoot,
+      color: randomColor(),
+      texture: renderer.createTexture('NoiseTexture', {
+        width: nodeSize,
+        height: nodeSize,
+        cacheId: i,
+      }),
+    });
+    nodes.push(node);
+  }
+
+  console.log(`Created ${nodes.length} nodes. Memory threshold reached.`);
+
+  const testNode = async function (testNode: INode) {
+    let textureFreed = false;
+    let textureLoaded = false;
+    let timedOut = false;
+    let timeOutTimer: NodeJS.Timeout | null = null;
+
+    function resetTimeout() {
+      if (timeOutTimer) {
+        clearTimeout(timeOutTimer);
+      }
+
+      timeOutTimer = setTimeout(() => {
+        timedOut = true;
+      }, 10000);
+    }
+
+    testNode.on('freed', () => {
+      console.log('Texture freed event received.');
+      textureFreed = true;
+      textureLoaded = false;
+    });
+
+    testNode.on('loaded', () => {
+      console.log('Texture loaded event received.');
+      textureLoaded = true;
+      textureFreed = false;
+    });
+
+    // Wait for the texture to be freed
+    console.log('Waiting for texture to be loaded...');
+    while (!textureLoaded && !timedOut) {
+      await delay(100);
+    }
+
+    if (timedOut) {
+      console.error('Texture failed to load within 10 seconds.');
+      return false;
+    }
+
+    resetTimeout();
+
+    // Move the node offscreen
+    console.log('Moving node offscreen...');
+    // Move the node out of bounds
+    queueMicrotask(() => {
+      testNode.x = -screenWidth * 2;
+      testNode.y = -screenHeight * 2;
+    });
+
+    // Wait for the texture to be freed
+    console.log('Waiting for texture to be freed...');
+    while (!textureFreed && !timedOut) {
+      renderer.rerender();
+      await delay(100);
+    }
+
+    if (timedOut) {
+      console.error('Texture failed to free within 10 seconds.');
+      return false;
+    }
+
+    resetTimeout();
+
+    // Move the node back into bounds
+    console.log('Moving node back into view...');
+    testNode.x = 0;
+    testNode.y = 0;
+
+    // Wait for the texture to be reloaded
+    console.log('Waiting for texture to be reloaded...');
+    while (!textureLoaded && !timedOut) {
+      await delay(100);
+    }
+
+    if (timedOut) {
+      console.error('Texture failed to reload within 10 seconds.');
+      return false;
+    }
+
+    if (timeOutTimer) {
+      clearTimeout(timeOutTimer);
+    }
+
+    if (textureLoaded) {
+      return true;
+    } else {
+      return false;
+    }
+  };
+
+  const image = renderer.createTexture('ImageTexture', {
+    src: rockoPng,
+  });
+
+  image.on('loaded', () => {
+    console.warn('Parent Image texture loaded.');
+  });
+
+  image.on('freed', () => {
+    console.warn('Parent Image texture freed.');
+  });
+
+  const nodeSpawnX = 1100;
+  const nodeSpawnY = 30;
+
+  const testCases: Record<string, () => INode> = {
+    'Noise Texture': () =>
+      renderer.createNode({
+        texture: renderer.createTexture('NoiseTexture', {
+          width: nodeSize,
+          height: nodeSize,
+          cacheId: Math.random(),
+        }),
+        x: nodeSpawnX,
+        y: nodeSpawnY,
+        width: nodeSize,
+        height: nodeSize,
+        parent: testRoot,
+      }),
+    // No need to test color textures, they all sample from the same 1x1 pixel texture
+    // and are not subject to the same memory constraints as other textures
+    // "Color Texture": () => renderer.createNode({
+    //   color: 0xff00ff, // Magenta
+    //   x: nodeSpawnX,
+    //   y: nodeSpawnY,
+    //   width: nodeSize,
+    //   height: nodeSize,
+    //   parent: testRoot,
+    // }),
+    SubTexture: () =>
+      renderer.createNode({
+        texture: renderer.createTexture('SubTexture', {
+          texture: image,
+          x: 30,
+          y: 0,
+          width: 50,
+          height: 50,
+        }),
+        x: nodeSpawnX,
+        y: nodeSpawnY,
+        width: nodeSize,
+        height: nodeSize,
+        parent: testRoot,
+      }),
+    'Image Texture': () =>
+      renderer.createNode({
+        x: nodeSpawnX,
+        y: nodeSpawnY,
+        width: nodeSize,
+        height: nodeSize,
+        src: rockoPng,
+        parent: testRoot,
+      }),
+    'RTT Node': () => {
+      const rtt = renderer.createNode({
+        rtt: true,
+        x: nodeSpawnX,
+        y: nodeSpawnY,
+        width: nodeSize,
+        height: nodeSize,
+        parent: testRoot,
+      });
+
+      const child = renderer.createNode({
+        x: 0,
+        y: 0,
+        width: 100,
+        height: 100,
+        color: 0xff0000ff,
+        parent: rtt,
+      });
+
+      const child2 = renderer.createNode({
+        x: 0,
+        y: 20,
+        width: 100,
+        height: 100,
+        src: rockoPng,
+        parent: rtt,
+      });
+
+      return rtt;
+    },
+  };
+
+  // Run all tests
+  let allTestsPassed = true;
+  let lastStatusOffSet = 30;
+  let testIdx = 1;
+
+  for (const [name, createNode] of Object.entries(testCases)) {
+    console.log(`${testIdx}. Running test for: ${name}`);
+    finalStatus.text = `${testIdx}. Running test for: ${name}`;
+
+    const testNodeInstance = createNode(); // Create the test node dynamically
+
+    const result = await testNode(testNodeInstance);
+
+    if (!result) {
+      finalStatus.text = `Test failed for: ${name}`;
+      finalStatus.color = 0xff0000ff;
+      allTestsPassed = false;
+    }
+
+    const status = result ? 'passed' : 'failed';
+    console.log(`${testIdx}. Test ${result} for: ${name}`);
+
+    testNodeInstance.x = 500;
+    testNodeInstance.y = lastStatusOffSet + 128;
+    testNodeInstance.width = 128;
+    testNodeInstance.height = 128;
+
+    renderer.createTextNode({
+      fontFamily: 'Ubuntu',
+      text: `${testIdx}. Test ${status} for: ${name}`,
+      fontSize: 30,
+      parent: testRoot,
+      color: result ? 0x00ff00ff : 0xff0000ff,
+      x: 630,
+      y: lastStatusOffSet + 128 + 128 / 2,
+    });
+
+    lastStatusOffSet += 130;
+    testIdx++;
+  }
+
+  if (allTestsPassed) {
+    console.log('All tests passed successfully!');
+    finalStatus.text = `All tests passed successfully!`;
+    finalStatus.color = 0x00ff00ff;
+
+    return true;
+  } else {
+    console.error('One or more tests failed.');
+    finalStatus.text = `One or more tests failed.`;
+    finalStatus.color = 0xff0000ff;
+    return false;
+  }
+}
diff --git a/src/core/CoreNode.ts b/src/core/CoreNode.ts
index ca6038ad..a80f3127 100644
--- a/src/core/CoreNode.ts
+++ b/src/core/CoreNode.ts
@@ -2284,7 +2284,7 @@ export class CoreNode extends EventEmitter {
 
     this.props.texture = value;
     if (value !== null) {
-      value.setRenderableOwner(this, this.isRenderable); // WVB TODO: check if this is correct
+      value.setRenderableOwner(this, this.isRenderable);
       this.loadTexture();
     }
 
diff --git a/src/core/textures/SubTexture.ts b/src/core/textures/SubTexture.ts
index c28ef98d..6ee552d4 100644
--- a/src/core/textures/SubTexture.ts
+++ b/src/core/textures/SubTexture.ts
@@ -111,9 +111,13 @@ export class SubTexture extends Texture {
         this.onParentTxLoaded(parentTx, parentTx.dimensions!);
       } else if (parentTx.state === 'failed') {
         this.onParentTxFailed(parentTx, parentTx.error!);
+      } else if (parentTx.state === 'freed') {
+        this.onParentTxFreed();
       }
+
       parentTx.on('loaded', this.onParentTxLoaded);
       parentTx.on('failed', this.onParentTxFailed);
+      parentTx.on('freed', this.onParentTxFreed);
     });
   }
 
@@ -138,6 +142,10 @@ export class SubTexture extends Texture {
     this.setSourceState('failed', error);
   };
 
+  private onParentTxFreed = () => {
+    this.setSourceState('freed');
+  };
+
   override onChangeIsRenderable(isRenderable: boolean): void {
     // Propagate the renderable owner change to the parent texture
     this.parentTexture.setRenderableOwner(this, isRenderable);
diff --git a/src/core/textures/Texture.ts b/src/core/textures/Texture.ts
index 627819af..2ce86947 100644
--- a/src/core/textures/Texture.ts
+++ b/src/core/textures/Texture.ts
@@ -212,11 +212,7 @@ export abstract class Texture extends EventEmitter {
         (this.renderable as boolean) = true;
         (this.lastRenderableChangeTime as number) = this.txManager.frameTime;
         this.onChangeIsRenderable?.(true);
-
-        // Check if the texture needs to be added to the loading queue
-        if (this.state === 'freed' || this.state === 'initial') {
-          this.txManager.loadTexture(this);
-        }
+        this.load();
       }
     } else {
       this.renderableOwners.delete(owner);
@@ -229,6 +225,20 @@ export abstract class Texture extends EventEmitter {
     }
   }
 
+  load(): void {
+    if (this.sourceState === 'loaded' && this.coreCtxState === 'freed') {
+      // we need to load the texture data to the gpu
+      this.txManager.enqueueUploadTexture(this);
+      return;
+    }
+
+    if (this.state === 'loading' || this.state === 'loaded') {
+      return;
+    }
+
+    this.txManager.loadTexture(this);
+  }
+
   /**
    * Event called when the Texture becomes renderable or unrenderable.
    *
@@ -262,10 +272,18 @@ export abstract class Texture extends EventEmitter {
    */
   free(): void {
     this.ctxTexture?.free();
-    if (this.textureData !== null) {
-      this.textureData = null;
-      this.setSourceState('freed');
-    }
+  }
+
+  /**
+   * Free the source texture data for this Texture.
+   *
+   * @remarks
+   * The texture data is the source data that is used to populate the CoreContextTexture.
+   * e.g. ImageData that is downloaded from a URL.
+   */
+  freeTextureData(): void {
+    this.textureData = null;
+    this.setSourceState('freed');
   }
 
   private setState(
@@ -338,12 +356,6 @@ export abstract class Texture extends EventEmitter {
     } else if (sourceState === 'loaded' && ctxState === 'loaded') {
       newState = 'loaded';
       payload = this.dimensions; // Dimensions set by the source
-    } else if (
-      (sourceState === 'loaded' && ctxState === 'freed') ||
-      (ctxState === 'loaded' && sourceState === 'freed')
-    ) {
-      // If one is loaded and the other is freed, then we are in a loading state
-      newState = 'loading';
     } else {
       newState = 'freed';
     }