diff --git a/CMakeLists.txt b/CMakeLists.txt
index f1d0abab..f7d8f7b0 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -323,3 +323,105 @@ if (MSVC)
     	)
 	endif()
 endif()
+
+# Installation rules
+include(GNUInstallDirs)
+include(CMakePackageConfigHelpers)
+
+# Install the static library with export
+install(TARGETS basisu_encoder
+    EXPORT basisuTargets
+    ARCHIVE DESTINATION ${CMAKE_INSTALL_LIBDIR}
+    LIBRARY DESTINATION ${CMAKE_INSTALL_LIBDIR}
+    INCLUDES DESTINATION ${CMAKE_INSTALL_INCLUDEDIR}
+)
+
+# Install the basisu executable
+install(TARGETS basisu
+    RUNTIME DESTINATION ${CMAKE_INSTALL_BINDIR}
+)
+
+# Install examples executable if built
+if(EXAMPLES)
+    install(TARGETS examples
+        RUNTIME DESTINATION ${CMAKE_INSTALL_BINDIR}
+    )
+endif()
+
+# Install transcoder headers (public API)
+install(FILES
+    transcoder/basisu_transcoder.h
+    transcoder/basisu.h
+    transcoder/basisu_containers.h
+    transcoder/basisu_containers_impl.h
+    transcoder/basisu_file_headers.h
+    transcoder/basisu_transcoder_internal.h
+    transcoder/basisu_transcoder_uastc.h
+    transcoder/basisu_astc_hdr_core.h
+    transcoder/basisu_astc_helpers.h
+    DESTINATION ${CMAKE_INSTALL_INCLUDEDIR}/basisu/transcoder
+)
+
+# Install encoder headers (for users who need encoder functionality)
+install(FILES
+    encoder/basisu_enc.h
+    encoder/basisu_comp.h
+    encoder/basisu_backend.h
+    encoder/basisu_frontend.h
+    encoder/basisu_basis_file.h
+    encoder/basisu_gpu_texture.h
+    encoder/basisu_etc.h
+    encoder/basisu_resampler.h
+    encoder/basisu_resampler_filters.h
+    encoder/basisu_kernels_declares.h
+    encoder/basisu_math.h
+    encoder/basisu_miniz.h
+    encoder/basisu_ssim.h
+    encoder/basisu_uastc_enc.h
+    encoder/basisu_uastc_hdr_4x4_enc.h
+    encoder/basisu_astc_hdr_6x6_enc.h
+    encoder/basisu_astc_hdr_common.h
+    encoder/basisu_bc7enc.h
+    encoder/basisu_pvrtc1_4.h
+    encoder/jpgd.h
+    encoder/pvpngreader.h
+    DESTINATION ${CMAKE_INSTALL_INCLUDEDIR}/basisu/encoder
+)
+
+# Install zstd header if enabled
+if(ZSTD)
+    install(FILES
+        zstd/zstd.h
+        DESTINATION ${CMAKE_INSTALL_INCLUDEDIR}/basisu/zstd
+    )
+endif()
+
+# Install CMake package configuration files
+install(EXPORT basisuTargets
+    FILE basisuTargets.cmake
+    NAMESPACE basisu::
+    DESTINATION ${CMAKE_INSTALL_LIBDIR}/cmake/basisu
+)
+
+# Generate the config file that includes the exports
+configure_package_config_file(
+    "${CMAKE_CURRENT_SOURCE_DIR}/cmake/basisuConfig.cmake.in"
+    "${CMAKE_CURRENT_BINARY_DIR}/basisuConfig.cmake"
+    INSTALL_DESTINATION ${CMAKE_INSTALL_LIBDIR}/cmake/basisu
+    NO_SET_AND_CHECK_MACRO
+    NO_CHECK_REQUIRED_COMPONENTS_MACRO
+)
+
+# Generate the version file for the config file
+write_basic_package_version_file(
+    "${CMAKE_CURRENT_BINARY_DIR}/basisuConfigVersion.cmake"
+    VERSION "1.16.0"
+    COMPATIBILITY AnyNewerVersion
+)
+
+# Install the config and version files
+install(FILES
+    "${CMAKE_CURRENT_BINARY_DIR}/basisuConfig.cmake"
+    "${CMAKE_CURRENT_BINARY_DIR}/basisuConfigVersion.cmake"
+    DESTINATION ${CMAKE_INSTALL_LIBDIR}/cmake/basisu
+)
diff --git a/INSTALL_README.md b/INSTALL_README.md
new file mode 100644
index 00000000..923c320f
--- /dev/null
+++ b/INSTALL_README.md
@@ -0,0 +1,96 @@
+# Basisu CMake Installation
+
+This updated CMakeLists.txt adds proper installation support including CMake package configuration files.
+
+## Files Added
+
+1. **CMakeLists.txt** - Updated with install commands
+2. **cmake/basisuConfig.cmake.in** - Package configuration template
+
+## Installation
+
+### Building and Installing
+
+```bash
+mkdir build
+cd build
+cmake ..
+cmake --build .
+sudo cmake --build . --target install
+```
+
+Or with custom prefix:
+
+```bash
+cmake -DCMAKE_INSTALL_PREFIX=/your/custom/path ..
+cmake --build .
+cmake --build . --target install
+```
+
+## What Gets Installed
+
+### Libraries
+- `basisu_encoder` static library → `lib/`
+
+### Executables
+- `basisu` command-line tool → `bin/`
+- `examples` (if EXAMPLES=TRUE) → `bin/`
+
+### Headers
+- Transcoder headers → `include/basisu/transcoder/`
+- Encoder headers → `include/basisu/encoder/`
+- Zstd header (if ZSTD=TRUE) → `include/basisu/zstd/`
+
+### CMake Package Files
+- `basisuTargets.cmake` - Exported targets
+- `basisuConfig.cmake` - Package configuration
+- `basisuConfigVersion.cmake` - Version info
+
+All installed to: `lib/cmake/basisu/`
+
+## Using in Other CMake Projects
+
+After installation, other CMake projects can find and link against basisu:
+
+```cmake
+cmake_minimum_required(VERSION 3.20)
+project(MyProject)
+
+# Find the installed basisu package
+find_package(basisu REQUIRED)
+
+# Link against basisu
+add_executable(myapp main.cpp)
+target_link_libraries(myapp PRIVATE basisu::basisu_encoder)
+```
+
+The `basisu::basisu_encoder` imported target automatically provides:
+- Include directories
+- Library location
+- Compile definitions (if any)
+- Transitive dependencies
+
+### Available Targets
+
+- `basisu::basisu_encoder` - The static encoder library
+
+### Legacy Variables (for compatibility)
+
+- `basisu_INCLUDE_DIRS` - Include directory path
+- `basisu_LIBRARIES` - Libraries to link against
+
+## Example Usage
+
+```cpp
+#include <basisu/transcoder/basisu_transcoder.h>
+#include <basisu/encoder/basisu_enc.h>
+
+// Your code here
+```
+
+## Notes
+
+- The package follows CMake's `GNUInstallDirs` conventions
+- On Linux/macOS, default install prefix is `/usr/local`
+- On Windows with MSVC, adjust paths as needed
+- Version compatibility is set to `AnyNewerVersion`
diff --git a/cmake/basisuConfig.cmake.in b/cmake/basisuConfig.cmake.in
new file mode 100644
index 00000000..69a214dc
--- /dev/null
+++ b/cmake/basisuConfig.cmake.in
@@ -0,0 +1,10 @@
+@PACKAGE_INIT@
+
+# Provide the basisu imported targets
+include("${CMAKE_CURRENT_LIST_DIR}/basisuTargets.cmake")
+
+# Set variables for backwards compatibility
+set(basisu_INCLUDE_DIRS "@PACKAGE_CMAKE_INSTALL_INCLUDEDIR@/basisu")
+set(basisu_LIBRARIES basisu::basisu_encoder)
+
+check_required_components(basisu)