In the mid 90s, Grojnowski and Nakajima constructed representations of affine Lie algebras geometrically using Hilbert schemes of points on the minimal resolution of an ADE simple singularity. This construction gives a fantastic interpretation of the appearance of ADE Dynkin diagrams in both Lie theory and geometry. We will upgrade the Grojnowski-Nakajima one level by describing an action of the affine Lie algebra on the derived categories of Hilbert schemes. (Joint with Sabin Cautis).