diff --git a/docs/FMOD_MODIFICATION_GUIDE_PHASE3.md b/docs/FMOD_MODIFICATION_GUIDE_PHASE3.md
new file mode 100644
index 0000000..6682436
--- /dev/null
+++ b/docs/FMOD_MODIFICATION_GUIDE_PHASE3.md
@@ -0,0 +1,264 @@
+# Phase 3: FMOD Bank Modifications Guide
+
+## Overview
+This phase covers extracting and modifying FMOD audio banks using FMOD Studio and AssetRipper.
+
+**Prerequisites:**
+- FMOD Studio 2.02.x installed (free from fmod.com)
+- AssetRipper installed
+- Game installed at: `C:\apps\steam\steamapps\common\Homura Hime\`
+
+---
+
+## Step 1: Extract FMOD Banks with AssetRipper
+
+### 1.1 Launch AssetRipper
+```
+Location: C:\projects\HomuraHime-Mods\tools\AssetRipper\AssetRipper.exe
+```
+
+### 1.2 Load HomuraHime
+1. Click **File** → **Load** (or drag folder)
+2. Navigate to: `C:\apps\steam\steamapps\common\Homura Hime\HomuraHime_Data\`
+3. Select the folder and click **Open**
+
+### 1.3 Export Settings
+1. Click **File** → **Export**
+2. Choose **Resources** (not Asset Directories)
+3. Set output path: `C:\projects\HomuraHime-Mods\extracted_assets\`
+
+### 1.4 Locate FMOD Banks
+After export, find banks at:
+```
+C:\projects\HomuraHime-Mods\extracted_assets\StreamingAssets\FMOD\Desktop\
+```
+
+---
+
+## Step 2: Open Banks in FMOD Studio
+
+### 2.1 Launch FMOD Studio
+```
+Location: C:\Program Files\FMOD Studio\FMOD Studio.exe
+```
+
+### 2.2 Open Project (or Banks Directly)
+**Option A:** If you have the original FMOD project (unlikely for commercial game):
+- File → Open Project → Select `.fprojekt` file
+
+**Option B:** Open bank files directly:
+- File → Open Bank → Select `Master.bank` from the extracted folder
+- FMOD will automatically load related banks
+
+### 2.3 Bank Organization
+In FMOD Studio, you'll see:
+- **Events**: Sound events (grouped by banks: SFX, Ambience, BGM, Voice)
+- **Audio Tables**: Banks, VCA groups, snapshots
+- **Mixer**: Master output with routing
+
+---
+
+## Step 3: Voice Limit Improvements
+
+### 3.1 Find Problematic Events
+Search for events with high polyphony:
+1. In FMOD Studio, select **SFX.bank** in the Banks panel
+2. Look at event properties in the Inspector
+3. Check **Maximum Instances** ( polyphony)
+
+### 3.2 Adjust Voice Aging
+For events that cause glitches:
+
+1. Right-click event → **Properties**
+2. Go to **Voices** tab
+3. Settings to adjust:
+   ```
+   Max Instances: 16 (from default 32)
+   Voice Stealing: Steal Oldest
+   Voice Aging: 1.0 seconds (faster cleanup)
+   ```
+
+### 3.3 Key Events to Check
+In `SFX.bank`:
+- Attack impact sounds (often triggered rapidly)
+- Footstep/landing sounds (PreLoad banks)
+- Enemy alert/warning sounds
+- UI feedback sounds
+
+---
+
+## Step 4: Audio Ducking Improvements
+
+### 4.1 Access Mixer
+1. Click **Mixer** tab in FMOD Studio
+2. You'll see VCA groups and the Master bus
+
+### 4.2 Configure Ducking Groups
+Look for:
+- **Speech** (Voice channel)
+- **SFX** (Sound effects)
+- **Music** (BGM)
+
+### 4.3 Adjust Ducking Parameters
+For the Master or speech bus:
+1. Right-click → **Add Effect** → **Duck**
+2. Configure:
+   ```
+   Threshold: -20 dB (triggers at this volume)
+   Rate: 100% (fade speed)
+   Attack: 10 ms (fast attack)
+   Release: 200 ms (slower release)
+   ```
+
+### 4.4 Create/Modify Snapshots
+Snapshots control ducking behavior:
+1. In the **Audio Tables** panel, select **Snapshots**
+2. Find existing battle/start snapshots
+3. Modify duck amounts:
+   ```
+   Music Duck Amount: -12 dB (not too aggressive)
+   SFX Duck Amount: -6 dB
+   ```
+
+---
+
+## Step 5: Enemy Behavior Indicator Improvements
+
+### 5.1 Locate Enemy Audio Events
+
+**In `Ambience.bank`:**
+- `enemy_idle_loop` - Enemy ambient when not engaged
+- `enemy_alert` - Enemy noticing player
+- `enemy_chase` - Enemy pursuing
+
+**In `SFX.bank`:**
+- Attack indicator sounds
+- Danger/warning cues
+
+### 5.2 Increase Volume on Behavior Sounds
+
+1. Find enemy-related events
+2. Select the event → Inspector
+3. **Volume** slider: Increase by 3-6 dB
+   ```
+   Before: 0.0 dB
+   After: +3.0 dB to +6.0 dB
+   ```
+
+### 5.3 Add Pitch Variation
+
+For more distinct enemy states:
+
+1. Select enemy event (e.g., alert)
+2. Add **Pitch** automation or randomizer
+3. Set variation:
+   ```
+   Center: 0 semitones
+   Range: ±2 semitones random
+   ```
+
+### 5.4 Add 3D Positioning
+
+For directional audio:
+
+1. Select event → **3D** checkbox
+2. Configure:
+   ```
+   Min Distance: 1.0 m
+   Max Distance: 20.0 m
+   Rolloff: Linear
+   ```
+3. This makes enemy sounds come from their position
+
+### 5.5 Create State Layers
+
+For distinct enemy behavior indicators, add parameters:
+
+1. Right-click event → **Add Parameter**
+2. Name: `EnemyState`
+3. Values: `0=Idle, 1=Alert, 2=Attacking`
+4. Add automation for volume/effect per state
+
+---
+
+## Step 6: Reimport Modified Banks
+
+### 6.1 Save Changes
+1. In FMOD Studio: **File** → **Save**
+2. Banks will auto-update in the project folder
+
+### 6.2 Export Banks
+1. **File** → **Export** → **banks**
+2. Choose the extracted `Desktop\` folder
+3. Confirm overwrite
+
+### 6.3 Verify Export
+Check that modified `.bank` files have new timestamps.
+
+---
+
+## Step 7: Backup Original Banks
+
+**CRITICAL - Before testing:**
+```
+mkdir "C:\projects\HomuraHime-Mods\backup_banks_original"
+copy "C:\projects\HomuraHime-Mods\extracted_assets\StreamingAssets\FMOD\Desktop\*.bank"
+      "C:\projects\HomuraHime-Mods\backup_banks_original\"
+```
+
+---
+
+## File Locations Reference
+
+### Game Banks (Read-Only Backup)
+```
+C:\apps\steam\steamapps\common\Homura Hime\HomuraHime_Data\StreamingAssets\FMOD\Desktop\
+```
+
+### Extracted for Editing
+```
+C:\projects\HomuraHime-Mods\extracted_assets\StreamingAssets\FMOD\Desktop\
+```
+
+### Modified Banks (Copy to Game)
+```
+C:\projects\HomuraHime-Mods\modified_banks\FMOD\Desktop\
+```
+
+### Backup Original
+```
+C:\projects\HomuraHime-Mods\backup_banks_original\
+```
+
+---
+
+## Banks to Prioritize
+
+| Priority | Bank | Reason |
+|----------|------|--------|
+| HIGH | `SFX.bank` | Contains attack/impact sounds that glitch |
+| HIGH | `Ambience.bank` | Enemy behavior indicators |
+| MEDIUM | `Master.bank` | Contains mixer and routing |
+| MEDIUM | `Voice.bank` | May need voice limit adjustments |
+| LOW | `BGM*.bank` | Background music - less critical |
+
+---
+
+## Verification Checklist
+
+After modifications:
+- [ ] Banks export successfully from FMOD Studio
+- [ ] New bank files are in `modified_banks\`
+- [ ] Original banks backed up
+- [ ] Test game loads without FMOD errors
+- [ ] Audio glitches reduced in combat
+- [ ] Enemy indicators more audible
+
+---
+
+## Next Steps
+
+After completing FMOD modifications:
+- Phase 4: BepInEx plugin deployment
+- Phase 5: Testing and iteration
+- Phase 6: Distribution
diff --git a/tools/ExtractBanks.ps1 b/tools/ExtractBanks.ps1
new file mode 100644
index 0000000..46b9f89
--- /dev/null
+++ b/tools/ExtractBanks.ps1
@@ -0,0 +1,103 @@
+# HomuraHime Audio Mod - Bank Extraction Script
+# Run this after installing AssetRipper to extract FMOD banks
+
+param(
+    [string]$GamePath = "C:\apps\steam\steamapps\common\Homura Hime",
+    [string]$OutputPath = "C:\projects\HomuraHime-Mods\extracted_assets",
+    [string]$BackupPath = "C:\projects\HomuraHime-Mods\backup_banks_original"
+)
+
+$ErrorActionPreference = "Stop"
+
+Write-Host "HomuraHime Audio Mod - Bank Extraction Script" -ForegroundColor Cyan
+Write-Host "=" * 50
+
+# Check if AssetRipper exists
+$AssetRipperPath = "C:\projects\HomuraHime-Mods\tools\AssetRipper\AssetRipper.exe"
+if (-not (Test-Path $AssetRipperPath)) {
+    Write-Host "[ERROR] AssetRipper not found at: $AssetRipperPath" -ForegroundColor Red
+    Write-Host "Please install AssetRipper first (see docs/SETUP_PHASE1.md)" -ForegroundColor Yellow
+    exit 1
+}
+
+# Check if game path exists
+$GameDataPath = Join-Path $GamePath "HomuraHime_Data\StreamingAssets\FMOD\Desktop"
+if (-not (Test-Path $GameDataPath)) {
+    Write-Host "[ERROR] Game FMOD banks not found at: $GameDataPath" -ForegroundColor Red
+    Write-Host "Please verify game installation" -ForegroundColor Yellow
+    exit 1
+}
+
+Write-Host "[INFO] Game path: $GameDataPath" -ForegroundColor Green
+
+# Create directories
+$OutputBanksPath = Join-Path $OutputPath "StreamingAssets\FMOD\Desktop"
+$BackupBanksPath = $BackupPath
+
+New-Item -ItemType Directory -Force -Path $OutputBanksPath | Out-Null
+New-Item -ItemType Directory -Force -Path $BackupBanksPath | Out-Null
+
+Write-Host "[INFO] Output path: $OutputBanksPath" -ForegroundColor Green
+Write-Host "[INFO] Backup path: $BackupBanksPath" -ForegroundColor Green
+
+# List current banks
+$banks = Get-ChildItem -Path $GameDataPath -Filter "*.bank"
+Write-Host "[INFO] Found $($banks.Count) FMOD bank files" -ForegroundColor Cyan
+
+# Step 1: Backup original banks
+Write-Host "`n[STEP 1] Backing up original banks..." -ForegroundColor Yellow
+foreach ($bank in $banks) {
+    $dest = Join-Path $BackupBanksPath $bank.Name
+    Copy-Item -Path $bank.FullName -Destination $dest -Force
+    Write-Host "  Backed up: $($bank.Name)" -ForegroundColor Gray
+}
+Write-Host "[OK] Original banks backed up" -ForegroundColor Green
+
+# Step 2: Launch AssetRipper for extraction
+Write-Host "`n[STEP 2] Launching AssetRipper..." -ForegroundColor Yellow
+Write-Host "  In AssetRipper:" -ForegroundColor Cyan
+Write-Host "    1. File -> Load -> Select HomuraHime_Data folder" -ForegroundColor Cyan
+Write-Host "    2. File -> Export -> Resources" -ForegroundColor Cyan
+Write-Host "    3. Export to: $OutputPath" -ForegroundColor Cyan
+Write-Host "    4. Wait for export to complete" -ForegroundColor Cyan
+Write-Host "    5. Close AssetRipper" -ForegroundColor Cyan
+
+Start-Process $AssetRipperPath
+Write-Host "`n[PAUSE] Press Enter when AssetRipper export is complete..." -ForegroundColor Yellow
+Read-Host
+
+# Step 3: Verify extraction
+$extractedBanksPath = Join-Path $OutputPath "StreamingAssets\FMOD\Desktop"
+if (Test-Path $extractedBanksPath) {
+    $extractedBanks = Get-ChildItem -Path $extractedBanksPath -Filter "*.bank"
+    Write-Host "[OK] Found $($extractedBanks.Count) extracted bank files" -ForegroundColor Green
+    
+    # List key banks
+    $keyBanks = @("SFX.bank", "Ambience.bank", "Master.bank", "Voice.bank")
+    foreach ($keyBank in $keyBanks) {
+        $found = $extractedBanks | Where-Object { $_.Name -eq $keyBank }
+        if ($found) {
+            Write-Host "  [OK] $keyBank found ($([math]::Round($found.Length / 1MB, 2)) MB)" -ForegroundColor Green
+        } else {
+            Write-Host "  [WARN] $keyBank not found" -ForegroundColor Yellow
+        }
+    }
+} else {
+    Write-Host "[ERROR] Extraction failed - path not found: $extractedBanksPath" -ForegroundColor Red
+    exit 1
+}
+
+# Summary
+Write-Host "`n" + "=" * 50
+Write-Host "Extraction Complete!" -ForegroundColor Cyan
+Write-Host ""
+Write-Host "Next steps:" -ForegroundColor Yellow
+Write-Host "  1. Open FMOD Studio 2.02.x" -ForegroundColor Cyan
+Write-Host "  2. Open banks from: $extractedBanksPath" -ForegroundColor Cyan
+Write-Host "  3. Edit banks for voice limits, ducking, enemy cues" -ForegroundColor Cyan
+Write-Host "  4. See docs/FMOD_MODIFICATION_GUIDE_PHASE3.md for details" -ForegroundColor Cyan
+Write-Host ""
+Write-Host "Current project structure:" -ForegroundColor Gray
+Write-Host "  extracted_assets\StreamingAssets\FMOD\Desktop\  <- Edit these banks" -ForegroundColor Gray
+Write-Host "  backup_banks_original\  <- Original banks (backup)" -ForegroundColor Gray
+Write-Host "  modified_banks\  <- Create this folder for modified banks" -ForegroundColor Gray