diff --git a/api/backup_endpoints.go b/api/backup_endpoints.go
index 982dad8..6f8a4c1 100644
--- a/api/backup_endpoints.go
+++ b/api/backup_endpoints.go
@@ -36,14 +36,25 @@ type BackupRequest struct {
 	Successful   bool   `json:"successful"`
 }
 
-// Notifies the panel that a specific backup has been completed and is now
-// available for a user to view and download.
+// SendBackupStatus notifies the panel that a specific backup has been completed
+// and is now available for a user to view and download.
 func (r *Request) SendBackupStatus(backup string, data BackupRequest) error {
 	resp, err := r.Post(fmt.Sprintf("/backups/%s", backup), data)
 	if err != nil {
 		return err
 	}
 	defer resp.Body.Close()
-
 	return resp.Error()
 }
+
+// SendRestorationStatus triggers a request to the Panel to notify it that a
+// restoration has been completed and the server should be marked as being
+// activated again.
+func (r *Request) SendRestorationStatus(backup string, successful bool) error {
+	resp, err := r.Post(fmt.Sprintf("/backups/%s/restore", backup), D{"successful": successful})
+	if err != nil {
+		return err
+	}
+	defer resp.Body.Close()
+	return resp.Error()
+}
\ No newline at end of file
diff --git a/environment/docker/environment.go b/environment/docker/environment.go
index 296fe6d..c8b6448 100644
--- a/environment/docker/environment.go
+++ b/environment/docker/environment.go
@@ -2,6 +2,11 @@ package docker
 
 import (
 	"context"
+	"fmt"
+	"io"
+	"sync"
+
+	"emperror.dev/errors"
 	"github.com/apex/log"
 	"github.com/docker/docker/api/types"
 	"github.com/docker/docker/client"
@@ -9,8 +14,6 @@ import (
 	"github.com/pterodactyl/wings/environment"
 	"github.com/pterodactyl/wings/events"
 	"github.com/pterodactyl/wings/system"
-	"io"
-	"sync"
 )
 
 type Metadata struct {
@@ -187,3 +190,26 @@ func (e *Environment) SetImage(i string) {
 
 	e.meta.Image = i
 }
+
+func (e *Environment) State() string {
+	return e.st.Load()
+}
+
+// SetState sets the state of the environment. This emits an event that server's
+// can hook into to take their own actions and track their own state based on
+// the environment.
+func (e *Environment) SetState(state string) {
+	if state != environment.ProcessOfflineState &&
+		state != environment.ProcessStartingState &&
+		state != environment.ProcessRunningState &&
+		state != environment.ProcessStoppingState {
+		panic(errors.New(fmt.Sprintf("invalid server state received: %s", state)))
+	}
+
+	// Emit the event to any listeners that are currently registered.
+	if e.State() != state {
+		// If the state changed make sure we update the internal tracking to note that.
+		e.st.Store(state)
+		e.Events().Publish(environment.StateChangeEvent, state)
+	}
+}
diff --git a/environment/docker/state.go b/environment/docker/state.go
deleted file mode 100644
index ee03443..0000000
--- a/environment/docker/state.go
+++ /dev/null
@@ -1,29 +0,0 @@
-package docker
-
-import (
-	"emperror.dev/errors"
-	"fmt"
-	"github.com/pterodactyl/wings/environment"
-)
-
-func (e *Environment) State() string {
-	return e.st.Load()
-}
-
-// Sets the state of the environment. This emits an event that server's can hook into to
-// take their own actions and track their own state based on the environment.
-func (e *Environment) SetState(state string) {
-	if state != environment.ProcessOfflineState &&
-		state != environment.ProcessStartingState &&
-		state != environment.ProcessRunningState &&
-		state != environment.ProcessStoppingState {
-		panic(errors.New(fmt.Sprintf("invalid server state received: %s", state)))
-	}
-
-	// Emit the event to any listeners that are currently registered.
-	if e.State() != state {
-		// If the state changed make sure we update the internal tracking to note that.
-		e.st.Store(state)
-		e.Events().Publish(environment.StateChangeEvent, state)
-	}
-}
diff --git a/router/router.go b/router/router.go
index 27c5985..526858e 100644
--- a/router/router.go
+++ b/router/router.go
@@ -96,6 +96,7 @@ func Configure(m *server.Manager) *gin.Engine {
 		backup := server.Group("/backup")
 		{
 			backup.POST("", postServerBackup)
+			backup.POST("/:backup/restore", postServerRestoreBackup)
 			backup.DELETE("/:backup", deleteServerBackup)
 		}
 	}
diff --git a/router/router_server_backup.go b/router/router_server_backup.go
index e741e89..22c6b5f 100644
--- a/router/router_server_backup.go
+++ b/router/router_server_backup.go
@@ -1,64 +1,164 @@
 package router
 
 import (
-	"fmt"
 	"net/http"
 	"os"
+	"strings"
 
 	"emperror.dev/errors"
+	"github.com/apex/log"
 	"github.com/gin-gonic/gin"
+	"github.com/pterodactyl/wings/router/middleware"
 	"github.com/pterodactyl/wings/server"
 	"github.com/pterodactyl/wings/server/backup"
 )
 
-// Backs up a server.
+// postServerBackup performs a backup against a given server instance using the
+// provided backup adapter.
 func postServerBackup(c *gin.Context) {
-	s := ExtractServer(c)
-
-	data := &backup.Request{}
-	// BindJSON sends 400 if the request fails, all we need to do is return
+	s := middleware.ExtractServer(c)
+	logger := middleware.ExtractLogger(c)
+	var data struct {
+		Adapter backup.AdapterType `json:"adapter"`
+		Uuid    string             `json:"uuid"`
+		Ignore  string             `json:"ignore"`
+	}
 	if err := c.BindJSON(&data); err != nil {
 		return
 	}
 
 	var adapter backup.BackupInterface
-	var err error
-
 	switch data.Adapter {
 	case backup.LocalBackupAdapter:
-		adapter, err = data.NewLocalBackup()
+		adapter = backup.NewLocal(data.Uuid, data.Ignore)
 	case backup.S3BackupAdapter:
-		adapter, err = data.NewS3Backup()
+		adapter = backup.NewS3(data.Uuid, data.Ignore)
 	default:
-		err = errors.New(fmt.Sprintf("unknown backup adapter [%s] provided", data.Adapter))
+		middleware.CaptureAndAbort(c, errors.New("router/backups: provided adapter is not valid: "+string(data.Adapter)))
 		return
 	}
 
-	if err != nil {
-		NewServerError(err, s).Abort(c)
-		return
-	}
-
-	// Attach the server ID to the backup log output for easier parsing.
+	// Attach the server ID and the request ID to the adapter log context for easier
+	// parsing in the logs.
 	adapter.WithLogContext(map[string]interface{}{
-		"server": s.Id(),
+		"server":     s.Id(),
+		"request_id": c.GetString("request_id"),
 	})
 
-	go func(b backup.BackupInterface, serv *server.Server) {
-		if err := serv.Backup(b); err != nil {
-			serv.Log().WithField("error", errors.WithStackIf(err)).Error("failed to generate backup for server")
+	go func(b backup.BackupInterface, s *server.Server, logger *log.Entry) {
+		if err := s.Backup(b); err != nil {
+			logger.WithField("error", errors.WithStackIf(err)).Error("router: failed to generate server backup")
 		}
-	}(adapter, s)
+	}(adapter, s, logger)
 
 	c.Status(http.StatusAccepted)
 }
 
-// Deletes a local backup of a server. If the backup is not found on the machine just return
-// a 404 error. The service calling this endpoint can make its own decisions as to how it wants
-// to handle that response.
-func deleteServerBackup(c *gin.Context) {
-	s := ExtractServer(c)
+// postServerRestoreBackup handles restoring a backup for a server by downloading
+// or finding the given backup on the system and then unpacking the archive into
+// the server's data directory. If the TruncateDirectory field is provided and
+// is true all of the files will be deleted for the server.
+//
+// This endpoint will block until the backup is fully restored allowing for a
+// spinner to be displayed in the Panel UI effectively.
+//
+// TODO: stop the server if it is running; internally mark it as suspended
+func postServerRestoreBackup(c *gin.Context) {
+	s := middleware.ExtractServer(c)
+	logger := middleware.ExtractLogger(c)
 
+	var data struct {
+		Adapter           backup.AdapterType `binding:"required,oneof=wings s3" json:"adapter"`
+		TruncateDirectory bool               `json:"truncate_directory"`
+		// A UUID is always required for this endpoint, however the download URL
+		// is only present when the given adapter type is s3.
+		DownloadUrl string `json:"download_url"`
+	}
+	if err := c.BindJSON(&data); err != nil {
+		return
+	}
+	if data.Adapter == backup.S3BackupAdapter && data.DownloadUrl == "" {
+		c.AbortWithStatusJSON(http.StatusBadRequest, gin.H{"error": "The download_url field is required when the backup adapter is set to S3."})
+		return
+	}
+
+	logger.Info("processing server backup restore request")
+	if data.TruncateDirectory {
+		logger.Info(`recieved "truncate_directory" flag in request: deleting server files`)
+		if err := s.Filesystem().TruncateRootDirectory(); err != nil {
+			middleware.CaptureAndAbort(c, err)
+			return
+		}
+	}
+
+	// Now that we've cleaned up the data directory if necessary, grab the backup file
+	// and attempt to restore it into the server directory.
+	if data.Adapter == backup.LocalBackupAdapter {
+		b, _, err := backup.LocateLocal(c.Param("backup"))
+		if err != nil {
+			middleware.CaptureAndAbort(c, err)
+			return
+		}
+		go func(s *server.Server, b backup.BackupInterface, logger *log.Entry) {
+			logger.Info("starting restoration process for server backup using local driver")
+			if err := s.RestoreBackup(b, nil); err != nil {
+				logger.WithField("error", err).Error("failed to restore local backup to server")
+			}
+			s.Events().Publish(server.DaemonMessageEvent, "Completed server restoration from local backup.")
+			s.Events().Publish(server.BackupRestoreCompletedEvent, "")
+			logger.Info("completed server restoration from local backup")
+		}(s, b, logger)
+		c.Status(http.StatusAccepted)
+		return
+	}
+
+	// Since this is not a local backup we need to stream the archive and then
+	// parse over the contents as we go in order to restore it to the server.
+	client := http.Client{}
+	logger.Info("downloading backup from remote location...")
+	// TODO: this will hang if there is an issue. We can't use c.Request.Context() (or really any)
+	//  since it will be canceled when the request is closed which happens quickly since we push
+	//  this into the background.
+	//
+	// For now I'm just using the server context so at least the request is canceled if
+	// the server gets deleted.
+	req, err := http.NewRequestWithContext(s.Context(), http.MethodGet, data.DownloadUrl, nil)
+	if err != nil {
+		middleware.CaptureAndAbort(c, err)
+		return
+	}
+	res, err := client.Do(req)
+	if err != nil {
+		middleware.CaptureAndAbort(c, err)
+		return
+	}
+	// Don't allow content types that we know are going to give us problems.
+	if res.Header.Get("Content-Type") == "" || !strings.Contains("application/x-gzip application/gzip", res.Header.Get("Content-Type")) {
+		res.Body.Close()
+		c.AbortWithStatusJSON(http.StatusBadRequest, gin.H{
+			"error": "The provided backup link is not a supported content type. \"" + res.Header.Get("Content-Type") + "\" is not application/x-gzip.",
+		})
+		return
+	}
+
+	go func(s *server.Server, uuid string, logger *log.Entry) {
+		logger.Info("starting restoration process for server backup using S3 driver")
+		if err := s.RestoreBackup(backup.NewS3(uuid, ""), res.Body); err != nil {
+			logger.WithField("error", errors.WithStack(err)).Error("failed to restore remote S3 backup to server")
+		}
+		s.Events().Publish(server.DaemonMessageEvent, "Completed server restoration from S3 backup.")
+		s.Events().Publish(server.BackupRestoreCompletedEvent, "")
+		logger.Info("completed server restoration from S3 backup")
+	}(s, c.Param("backup"), logger)
+
+	c.Status(http.StatusAccepted)
+}
+
+// deleteServerBackup deletes a local backup of a server. If the backup is not
+// found on the machine just return a 404 error. The service calling this
+// endpoint can make its own decisions as to how it wants to handle that
+// response.
+func deleteServerBackup(c *gin.Context) {
 	b, _, err := backup.LocateLocal(c.Param("backup"))
 	if err != nil {
 		// Just return from the function at this point if the backup was not located.
@@ -68,20 +168,15 @@ func deleteServerBackup(c *gin.Context) {
 			})
 			return
 		}
-
-		NewServerError(err, s).Abort(c)
+		middleware.CaptureAndAbort(c, err)
 		return
 	}
-
-	if err := b.Remove(); err != nil {
-		// I'm not entirely sure how likely this is to happen, however if we did manage to locate
-		// the backup previously and it is now missing when we go to delete, just treat it as having
-		// been successful, rather than returning a 404.
-		if !errors.Is(err, os.ErrNotExist) {
-			NewServerError(err, s).Abort(c)
-			return
-		}
+	// I'm not entirely sure how likely this is to happen, however if we did manage to
+	// locate the backup previously and it is now missing when we go to delete, just
+	// treat it as having been successful, rather than returning a 404.
+	if err := b.Remove(); err != nil && !errors.Is(err, os.ErrNotExist) {
+		middleware.CaptureAndAbort(c, err)
+		return
 	}
-
 	c.Status(http.StatusNoContent)
 }
diff --git a/router/websocket/listeners.go b/router/websocket/listeners.go
index 40bb5ce..8328b51 100644
--- a/router/websocket/listeners.go
+++ b/router/websocket/listeners.go
@@ -45,6 +45,7 @@ var e = []string{
 	server.InstallCompletedEvent,
 	server.DaemonMessageEvent,
 	server.BackupCompletedEvent,
+	server.BackupRestoreCompletedEvent,
 	server.TransferLogsEvent,
 	server.TransferStatusEvent,
 }
diff --git a/server/backup.go b/server/backup.go
index 1e086d9..f247c4b 100644
--- a/server/backup.go
+++ b/server/backup.go
@@ -1,12 +1,15 @@
 package server
 
 import (
+	"io"
 	"io/ioutil"
 	"os"
 
 	"emperror.dev/errors"
 	"github.com/apex/log"
+	"github.com/docker/docker/client"
 	"github.com/pterodactyl/wings/api"
+	"github.com/pterodactyl/wings/environment"
 	"github.com/pterodactyl/wings/server/backup"
 )
 
@@ -50,9 +53,9 @@ func (s *Server) getServerwideIgnoredFiles() (string, error) {
 	return string(b), nil
 }
 
-// Performs a server backup and then emits the event over the server websocket. We
-// let the actual backup system handle notifying the panel of the status, but that
-// won't emit a websocket event.
+// Backup performs a server backup and then emits the event over the server
+// websocket. We let the actual backup system handle notifying the panel of the
+// status, but that won't emit a websocket event.
 func (s *Server) Backup(b backup.BackupInterface) error {
 	ignored := b.Ignored()
 	if b.Ignored() == "" {
@@ -108,3 +111,49 @@ func (s *Server) Backup(b backup.BackupInterface) error {
 
 	return nil
 }
+
+// RestoreBackup calls the Restore function on the provided backup. Once this
+// restoration is completed an event is emitted to the websocket to notify the
+// Panel that is has been completed.
+//
+// In addition to the websocket event an API call is triggered to notify the
+// Panel of the new state.
+func (s *Server) RestoreBackup(b backup.BackupInterface, reader io.ReadCloser) (err error) {
+	s.Config().SetSuspended(true)
+	// Local backups will not pass a reader through to this function, so check first
+	// to make sure it is a valid reader before trying to close it.
+	defer func() {
+		s.Config().SetSuspended(false)
+		if reader != nil {
+			reader.Close()
+		}
+	}()
+	// Send an API call to the Panel as soon as this function is done running so that
+	// the Panel is informed of the restoration status of this backup.
+	defer func() {
+		if rerr := api.New().SendRestorationStatus(b.Identifier(), err == nil); rerr != nil {
+			s.Log().WithField("error", rerr).WithField("backup", b.Identifier()).Error("failed to notify Panel of backup restoration status")
+		}
+	}()
+
+	// Don't try to restore the server until we have completely stopped the running
+	// instance, otherwise you'll likely hit all types of write errors due to the
+	// server being suspended.
+	if s.Environment.State() != environment.ProcessOfflineState {
+		if err = s.Environment.WaitForStop(120, false); err != nil {
+			if !client.IsErrNotFound(err) {
+				return errors.WrapIf(err, "server/backup: restore: failed to wait for container stop")
+			}
+		}
+	}
+
+	// Attempt to restore the backup to the server by running through each entry
+	// in the file one at a time and writing them to the disk.
+	s.Log().Debug("starting file writing process for backup restoration")
+	err = b.Restore(reader, func(file string, r io.Reader) error {
+		s.Events().Publish(DaemonMessageEvent, "(restoring): "+file)
+		return s.Filesystem().Writefile(file, r)
+	})
+
+	return errors.WithStackIf(err)
+}
diff --git a/server/filesystem/archive.go b/server/backup/archive.go
similarity index 98%
rename from server/filesystem/archive.go
rename to server/backup/archive.go
index f4227de..ded9fab 100644
--- a/server/filesystem/archive.go
+++ b/server/backup/archive.go
@@ -1,7 +1,13 @@
-package filesystem
+package backup
 
 import (
 	"archive/tar"
+	"io"
+	"os"
+	"path/filepath"
+	"strings"
+	"sync"
+
 	"emperror.dev/errors"
 	"github.com/apex/log"
 	"github.com/juju/ratelimit"
@@ -9,11 +15,6 @@ import (
 	"github.com/klauspost/pgzip"
 	"github.com/pterodactyl/wings/config"
 	"github.com/sabhiram/go-gitignore"
-	"io"
-	"os"
-	"path/filepath"
-	"strings"
-	"sync"
 )
 
 const memory = 4 * 1024
@@ -39,7 +40,8 @@ type Archive struct {
 	Files []string
 }
 
-// Creates an archive at dst with all of the files defined in the included files struct.
+// Create creates an archive at dst with all of the files defined in the
+// included files struct.
 func (a *Archive) Create(dst string) error {
 	f, err := os.OpenFile(dst, os.O_WRONLY|os.O_CREATE|os.O_TRUNC, 0600)
 	if err != nil {
diff --git a/server/backup/backup.go b/server/backup/backup.go
index 29e7b5d..184cf96 100644
--- a/server/backup/backup.go
+++ b/server/backup/backup.go
@@ -3,13 +3,14 @@ package backup
 import (
 	"crypto/sha1"
 	"encoding/hex"
-	"github.com/apex/log"
-	"github.com/pterodactyl/wings/api"
-	"github.com/pterodactyl/wings/config"
 	"io"
 	"os"
 	"path"
 	"sync"
+
+	"github.com/apex/log"
+	"github.com/pterodactyl/wings/api"
+	"github.com/pterodactyl/wings/config"
 )
 
 type AdapterType string
@@ -19,13 +20,17 @@ const (
 	S3BackupAdapter    AdapterType = "s3"
 )
 
+// RestoreCallback is a generic restoration callback that exists for both local
+// and remote backups allowing the files to be restored.
+type RestoreCallback func(file string, r io.Reader) error
+
 type ArchiveDetails struct {
 	Checksum     string `json:"checksum"`
 	ChecksumType string `json:"checksum_type"`
 	Size         int64  `json:"size"`
 }
 
-// Returns a request object.
+// ToRequest returns a request object.
 func (ad *ArchiveDetails) ToRequest(successful bool) api.BackupRequest {
 	return api.BackupRequest{
 		Checksum:     ad.Checksum,
@@ -50,35 +55,33 @@ type Backup struct {
 
 // noinspection GoNameStartsWithPackageName
 type BackupInterface interface {
-	// Returns the UUID of this backup as tracked by the panel instance.
+	// Identifier returns the UUID of this backup as tracked by the panel
+	// instance.
 	Identifier() string
-
-	// Attaches additional context to the log output for this backup.
+	// WithLogContext attaches additional context to the log output for this
+	// backup.
 	WithLogContext(map[string]interface{})
-
-	// Generates a backup in whatever the configured source for the specific
-	// implementation is.
+	// Generate creates a backup in whatever the configured source for the
+	// specific implementation is.
 	Generate(string, string) (*ArchiveDetails, error)
-
-	// Returns the ignored files for this backup instance.
+	// Ignored returns the ignored files for this backup instance.
 	Ignored() string
-
-	// Returns a SHA1 checksum for the generated backup.
+	// Checksum returns a SHA1 checksum for the generated backup.
 	Checksum() ([]byte, error)
-
-	// Returns the size of the generated backup.
+	// Size returns the size of the generated backup.
 	Size() (int64, error)
-
-	// Returns the path to the backup on the machine. This is not always the final
-	// storage location of the backup, simply the location we're using to store
-	// it until it is moved to the final spot.
+	// Path returns the path to the backup on the machine. This is not always
+	// the final storage location of the backup, simply the location we're using
+	// to store it until it is moved to the final spot.
 	Path() string
-
-	// Returns details about the archive.
+	// Details returns details about the archive.
 	Details() *ArchiveDetails
-
-	// Removes a backup file.
+	// Remove removes a backup file.
 	Remove() error
+	// Restore is called when a backup is ready to be restored to the disk from
+	// the given source. Not every backup implementation will support this nor
+	// will every implementation require a reader be provided.
+	Restore(reader io.Reader, callback RestoreCallback) error
 }
 
 func (b *Backup) Identifier() string {
diff --git a/server/backup/backup_local.go b/server/backup/backup_local.go
index 6e07ff3..b7f132c 100644
--- a/server/backup/backup_local.go
+++ b/server/backup/backup_local.go
@@ -2,8 +2,11 @@ package backup
 
 import (
 	"errors"
-	"github.com/pterodactyl/wings/server/filesystem"
+	"io"
 	"os"
+
+	"github.com/mholt/archiver/v3"
+	"github.com/pterodactyl/wings/system"
 )
 
 type LocalBackup struct {
@@ -12,8 +15,18 @@ type LocalBackup struct {
 
 var _ BackupInterface = (*LocalBackup)(nil)
 
-// Locates the backup for a server and returns the local path. This will obviously only
-// work if the backup was created as a local backup.
+func NewLocal(uuid string, ignore string) *LocalBackup {
+	return &LocalBackup{
+		Backup{
+			Uuid:    uuid,
+			Ignore:  ignore,
+			adapter: LocalBackupAdapter,
+		},
+	}
+}
+
+// LocateLocal finds the backup for a server and returns the local path. This
+// will obviously only work if the backup was created as a local backup.
 func LocateLocal(uuid string) (*LocalBackup, os.FileInfo, error) {
 	b := &LocalBackup{
 		Backup{
@@ -34,20 +47,20 @@ func LocateLocal(uuid string) (*LocalBackup, os.FileInfo, error) {
 	return b, st, nil
 }
 
-// Removes a backup from the system.
+// Remove removes a backup from the system.
 func (b *LocalBackup) Remove() error {
 	return os.Remove(b.Path())
 }
 
-// Attaches additional context to the log output for this backup.
+// WithLogContext attaches additional context to the log output for this backup.
 func (b *LocalBackup) WithLogContext(c map[string]interface{}) {
 	b.logContext = c
 }
 
-// Generates a backup of the selected files and pushes it to the defined location
-// for this instance.
+// Generate generates a backup of the selected files and pushes it to the
+// defined location for this instance.
 func (b *LocalBackup) Generate(basePath, ignore string) (*ArchiveDetails, error) {
-	a := &filesystem.Archive{
+	a := &Archive{
 		BasePath: basePath,
 		Ignore:   ignore,
 	}
@@ -60,3 +73,18 @@ func (b *LocalBackup) Generate(basePath, ignore string) (*ArchiveDetails, error)
 
 	return b.Details(), nil
 }
+
+// Restore will walk over the archive and call the callback function for each
+// file encountered.
+func (b *LocalBackup) Restore(_ io.Reader, callback RestoreCallback) error {
+	return archiver.Walk(b.Path(), func(f archiver.File) error {
+		if f.IsDir() {
+			return nil
+		}
+		name, err := system.ExtractArchiveSourceName(f, "/")
+		if err != nil {
+			return err
+		}
+		return callback(name, f)
+	})
+}
diff --git a/server/backup/backup_request.go b/server/backup/backup_request.go
deleted file mode 100644
index 60ba4d7..0000000
--- a/server/backup/backup_request.go
+++ /dev/null
@@ -1,42 +0,0 @@
-package backup
-
-import (
-	"errors"
-	"fmt"
-)
-
-type Request struct {
-	Adapter AdapterType `json:"adapter"`
-	Uuid    string      `json:"uuid"`
-	Ignore  string      `json:"ignore"`
-}
-
-// Generates a new local backup struct.
-func (r *Request) NewLocalBackup() (*LocalBackup, error) {
-	if r.Adapter != LocalBackupAdapter {
-		return nil, errors.New(fmt.Sprintf("cannot create local backup using [%s] adapter", r.Adapter))
-	}
-
-	return &LocalBackup{
-		Backup{
-			Uuid:    r.Uuid,
-			Ignore:  r.Ignore,
-			adapter: LocalBackupAdapter,
-		},
-	}, nil
-}
-
-// Generates a new S3 backup struct.
-func (r *Request) NewS3Backup() (*S3Backup, error) {
-	if r.Adapter != S3BackupAdapter {
-		return nil, errors.New(fmt.Sprintf("cannot create s3 backup using [%s] adapter", r.Adapter))
-	}
-
-	return &S3Backup{
-		Backup: Backup{
-			Uuid:    r.Uuid,
-			Ignore:  r.Ignore,
-			adapter: S3BackupAdapter,
-		},
-	}, nil
-}
diff --git a/server/backup/backup_s3.go b/server/backup/backup_s3.go
index e5514b0..65184c9 100644
--- a/server/backup/backup_s3.go
+++ b/server/backup/backup_s3.go
@@ -1,13 +1,17 @@
 package backup
 
 import (
+	"archive/tar"
+	"compress/gzip"
 	"fmt"
-	"github.com/pterodactyl/wings/api"
-	"github.com/pterodactyl/wings/server/filesystem"
 	"io"
 	"net/http"
 	"os"
 	"strconv"
+
+	"github.com/juju/ratelimit"
+	"github.com/pterodactyl/wings/api"
+	"github.com/pterodactyl/wings/config"
 )
 
 type S3Backup struct {
@@ -16,22 +20,32 @@ type S3Backup struct {
 
 var _ BackupInterface = (*S3Backup)(nil)
 
-// Removes a backup from the system.
+func NewS3(uuid string, ignore string) *S3Backup {
+	return &S3Backup{
+		Backup{
+			Uuid:    uuid,
+			Ignore:  ignore,
+			adapter: S3BackupAdapter,
+		},
+	}
+}
+
+// Remove removes a backup from the system.
 func (s *S3Backup) Remove() error {
 	return os.Remove(s.Path())
 }
 
-// Attaches additional context to the log output for this backup.
+// WithLogContext attaches additional context to the log output for this backup.
 func (s *S3Backup) WithLogContext(c map[string]interface{}) {
 	s.logContext = c
 }
 
-// Generates a new backup on the disk, moves it into the S3 bucket via the provided
-// presigned URL, and then deletes the backup from the disk.
+// Generate creates a new backup on the disk, moves it into the S3 bucket via
+// the provided presigned URL, and then deletes the backup from the disk.
 func (s *S3Backup) Generate(basePath, ignore string) (*ArchiveDetails, error) {
 	defer s.Remove()
 
-	a := &filesystem.Archive{
+	a := &Archive{
 		BasePath: basePath,
 		Ignore:   ignore,
 	}
@@ -139,3 +153,40 @@ func (s *S3Backup) generateRemoteRequest(rc io.ReadCloser) error {
 
 	return nil
 }
+
+// Restore will read from the provided reader assuming that it is a gzipped
+// tar reader. When a file is encountered in the archive the callback function
+// will be triggered. If the callback returns an error the entire process is
+// stopped, otherwise this function will run until all files have been written.
+//
+// This restoration uses a workerpool to use up to the number of CPUs available
+// on the machine when writing files to the disk.
+func (s *S3Backup) Restore(r io.Reader, callback RestoreCallback) error {
+	reader := r
+	// Steal the logic we use for making backups which will be applied when restoring
+	// this specific backup. This allows us to prevent overloading the disk unintentionally.
+	if writeLimit := int64(config.Get().System.Backups.WriteLimit * 1024 * 1024); writeLimit > 0 {
+		reader = ratelimit.Reader(r, ratelimit.NewBucketWithRate(float64(writeLimit), writeLimit))
+	}
+	gr, err := gzip.NewReader(reader)
+	if err != nil {
+		return err
+	}
+	defer gr.Close()
+	tr := tar.NewReader(gr)
+	for {
+		header, err := tr.Next()
+		if err != nil {
+			if err == io.EOF {
+				break
+			}
+			return err
+		}
+		if header.Typeflag == tar.TypeReg {
+			if err := callback(header.Name, tr); err != nil {
+				return err
+			}
+		}
+	}
+	return nil
+}
diff --git a/server/events.go b/server/events.go
index 971f4a0..36a9de8 100644
--- a/server/events.go
+++ b/server/events.go
@@ -7,16 +7,17 @@ import (
 // Defines all of the possible output events for a server.
 // noinspection GoNameStartsWithPackageName
 const (
-	DaemonMessageEvent    = "daemon message"
-	InstallOutputEvent    = "install output"
-	InstallStartedEvent   = "install started"
-	InstallCompletedEvent = "install completed"
-	ConsoleOutputEvent    = "console output"
-	StatusEvent           = "status"
-	StatsEvent            = "stats"
-	BackupCompletedEvent  = "backup completed"
-	TransferLogsEvent     = "transfer logs"
-	TransferStatusEvent   = "transfer status"
+	DaemonMessageEvent          = "daemon message"
+	InstallOutputEvent          = "install output"
+	InstallStartedEvent         = "install started"
+	InstallCompletedEvent       = "install completed"
+	ConsoleOutputEvent          = "console output"
+	StatusEvent                 = "status"
+	StatsEvent                  = "stats"
+	BackupRestoreCompletedEvent = "backup restore completed"
+	BackupCompletedEvent        = "backup completed"
+	TransferLogsEvent           = "transfer logs"
+	TransferStatusEvent         = "transfer status"
 )
 
 // Returns the server's emitter instance.
diff --git a/server/filesystem/compress.go b/server/filesystem/compress.go
index 595c393..d67189b 100644
--- a/server/filesystem/compress.go
+++ b/server/filesystem/compress.go
@@ -6,16 +6,23 @@ import (
 	"path"
 	"path/filepath"
 	"strings"
+	"sync/atomic"
 	"time"
+
+	"github.com/mholt/archiver/v3"
+	"github.com/pterodactyl/wings/server/backup"
+	"github.com/pterodactyl/wings/system"
 )
 
-// Compresses all of the files matching the given paths in the specified directory. This function
-// also supports passing nested paths to only compress certain files and folders when working in
-// a larger directory. This effectively creates a local backup, but rather than ignoring specific
-// files and folders, it takes an allow-list of files and folders.
+// CompressFiles compresses all of the files matching the given paths in the
+// specified directory. This function also supports passing nested paths to only
+// compress certain files and folders when working in a larger directory. This
+// effectively creates a local backup, but rather than ignoring specific files
+// and folders, it takes an allow-list of files and folders.
 //
-// All paths are relative to the dir that is passed in as the first argument, and the compressed
-// file will be placed at that location named `archive-{date}.tar.gz`.
+// All paths are relative to the dir that is passed in as the first argument,
+// and the compressed file will be placed at that location named
+// `archive-{date}.tar.gz`.
 func (fs *Filesystem) CompressFiles(dir string, paths []string) (os.FileInfo, error) {
 	cleanedRootDir, err := fs.SafePath(dir)
 	if err != nil {
@@ -32,7 +39,7 @@ func (fs *Filesystem) CompressFiles(dir string, paths []string) (os.FileInfo, er
 		return nil, err
 	}
 
-	a := &Archive{BasePath: cleanedRootDir, Files: cleaned}
+	a := &backup.Archive{BasePath: cleanedRootDir, Files: cleaned}
 	d := path.Join(
 		cleanedRootDir,
 		fmt.Sprintf("archive-%s.tar.gz", strings.ReplaceAll(time.Now().Format(time.RFC3339), ":", "")),
@@ -57,3 +64,84 @@ func (fs *Filesystem) CompressFiles(dir string, paths []string) (os.FileInfo, er
 
 	return f, nil
 }
+
+// SpaceAvailableForDecompression looks through a given archive and determines
+// if decompressing it would put the server over its allocated disk space limit.
+func (fs *Filesystem) SpaceAvailableForDecompression(dir string, file string) error {
+	// Don't waste time trying to determine this if we know the server will have the space for
+	// it since there is no limit.
+	if fs.MaxDisk() <= 0 {
+		return nil
+	}
+
+	source, err := fs.SafePath(filepath.Join(dir, file))
+	if err != nil {
+		return err
+	}
+
+	// Get the cached size in a parallel process so that if it is not cached we are not
+	// waiting an unnecessary amount of time on this call.
+	dirSize, err := fs.DiskUsage(false)
+
+	var size int64
+	// Walk over the archive and figure out just how large the final output would be from unarchiving it.
+	err = archiver.Walk(source, func(f archiver.File) error {
+		if atomic.AddInt64(&size, f.Size())+dirSize > fs.MaxDisk() {
+			return &Error{code: ErrCodeDiskSpace}
+		}
+		return nil
+	})
+	if err != nil {
+		if strings.HasPrefix(err.Error(), "format ") {
+			return &Error{code: ErrCodeUnknownArchive}
+		}
+		return err
+	}
+	return err
+}
+
+// DecompressFile will decompress a file in a given directory by using the
+// archiver tool to infer the file type and go from there. This will walk over
+// all of the files within the given archive and ensure that there is not a
+// zip-slip attack being attempted by validating that the final path is within
+// the server data directory.
+func (fs *Filesystem) DecompressFile(dir string, file string) error {
+	source, err := fs.SafePath(filepath.Join(dir, file))
+	if err != nil {
+		return err
+	}
+	// Ensure that the source archive actually exists on the system.
+	if _, err := os.Stat(source); err != nil {
+		return err
+	}
+
+	// Walk all of the files in the archiver file and write them to the disk. If any
+	// directory is encountered it will be skipped since we handle creating any missing
+	// directories automatically when writing files.
+	err = archiver.Walk(source, func(f archiver.File) error {
+		if f.IsDir() {
+			return nil
+		}
+		name, err := system.ExtractArchiveSourceName(f, dir)
+		if err != nil {
+			return WrapError(err, filepath.Join(dir, f.Name()))
+		}
+		p := filepath.Join(dir, name)
+		// If it is ignored, just don't do anything with the file and skip over it.
+		if err := fs.IsIgnored(p); err != nil {
+			return nil
+		}
+		if err := fs.Writefile(p, f); err != nil {
+			return &Error{code: ErrCodeUnknownError, err: err, resolved: source}
+		}
+		return nil
+	})
+	if err != nil {
+		if strings.HasPrefix(err.Error(), "format ") {
+			return &Error{code: ErrCodeUnknownArchive}
+		}
+		return err
+	}
+	return nil
+}
+
diff --git a/server/filesystem/decompress.go b/server/filesystem/decompress.go
deleted file mode 100644
index 51c3bff..0000000
--- a/server/filesystem/decompress.go
+++ /dev/null
@@ -1,111 +0,0 @@
-package filesystem
-
-import (
-	"archive/tar"
-	"archive/zip"
-	"compress/gzip"
-	"fmt"
-	"os"
-	"path/filepath"
-	"reflect"
-	"strings"
-	"sync/atomic"
-
-	"emperror.dev/errors"
-	"github.com/mholt/archiver/v3"
-)
-
-// SpaceAvailableForDecompression looks through a given archive and determines
-// if decompressing it would put the server over its allocated disk space limit.
-func (fs *Filesystem) SpaceAvailableForDecompression(dir string, file string) error {
-	// Don't waste time trying to determine this if we know the server will have the space for
-	// it since there is no limit.
-	if fs.MaxDisk() <= 0 {
-		return nil
-	}
-
-	source, err := fs.SafePath(filepath.Join(dir, file))
-	if err != nil {
-		return err
-	}
-
-	// Get the cached size in a parallel process so that if it is not cached we are not
-	// waiting an unnecessary amount of time on this call.
-	dirSize, err := fs.DiskUsage(false)
-
-	var size int64
-	// Walk over the archive and figure out just how large the final output would be from unarchiving it.
-	err = archiver.Walk(source, func(f archiver.File) error {
-		if atomic.AddInt64(&size, f.Size())+dirSize > fs.MaxDisk() {
-			return &Error{code: ErrCodeDiskSpace}
-		}
-		return nil
-	})
-	if err != nil {
-		if strings.HasPrefix(err.Error(), "format ") {
-			return &Error{code: ErrCodeUnknownArchive}
-		}
-		return err
-	}
-	return err
-}
-
-// DecompressFile will decompress a file in a given directory by using the
-// archiver tool to infer the file type and go from there. This will walk over
-// all of the files within the given archive and ensure that there is not a
-// zip-slip attack being attempted by validating that the final path is within
-// the server data directory.
-func (fs *Filesystem) DecompressFile(dir string, file string) error {
-	source, err := fs.SafePath(filepath.Join(dir, file))
-	if err != nil {
-		return err
-	}
-	// Ensure that the source archive actually exists on the system.
-	if _, err := os.Stat(source); err != nil {
-		return err
-	}
-
-	// Walk over all of the files spinning up an additional go-routine for each file we've encountered
-	// and then extract that file from the archive and write it to the disk. If any part of this process
-	// encounters an error the entire process will be stopped.
-	err = archiver.Walk(source, func(f archiver.File) error {
-		// Don't waste time with directories, we don't need to create them if they have no contents, and
-		// we will ensure the directory exists when opening the file for writing anyways.
-		if f.IsDir() {
-			return nil
-		}
-
-		var name string
-		switch s := f.Sys().(type) {
-		case *tar.Header:
-			name = s.Name
-		case *gzip.Header:
-			name = s.Name
-		case *zip.FileHeader:
-			name = s.Name
-		default:
-			return &Error{
-				code:     ErrCodeUnknownError,
-				resolved: filepath.Join(dir, f.Name()),
-				err:      errors.New(fmt.Sprintf("could not parse underlying data source with type: %s", reflect.TypeOf(s).String())),
-			}
-		}
-
-		p := filepath.Join(dir, name)
-		// If it is ignored, just don't do anything with the file and skip over it.
-		if err := fs.IsIgnored(p); err != nil {
-			return nil
-		}
-		if err := fs.Writefile(p, f); err != nil {
-			return &Error{code: ErrCodeUnknownError, err: err, resolved: source}
-		}
-		return nil
-	})
-	if err != nil {
-		if strings.HasPrefix(err.Error(), "format ") {
-			return &Error{code: ErrCodeUnknownArchive}
-		}
-		return err
-	}
-	return nil
-}
diff --git a/server/filesystem/disk_space.go b/server/filesystem/disk_space.go
index 3e5619c..b9bc879 100644
--- a/server/filesystem/disk_space.go
+++ b/server/filesystem/disk_space.go
@@ -1,6 +1,7 @@
 package filesystem
 
 import (
+	"emperror.dev/errors"
 	"github.com/apex/log"
 	"github.com/karrick/godirwalk"
 	"sync"
@@ -189,7 +190,7 @@ func (fs *Filesystem) DirectorySize(dir string) (int64, error) {
 		},
 	})
 
-	return size, err
+	return size, errors.WrapIf(err, "server/filesystem: directorysize: failed to walk directory")
 }
 
 // Helper function to determine if a server has space available for a file of a given size.
diff --git a/server/filesystem/filesystem.go b/server/filesystem/filesystem.go
index 52da443..5cf7935 100644
--- a/server/filesystem/filesystem.go
+++ b/server/filesystem/filesystem.go
@@ -11,6 +11,7 @@ import (
 	"strconv"
 	"strings"
 	"sync"
+	"sync/atomic"
 	"time"
 
 	"emperror.dev/errors"
@@ -89,12 +90,12 @@ func (fs *Filesystem) Touch(p string, flag int) (*os.File, error) {
 	}
 	// If the error is not because it doesn't exist then we just need to bail at this point.
 	if !errors.Is(err, os.ErrNotExist) {
-		return nil, err
+		return nil, errors.Wrap(err, "server/filesystem: touch: failed to open file handle")
 	}
 	// Create the path leading up to the file we're trying to create, setting the final perms
 	// on it as we go.
 	if err := os.MkdirAll(filepath.Dir(cleaned), 0755); err != nil {
-		return nil, err
+		return nil, errors.Wrap(err, "server/filesystem: touch: failed to create directory tree")
 	}
 	if err := fs.Chown(filepath.Dir(cleaned)); err != nil {
 		return nil, err
@@ -104,7 +105,7 @@ func (fs *Filesystem) Touch(p string, flag int) (*os.File, error) {
 	// Chown that file so that the permissions don't mess with things.
 	f, err = o.open(cleaned, flag, 0644)
 	if err != nil {
-		return nil, err
+		return nil, errors.Wrap(err, "server/filesystem: touch: failed to open file with wait")
 	}
 	_ = fs.Chown(cleaned)
 	return f, nil
@@ -124,7 +125,8 @@ func (fs *Filesystem) Readfile(p string, w io.Writer) error {
 }
 
 // Writefile writes a file to the system. If the file does not already exist one
-// will be created.
+// will be created. This will also properly recalculate the disk space used by
+// the server when writing new files or modifying existing ones.
 func (fs *Filesystem) Writefile(p string, r io.Reader) error {
 	cleaned, err := fs.SafePath(p)
 	if err != nil {
@@ -136,7 +138,7 @@ func (fs *Filesystem) Writefile(p string, r io.Reader) error {
 	// to it and an empty file. We'll then write to it later on after this completes.
 	stat, err := os.Stat(cleaned)
 	if err != nil && !os.IsNotExist(err) {
-		return err
+		return errors.Wrap(err, "server/filesystem: writefile: failed to stat file")
 	} else if err == nil {
 		if stat.IsDir() {
 			return &Error{code: ErrCodeIsDirectory, resolved: cleaned}
@@ -233,7 +235,7 @@ func (fs *Filesystem) Chown(path string) error {
 
 	// Start by just chowning the initial path that we received.
 	if err := os.Chown(cleaned, uid, gid); err != nil {
-		return err
+		return errors.Wrap(err, "server/filesystem: chown: failed to chown path")
 	}
 
 	// If this is not a directory we can now return from the function, there is nothing
@@ -244,7 +246,7 @@ func (fs *Filesystem) Chown(path string) error {
 
 	// If this was a directory, begin walking over its contents recursively and ensure that all
 	// of the subfiles and directories get their permissions updated as well.
-	return godirwalk.Walk(cleaned, &godirwalk.Options{
+	err = godirwalk.Walk(cleaned, &godirwalk.Options{
 		Unsorted: true,
 		Callback: func(p string, e *godirwalk.Dirent) error {
 			// Do not attempt to chmod a symlink. Go's os.Chown function will affect the symlink
@@ -261,6 +263,8 @@ func (fs *Filesystem) Chown(path string) error {
 			return os.Chown(p, uid, gid)
 		},
 	})
+
+	return errors.Wrap(err, "server/filesystem: chown: failed to chown during walk function")
 }
 
 func (fs *Filesystem) Chmod(path string, mode os.FileMode) error {
@@ -365,8 +369,21 @@ func (fs *Filesystem) Copy(p string) error {
 	return fs.Writefile(path.Join(relative, n), source)
 }
 
-// Deletes a file or folder from the system. Prevents the user from accidentally
-// (or maliciously) removing their root server data directory.
+// TruncateRootDirectory removes _all_ files and directories from a server's
+// data directory and resets the used disk space to zero.
+func (fs *Filesystem) TruncateRootDirectory() error {
+	if err := os.RemoveAll(fs.Path()); err != nil {
+		return err
+	}
+	if err := os.Mkdir(fs.Path(), 0755); err != nil {
+		return err
+	}
+	atomic.StoreInt64(&fs.diskUsed, 0)
+	return nil
+}
+
+// Delete removes a file or folder from the system. Prevents the user from
+// accidentally (or maliciously) removing their root server data directory.
 func (fs *Filesystem) Delete(p string) error {
 	wg := sync.WaitGroup{}
 	// This is one of the few (only?) places in the codebase where we're explicitly not using
diff --git a/server/filesystem/path.go b/server/filesystem/path.go
index e816854..470246a 100644
--- a/server/filesystem/path.go
+++ b/server/filesystem/path.go
@@ -7,6 +7,7 @@ import (
 	"strings"
 	"sync"
 
+	"emperror.dev/errors"
 	"golang.org/x/sync/errgroup"
 )
 
@@ -41,7 +42,7 @@ func (fs *Filesystem) SafePath(p string) (string, error) {
 	// is truly pointing to.
 	ep, err := filepath.EvalSymlinks(r)
 	if err != nil && !os.IsNotExist(err) {
-		return "", err
+		return "", errors.Wrap(err, "server/filesystem: failed to evaluate symlink")
 	} else if os.IsNotExist(err) {
 		// The requested directory doesn't exist, so at this point we need to iterate up the
 		// path chain until we hit a directory that _does_ exist and can be validated.
diff --git a/system/utils.go b/system/utils.go
index 681ac2a..b32dec1 100644
--- a/system/utils.go
+++ b/system/utils.go
@@ -1,18 +1,23 @@
 package system
 
 import (
+	"archive/tar"
+	"archive/zip"
 	"bufio"
 	"bytes"
+	"compress/gzip"
 	"context"
 	"encoding/json"
 	"fmt"
 	"io"
+	"reflect"
 	"strconv"
 	"strings"
 	"sync"
 	"time"
 
 	"emperror.dev/errors"
+	"github.com/mholt/archiver/v3"
 )
 
 var cr = []byte(" \r")
@@ -36,6 +41,22 @@ func MustInt(v string) int {
 	return i
 }
 
+// ExtractArchiveSourceName looks for the provided archiver.File's name if it is
+// a type that is supported, otherwise it returns an error to the caller.
+func ExtractArchiveSourceName(f archiver.File, dir string) (name string, err error) {
+	switch s := f.Sys().(type) {
+	case *tar.Header:
+		name = s.Name
+	case *gzip.Header:
+		name = s.Name
+	case *zip.FileHeader:
+		name = s.Name
+	default:
+		err = errors.New(fmt.Sprintf("could not parse underlying data source with type: %s", reflect.TypeOf(s).String()))
+	}
+	return name, err
+}
+
 func ScanReader(r io.Reader, callback func(line string)) error {
 	br := bufio.NewReader(r)
 	// Avoid constantly re-allocating memory when we're flooding lines through this