diff --git a/.github/workflows/publish.yml b/.github/workflows/publish.yml
index acab66d0b..541fdbe41 100644
--- a/.github/workflows/publish.yml
+++ b/.github/workflows/publish.yml
@@ -6,7 +6,7 @@ on:
       - main
     paths:
       - 'codeflash/version.py'
-      - 'codeflash-benchmark/codeflash_benchmark/__init__.py'
+      - 'codeflash-benchmark/codeflash_benchmark/version.py'
 
 jobs:
   detect-changes:
@@ -28,7 +28,7 @@ jobs:
           else
             echo "codeflash=false" >> $GITHUB_OUTPUT
           fi
-          if git diff --name-only HEAD~1 HEAD | grep -q '^codeflash-benchmark/codeflash_benchmark/__init__.py$'; then
+          if git diff --name-only HEAD~1 HEAD | grep -q '^codeflash-benchmark/codeflash_benchmark/version.py$'; then
             echo "benchmark=true" >> $GITHUB_OUTPUT
           else
             echo "benchmark=false" >> $GITHUB_OUTPUT
@@ -121,23 +121,14 @@ jobs:
         with:
           fetch-depth: 0
 
-      - name: Extract version from __init__.py
+      - name: Extract version from version.py
         id: extract_version
         run: |
-          VERSION=$(grep -oP '__version__ = "\K[^"]+' codeflash-benchmark/codeflash_benchmark/__init__.py)
+          VERSION=$(grep -oP '__version__ = "\K[^"]+' codeflash-benchmark/codeflash_benchmark/version.py)
           echo "version=$VERSION" >> $GITHUB_OUTPUT
           echo "tag=benchmark-v$VERSION" >> $GITHUB_OUTPUT
           echo "Extracted version: $VERSION"
 
-      - name: Verify version matches pyproject.toml
-        run: |
-          INIT_VERSION=${{ steps.extract_version.outputs.version }}
-          TOML_VERSION=$(grep -oP '^version = "\K[^"]+' codeflash-benchmark/pyproject.toml)
-          if [ "$INIT_VERSION" != "$TOML_VERSION" ]; then
-            echo "::error::Version mismatch: __init__.py=$INIT_VERSION, pyproject.toml=$TOML_VERSION"
-            exit 1
-          fi
-
       - name: Check if tag already exists
         id: check_tag
         run: |
diff --git a/codeflash-benchmark/codeflash_benchmark/__init__.py b/codeflash-benchmark/codeflash_benchmark/__init__.py
index 7b85a2cc5..5b9dba851 100644
--- a/codeflash-benchmark/codeflash_benchmark/__init__.py
+++ b/codeflash-benchmark/codeflash_benchmark/__init__.py
@@ -1,3 +1,3 @@
 """CodeFlash Benchmark - Pytest benchmarking plugin for codeflash.ai."""
 
-__version__ = "0.2.0"
+from codeflash_benchmark.version import __version__ as __version__
diff --git a/codeflash-benchmark/codeflash_benchmark/version.py b/codeflash-benchmark/codeflash_benchmark/version.py
new file mode 100644
index 000000000..18606e8d2
--- /dev/null
+++ b/codeflash-benchmark/codeflash_benchmark/version.py
@@ -0,0 +1,2 @@
+# These version placeholders will be replaced by uv-dynamic-versioning during build.
+__version__ = "0.3.0"
diff --git a/codeflash-benchmark/pyproject.toml b/codeflash-benchmark/pyproject.toml
index e0ea5cf70..61f5bc3b7 100644
--- a/codeflash-benchmark/pyproject.toml
+++ b/codeflash-benchmark/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "codeflash-benchmark"
-version = "0.3.0"
+dynamic = ["version"]
 description = "Pytest benchmarking plugin for codeflash.ai - automatic code performance optimization"
 authors = [{ name = "CodeFlash Inc.", email = "contact@codeflash.ai" }]
 requires-python = ">=3.9"
@@ -25,8 +25,19 @@ Repository = "https://github.com/codeflash-ai/codeflash-benchmark"
 codeflash-benchmark = "codeflash_benchmark.plugin"
 
 [build-system]
-requires = ["setuptools>=45", "wheel"]
-build-backend = "setuptools.build_meta"
+requires = ["hatchling", "uv-dynamic-versioning"]
+build-backend = "hatchling.build"
 
-[tool.setuptools]
-packages = ["codeflash_benchmark"]
+[tool.hatch.version]
+source = "uv-dynamic-versioning"
+
+[tool.uv-dynamic-versioning]
+enable = true
+style = "pep440"
+vcs = "git"
+
+[tool.hatch.build.hooks.version]
+path = "codeflash_benchmark/version.py"
+template = """# These version placeholders will be replaced by uv-dynamic-versioning during build.
+__version__ = "{version}"
+"""