diff --git a/CMakeLists.txt b/CMakeLists.txt
index 73e458e6..8f0310af 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -54,25 +54,6 @@ if(EMSCRIPTEN)
   option(MUJOCO_BUILD_TESTS_WASM "Build tests for WASM bindings" ON)
 endif()
 
-# Option to provide a path to an existing USD build directory or to Houdini HFS directory.
-set(USD_DIR "" CACHE PATH "Path to an existing USD build directory.")
-set(HOUDINI_HFS_DIR "" CACHE PATH "Path to Houdini HFS directory to build USD plugins against.")
-if(USD_DIR)
-  if(EXISTS "${USD_DIR}")
-    # If the path is provided, set MUJOCO_WITH_USD to ON and add the path to CMAKE_PREFIX_PATH.
-    set(MUJOCO_WITH_USD ON CACHE BOOL "Build with OpenUSD" FORCE)
-    list(PREPEND CMAKE_PREFIX_PATH "${USD_DIR}")
-    message(STATUS "Using custom USD build directory: ${USD_DIR}")
-  else()
-    message(WARNING "Invalid path provided for USD_DIR: ${USD_DIR}")
-  endif()
-elseif(HOUDINI_HFS_DIR)
-  if(EXISTS "${HOUDINI_HFS_DIR}")
-    set(MUJOCO_WITH_USD ON CACHE BOOL "Build with OpenUSD" FORCE)
-    message(STATUS "Building Mujoco USD against Houdini HFS: ${HOUDINI_HFS_DIR}")
-  endif()
-endif()
-
 if(APPLE AND (MUJOCO_BUILD_EXAMPLES OR MUJOCO_BUILD_SIMULATE))
   enable_language(OBJC)
   enable_language(OBJCXX)
@@ -243,7 +224,24 @@ if(MUJOCO_BUILD_EXAMPLES)
 endif()
 
 if(MUJOCO_WITH_USD)
-  target_compile_definitions(mujoco PUBLIC mjUSEUSD)
+  include(third_party_deps/openusd)
+
+  get_filename_component(USD_INSTALL_ROOT "${pxr_DIR}/lib" ABSOLUTE)
+  install(
+    DIRECTORY ${USD_INSTALL_ROOT}/
+    DESTINATION ${CMAKE_INSTALL_LIBDIR}
+  )
+
+  if(APPLE)
+    set_target_properties(mujoco PROPERTIES
+      BUILD_RPATH "${USD_INSTALL_ROOT}"
+      INSTALL_RPATH "@loader_path")
+  elseif(UNIX)
+    set_target_properties(mujoco PROPERTIES
+      BUILD_RPATH "${USD_INSTALL_ROOT}"
+      INSTALL_RPATH "$ORIGIN")
+  endif()
+
   add_subdirectory(src/experimental/usd)
 endif()
 
diff --git a/cmake/third_party_deps/openusd.cmake b/cmake/third_party_deps/openusd.cmake
new file mode 100644
index 00000000..861ea365
--- /dev/null
+++ b/cmake/third_party_deps/openusd.cmake
@@ -0,0 +1,38 @@
+# 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
+#
+#     https://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.
+
+# Find OpenUSD package. The user can either provide pxr_DIR to use their own
+# OpenUSD installation or they can build external_dependencies.
+#
+# We use QUIET here to provide a better error message when pxr is not found.
+find_package(pxr
+  QUIET
+  HINTS "${CMAKE_BINARY_DIR}/_deps/openusd-build"
+)
+
+if(NOT pxr_FOUND)
+    message(FATAL_ERROR
+        "-----------------------------------------------------------\n"
+        "USD Configuration Error:\n${pxr_NOT_FOUND_MESSAGE}\n"
+        "If you have built USD yourself, provide -Dpxr_DIR=your_pxr_install_dir' \n"
+        "Otherwise you can build cmake/third_party_deps/openusd:\n"
+        "cd ~/mujoco\n"
+        "cmake -Bcmake/third_party_deps/openusd/build cmake/third_party_deps/openusd -DBUILD_USD=True\n"
+        "cmake --build cmake/third_party_deps/openusd/build\n"
+        "cmake -Bbuild -S. -DMUJOCO_WITH_USD=True\n"
+        "cmake --build build\n"
+        "cmake --install build"
+        "-----------------------------------------------------------"
+    )
+endif()
diff --git a/cmake/third_party_deps/openusd/CMakeLists.txt b/cmake/third_party_deps/openusd/CMakeLists.txt
new file mode 100644
index 00000000..37676017
--- /dev/null
+++ b/cmake/third_party_deps/openusd/CMakeLists.txt
@@ -0,0 +1,54 @@
+# 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
+#
+#     https://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.
+cmake_minimum_required(VERSION "3.16")
+
+option(BUILD_USD OFF "Build OpenUSD")
+project(openusd-dependency)
+
+if (BUILD_USD)
+  include(ExternalProject)
+
+  set(DEPS_DIR ${CMAKE_BINARY_DIR}/../../../../build/_deps)
+
+  ExternalProject_Add(openusd
+    GIT_REPOSITORY https://github.com/PixarAnimationStudios/USD.git
+    GIT_TAG v25.11
+    PREFIX openusd
+    BUILD_IN_SOURCE 0
+    UPDATE_COMMAND ""
+    CONFIGURE_COMMAND ""
+    INSTALL_COMMAND ""
+    SOURCE_DIR ${DEPS_DIR}/openusd-src
+    BINARY_DIR ${DEPS_DIR}/openusd-build
+    INSTALL_DIR ${DEPS_DIR}/openusd-build
+    BUILD_COMMAND python3 ${DEPS_DIR}/openusd-src/build_scripts/build_usd.py
+        --build-shared
+        --no-examples
+        --no-tools
+        --no-ptex
+        --no-prman
+        --no-openimageio
+        --no-opencolorio
+        --no-alembic
+        --no-draco
+        --no-materialx
+        --no-tutorials
+        --no-tests
+        --no-docs
+        --no-imaging
+        --no-python
+        --no-usdValidation
+        <INSTALL_DIR>
+  )
+endif()
diff --git a/simulate/CMakeLists.txt b/simulate/CMakeLists.txt
index 16756b44..7dcf7fdc 100644
--- a/simulate/CMakeLists.txt
+++ b/simulate/CMakeLists.txt
@@ -185,7 +185,7 @@ if(SIMULATE_BUILD_EXECUTABLE)
     target_link_libraries(simulate "-framework CoreVideo")
   endif()
 
-  if (MUJOCO_WITH_USD)
+  if (BUILD_WITH_USD)
     # pxr/usd/tf/hashset.h might include deprecated headers so disable this check
     # when compiling with USD enabled.
     target_compile_options(
@@ -265,8 +265,13 @@ if(SIMULATE_BUILD_EXECUTABLE)
       MUJOCO_ENABLE_RPATH
     )
 
-    if (MUJOCO_WITH_USD)
-      target_compile_definitions(simulate PUBLIC mjUSEUSD)
+    if (BUILD_WITH_USD)
+      # pxr/usd/tf/hashset.h might include deprecated headers so disable this check
+      # when compiling with USD enabled.
+      target_compile_options(
+         simulate
+         PRIVATE -Wno-deprecated
+      )
 
       # Add support to RPATH for the samples.
       target_add_rpath(
@@ -275,10 +280,13 @@ if(SIMULATE_BUILD_EXECUTABLE)
         INSTALL_DIRECTORY
         "${CMAKE_INSTALL_PREFIX}/${CMAKE_INSTALL_BINDIR}"
         LIB_DIRS
-        ${CMAKE_INSTALL_PREFIX}/${CMAKE_INSTALL_LIBDIR}/mujocoUsd ${USD_DIR}/lib
         DEPENDS
         MUJOCO_ENABLE_RPATH
       )
+
+      # Do we need this?
+      #target_link_options(simulate PRIVATE -rpath=${pxr_DIR}/lib)
+
     endif()
 
     if(NOT MUJOCO_SIMULATE_USE_SYSTEM_GLFW)
diff --git a/src/experimental/usd/CMakeLists.txt b/src/experimental/usd/CMakeLists.txt
index 72b8eab6..09b26a84 100644
--- a/src/experimental/usd/CMakeLists.txt
+++ b/src/experimental/usd/CMakeLists.txt
@@ -18,7 +18,7 @@ set(MJCF_PLUGIN_TARGET_NAME usdMjcf)
 set(MJC_PHYSICS_PLUGIN_TARGET_NAME mjcPhysics)
 
 # Installation directory for USD plugins
-set(MJ_USD_INSTALL_DIR_LIB ${CMAKE_INSTALL_LIBDIR}/mujocoUsd)
+set(MJ_USD_INSTALL_DIR_LIB ${CMAKE_INSTALL_LIBDIR}/mujoco-usd-resources)
 
 # Common OpenUSD libraries
 set(OPENUSD_CORE_LIBS
@@ -41,7 +41,7 @@ function(configure_and_install_usd_plugin_info plugin_name source_subpath instal
   endif()
 
   set(PLUG_INFO_LIBRARY_PATH "../../${LIB_PREFIX}${plugin_name}${CMAKE_SHARED_LIBRARY_SUFFIX}")
-  set(OUTPUT_DIR "${CMAKE_BINARY_DIR}/${install_base_dir}/resources/${plugin_name}")
+  set(OUTPUT_DIR "${CMAKE_BINARY_DIR}/${install_base_dir}/${plugin_name}")
   set(OUTPUT_FILE "${OUTPUT_DIR}/plugInfo.json")
 
   # Create the output directory if it doesn't exist
@@ -55,7 +55,7 @@ function(configure_and_install_usd_plugin_info plugin_name source_subpath instal
   )
 
   install(FILES "${OUTPUT_FILE}"
-    DESTINATION "${install_base_dir}/resources/${plugin_name}"
+    DESTINATION "${install_base_dir}/${plugin_name}"
   )
 endfunction()
 
@@ -82,6 +82,7 @@ function(configure_houdini_target target_name link_scope include_scope)
     ${PXR_LIB_PREFIX}usdShade
     ${PXR_LIB_PREFIX}usdLux
     ${PXR_LIB_PREFIX}usdGeom
+    ${PXR_LIB_PREFIX}usdImaging
     ${PXR_LIB_PREFIX}usdPhysics
     tbb
     hboost_${USD_MJCF_PYTHON_LIB_NUMBER}
@@ -101,56 +102,9 @@ function(configure_houdini_target target_name link_scope include_scope)
 endfunction()
 
 ## usdMjcf
-set(CMAKE_INSTALL_RPATH_USE_LINK_PATH TRUE)
-
-# The list of RPATHs:
-# 1. $ORIGIN: For libmjcPhysics.so (since it's in the same install dir)
-# 2. Path to OpenUSD libraries: Typically ${USD_DIR}/lib
-# 3. Path to MuJoCo library: Assuming it's in ${MUJOCO_INSTALL_DIR}/lib
-if(APPLE)
-    set(RPATH_LIST "@loader_path")
-    # Add OpenUSD lib to RPATH for macOS
-    if(DEFINED USD_DIR AND EXISTS "${USD_DIR}/lib")
-        list(APPEND RPATH_LIST "${USD_DIR}/lib")
-    endif()
-    # Add MuJoCo lib to RPATH for macOS
-    if(DEFINED MUJOCO_INSTALL_DIR AND EXISTS "${MUJOCO_INSTALL_DIR}/lib")
-        list(APPEND RPATH_LIST "${MUJOCO_INSTALL_DIR}/lib")
-    endif()
-
-    string(JOIN ":" CMAKE_INSTALL_RPATH "${RPATH_LIST}") # macOS uses colon for RPATH separator
-    message(STATUS "Final CMAKE_INSTALL_RPATH: ${CMAKE_INSTALL_RPATH}")
-elseif(UNIX)
-
-    # For adjacent libs.
-    set(RPATH_LIST "\$ORIGIN")
-
-    # Add OpenUSD library directory
-    if(DEFINED USD_DIR AND EXISTS "${USD_DIR}/lib")
-        list(APPEND RPATH_LIST "${USD_DIR}/lib")
-        message(STATUS "Adding OpenUSD lib to RPATH: ${USD_DIR}/lib")
-    else()
-        message(WARNING "USD_DIR is not defined or ${USD_DIR}/lib does not exist. OpenUSD libraries might not be found via RPATH.")
-    endif()
-
-    # Add MuJoCo library directory
-    if(DEFINED MUJOCO_INSTALL_DIR AND EXISTS "${MUJOCO_INSTALL_DIR}/lib")
-        list(APPEND RPATH_LIST "${MUJOCO_INSTALL_DIR}/lib")
-        message(STATUS "Adding MuJoCo lib to RPATH: ${MUJOCO_INSTALL_DIR}/lib")
-    elseif(DEFINED MUJOCO_INSTALL_DIR AND EXISTS "${MUJOCO_INSTALL_DIR}/bin")
-        list(APPEND RPATH_LIST "${MUJOCO_INSTALL_DIR}/bin")
-        message(STATUS "Adding MuJoCo bin to RPATH: ${MUJOCO_INSTALL_DIR}/bin")
-    endif()
-
-    # Set the final RPATH for installation
-    string(JOIN ";" CMAKE_INSTALL_RPATH "${RPATH_LIST}")
-    message(STATUS "Final CMAKE_INSTALL_RPATH: ${CMAKE_INSTALL_RPATH}")
-endif()
-
 set(CMAKE_BUILD_WITH_INSTALL_RPATH TRUE)
 
 add_library(${MJCF_PLUGIN_TARGET_NAME} SHARED)
-add_library(mujoco::usd::mjcf ALIAS ${MJCF_PLUGIN_TARGET_NAME})
 target_sources(${MJCF_PLUGIN_TARGET_NAME} PRIVATE
   plugins/mjcf/mjcf_file_format.cc
   plugins/mjcf/mjcf_file_format.h
@@ -167,7 +121,7 @@ target_include_directories(${MJCF_PLUGIN_TARGET_NAME} PRIVATE
   "${CMAKE_CURRENT_SOURCE_DIR}/plugins"
 )
 
-## mjcPhysics
+## ----- mjcPhysics -----
 
 add_library(${MJC_PHYSICS_PLUGIN_TARGET_NAME} SHARED)
 target_sources(${MJC_PHYSICS_PLUGIN_TARGET_NAME} PRIVATE
@@ -191,7 +145,7 @@ target_include_directories(${MJC_PHYSICS_PLUGIN_TARGET_NAME} PUBLIC
   $<BUILD_INTERFACE:${CMAKE_CURRENT_SOURCE_DIR}/../../../include>
 )
 
-## mj_usd
+## ----- mujoco USD utils -----
 
 target_sources(mujoco PRIVATE
   kinematic_tree.cc
@@ -211,42 +165,61 @@ target_compile_options(
      PRIVATE -Wno-deprecated
 )
 
-if (USD_DIR)
-  find_package(pxr REQUIRED)
+# Configure RPATH for macOS and UNIX.
+if(APPLE)
+    set(RPATH_LIST "@loader_path")
+    # Add OpenUSD lib to RPATH for macOS
+    if(DEFINED pxr_DIR AND EXISTS "${pxr_DIR}/lib")
+        list(APPEND RPATH_LIST "${pxr_DIR}/lib")
+    endif()
+    # Add MuJoCo lib to RPATH for macOS
+    if(DEFINED MUJOCO_INSTALL_DIR AND EXISTS "${MUJOCO_INSTALL_DIR}/lib")
+        list(APPEND RPATH_LIST "${MUJOCO_INSTALL_DIR}/lib")
+    endif()
 
-  target_link_libraries(${MJC_PHYSICS_PLUGIN_TARGET_NAME} PRIVATE
-    ${OPENUSD_CORE_LIBS}
-  )
+    string(JOIN ":" CMAKE_INSTALL_RPATH "${RPATH_LIST}") # macOS uses colon for RPATH separator
+    message(STATUS "Final CMAKE_INSTALL_RPATH: ${CMAKE_INSTALL_RPATH}")
+elseif(UNIX)
 
-  target_link_libraries(${MJCF_PLUGIN_TARGET_NAME} PRIVATE
-    ${OPENUSD_CORE_LIBS}
-    mujoco
-    tinyxml2
-    ${MJC_PHYSICS_PLUGIN_TARGET_NAME}
-  )
+    # For adjacent libs.
+    set(RPATH_LIST "\$ORIGIN")
 
-  target_link_libraries(mujoco PUBLIC
-    ${OPENUSD_CORE_LIBS}
-    ${MJC_PHYSICS_PLUGIN_TARGET_NAME}
-  )
-elseif (HOUDINI_HFS_DIR)
-  message(STATUS "Configuring for Houdini target...")
+    # Add OpenUSD library directory
+    if(DEFINED pxr_DIR AND EXISTS "${pxr_DIR}/lib")
+        list(APPEND RPATH_LIST "${pxr_DIR}/lib")
+        message(STATUS "Adding OpenUSD lib to RPATH: ${pxr_DIR}/lib")
+    else()
+        message(WARNING "pxr_DIR is not defined or ${pxr_DIR}/lib does not exist. OpenUSD libraries might not be found via RPATH.")
+    endif()
 
-  # In Houdini, the Houdini package we would typically use via find_package
-  # does not have all the USD dependencies that we need (namely UsdPhysics)
-  # so we need to manually link all the required libraries.
-  configure_houdini_target(${MJC_PHYSICS_PLUGIN_TARGET_NAME} PRIVATE PRIVATE)
-  configure_houdini_target(${MJCF_PLUGIN_TARGET_NAME} PRIVATE PRIVATE)
-
-  # Re-add inter-plugin dependencies after Houdini-specific linking
-  target_link_libraries(${MJCF_PLUGIN_TARGET_NAME} PRIVATE ${MJC_PHYSICS_PLUGIN_TARGET_NAME})
+    # Add MuJoCo library directory
+    if(DEFINED MUJOCO_INSTALL_DIR AND EXISTS "${MUJOCO_INSTALL_DIR}/lib")
+        list(APPEND RPATH_LIST "${MUJOCO_INSTALL_DIR}/lib")
+    elseif(DEFINED MUJOCO_INSTALL_DIR AND EXISTS "${MUJOCO_INSTALL_DIR}/bin")
+        list(APPEND RPATH_LIST "${MUJOCO_INSTALL_DIR}/bin")
+    endif()
 
+    # Set the final RPATH for installation
+    string(JOIN ";" CMAKE_INSTALL_RPATH "${RPATH_LIST}")
 endif()
 
-## Installation
+target_link_libraries(${MJC_PHYSICS_PLUGIN_TARGET_NAME} PRIVATE
+  ${OPENUSD_CORE_LIBS}
+)
 
-message(STATUS "Mujoco USD plugins will be installed to: ${CMAKE_INSTALL_PREFIX}/${MJ_USD_INSTALL_DIR_LIB}")
-message(STATUS "Make sure PXR_PLUGINPATH_NAME includes: ${CMAKE_INSTALL_PREFIX}/${MJ_USD_INSTALL_DIR_LIB}/*/resources")
+target_link_libraries(${MJCF_PLUGIN_TARGET_NAME} PRIVATE
+  ${OPENUSD_CORE_LIBS}
+  mujoco
+  tinyxml2
+  ${MJC_PHYSICS_PLUGIN_TARGET_NAME}
+)
+
+target_link_libraries(mujoco PUBLIC
+  ${OPENUSD_CORE_LIBS}
+  ${MJC_PHYSICS_PLUGIN_TARGET_NAME}
+)
+
+## Installation
 
 # Generate and install plugInfo.json for each plugin
 configure_and_install_usd_plugin_info(
@@ -263,7 +236,7 @@ configure_and_install_usd_plugin_info(
 # Install specific resources that are not plugInfo.json (like generatedSchema.usda)
 install(FILES
   mjcPhysics/generatedSchema.usda
-  DESTINATION ${MJ_USD_INSTALL_DIR_LIB}/resources/mjcPhysics
+  DESTINATION ${MJ_USD_INSTALL_DIR_LIB}/mjcPhysics
 )
 
 # Install shared libraries
@@ -271,5 +244,5 @@ install(TARGETS
   ${MJCF_PLUGIN_TARGET_NAME}
   ${MJC_PHYSICS_PLUGIN_TARGET_NAME}
   EXPORT ${PROJECT_NAME}
-  LIBRARY DESTINATION ${MJ_USD_INSTALL_DIR_LIB}
+  LIBRARY DESTINATION ${CMAKE_INSTALL_LIBDIR}
 )
diff --git a/test/experimental/CMakeLists.txt b/test/experimental/CMakeLists.txt
index 92b73f58..2d0d5392 100644
--- a/test/experimental/CMakeLists.txt
+++ b/test/experimental/CMakeLists.txt
@@ -13,9 +13,7 @@
 # limitations under the License.
 
 # Only support testing when building against a standalone version of USD.
-if(MUJOCO_WITH_USD AND USD_DIR)
-  find_package(pxr REQUIRED)
-
+if(MUJOCO_WITH_USD)
   add_library(usd_test_utils STATIC usd/test_utils.h usd/test_utils.cc)
   target_include_directories(usd_test_utils PUBLIC ${MUJOCO_TEST_INCLUDE})
   target_compile_definitions(usd_test_utils PUBLIC MJSTATIC)