diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 00000000..a028416b
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,38 @@
+[build-system]
+requires = ["setuptools>=42", "wheel"]
+build-backend = "setuptools.build_meta"
+
+[project]
+name = "liger_kernel"
+version = "0.2.1"
+description = "Efficient Triton kernels for LLM Training"
+urls = { "Homepage" = "https://github.com/linkedin/Liger-Kernel" }
+readme = { file = "README.md", content-type = "text/markdown" }
+license = { file = "LICENSE" }
+dependencies = [
+    "torch>=2.1.2",
+    "triton>=2.3.0",
+    "transformers>=4.42.0"
+]
+
+[project.optional-dependencies]
+dev = [
+    "matplotlib>=3.7.2",
+    "flake8>=4.0.1.1",
+    "black>=24.4.2",
+    "isort>=5.13.2",
+    "pytest>=7.1.2",
+    "datasets>=2.19.2"
+]
+
+[tool.setuptools.packages.find]
+include = ["src"]
+
+[tool.pytest.ini_options]
+pythonpath = [
+  "src", 
+  "."
+]
+asyncio_mode = "auto"
+log_cli = true
+log_cli_level = "INFO"
diff --git a/setup.py b/setup.py
deleted file mode 100644
index 94aa4d10..00000000
--- a/setup.py
+++ /dev/null
@@ -1,45 +0,0 @@
-from setuptools import find_namespace_packages, setup
-
-__version__ = "0.2.1"
-
-setup(
-    name="liger_kernel",
-    version=__version__,
-    description="Efficient Triton kernels for LLM Training",
-    long_description=open("README.md").read(),
-    long_description_content_type="text/markdown",
-    license="BSD-2-Clause",
-    url="https://github.com/linkedin/Liger-Kernel",
-    package_dir={"": "src"},
-    packages=find_namespace_packages(where="src"),
-    classifiers=[
-        "Development Status :: 4 - Beta",
-        "Intended Audience :: Developers",
-        "Intended Audience :: Science/Research",
-        "Intended Audience :: Education",
-        "License :: OSI Approved :: BSD License",
-        "Programming Language :: Python :: 3",
-        "Programming Language :: Python :: 3.8",
-        "Programming Language :: Python :: 3.9",
-        "Programming Language :: Python :: 3.10",
-        "Topic :: Software Development :: Libraries",
-        "Topic :: Scientific/Engineering :: Artificial Intelligence",
-    ],
-    keywords="triton,kernels,LLM training,deep learning,Hugging Face,PyTorch,GPU optimization",
-    include_package_data=True,
-    install_requires=[
-        "torch>=2.1.2",
-        "triton>=2.3.0",
-        "transformers>=4.42.0",
-    ],
-    extras_require={
-        "dev": [
-            "matplotlib>=3.7.2",
-            "flake8>=4.0.1.1",
-            "black>=24.4.2",
-            "isort>=5.13.2",
-            "pytest>=7.1.2",
-            "datasets>=2.19.2",
-        ]
-    },
-)