diff --git a/CMakeLists.txt b/CMakeLists.txt
index e949f732..d19851e1 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -36,7 +36,9 @@ add_executable(shadps4
     src/Core/PS4/Linker.h
     src/Lib/Threads.cpp
     src/Lib/Threads.h
-     "src/Util/Singleton.h" "src/Util/Disassembler.cpp" "src/Util/Disassembler.h" "src/Util/StringUtil.h" "src/Core/PS4/Util/aerolib.h" "src/Core/PS4/Loader/SymbolsResolver.h" "src/Core/PS4/Loader/SymbolsResolver.cpp" "src/Core/PS4/HLE/Libs.cpp" "src/Core/PS4/HLE/Libs.h" "src/Core/PS4/HLE/LibC.cpp" "src/Core/PS4/HLE/LibC.h" "src/Lib/Timer.cpp" "src/Lib/Timer.h" "src/Core/PS4/HLE/LibKernel.cpp" "src/Core/PS4/HLE/LibKernel.h" "src/Core/PS4/HLE/LibSceVideoOut.cpp" "src/Core/PS4/HLE/LibSceVideoOut.h" "src/Core/PS4/HLE/LibSceGnmDriver.cpp" "src/Core/PS4/HLE/LibSceGnmDriver.h" "src/Core/PS4/HLE/Kernel/ThreadManagement.cpp" "src/Core/PS4/HLE/Kernel/ThreadManagement.h" "src/Core/PS4/HLE/ErrorCodes.h" "src/Debug.h" "src/Core/PS4/HLE/Kernel/MemoryManagement.cpp" "src/Core/PS4/HLE/Kernel/MemoryManagement.h" "src/Core/PS4/HLE/Kernel/MemMngCodes.h" "src/Core/PS4/HLE/Kernel/PhysicalMemory.cpp" "src/Util/StringUtil.cpp")
+    src/Core/PS4/HLE/Kernel/PhysicalMemory.h
+    src/Core/PS4/HLE/Kernel/PhysicalMemory.cpp
+     "src/Util/Singleton.h" "src/Util/Disassembler.cpp" "src/Util/Disassembler.h" "src/Util/StringUtil.h" "src/Core/PS4/Util/aerolib.h" "src/Core/PS4/Loader/SymbolsResolver.h" "src/Core/PS4/Loader/SymbolsResolver.cpp" "src/Core/PS4/HLE/Libs.cpp" "src/Core/PS4/HLE/Libs.h" "src/Core/PS4/HLE/LibC.cpp" "src/Core/PS4/HLE/LibC.h" "src/Lib/Timer.cpp" "src/Lib/Timer.h" "src/Core/PS4/HLE/LibKernel.cpp" "src/Core/PS4/HLE/LibKernel.h" "src/Core/PS4/HLE/LibSceVideoOut.cpp" "src/Core/PS4/HLE/LibSceVideoOut.h" "src/Core/PS4/HLE/LibSceGnmDriver.cpp" "src/Core/PS4/HLE/LibSceGnmDriver.h" "src/Core/PS4/HLE/Kernel/ThreadManagement.cpp" "src/Core/PS4/HLE/Kernel/ThreadManagement.h" "src/Core/PS4/HLE/ErrorCodes.h" "src/Debug.h" "src/Core/PS4/HLE/Kernel/MemoryManagement.cpp" "src/Core/PS4/HLE/Kernel/MemoryManagement.h" "src/Core/PS4/HLE/Kernel/MemMngCodes.h"  "src/Util/StringUtil.cpp")
 
 find_package(OpenGL REQUIRED)
 target_link_libraries(shadps4 PUBLIC fmt spdlog IMGUI SDL3-shared ${OPENGL_LIBRARY})
diff --git a/src/Core/PS4/HLE/Kernel/MemoryManagement.cpp b/src/Core/PS4/HLE/Kernel/MemoryManagement.cpp
index f58a6dc1..78cd3651 100644
--- a/src/Core/PS4/HLE/Kernel/MemoryManagement.cpp
+++ b/src/Core/PS4/HLE/Kernel/MemoryManagement.cpp
@@ -5,9 +5,10 @@
 #include "../ErrorCodes.h"
 #include "MemMngCodes.h"
 #include <bit>
+#include "PhysicalMemory.h"
 
 namespace HLE::Libs::LibKernel::MemoryManagement {
-
+       
 bool isPowerOfTwo(u64 n) { return std::popcount(n) == 1; }
 
 bool is16KBAligned(u64 n) { return ((n % (16ull * 1024) == 0)); }
@@ -44,8 +45,14 @@ int PS4_SYSV_ABI sceKernelAllocateDirectMemory(s64 searchStart, s64 searchEnd, u
     LOG_INFO_IF(true, "alignment    = {:#018x}\n", alignment);
     LOG_INFO_IF(true, "memory_type  = {}\n", memoryType);
 
-    BREAKPOINT();
-    return 0;
+    u64 physical_addr = 0;
+    if (!g_physical_memory->Alloc(searchStart, searchEnd, len, alignment, &physical_addr, memoryType)) {
+        //TODO debug logging
+        return SCE_KERNEL_ERROR_EAGAIN;
+    }
+    *physAddrOut = static_cast<s64>(physical_addr);
+    LOG_INFO_IF(true, "physAddrOut    = {:#018x}\n", physical_addr);
+    return SCE_OK;
 }
 
 }  // namespace HLE::Libs::LibKernel::MemoryManagement
\ No newline at end of file
diff --git a/src/Core/PS4/HLE/Kernel/PhysicalMemory.cpp b/src/Core/PS4/HLE/Kernel/PhysicalMemory.cpp
index e69de29b..b998d118 100644
--- a/src/Core/PS4/HLE/Kernel/PhysicalMemory.cpp
+++ b/src/Core/PS4/HLE/Kernel/PhysicalMemory.cpp
@@ -0,0 +1,44 @@
+#include "PhysicalMemory.h"
+
+namespace HLE::Libs::LibKernel::MemoryManagement {
+
+
+
+void PhysicalMemoryInit() { g_physical_memory = new PhysicalMemory; }
+
+static  u64 align_pos(u64 pos, u64 align) { return (align != 0 ? (pos + (align - 1)) & ~(align - 1) : pos); }
+
+bool PhysicalMemory::Alloc(u64 searchStart, u64 searchEnd, u64 len, u64 alignment, u64* physAddrOut, int memoryType) {
+    
+    u64 find_free_pos = 0;
+
+    //iterate through allocated blocked and find the next free position
+    if (!m_allocatedBlocks.empty()) {
+        for (const auto& b : m_allocatedBlocks) {
+            u64 n = b.start_addr + b.size;
+            if (n > find_free_pos) {
+                find_free_pos = n;
+            }
+        }
+    }
+    
+    //align free position
+    find_free_pos = align_pos(find_free_pos, alignment);
+
+    //if the new position is between searchStart - searchEnd , allocate a new block
+    if (find_free_pos >= searchStart && find_free_pos + len <= searchEnd) {
+        AllocatedBlock b{};
+        b.size = len;
+        b.start_addr = find_free_pos;
+        b.memoryType = memoryType;
+
+        m_allocatedBlocks.push_back(b);
+
+        *physAddrOut = find_free_pos;
+        return true;
+    }
+
+    return false;
+}
+
+}  // namespace HLE::Libs::LibKernel::MemoryManagement
\ No newline at end of file
diff --git a/src/Core/PS4/HLE/Kernel/PhysicalMemory.h b/src/Core/PS4/HLE/Kernel/PhysicalMemory.h
index 07a990d8..bb607d3f 100644
--- a/src/Core/PS4/HLE/Kernel/PhysicalMemory.h
+++ b/src/Core/PS4/HLE/Kernel/PhysicalMemory.h
@@ -1,15 +1,26 @@
 #pragma once
+#include <vector>
+#include "../../../../types.h"
 
 namespace HLE::Libs::LibKernel::MemoryManagement {
 
-class PysicalMemory {
+
+void PhysicalMemoryInit();
+
+class PhysicalMemory {
+  public:
     struct AllocatedBlock {
         u64 start_addr;
         u64 size;
+        int memoryType;
     };
-
+    PhysicalMemory() {  }
+    virtual ~PhysicalMemory() { }
+  public:
+    bool Alloc(u64 searchStart, u64 searchEnd, u64 len, u64 alignment, u64* physAddrOut, int memoryType);
   private:
     std::vector<AllocatedBlock> m_allocatedBlocks;
 };
+static PhysicalMemory* g_physical_memory = nullptr;
 
 }  // namespace HLE::Libs::LibKernel::MemoryManagement
\ No newline at end of file