diff --git a/autoloads/inventory_manager.gd b/autoloads/inventory_manager.gd
index 905fff2..5384c5b 100644
--- a/autoloads/inventory_manager.gd
+++ b/autoloads/inventory_manager.gd
@@ -4,6 +4,7 @@ signal next_quick_slot
 signal previous_quick_slot
 signal select_quick_slot(slot_index: int)
 signal quick_slot_item_changed(item_id: String)
+signal item_picked_up(item_id: String, amount: int)
 
 var quick_slot_item_id: String = "001"
 
diff --git a/project.godot b/project.godot
index 8af8f34..8f0e814 100644
--- a/project.godot
+++ b/project.godot
@@ -139,3 +139,4 @@ quickslot_previous={
 
 3d_physics/layer_1="World"
 3d_physics/layer_2="Player"
+3d_physics/layer_3="Pickups"
diff --git a/scenes/blocks/dropped_block.gd b/scenes/blocks/dropped_block.gd
index 4d2f76e..a02c22e 100644
--- a/scenes/blocks/dropped_block.gd
+++ b/scenes/blocks/dropped_block.gd
@@ -15,3 +15,12 @@ func initialize(id: String, _position: Vector3) -> void:
 	block.collision_shape.disabled = true
 	block.scale = Vector3(block_scale, block_scale, block_scale)
 	animation_player.play("start_animation")
+
+
+func _on_pickup_area_body_entered(body: Node3D) -> void:
+	if not body is Player: return
+
+	# TODO: Update stack_count when we start storing that information
+	var stack_count: int = 1
+	InventoryManager.item_picked_up.emit(block.get_id(), stack_count)
+	queue_free()
diff --git a/scenes/blocks/dropped_block.tscn b/scenes/blocks/dropped_block.tscn
index fefe431..05cc913 100644
--- a/scenes/blocks/dropped_block.tscn
+++ b/scenes/blocks/dropped_block.tscn
@@ -1,8 +1,11 @@
-[gd_scene load_steps=6 format=3 uid="uid://bn2olldntd7a6"]
+[gd_scene load_steps=7 format=3 uid="uid://bn2olldntd7a6"]
 
 [ext_resource type="Script" uid="uid://dkd2qbndc3q1o" path="res://scenes/blocks/dropped_block.gd" id="1_50ggx"]
 [ext_resource type="PackedScene" uid="uid://col07xd76y60h" path="res://scenes/blocks/block.tscn" id="1_chlk1"]
 
+[sub_resource type="SphereShape3D" id="SphereShape3D_5kft2"]
+radius = 1.0
+
 [sub_resource type="Animation" id="Animation_kym7p"]
 length = 0.001
 tracks/0/type = "value"
@@ -72,8 +75,17 @@ script = ExtResource("1_50ggx")
 [node name="Block" parent="." instance=ExtResource("1_chlk1")]
 transform = Transform3D(0.965926, -0.258819, 0, 0.258819, 0.965926, 0, 0, 0, 1, 0, 0, 0)
 
+[node name="PickupArea" type="Area3D" parent="Block"]
+collision_layer = 4
+collision_mask = 2
+
+[node name="CollisionShape3D" type="CollisionShape3D" parent="Block/PickupArea"]
+shape = SubResource("SphereShape3D_5kft2")
+
 [node name="AnimationPlayer" type="AnimationPlayer" parent="."]
 libraries = {
 &"": SubResource("AnimationLibrary_kym7p")
 }
 autoplay = "start_animation"
+
+[connection signal="body_entered" from="Block/PickupArea" to="." method="_on_pickup_area_body_entered"]
diff --git a/scenes/player/player.tscn b/scenes/player/player.tscn
index 9fe5d2b..fd3d139 100644
--- a/scenes/player/player.tscn
+++ b/scenes/player/player.tscn
@@ -14,6 +14,7 @@ height = 0.89
 [sub_resource type="CapsuleMesh" id="CapsuleMesh_gmlin"]
 
 [node name="Player" type="CharacterBody3D"]
+collision_layer = 2
 script = ExtResource("1_rp718")
 
 [node name="CollisionShapeStanding" type="CollisionShape3D" parent="."]