diff --git a/tools/mpremote/.gitignore b/tools/mpremote/.gitignore
new file mode 100644
index 0000000000..849ddff3b7
--- /dev/null
+++ b/tools/mpremote/.gitignore
@@ -0,0 +1 @@
+dist/
diff --git a/tools/mpremote/mpremote/__init__.py b/tools/mpremote/mpremote/__init__.py
index 6a9beea82f..d1416230b6 100644
--- a/tools/mpremote/mpremote/__init__.py
+++ b/tools/mpremote/mpremote/__init__.py
@@ -1 +1,12 @@
-__version__ = "0.4.0"
+try:
+    from importlib.metadata import version, PackageNotFoundError
+
+    try:
+        __version__ = version("mpremote")
+    except PackageNotFoundError:
+        # Error loading package version (e.g. running from source).
+        __version__ = "0.0.0-local"
+except ImportError:
+    # importlib.metadata not available (e.g. CPython <3.8 without
+    # importlib_metadata compatibility package installed).
+    __version__ = "0.0.0-unknown"
diff --git a/tools/mpremote/pyproject.toml b/tools/mpremote/pyproject.toml
index 374b58cbf4..1b6c2173d2 100644
--- a/tools/mpremote/pyproject.toml
+++ b/tools/mpremote/pyproject.toml
@@ -1,6 +1,54 @@
 [build-system]
 requires = [
-    "setuptools>=42",
-    "wheel"
+    "hatchling",
+    "hatch-requirements-txt",
+    "hatch-vcs",
 ]
-build-backend = "setuptools.build_meta"
+build-backend = "hatchling.build"
+
+[project]
+name = "mpremote"
+description = "Tool for interacting remotely with MicroPython devices"
+readme = "README.md"
+authors = [
+    {name = "Damien George", email = "damien@micropython.org"},
+]
+urls = {Homepage = "https://github.com/micropython/micropython"}
+keywords = [
+    "hardware",
+    "micropython",
+]
+license = {text = "MIT"}
+classifiers = [
+    "Intended Audience :: Developers",
+    "License :: OSI Approved :: MIT License",
+    "Operating System :: OS Independent",
+    "Programming Language :: Python :: 3",
+    "Topic :: Software Development :: Embedded Systems",
+    "Topic :: System :: Hardware",
+]
+requires-python = ">=3.4"
+dynamic = ["dependencies", "version"]
+
+[project.scripts]
+mpremote = "mpremote.main:main"
+
+[tool.hatch.metadata.hooks.requirements_txt]
+files = ["requirements.txt"]
+
+[tool.hatch.version]
+source = "vcs"
+tag-pattern = "(?P<version>v(\\d+).(\\d+).(\\d+))"
+raw-options = { root = "../..", version_scheme = "post-release" }
+
+[tool.hatch.build]
+packages = ["mpremote"]
+
+# Also grab pyboard.py from /tools and add it to the package for both wheel and sdist.
+[tool.hatch.build.force-include]
+"../pyboard.py" = "mpremote/pyboard.py"
+
+# Workaround to allow `python -m build` to work.
+[tool.hatch.build.targets.sdist.force-include]
+"../pyboard.py" = "mpremote/pyboard.py"
+"requirements.txt" = "requirements.txt"
diff --git a/tools/mpremote/requirements.txt b/tools/mpremote/requirements.txt
new file mode 100644
index 0000000000..e4ca98fcaa
--- /dev/null
+++ b/tools/mpremote/requirements.txt
@@ -0,0 +1,2 @@
+pyserial >= 3.3
+importlib_metadata >= 1.4
diff --git a/tools/mpremote/setup.cfg b/tools/mpremote/setup.cfg
deleted file mode 100644
index 7fae3cbcb3..0000000000
--- a/tools/mpremote/setup.cfg
+++ /dev/null
@@ -1,25 +0,0 @@
-[metadata]
-name = mpremote
-version = 0.4.0
-author = Damien George
-author_email = damien@micropython.org
-description = Tool for interacting remotely with MicroPython
-long_description = file: README.md
-long_description_content_type = text/markdown
-url = https://github.com/micropython/micropython
-project_urls =
-    Bug Tracker = https://github.com/micropython/micropython/issues
-classifiers =
-    Programming Language :: Python :: 3
-    License :: OSI Approved :: MIT License
-    Operating System :: OS Independent
-
-[options]
-packages = mpremote
-python_requires = >= 3.4
-install_requires =
-    pyserial >= 3.3
-
-[options.entry_points]
-console_scripts =
-  mpremote = mpremote.main:main