diff --git a/python/mujoco/testdata/checkerboard.png b/python/mujoco/testdata/checkerboard.png
new file mode 100644
index 00000000..87fb3579
Binary files /dev/null and b/python/mujoco/testdata/checkerboard.png differ
diff --git a/python/mujoco/testdata/simple_usd_preview_surface.usda b/python/mujoco/testdata/simple_usd_preview_surface.usda
new file mode 100644
index 00000000..ede01fec
--- /dev/null
+++ b/python/mujoco/testdata/simple_usd_preview_surface.usda
@@ -0,0 +1,81 @@
+#usda 1.0
+(
+    endTimeCode = 1
+    framesPerSecond = 24
+    metersPerUnit = 1
+    startTimeCode = 1
+    timeCodesPerSecond = 24
+    upAxis = "Y"
+)
+
+def Xform "World"
+{
+    def Cube "Cube" (
+        prepend apiSchemas = ["MaterialBindingAPI"]
+    )
+    {
+        float3[] extent = [(-1, -1, -1), (1, 1, 1)]
+        rel material:binding = </materials/simple_usd_preview_surface>
+        double size = 2
+        matrix4d xformOp:transform = ( (1, 0, 0, 0), (0, 1, 0, 0), (0, 0, 1, 0), (0, 0, 0, 1) )
+        uniform token[] xformOpOrder = ["xformOp:transform"]
+    }
+
+    def Cube "Cube2" (
+        prepend apiSchemas = ["MaterialBindingAPI"]
+    )
+    {
+        float3[] extent = [(-1, -1, -1), (1, 1, 1)]
+        rel material:binding = </materials/simple_usd_texture>
+        double size = 2
+        matrix4d xformOp:transform = ( (1, 0, 0, 0), (0, 1, 0, 0), (0, 0, 1, 0), (0, 0, 0, 1) )
+        matrix4d xformOp:transform:transform1 = ( (1, 0, 0, 0), (0, 1, 0, 0), (0, 0, 1, 0), (0, -2.9009591341018677, 0, 1) )
+        uniform token[] xformOpOrder = ["xformOp:transform", "xformOp:transform:transform1"]
+    }
+}
+
+def Scope "materials"
+{
+    def Material "simple_usd_preview_surface" (
+        prepend inherits = </__class_mtl__/simple_usd_preview_surface>
+    )
+    {
+        token outputs:surface.connect = </materials/simple_usd_preview_surface/usdpreviewsurface.outputs:surface>
+
+        def Shader "usdpreviewsurface"
+        {
+            uniform token info:id = "UsdPreviewSurface"
+            color3f inputs:diffuseColor = (0.1, 0.2, 0.3)
+            color3f inputs:emissiveColor = (0.4, 0.5, 0.6)
+            float inputs:metallic = 0.123
+            float inputs:roughness = 0.456
+            token outputs:surface
+        }
+    }
+
+    def Material "simple_usd_texture" (
+        prepend inherits = </__class_mtl__/simple_usd_texture>
+    )
+    {
+        token outputs:surface.connect = </materials/simple_usd_texture/usdpreviewsurface.outputs:surface>
+
+        def Shader "usdpreviewsurface"
+        {
+            uniform token info:id = "UsdPreviewSurface"
+            color3f inputs:diffuseColor = (0.1, 0.2, 0.3)
+            color3f inputs:diffuseColor.connect = </materials/simple_usd_texture/usduvtexture1.outputs:rgb>
+            color3f inputs:emissiveColor = (0.4, 0.5, 0.6)
+            float inputs:metallic = 0.123
+            float inputs:roughness = 0.456
+            token outputs:surface
+        }
+
+        def Shader "usduvtexture1"
+        {
+            uniform token info:id = "UsdUVTexture"
+            asset inputs:file = @./checkerboard.png@
+            vector3f outputs:rgb
+        }
+    }
+}
+
diff --git a/src/experimental/usd/CMakeLists.txt b/src/experimental/usd/CMakeLists.txt
index 536aa12a..59f8e845 100644
--- a/src/experimental/usd/CMakeLists.txt
+++ b/src/experimental/usd/CMakeLists.txt
@@ -196,11 +196,20 @@ target_sources(mujoco PRIVATE
   kinematic_tree.cc
   kinematic_tree.h
   layer_sink.cc
+  material_parsing.cc
+  material_parsing.h
   usd_to_mjspec.cc
   utils.cc
   writer.cc
 )
 
+# pxr/usd/tf/hashset.h might include deprecated headers so disable this check
+# when compiling with USD enabled.
+target_compile_options(
+     mujoco
+     PRIVATE -Wno-deprecated
+)
+
 if (USD_DIR)
   find_package(pxr REQUIRED)
 
diff --git a/src/experimental/usd/material_parsing.cc b/src/experimental/usd/material_parsing.cc
new file mode 100644
index 00000000..9b26dcdd
--- /dev/null
+++ b/src/experimental/usd/material_parsing.cc
@@ -0,0 +1,315 @@
+// Copyright 2025 DeepMind Technologies Limited
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#include "experimental/usd/material_parsing.h"
+
+#include <cstddef>
+#include <cstdint>
+#include <cstdio>
+#include <memory>
+#include <optional>
+#include <string>
+#include <vector>
+
+#include "lodepng.h"
+#include <mujoco/mujoco.h>
+#include <pxr/base/gf/vec3f.h>
+#include <pxr/base/gf/vec4f.h>
+#include <pxr/base/tf/staticData.h>
+#include <pxr/base/tf/staticTokens.h>
+#include <pxr/base/tf/token.h>
+#include <pxr/usd/ar/asset.h>
+#include <pxr/usd/ar/resolvedPath.h>
+#include <pxr/usd/ar/resolver.h>
+#include <pxr/usd/usd/prim.h>
+#include <pxr/usd/usdShade/input.h>
+#include <pxr/usd/usdShade/material.h>
+#include <pxr/usd/usdShade/shader.h>
+#include <pxr/usd/usdShade/types.h>
+#include <pxr/usd/usdShade/udimUtils.h>
+
+namespace mujoco {
+namespace usd {
+
+// Using to satisfy TF_DEFINE_PRIVATE_TOKENS macro below and avoid operating in
+// PXR_NS.
+using pxr::TfToken;
+template <typename T>
+using TfStaticData = pxr::TfStaticData<T>;
+
+// clang-format off
+TF_DEFINE_PRIVATE_TOKENS(kTokens,
+                         ((auto_, "auto"))
+                         ((diffuseColor, "diffuseColor"))
+                         ((file, "file"))
+                         ((metallic, "metallic"))
+                         ((r, "r"))
+                         ((raw, "raw"))
+                         ((rgb, "rgb"))
+                         ((roughness, "roughness"))
+                         ((sourceColorSpace, "sourceColorSpace"))
+                         ((srgb, "sRGB"))
+                         ((UsdPreviewSurface, "UsdPreviewSurface"))
+                         ((UsdUVTexture, "UsdUVTexture"))
+                         );
+// clang-format on
+
+pxr::GfVec3f AsVec3f(pxr::GfVec3f val) { return val; }
+
+pxr::GfVec3f AsVec3f(float val) { return pxr::GfVec3f(val, val, val); }
+
+pxr::GfVec4f AsVec4f(pxr::GfVec4f val) { return val; }
+
+pxr::GfVec4f AsVec4f(float val) { return pxr::GfVec4f(val, val, val, 1.0f); }
+
+pxr::GfVec4f AsVec4f(pxr::GfVec3f vec3) {
+  return pxr::GfVec4f(vec3[0], vec3[1], vec3[2], 1.0f);
+}
+
+pxr::TfToken GetShaderId(const pxr::UsdShadeShader& shader) {
+  pxr::TfToken shader_id;
+  shader.GetShaderId(&shader_id);
+  return shader_id;
+}
+
+// Data read from a shader input.
+template <typename T>
+struct ResolvedShaderInput {
+  // The value of the input if it is a constant.
+  std::optional<T> value;
+
+  // The value of the input if it is a texture.
+  std::optional<mjsTexture*> sampler;
+};
+
+// Attempts to read an input from a USD ShadeInput as a specific type. Returns
+// nullopt if the input is not found or is not of the given type.
+template <typename T>
+std::optional<T> ReadInput(pxr::UsdShadeInput usd_input) {
+  T val;
+  if (!usd_input.Get(&val)) {
+    return std::nullopt;
+  }
+  return val;
+}
+
+// Attempts to read a UsdUVTexture shader and return a sampler.
+template <typename T>
+ResolvedShaderInput<T> ReadUsdUVTexture(mjSpec* spec,
+                                        const pxr::UsdShadeShader shader,
+                                        unsigned nchannels) {
+  ResolvedShaderInput<T> out;
+  mjsTexture* texture = mjs_addTexture(spec);
+  texture->type = mjtTexture::mjTEXTURE_2D;
+  mjs_setName(texture->element, shader.GetPath().GetAsString().c_str());
+
+  pxr::TfToken source_color_space = kTokens->auto_;
+  if (auto color_space_input = shader.GetInput(kTokens->sourceColorSpace)) {
+    color_space_input.Get(&source_color_space);
+  }
+
+  if (source_color_space == kTokens->raw) {
+    texture->colorspace = mjtColorSpace::mjCOLORSPACE_LINEAR;
+  } else if (source_color_space == kTokens->srgb) {
+    texture->colorspace = mjtColorSpace::mjCOLORSPACE_SRGB;
+  } else if (source_color_space == kTokens->auto_) {
+    texture->colorspace = mjtColorSpace::mjCOLORSPACE_AUTO;
+  }
+
+  pxr::ArResolver& resolver = pxr::ArGetResolver();
+  pxr::SdfAssetPath resolved_texture_asset_path;
+  if (auto file_input = shader.GetInput(kTokens->file)) {
+    file_input.Get(&resolved_texture_asset_path);
+  } else {
+    mju_error("UsdUVTexture missing inputs:file.");
+    return out;
+  }
+
+  std::string resolved_texture_path =
+      resolved_texture_asset_path.GetResolvedPath();
+
+  if (pxr::UsdShadeUdimUtils::IsUdimIdentifier(resolved_texture_path)) {
+    mju_error("MuJoCo does not support UDIM textures: %s",
+              resolved_texture_path.c_str());
+    return out;
+  }
+
+  auto extension = resolver.GetExtension(resolved_texture_path);
+  if (extension != "png") {
+    mju_error("MuJoCo USD Parsing only supports PNG textures: %s",
+              resolved_texture_path.c_str());
+    return out;
+  }
+
+  FILE* fp = fopen(resolved_texture_path.c_str(), "r");
+  if (fp) {
+    mjs_setString(texture->content_type, "image/png");
+    mjs_setString(texture->file, resolved_texture_path.c_str());
+    out.sampler = texture;
+    return out;
+  }
+
+  std::shared_ptr<pxr::ArAsset> texture_asset =
+      resolver.OpenAsset(pxr::ArResolvedPath(resolved_texture_path));
+
+  size_t texture_size = texture_asset->GetSize();
+
+  uint32_t width, height;
+  std::vector<unsigned char> image;
+  lodepng::State state;
+  if (nchannels == 3) {
+    state.info_raw.colortype = LCT_RGB;
+  } else if (nchannels == 1) {
+    state.info_raw.colortype = LCT_GREY;
+  } else {
+    mju_error("MuJoCo USD Parsing only supports 1 or 3 channel textures.");
+    return out;
+  }
+
+  unsigned error = lodepng::decode(
+      image, width, height, state,
+      reinterpret_cast<const unsigned char*>(texture_asset->GetBuffer().get()),
+      texture_size);
+
+  // check for errors
+  if (error) {
+    mju_error("LodePNG error %u: %s", error, lodepng_error_text(error));
+    return out;
+  }
+
+  texture->width = width;
+  texture->height = height;
+  texture->nchannel = nchannels;
+  mjs_setBuffer(texture->data, image.data(), image.size());
+
+  out.sampler = texture;
+  return out;
+}
+
+// Given an input to a shader, attempts to bake the shader and it's inputs
+// into a singular value or texture sampler (ResolvedShaderInput).
+template <typename T>
+ResolvedShaderInput<T> ReadShaderInput(
+    mjSpec* spec, const pxr::UsdShadeConnectableAPI source,
+    const pxr::TfToken source_name,
+    const pxr::UsdShadeAttributeType source_type) {
+  ResolvedShaderInput<T> out;
+  pxr::UsdShadeShader shader(source.GetPrim());
+  pxr::TfToken shader_id = GetShaderId(shader);
+  if (shader_id == kTokens->UsdUVTexture) {
+    unsigned nchannels = -1;
+    if (source_name == kTokens->rgb) {
+      nchannels = 3;
+    } else if (source_name == kTokens->r) {
+      nchannels = 1;
+    } else {
+      mju_error("Unsupported texture channel: %s", source_name.GetText());
+      return out;
+    }
+
+    return ReadUsdUVTexture<T>(spec, shader, nchannels);
+  } else {
+    mju_warning("Unsupported shader type: %s", shader_id.GetText());
+  }
+
+  return out;
+}
+
+// Reads UsdShadeInput as a value of type T or a texture sampler.
+template <typename T>
+ResolvedShaderInput<T> ReadShaderInput(mjSpec* spec, pxr::UsdShadeInput input) {
+  ResolvedShaderInput<T> out;
+  if (!input.GetPrim().IsValid()) {
+    return out;
+  }
+
+  pxr::UsdShadeConnectableAPI source;
+  pxr::TfToken source_name;
+  pxr::UsdShadeAttributeType source_type;
+  if (input.GetConnectedSource(&source, &source_name, &source_type)) {
+    out = ReadShaderInput<T>(spec, source, source_name, source_type);
+  } else {
+    out.value = ReadInput<T>(input);
+  }
+  return out;
+}
+
+template <typename T, typename V>
+void AssignShaderInput(mjSpec* spec, mjsMaterial* material, T* val,
+                       mjtTextureRole texrole,
+                       ResolvedShaderInput<V> resolved_input) {
+  if (resolved_input.value.has_value()) {
+    if constexpr (std::is_same_v<T, float>) {
+      *val = resolved_input.value.value();
+    } else if constexpr (std::is_same_v<T, float[3]>) {
+      const pxr::GfVec3f resolved_value = AsVec3f(resolved_input.value.value());
+      (*val)[0] = resolved_value[0];
+      (*val)[1] = resolved_value[1];
+      (*val)[2] = resolved_value[2];
+    } else if constexpr (std::is_same_v<T, float[4]>) {
+      const pxr::GfVec4f resolved_value = AsVec4f(resolved_input.value.value());
+      (*val)[0] = resolved_value[0];
+      (*val)[1] = resolved_value[1];
+      (*val)[2] = resolved_value[2];
+      (*val)[3] = resolved_value[3];
+    }
+  } else if (resolved_input.sampler.has_value()) {
+    mjsTexture* texture = resolved_input.sampler.value();
+    auto name = mjs_getName(texture->element);
+    mjs_setInStringVec(material->textures, texrole, name->c_str());
+  } else {
+    mju_warning("No value or texture for shader input.");
+  }
+}
+
+void ParsePreviewSurface(mjSpec* spec, mjsMaterial* material,
+                         const pxr::UsdShadeShader& shader) {
+  auto diffuse = ReadShaderInput<pxr::GfVec3f>(
+      spec, shader.GetInput(kTokens->diffuseColor));
+  AssignShaderInput(spec, material, &material->rgba, mjTEXROLE_RGB, diffuse);
+
+  auto metallic =
+      ReadShaderInput<float>(spec, shader.GetInput(kTokens->metallic));
+  AssignShaderInput(spec, material, &material->metallic, mjTEXROLE_METALLIC,
+                    metallic);
+
+  auto roughness =
+      ReadShaderInput<float>(spec, shader.GetInput(kTokens->roughness));
+  AssignShaderInput(spec, material, &material->roughness, mjTEXROLE_ROUGHNESS,
+                    roughness);
+}
+
+mjsMaterial* ParseMaterial(mjSpec* spec,
+                           const pxr::UsdShadeMaterial& material) {
+  pxr::UsdShadeShader surface_shader = material.ComputeSurfaceSource();
+  if (!surface_shader.GetPrim().IsValid()) {
+    mju_warning("Material %s has no surface output.",
+                material.GetPath().GetAsString().c_str());
+    return nullptr;
+  }
+
+  pxr::TfToken surface_shader_id = GetShaderId(surface_shader);
+  if (surface_shader_id != kTokens->UsdPreviewSurface) {
+    mju_warning("Mujoco only supports UsdPreviewSurface as surface output.");
+    return nullptr;
+  }
+
+  mjsMaterial* mj_mat = mjs_addMaterial(spec, nullptr);
+  mjs_setName(mj_mat->element, material.GetPath().GetAsString().c_str());
+  ParsePreviewSurface(spec, mj_mat, surface_shader);
+
+  return mj_mat;
+}
+}  // namespace usd
+}  // namespace mujoco
diff --git a/src/experimental/usd/material_parsing.h b/src/experimental/usd/material_parsing.h
new file mode 100644
index 00000000..48103676
--- /dev/null
+++ b/src/experimental/usd/material_parsing.h
@@ -0,0 +1,27 @@
+// Copyright 2025 DeepMind Technologies Limited
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#ifndef MUJOCO_SRC_EXPERIMENTAL_USD_MATERIAL_PARSING_H_
+#define MUJOCO_SRC_EXPERIMENTAL_USD_MATERIAL_PARSING_H_
+
+#include <pxr/usd/usdShade/material.h>
+#include <mujoco/mujoco.h>
+
+namespace mujoco {
+namespace usd {
+mjsMaterial* ParseMaterial(mjSpec* spec, const pxr::UsdShadeMaterial &material);
+}  // namespace usd
+}  // namespace mujoco
+
+#endif  // MUJOCO_SRC_EXPERIMENTAL_USD_MATERIAL_PARSING_H_
diff --git a/src/experimental/usd/usd_to_mjspec.cc b/src/experimental/usd/usd_to_mjspec.cc
index e6b56834..c2e667ea 100644
--- a/src/experimental/usd/usd_to_mjspec.cc
+++ b/src/experimental/usd/usd_to_mjspec.cc
@@ -32,6 +32,7 @@
 #include <mujoco/experimental/usd/utils.h>
 #include <mujoco/mujoco.h>
 #include "experimental/usd/kinematic_tree.h"
+#include "experimental/usd/material_parsing.h"
 #include <pxr/base/gf/declare.h>
 #include <pxr/base/gf/matrix4d.h>
 #include <pxr/base/gf/rotation.h>
@@ -77,6 +78,7 @@ struct UsdCaches {
   pxr::UsdGeomXformCache xform_cache;
   pxr::UsdShadeMaterialBindingAPI::BindingsCache bindings_cache;
   pxr::UsdShadeMaterialBindingAPI::CollectionQueryCache collection_query_cache;
+  std::map<pxr::SdfPath, mjsMaterial*> parsed_materials;
 };
 
 void SetDoubleArrFromGfVec3d(double* to, const pxr::GfVec3d& from) {
@@ -1333,6 +1335,21 @@ void ParseUsdGeomGprim(mjSpec* spec, const pxr::UsdPrim& gprim,
   if (!MaybeParseGeomPrimitive(gprim, geom, caches.xform_cache)) {
     ParseUsdMesh(spec, gprim, geom, caches.xform_cache);
   }
+  pxr::UsdShadeMaterial bound_material =
+      pxr::UsdShadeMaterialBindingAPI(gprim).ComputeBoundMaterial(
+          &caches.bindings_cache, &caches.collection_query_cache);
+  if (bound_material) {
+    pxr::SdfPath material_path = bound_material.GetPrim().GetPath();
+    mjsMaterial* material = nullptr;
+    if (caches.parsed_materials.find(material_path) !=
+        caches.parsed_materials.end()) {
+      material = caches.parsed_materials[material_path];
+    } else {
+      material = ParseMaterial(spec, bound_material);
+      caches.parsed_materials[material_path] = material;
+    }
+    mjs_setString(geom->material, mjs_getName(material->element)->c_str());
+  }
 }
 
 void ParseUsdPhysicsCollider(mjSpec* spec,