diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index d887c00..8e960b3 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -18,10 +18,8 @@ jobs:
         uses: actions/setup-python@v5
         with:
           python-version: ${{ matrix.python-version }}
-      - name: Upgrade pip
-        run: python -m pip install --upgrade pip setuptools
       - name: Install dependencies
-        run: |
+        run: pip install pylint black |
           pip install .[dev]
       - name: Test lint, types, and format
         run: make test
diff --git a/.hatch_build.py b/.hatch_build.py
new file mode 100644
index 0000000..a5995de
--- /dev/null
+++ b/.hatch_build.py
@@ -0,0 +1,22 @@
+# https://hatch.pypa.io/latest/how-to/config/dynamic-metadata/
+import os
+import typing as t
+
+from hatchling.metadata.plugin.interface import MetadataHookInterface
+
+HERE = os.path.dirname(__file__)
+
+
+class MetaDataHook(MetadataHookInterface):
+    def update(self, metadata: dict[str, t.Any]) -> None:
+        about = load_about()
+        metadata["version"] = about["__version__"]
+
+
+def load_about() -> dict[str, str]:
+    about: dict[str, str] = {}
+    with open(
+        os.path.join(HERE, "tutordiscovery", "__about__.py"), "rt", encoding="utf-8"
+    ) as f:
+        exec(f.read(), about)  # pylint: disable=exec-used
+    return about
diff --git a/MANIFEST.in b/MANIFEST.in
deleted file mode 100644
index ae9007a..0000000
--- a/MANIFEST.in
+++ /dev/null
@@ -1,2 +0,0 @@
-recursive-include tutordiscovery/patches *
-recursive-include tutordiscovery/templates *
diff --git a/changelog.d/20250124_200748_faraz.maqsood_faraz_migrate_from_setup_py_and_setuptools_to_pyproject_toml_and_hatch.md b/changelog.d/20250124_200748_faraz.maqsood_faraz_migrate_from_setup_py_and_setuptools_to_pyproject_toml_and_hatch.md
new file mode 100644
index 0000000..9dddc5e
--- /dev/null
+++ b/changelog.d/20250124_200748_faraz.maqsood_faraz_migrate_from_setup_py_and_setuptools_to_pyproject_toml_and_hatch.md
@@ -0,0 +1,2 @@
+- [Improvement] Migrate packaging from setup.py/setuptools to pyproject.toml/hatch. (by @Faraz32123)
+  - For more details view tutor core PR: https://github.com/overhangio/tutor/pull/1163
diff --git a/pyproject.toml b/pyproject.toml
index d1e6ae6..fc5d975 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,2 +1,60 @@
+# https://packaging.python.org/en/latest/tutorials/packaging-projects/
+# https://hatch.pypa.io/latest/config/build/
+
+[project]
+name = "tutor-discovery"
+license = {file = "LICENSE.txt"}
+authors = [
+  {name = "Edly", email = "hello@edly.io"},
+]
+maintainers = [
+  {name = "Muhammad Faraz Maqsood", email = "faraz.maqsood@arbisoft.com"}
+]
+description="A Tutor plugin for course discovery, the Open edX service for providing access to consolidated course and program metadata"
+readme = {file = "README.rst", content-type = "text/x-rst"}
+requires-python = ">= 3.9"
+classifiers = [
+    "Development Status :: 5 - Production/Stable",
+    "Intended Audience :: Developers",
+    "License :: OSI Approved :: GNU Affero General Public License v3",
+    "Operating System :: OS Independent",
+    "Programming Language :: Python",
+    "Programming Language :: Python :: 3.9",
+    "Programming Language :: Python :: 3.10",
+    "Programming Language :: Python :: 3.11",
+    "Programming Language :: Python :: 3.12",
+]
+dependencies = [
+  "tutor>=19.0.0,<20.0.0",
+]
+# these fields will be set by hatch_build.py
+dynamic = ["version"]
+
+# https://packaging.python.org/en/latest/specifications/well-known-project-urls/#well-known-labels
+[project.urls]
+Homepage = "https://docs.tutor.edly.io/"
+Documentation = "https://docs.tutor.edly.io/"
+Source = "https://github.com/overhangio/tutor-discovery"
+Issues = "https://github.com/overhangio/tutor-discovery/issues"
+Changelog = "https://github.com/overhangio/tutor-discovery/blob/release/CHANGELOG.md"
+Community = "https://discuss.openedx.org/tag/tutor"
+
+# hatch-specific configuration
+[tool.hatch.metadata.hooks.custom]
+path = ".hatch_build.py"
+
 [build-system]
-requires = ["setuptools", "wheel"]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[tool.hatch.build.targets.sdist]
+# Disable strict naming, otherwise twine is not able to detect name/version
+strict-naming = false
+include = [ "/tutordiscovery"]
+exclude = ["tests*"]
+
+[tool.hatch.build.targets.wheel]
+packages = ["tutordiscovery"]
+
+[project.entry-points."tutor.plugin.v1"]
+discovery = "tutordiscovery.plugin"
diff --git a/setup.py b/setup.py
deleted file mode 100644
index 30f574c..0000000
--- a/setup.py
+++ /dev/null
@@ -1,52 +0,0 @@
-import io
-import os
-from setuptools import setup, find_packages
-
-here = os.path.abspath(os.path.dirname(__file__))
-
-with io.open(os.path.join(here, "README.rst"), "rt", encoding="utf8") as f:
-    readme = f.read()
-
-about = {}
-with io.open(
-    os.path.join(here, "tutordiscovery", "__about__.py"), "rt", encoding="utf-8"
-) as f:
-    exec(f.read(), about)
-
-
-setup(
-    name="tutor-discovery",
-    version=about["__version__"],
-    url="https://docs.tutor.edly.io/",
-    project_urls={
-        "Documentation": "https://docs.tutor.edly.io/",
-        "Code": "https://github.com/overhangio/tutor-discovery",
-        "Issue tracker": "https://github.com/overhangio/tutor-discovery/issues",
-        "Community": "https://discuss.openedx.org",
-    },
-    license="AGPLv3",
-    author="Edly",
-    author_email="hello@edly.io",
-    maintainer="Edly",
-    maintainer_email="faraz.maqsood@arbisoft.com",
-    description="A Tutor plugin for course discovery, the Open edX service for providing access to consolidated course and program metadata",
-    long_description=readme,
-    long_description_content_type="text/x-rst",
-    packages=find_packages(exclude=["tests*"]),
-    include_package_data=True,
-    install_requires=["tutor>=19.0.0,<20.0.0"],
-    extras_require={"dev": "tutor[dev]>=19.0.0,<20.0.0"},
-    python_requires=">=3.9",
-    entry_points={"tutor.plugin.v1": ["discovery = tutordiscovery.plugin"]},
-    classifiers=[
-        "Development Status :: 5 - Production/Stable",
-        "Intended Audience :: Developers",
-        "License :: OSI Approved :: GNU Affero General Public License v3",
-        "Operating System :: OS Independent",
-        "Programming Language :: Python",
-        "Programming Language :: Python :: 3.9",
-        "Programming Language :: Python :: 3.10",
-        "Programming Language :: Python :: 3.11",
-        "Programming Language :: Python :: 3.12",
-    ],
-)