diff --git a/Engine/source/terrain/terrData.cpp b/Engine/source/terrain/terrData.cpp
index 9db97f28a..1dd89d7b3 100644
--- a/Engine/source/terrain/terrData.cpp
+++ b/Engine/source/terrain/terrData.cpp
@@ -186,6 +186,7 @@ TerrainBlock::TerrainBlock()
    mCell( NULL ),
    mCRC( 0 ),
    mBaseTexSize( 1024 ),
+   mBaseTexFormat( TerrainBlock::JPG ),
    mBaseMaterial( NULL ),
    mDefaultMatInst( NULL ),
    mBaseTexScaleConst( NULL ),
@@ -961,7 +962,7 @@ String TerrainBlock::_getBaseTexCacheFileName() const
 {
    Torque::Path basePath( mTerrFileName );
    basePath.setFileName( basePath.getFileName() + "_basetex" );
-   basePath.setExtension( "dds" );
+   basePath.setExtension( formatToExtension(mBaseTexFormat) );
    return basePath.getFullPath();
 }
 
@@ -1200,7 +1201,7 @@ void TerrainBlock::unpackUpdate(NetConnection* con, BitStream *stream)
       {
          mBaseTexSize = baseTexSize;
          if ( isProperlyAdded() )
-            _updateBaseTexture( false );
+            _updateBaseTexture( NONE );
       }
 
       U32 lightMapSize;
diff --git a/Engine/source/terrain/terrData.h b/Engine/source/terrain/terrData.h
index 967bfa0d1..b3433dfb1 100644
--- a/Engine/source/terrain/terrData.h
+++ b/Engine/source/terrain/terrData.h
@@ -74,6 +74,26 @@ protected:
       NextFreeMask = Parent::NextFreeMask << 6,
    };
 
+   enum BaseTexFormat
+   {
+      NONE, DDS, PNG, JPG
+   };
+
+   static const char* formatToExtension(BaseTexFormat format)
+   {
+      switch (format)
+      {
+      case DDS:
+         return "dds";
+      case PNG:
+         return "png";
+      case JPG:
+         return "jpg";
+      default:
+         return "";
+      }
+   };
+
    Box3F mBounds;
 
    ///
@@ -132,6 +152,8 @@ protected:
    /// The desired size for the base texture.
    U32 mBaseTexSize;
 
+   BaseTexFormat mBaseTexFormat;
+
    ///
    TerrCell *mCell;
 
diff --git a/Engine/source/terrain/terrRender.cpp b/Engine/source/terrain/terrRender.cpp
index 4b03ac812..61b844380 100644
--- a/Engine/source/terrain/terrRender.cpp
+++ b/Engine/source/terrain/terrRender.cpp
@@ -178,7 +178,7 @@ bool TerrainBlock::_initBaseShader()
    return true;
 }
 
-void TerrainBlock::_updateBaseTexture( bool writeToCache )
+void TerrainBlock::_updateBaseTexture(bool writeToCache)
 {
    if ( !mBaseShader && !_initBaseShader() )
       return;
@@ -290,7 +290,14 @@ void TerrainBlock::_updateBaseTexture( bool writeToCache )
       GFX->endScene();
 
    /// Do we cache this sucker?
-   if ( writeToCache )
+   if (mBaseTexFormat == NONE || !writeToCache)
+   {
+      // We didn't cache the result, so set the base texture
+      // to the render target we updated.  This should be good
+      // for realtime painting cases.
+      mBaseTex = blendTex;
+   }
+   else if (mBaseTexFormat == DDS)
    {
       String cachePath = _getBaseTexCacheFileName();
 
@@ -327,10 +334,16 @@ void TerrainBlock::_updateBaseTexture( bool writeToCache )
    }
    else
    {
-      // We didn't cache the result, so set the base texture
-      // to the render target we updated.  This should be good
-      // for realtime painting cases.
-      mBaseTex = blendTex;
+      FileStream stream;
+      if (!stream.open(_getBaseTexCacheFileName(), Torque::FS::File::Write))
+      {
+         mBaseTex = blendTex;
+         return;
+      }
+
+      GBitmap bitmap(blendTex->getWidth(), blendTex->getHeight(), false, GFXFormatR8G8B8);
+      blendTex->copyToBmp(&bitmap);
+      bitmap.writeBitmap(formatToExtension(mBaseTexFormat), stream);
    }
 }