diff --git a/cookiecutter.json b/cookiecutter.json
index 8d61f41..3f0da15 100644
--- a/cookiecutter.json
+++ b/cookiecutter.json
@@ -7,6 +7,7 @@
     "project_slug": "{{ (cookiecutter.__project_namespace_slug + '-' if cookiecutter.project_namespace_import else '') + cookiecutter.__module_slug }}",
     "__project_import": "{{ (cookiecutter.project_namespace_import + '.' if cookiecutter.project_namespace_import else '') + cookiecutter.__module_import }}",
     "__project_src_path": "src/{{ cookiecutter.__project_import.replace('.', '/') }}",
+    "__project_src_first": "{{ ('src/' + cookiecutter.project_namespace_import.split('.')[0] if cookiecutter.project_namespace_import else 'src/' + cookiecutter.__module_import) }}",
     "project_description": "",
     "repo_type": [
         "CLI",
diff --git a/{{cookiecutter.project_slug}}/Makefile b/{{cookiecutter.project_slug}}/Makefile
index 4f99666..49b2e49 100644
--- a/{{cookiecutter.project_slug}}/Makefile
+++ b/{{cookiecutter.project_slug}}/Makefile
@@ -53,7 +53,7 @@ run: $(VENV)/pyvenv.cfg
 
 $(VENV)/pyvenv.cfg: pyproject.toml
 	uv venv $(VENV)
-	uv pip install -e '.[$(INSTALL_EXTRA)]'
+	uv sync --group '$(INSTALL_EXTRA)'
 
 .PHONY: lint
 lint: $(VENV)/pyvenv.cfg
diff --git a/{{cookiecutter.project_slug}}/pyproject.toml b/{{cookiecutter.project_slug}}/pyproject.toml
index b364bd1..684c5c5 100644
--- a/{{cookiecutter.project_slug}}/pyproject.toml
+++ b/{{cookiecutter.project_slug}}/pyproject.toml
@@ -22,10 +22,20 @@ classifiers = [
 dependencies = []
 requires-python = ">=3.9"
 
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[tool.hatch.version]
+path = "{{ cookiecutter.__project_src_path }}/__init__.py"
+
+[tool.hatch.build.targets.wheel]
+packages = ["{{ cookiecutter.__project_src_first }}"]
+
 [tool.setuptools.dynamic]
 version = { attr = "{{ cookiecutter.__project_import }}.__version__" }
 
-[project.optional-dependencies]
+[dependency-groups]
 doc = [
     {%- if cookiecutter.documentation == "pdoc" -%}
     "pdoc"
@@ -44,7 +54,14 @@ lint = [
     "interrogate",
     {%- endif %}
 ]
-dev = ["{{ cookiecutter.project_slug }}[doc,test,lint]", "twine", "build"]
+dev = [
+    {include-group = "doc"},
+    {include-group = "test"},
+    {include-group = "lint"},
+    "twine",
+    "build",
+    "{{ cookiecutter.project_slug }}",
+]
 
 {% if cookiecutter.entry_point -%}
 [project.scripts]
@@ -110,3 +127,6 @@ exclude = ["env", "test", "{{ cookiecutter.__project_src_path }}/_cli.py"]
 ignore-semiprivate = true
 fail-under = 100
 {%- endif %}
+
+[tool.uv.sources]
+{{ cookiecutter.project_slug }} = { workspace = true }
\ No newline at end of file