diff --git a/reme2/component/embedding/base_embedding_model.py b/reme2/component/embedding/base_embedding_model.py
index 35f4ce97..21453bed 100644
--- a/reme2/component/embedding/base_embedding_model.py
+++ b/reme2/component/embedding/base_embedding_model.py
@@ -187,6 +187,7 @@ class BaseEmbeddingModel(BaseComponent):
 
     async def get_embeddings(self, input_text: list[str], **kwargs) -> list[list[float] | None]:
         """Get embeddings for multiple texts with cache and batching."""
+        # TODO change to bytes instead of str
         truncated_texts = [t[:self.max_input_length] for t in input_text]
         results: list[list[float] | None] = [None] * len(truncated_texts)
         texts_to_compute: list[tuple[int, str]] = []
diff --git a/reme2/component/file_parser/base_file_parser.py b/reme2/component/file_parser/base_file_parser.py
index fe310a29..580ee445 100644
--- a/reme2/component/file_parser/base_file_parser.py
+++ b/reme2/component/file_parser/base_file_parser.py
@@ -3,39 +3,16 @@
 from abc import abstractmethod
 
 from ..base_component import BaseComponent
-from ...enumeration import ComponentEnum
+from ...enumeration import ComponentEnum, FileSuffixEnum
 from ...schema import FileChunk, FileMetadata
 
 
 class BaseFileParser(BaseComponent):
-    """Abstract base class for file format parsers.
-
-    Each parser declares which file suffixes it handles and implements
-    the parse method to produce FileMetadata and FileChunks.
-    """
+    """Parser that declares handled suffixes and produces FileChunks."""
 
     component_type = ComponentEnum.FILE_PARSER
-
-    suffixes: list[str] = []
-
-    def __init__(self, chunk_tokens: int = 400, chunk_overlap: int = 80, **kwargs):
-        super().__init__(**kwargs)
-        self.chunk_tokens = chunk_tokens
-        self.chunk_overlap = chunk_overlap
-
-    async def _start(self):
-        pass
-
-    async def _close(self):
-        pass
+    suffixes: list[FileSuffixEnum] = []
 
     @abstractmethod
     async def parse(self, path: str) -> tuple[FileMetadata, list[FileChunk]]:
-        """Parse a file into metadata and chunks.
-
-        Args:
-            path: Absolute path to the file.
-
-        Returns:
-            Tuple of (FileMetadata, list of FileChunks).
-        """
+        """Parse a file into metadata and chunks."""
diff --git a/reme2/component/file_parser/default_file_parser.py b/reme2/component/file_parser/default_file_parser.py
deleted file mode 100644
index e262c569..00000000
--- a/reme2/component/file_parser/default_file_parser.py
+++ /dev/null
@@ -1,56 +0,0 @@
-"""Default file parser for unknown file types."""
-
-import asyncio
-from pathlib import Path
-
-from .base_file_parser import BaseFileParser
-from ..component_registry import R
-from ...schema import FileChunk, FileMetadata
-from ...utils import chunk_markdown
-
-
-@R.register("default")
-class DefaultFileParser(BaseFileParser):
-    """Fallback parser for unknown file types.
-
-    Attempts to read as text and chunk. If the file is binary,
-    stores metadata only with no chunks.
-    """
-
-    suffixes = []
-
-    def __init__(self, encoding: str = "utf-8", **kwargs):
-        super().__init__(**kwargs)
-        self.encoding = encoding
-
-    async def parse(self, path: str) -> tuple[FileMetadata, list[FileChunk]]:
-        file_path = Path(path)
-
-        def _read_file():
-            stat = file_path.stat()
-            raw = file_path.read_bytes()
-            try:
-                return stat, raw.decode(self.encoding)
-            except (UnicodeDecodeError, ValueError):
-                return stat, None
-
-        stat, content = await asyncio.to_thread(_read_file)
-
-        file_meta = FileMetadata(
-            modified_time=stat.st_mtime,
-            path=str(file_path.absolute()),
-        )
-
-        chunks: list[FileChunk] = []
-        if content:
-            chunks = (
-                    chunk_markdown(
-                        content,
-                        file_meta.path,
-                        self.chunk_tokens,
-                        self.chunk_overlap,
-                    )
-                    or []
-            )
-
-        return file_meta, chunks
diff --git a/reme2/component/file_parser/md_file_parser.py b/reme2/component/file_parser/md_file_parser.py
index 4142f658..fdb60373 100644
--- a/reme2/component/file_parser/md_file_parser.py
+++ b/reme2/component/file_parser/md_file_parser.py
@@ -7,6 +7,7 @@ import frontmatter
 
 from .base_file_parser import BaseFileParser
 from ..component_registry import R
+from ...enumeration import FileSuffixEnum
 from ...schema import FileChunk, FileMetadata
 from ...utils import chunk_markdown
 
@@ -15,11 +16,13 @@ from ...utils import chunk_markdown
 class MdFileParser(BaseFileParser):
     """Parser for Markdown files with YAML frontmatter support."""
 
-    suffixes = [".md", ".markdown"]
+    suffixes = [FileSuffixEnum.MD, FileSuffixEnum.MARKDOWN]
 
-    def __init__(self, encoding: str = "utf-8", **kwargs):
+    def __init__(self, encoding: str = "utf-8", chunk_tokens: int = 400, chunk_overlap: int = 80, **kwargs):
         super().__init__(**kwargs)
         self.encoding = encoding
+        self.chunk_tokens = chunk_tokens
+        self.chunk_overlap = chunk_overlap
 
     async def parse(self, path: str) -> tuple[FileMetadata, list[FileChunk]]:
         file_path = Path(path)
diff --git a/reme2/component/file_parser/text_file_parser.py b/reme2/component/file_parser/text_file_parser.py
new file mode 100644
index 00000000..490714e9
--- /dev/null
+++ b/reme2/component/file_parser/text_file_parser.py
@@ -0,0 +1,107 @@
+"""Text file parser with built-in chunking."""
+
+import hashlib
+from pathlib import Path
+
+import aiofiles
+
+from .base_file_parser import BaseFileParser
+from ..component_registry import R
+from ...enumeration import FileSuffixEnum
+from ...schema import FileChunk, FileMetadata
+
+
+@R.register("text")
+class TextFileParser(BaseFileParser):
+    """Parser for text files with built-in chunking support."""
+
+    suffixes = [FileSuffixEnum.TXT]
+
+    def __init__(self, encoding: str = "utf-8", chunk_tokens: int = 400, chunk_overlap: int = 80, **kwargs):
+        super().__init__(**kwargs)
+        self.encoding = encoding
+        self.chunk_size = max(32, chunk_tokens * 4)
+        self.overlap_size = max(0, chunk_overlap * 4)
+
+    async def parse(self, path: str) -> tuple[FileMetadata, list[FileChunk]]:
+        file_path = Path(path)
+        stat = file_path.stat()
+
+        try:
+            async with aiofiles.open(file_path, encoding=self.encoding) as f:
+                content = await f.read()
+        except UnicodeDecodeError:
+            async with aiofiles.open(file_path, encoding=self.encoding, errors="ignore") as f:
+                content = await f.read()
+        except Exception:
+            content = None
+
+        file_meta = FileMetadata(
+            file=file_path.stem,
+            path=str(file_path.absolute()),
+            st_mtime=stat.st_mtime,
+        )
+
+        chunks = self._chunk(content, file_meta.path) if content else []
+        return file_meta, chunks
+
+    def _chunk(self, text: str, path: str) -> list[FileChunk]:
+        """Split text into chunks with overlap."""
+        if not text.strip():
+            return []
+
+        lines = text.split("\n")
+        chunks: list[FileChunk] = []
+        buf: list[tuple[str, int]] = []  # (line_content, line_no)
+        buf_chars = 0
+
+        for line_no, line in enumerate(lines, 1):
+            # Split long lines into segments
+            for start in range(0, max(1, len(line)), self.chunk_size):
+                seg = line[start:start + self.chunk_size]
+                seg_chars = len(seg) + 1  # +1 for newline
+
+                # Flush when buffer would exceed limit
+                if buf and buf_chars + seg_chars > self.chunk_size:
+                    self._flush_chunk(chunks, buf, path)
+                    buf, buf_chars = self._carry_overlap(buf)
+
+                buf.append((seg, line_no))
+                buf_chars += seg_chars
+
+        if buf:
+            self._flush_chunk(chunks, buf, path)
+
+        return [c for c in chunks if c.text.strip()]
+
+    @staticmethod
+    def _flush_chunk(chunks: list[FileChunk], buf: list[tuple[str, int]], path: str):
+        """Create a chunk from buffer and append to chunks list."""
+        chunk_text = "\n".join(content for content, _ in buf)
+        start_line, end_line = buf[0][1], buf[-1][1]
+        h = hashlib.sha256(chunk_text.encode()).hexdigest()
+        chunk_id = hashlib.sha256(f"{path}:{start_line}:{end_line}:{h}:{len(chunks)}".encode()).hexdigest()
+
+        chunks.append(FileChunk(
+            id=chunk_id,
+            path=path,
+            start_line=start_line,
+            end_line=end_line,
+            text=chunk_text,
+            hash=h,
+        ))
+
+    def _carry_overlap(self, buf: list[tuple[str, int]]) -> tuple[list[tuple[str, int]], int]:
+        """Keep overlapping lines from the end of buffer."""
+        if self.overlap_size <= 0 or not buf:
+            return [], 0
+
+        acc, kept = 0, []
+        for content, line_no in reversed(buf):
+            acc += len(content) + 1
+            kept.insert(0, (content, line_no))
+            if acc >= self.overlap_size:
+                break
+
+        buf_chars = sum(len(c) + 1 for c, _ in kept)
+        return kept, buf_chars
diff --git a/reme2/enumeration/__init__.py b/reme2/enumeration/__init__.py
index 9887ddee..ef66736c 100644
--- a/reme2/enumeration/__init__.py
+++ b/reme2/enumeration/__init__.py
@@ -2,8 +2,10 @@
 
 from .chunk_enum import ChunkEnum
 from .component_enum import ComponentEnum
+from .file_suffix_enum import FileSuffixEnum
 
 __all__ = [
     "ChunkEnum",
     "ComponentEnum",
+    "FileSuffixEnum",
 ]
diff --git a/reme2/enumeration/file_suffix_enum.py b/reme2/enumeration/file_suffix_enum.py
new file mode 100644
index 00000000..7732e194
--- /dev/null
+++ b/reme2/enumeration/file_suffix_enum.py
@@ -0,0 +1,19 @@
+"""File suffix enumeration module.
+
+Defines the file suffixes that can be handled by file parsers.
+"""
+
+from enum import Enum
+
+
+class FileSuffixEnum(str, Enum):
+    """Enumeration of supported file suffixes.
+
+    Each value represents a file extension that a file parser can handle.
+    """
+
+    MD = ".md"
+
+    MARKDOWN = ".markdown"
+
+    TXT = ".txt"