diff --git a/examples/files.js b/examples/files.js
index 7a810253720789c3e1aa4ac12b7be60c568a9dc2..7330b4dcb0f49664de530243a987d70821994d65 100644
--- a/examples/files.js
+++ b/examples/files.js
@@ -126,6 +126,7 @@ var files = {
 		"webgl_loader_sea3d_sound",
 		"webgl_loader_stl",
 		"webgl_loader_svg",
+		"webgl_loader_texture_basis",
 		"webgl_loader_texture_dds",
 		"webgl_loader_texture_exr",
 		"webgl_loader_texture_hdr",
diff --git a/examples/js/loaders/BasisTextureLoader.js b/examples/js/loaders/BasisTextureLoader.js
index 5dada176dee5bcace51250d1a6d5f2115d48eceb..89bfdb8407eff2b5721c952882677a899517e4d4 100644
--- a/examples/js/loaders/BasisTextureLoader.js
+++ b/examples/js/loaders/BasisTextureLoader.js
@@ -143,9 +143,7 @@ THREE.BasisTextureLoader = class BasisTextureLoader {
 
 				texture.minFilter = THREE.LinearMipMapLinearFilter;
 				texture.magFilter = THREE.LinearFilter;
-				texture.encoding = THREE.sRGBEncoding;
 				texture.generateMipmaps = false;
-				texture.flipY = false;
 				texture.needsUpdate = true;
 
 				return texture;
diff --git a/examples/textures/compressed/kodim20.basis b/examples/textures/compressed/kodim20.basis
new file mode 100644
index 0000000000000000000000000000000000000000..54f00bb3acab26b3db755472a64927ead8b17a1d
Binary files /dev/null and b/examples/textures/compressed/kodim20.basis differ
diff --git a/examples/webgl_loader_texture_basis.html b/examples/webgl_loader_texture_basis.html
new file mode 100644
index 0000000000000000000000000000000000000000..d7677973096d31422d9f6f53e29c0211a90c6941
--- /dev/null
+++ b/examples/webgl_loader_texture_basis.html
@@ -0,0 +1,112 @@
+<!DOCTYPE html>
+<html lang="en">
+	<head>
+		<title>three.js webgl - basis texture loader</title>
+		<meta charset="utf-8">
+		<meta name="viewport" content="width=device-width, user-scalable=no, minimum-scale=1.0, maximum-scale=1.0">
+		<style>
+			body {
+				margin: 0px;
+				background-color: #050505;
+				color: #fff;
+				overflow: hidden;
+			}
+
+			a { color: #e00 }
+
+			#info {
+				position: absolute;
+				top: 0px;
+				width: 100%;
+				color: #ffffff;
+				padding: 5px;
+				font-family: Monospace;
+				font-size: 13px;
+				text-align: center;
+				z-index: 1000;
+			}
+		</style>
+	</head>
+	<body>
+
+		<div id="info">
+			<a href="http://threejs.org" target="_blank" rel="noopener">three.js</a> - webgl - basis texture loader<br />
+			<a href="https://github.com/binomialLLC/basis_universal" target="_blank">Basis Universal GPU Texture Codec</a>
+		</div>
+
+		<script src="../build/three.js"></script>
+		<script src="js/loaders/BasisTextureLoader.js"></script>
+
+		<script>
+
+			var camera, scene, renderer;
+			var mesh;
+
+			var clock = new THREE.Clock();
+
+			init();
+			animate();
+
+			function init() {
+
+				renderer = new THREE.WebGLRenderer( { antialias: true } );
+				renderer.setPixelRatio( window.devicePixelRatio );
+				renderer.setSize( window.innerWidth, window.innerHeight );
+				renderer.gammaOutput = true;
+				renderer.gammaFactor = 2.2;
+				document.body.appendChild( renderer.domElement );
+
+				camera = new THREE.PerspectiveCamera( 50, window.innerWidth / window.innerHeight, 1, 2000 );
+				camera.position.z = 500;
+
+				scene = new THREE.Scene();
+
+				var geometry = new THREE.BoxBufferGeometry( 200, 200, 200 );
+				var material = new THREE.MeshBasicMaterial();
+
+				mesh = new THREE.Mesh( geometry, material );
+
+				scene.add( mesh );
+
+				var loader = new THREE.BasisTextureLoader();
+				loader.setTranscoderPath( 'js/libs/basis/' );
+				loader.detectSupport( renderer );
+
+				loader.load( 'textures/compressed/kodim20.basis', function ( texture ) {
+
+					texture.encoding = THREE.sRGBEncoding;
+					material.map = texture;
+					material.needsUpdate = true;
+
+				} );
+
+				window.addEventListener( 'resize', onWindowResize, false );
+
+			}
+
+			function onWindowResize() {
+
+				camera.aspect = window.innerWidth / window.innerHeight;
+				camera.updateProjectionMatrix();
+
+				renderer.setSize( window.innerWidth, window.innerHeight );
+
+			}
+
+			function animate() {
+
+				requestAnimationFrame( animate );
+
+				var delta = clock.getDelta() * 0.5;
+
+				mesh.rotation.x += delta;
+				mesh.rotation.y += delta;
+
+				renderer.render( scene, camera );
+
+			}
+
+		</script>
+
+	</body>
+</html>
