diff --git a/LICENSE b/LICENSE
index 350616db7..1010c5693 100644
--- a/LICENSE
+++ b/LICENSE
@@ -1,16 +1,23 @@
-MIT License
+Modified MIT License (for non-commercial use only)
 
 Copyright (c) 2025 TombEngine Team
 
 Permission is hereby granted, free of charge, to any person obtaining a copy
-of this software and associated documentation files (the "Software"), to deal
-in the Software without restriction, including without limitation the rights
-to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
-copies of the Software, and to permit persons to whom the Software is
-furnished to do so, subject to the following conditions:
+of this software and associated documentation files (the “Software”), to use,
+copy, modify, merge, publish, and distribute copies of the Software, and to
+permit persons to whom the Software is furnished to do so, for non-commercial
+purposes only, subject to the following conditions:
 
-The above copyright notice and this permission notice shall be included in all
-copies or substantial portions of the Software.
+1. Commercial use of the Software — including, but not limited to, selling,
+renting, leasing, or using it in a product or service for which you receive
+compensation (monetary or otherwise) — is strictly prohibited.
+
+2. The Software may be combined with proprietary or closed-source third-party
+components, provided those components are available for non-commercial use,
+and the resulting product is not used for commercial purposes.
+
+3. The above copyright notice and this permission notice shall be included in
+all copies or substantial portions of the Software.
 
 THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
 IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
diff --git a/README.md b/README.md
index c5e824255..cbc224c3e 100644
--- a/README.md
+++ b/README.md
@@ -38,5 +38,5 @@ Once done, you should be able to build a level with *Tomb Editor* and run it in
 Contributions are welcome. If you would like to participate in development to any degree, whether that be through suggestions, bug reports, or code, join our [Discord server](https://discord.gg/h5tUYFmres).
 
 # Disclaimer
-This community project is unaffiliated with Core Design, Eidos Interactive, or Embracer Group AB. *Tomb Raider* is a registered trademark of Embracer Group AB. *Tomb Engine* is not for sale. The code is open-source to encourage contributions and for study purposes. We are not responsible for illegal uses of this source code. This source code is released as-is and continues to be maintained by non-paid contributors in their free time.
+Tomb Engine uses modified MIT license for non-commercial use only. For more information, see [license](LICENSE). Tomb Engine is unaffiliated with Core Design, Eidos Interactive, or Embracer Group AB. *Tomb Raider* is a registered trademark of Embracer Group AB. Tomb Engine source code is open to encourage contributions and for study purposes. Tomb Engine team is not responsible for illegal use of this source code alone or in combination with third-party assets or components. This source code is released as-is and continues to be maintained by non-paid contributors in their free time.