diff --git a/eng/ci_tools.txt b/eng/ci_tools.txt
index b8ebda3d8b87..0d44ae300259 100644
--- a/eng/ci_tools.txt
+++ b/eng/ci_tools.txt
@@ -15,6 +15,7 @@ typing-extensions==4.12.2
 pyproject-api==1.8.0
 cibuildwheel==2.16.5
 importlib-metadata==8.5.0
+build==1.2.2.post1
 
 # requirements leveraged for testing
 pytest==8.3.5
diff --git a/eng/scripts/get_package_properties.py b/eng/scripts/get_package_properties.py
index db32087db8da..c87594ab844b 100644
--- a/eng/scripts/get_package_properties.py
+++ b/eng/scripts/get_package_properties.py
@@ -47,7 +47,7 @@
     # Use abspath for the os.walk because if setup parsing fails it often changes cwd which throws off the relative walk
     for root, dirs, files in os.walk(os.path.abspath(args.search_path)):
         if re.search(r"sdk[\\/][^\\/]+[\\/][^\\/]+$", root):
-            if "setup.py" in files:
+            if "setup.py" in files or "pyproject.toml" in files:
                 try:
                     parsed = ParsedSetup.from_path(root)
 
diff --git a/eng/test_tools.txt b/eng/test_tools.txt
index 9852d82005d8..62fa480c6b1d 100644
--- a/eng/test_tools.txt
+++ b/eng/test_tools.txt
@@ -6,7 +6,9 @@ pytest-custom-exit-code==0.3.0
 pytest-xdist==3.2.1
 coverage==7.6.1
 bandit==1.6.2
+protobuf==3.17.3; python_version == '2.7'
 pyproject-api==1.8.0
+build==1.2.2.post1
 
 # locking packages defined as deps from azure-sdk-tools
 Jinja2==3.1.6
diff --git a/eng/tox/install_depend_packages.py b/eng/tox/install_depend_packages.py
index 398f5af61da3..2b9b5b2014d7 100644
--- a/eng/tox/install_depend_packages.py
+++ b/eng/tox/install_depend_packages.py
@@ -311,7 +311,7 @@ def check_req_against_exclusion(req, req_to_exclude):
 
 
 def filter_dev_requirements(
-    setup_py_path,
+    package_directory,
     released_packages,
     temp_dir,
     additional_filter_fn: Optional[Callable[[str, List[str], List[Requirement]], List[str]]] = None,
@@ -324,7 +324,7 @@ def filter_dev_requirements(
     by the package).
     """
     # This method returns list of requirements from dev_requirements by filtering out packages in given list
-    dev_req_path = os.path.join(os.path.dirname(setup_py_path), DEV_REQ_FILE)
+    dev_req_path = os.path.join(package_directory, DEV_REQ_FILE)
     requirements = []
     with open(dev_req_path, "r") as dev_req_file:
         requirements = dev_req_file.readlines()
@@ -348,7 +348,7 @@ def filter_dev_requirements(
 
     if additional_filter_fn:
         # this filter function handles the case where a dev requirement is incompatible with the current set of targeted packages
-        filtered_req = additional_filter_fn(setup_py_path, filtered_req, released_packages)
+        filtered_req = additional_filter_fn(package_directory, filtered_req, released_packages)
 
     logging.info("Filtered dev requirements: %s", filtered_req)
 
@@ -410,10 +410,12 @@ def install_packages(packages, req_file):
     )
 
     args = parser.parse_args()
-    setup_path = os.path.join(os.path.abspath(args.target_package), "setup.py")
+
+    setup_path = os.path.join(os.path.abspath(args.target_package))
 
     if not (os.path.exists(setup_path) and os.path.exists(args.work_dir)):
         logging.error("Invalid arguments. Please make sure target directory and working directory are valid path")
         sys.exit(1)
 
+
     install_dependent_packages(setup_path, args.dependency_type, args.work_dir)
diff --git a/eng/tox/tox.ini b/eng/tox/tox.ini
index e3e79bb23dc8..c449ebc8994c 100644
--- a/eng/tox/tox.ini
+++ b/eng/tox/tox.ini
@@ -19,7 +19,6 @@ envlist = whl,sdist
 deps =
   -r {repository_root}/eng/test_tools.txt
 
-
 [coverage:paths]
 source =
     azure
@@ -45,6 +44,7 @@ pkgs =
     packaging==24.2
     urllib3==2.2.3
     tomli==2.2.1
+    build==1.2.2.post1
 
 [pytest]
 ignore_args=--ignore=.tox --ignore=build --ignore=.eggs --ignore=samples
@@ -415,7 +415,7 @@ deps =
     {[packaging]pkgs}
 commands =
     python -m pip install {repository_root}/tools/azure-sdk-tools --no-deps
-    python {tox_root}/setup.py --q sdist -d {envtmpdir}
+    sdk_build_package --package_folder {tox_root} -d {envtmpdir} --package_type sdist
     python {repository_root}/eng/tox/verify_sdist.py -d {envtmpdir} -t {tox_root}
 
 
diff --git a/eng/tox/verify_sdist.py b/eng/tox/verify_sdist.py
index 5f7c45756491..4392b33a7613 100644
--- a/eng/tox/verify_sdist.py
+++ b/eng/tox/verify_sdist.py
@@ -42,7 +42,7 @@ def get_root_directories_in_sdist(dist_dir: str, version: str) -> List[str]:
     """
     # find sdist zip file
     # extract sdist and find list of directories in sdist
-    path_to_zip = glob.glob(os.path.join(dist_dir, "*{}*.tar.gz".format(version)))[0]
+    path_to_zip = glob.glob(os.path.join(dist_dir, "**", "*{}*.tar.gz".format(version)), recursive=True)[0]
     extract_location = os.path.join(dist_dir, "unzipped")
     # Cleanup any files in unzipped
     cleanup(extract_location)
diff --git a/sdk/keyvault/azure-keyvault-keys/pyproject.toml b/sdk/keyvault/azure-keyvault-keys/pyproject.toml
index e00361912969..30f48984a99b 100644
--- a/sdk/keyvault/azure-keyvault-keys/pyproject.toml
+++ b/sdk/keyvault/azure-keyvault-keys/pyproject.toml
@@ -1,2 +1,49 @@
+[build-system]
+requires = ["setuptools>=61.0.0", "wheel"]  # Requires 61.0.0 for dynamic version
+build-backend = "setuptools.build_meta"
+
+[project]
+name = "azure-keyvault-keys"
+authors = [
+    {name = "Microsoft Corporation", email = "azurekeyvault@microsoft.com"},
+]
+description = "Microsoft Azure Key Vault Keys Client Library for Python"
+keywords = ["azure", "azure sdk"]
+requires-python = ">=3.8"
+license = {text = "MIT License"}
+classifiers = [
+    "Development Status :: 5 - Production/Stable",
+    "Programming Language :: Python",
+    "Programming Language :: Python :: 3 :: Only",
+    "Programming Language :: Python :: 3",
+    "Programming Language :: Python :: 3.8",
+    "Programming Language :: Python :: 3.9",
+    "Programming Language :: Python :: 3.10",
+    "Programming Language :: Python :: 3.11",
+    "Programming Language :: Python :: 3.12",
+    "Programming Language :: Python :: 3.13",
+    "License :: OSI Approved :: MIT License",
+]
+dependencies = [
+    "azure-core>=1.31.0",
+    "cryptography>=2.1.4",
+    "isodate>=0.6.1",
+    "typing-extensions>=4.6.0",
+]
+dynamic = ["version", "readme"]
+
+[project.urls]
+repository = "https://github.com/Azure/azure-sdk-for-python/tree/main/sdk/keyvault/azure-keyvault-keys"
+
+[tool.setuptools.dynamic]
+version = {attr = "azure.keyvault.keys._version.VERSION"}
+readme = {file = ["README.md", "CHANGELOG.md"], content-type = "text/markdown"}
+
+[tool.setuptools.packages.find]
+exclude = ["samples*", "tests*", "azure", "azure.keyvault"]
+
+[tool.setuptools.package-data]
+pytyped = ["py.typed"]
+
 [tool.azure-sdk-build]
 pyright = false
diff --git a/sdk/keyvault/azure-keyvault-keys/setup.py b/sdk/keyvault/azure-keyvault-keys/setup.py
deleted file mode 100644
index 276ae663cf6b..000000000000
--- a/sdk/keyvault/azure-keyvault-keys/setup.py
+++ /dev/null
@@ -1,76 +0,0 @@
-#!/usr/bin/env python
-
-# ------------------------------------
-# Copyright (c) Microsoft Corporation.
-# Licensed under the MIT License.
-# ------------------------------------
-# pylint:disable=missing-docstring
-
-import re
-import os.path
-from io import open
-from setuptools import find_packages, setup
-
-# Change the PACKAGE_NAME only to change folder and different name
-PACKAGE_NAME = "azure-keyvault-keys"
-PACKAGE_PPRINT_NAME = "Key Vault Keys"
-
-# a-b-c => a/b/c
-PACKAGE_FOLDER_PATH = PACKAGE_NAME.replace("-", "/")
-# a-b-c => a.b.c
-NAMESPACE_NAME = PACKAGE_NAME.replace("-", ".")
-
-# Version extraction inspired from 'requests'
-with open(os.path.join(PACKAGE_FOLDER_PATH, "_version.py"), "r") as fd:
-    VERSION = re.search(r'^VERSION\s*=\s*[\'"]([^\'"]*)[\'"]', fd.read(), re.MULTILINE).group(1)
-
-if not VERSION:
-    raise RuntimeError("Cannot find version information")
-
-with open("README.md", encoding="utf-8") as f:
-    README = f.read()
-with open("CHANGELOG.md", encoding="utf-8") as f:
-    CHANGELOG = f.read()
-
-setup(
-    name=PACKAGE_NAME,
-    version=VERSION,
-    include_package_data=True,
-    description=f"Microsoft Azure {PACKAGE_PPRINT_NAME} Client Library for Python",
-    long_description=README + "\n\n" + CHANGELOG,
-    long_description_content_type="text/markdown",
-    license="MIT License",
-    author="Microsoft Corporation",
-    author_email="azurekeyvault@microsoft.com",
-    url="https://github.com/Azure/azure-sdk-for-python/tree/main/sdk/keyvault/azure-keyvault-keys",
-    keywords="azure, azure sdk",
-    classifiers=[
-        "Development Status :: 5 - Production/Stable",
-        "Programming Language :: Python",
-        "Programming Language :: Python :: 3 :: Only",
-        "Programming Language :: Python :: 3",
-        "Programming Language :: Python :: 3.8",
-        "Programming Language :: Python :: 3.9",
-        "Programming Language :: Python :: 3.10",
-        "Programming Language :: Python :: 3.11",
-        "Programming Language :: Python :: 3.12",
-        "License :: OSI Approved :: MIT License",
-    ],
-    zip_safe=False,
-    packages=find_packages(
-        exclude=[
-            "samples",
-            "tests",
-            # Exclude packages that will be covered by PEP420 or nspkg
-            "azure",
-            "azure.keyvault",
-        ]
-    ),
-    python_requires=">=3.8",
-    install_requires=[
-        "azure-core>=1.31.0",
-        "cryptography>=2.1.4",
-        "isodate>=0.6.1",
-        "typing-extensions>=4.6.0",
-    ],
-)
diff --git a/tools/azure-sdk-tools/ci_tools/build.py b/tools/azure-sdk-tools/ci_tools/build.py
index e08055846153..e4e17a5ad491 100644
--- a/tools/azure-sdk-tools/ci_tools/build.py
+++ b/tools/azure-sdk-tools/ci_tools/build.py
@@ -10,6 +10,57 @@
 from ci_tools.versioning.version_set_dev import get_dev_version, format_build_id
 
 
+def build_package() -> None:
+    parser = argparse.ArgumentParser(
+        description="""This is a secondary entrypoint for the "build" action. This command is used to install dependencies and build a specific package within the azure-sdk-for-python repository.""",
+    )
+
+    parser.add_argument(
+        "-d",
+        "--distribution-directory",
+        dest="distribution_directory",
+        help="The path to the distribution directory. Should be passed $(Build.ArtifactStagingDirectory) from the devops yaml definition."
+        + "If that is not provided, will default to env variable SDK_ARTIFACT_DIRECTORY -> <calculated_repo_root>/.artifacts.",
+    )
+
+    parser.add_argument(
+        "--package_folder",
+        dest="package_folder",
+        required=True,
+        help="The target that should be assembled",
+    )
+
+    parser.add_argument(
+        "--package_type",
+        dest="package_type",
+        choices=["sdist", "whl", "all"],
+        default="all",
+        help="The type of package to build: sdist (source distribution only), whl (wheel only), or all (both)",
+    )
+
+    args = parser.parse_args()
+
+    target_package = ParsedSetup.from_path(args.package_folder)
+    artifact_directory = get_artifact_directory(args.distribution_directory)
+
+    enable_sdist = True
+    enable_wheel = True
+
+    if args.package_type == "sdist":
+        enable_wheel = False
+
+    if args.package_type == "whl":
+        enable_sdist = False
+
+    build_packages(
+        [target_package.folder],
+        artifact_directory,
+        False,
+        DEFAULT_BUILD_ID,
+        enable_wheel,
+        enable_sdist
+    )
+
 def build() -> None:
     parser = argparse.ArgumentParser(
         description="""This is the primary entrypoint for the "build" action. This command is used to build any package within the azure-sdk-for-python repository.""",
@@ -125,6 +176,8 @@ def build() -> None:
         artifact_directory,
         str_to_bool(args.is_dev_build),
         build_id,
+        True,
+        True
     )
 
 
@@ -146,6 +199,8 @@ def build_packages(
     distribution_directory: Optional[str] = None,
     is_dev_build: bool = False,
     build_id: str = "",
+    enable_wheel: bool = True,
+    enable_sdist: bool = True
 ):
     logging.log(level=logging.INFO, msg=f"Generating {targeted_packages} using python{sys.version}")
 
@@ -168,7 +223,7 @@ def build_packages(
             set_version_py(setup_parsed.setup_filename, new_version)
             set_dev_classifier(setup_parsed.setup_filename, new_version)
 
-        create_package(package_root, dist_dir)
+        create_package(package_root, dist_dir, enable_wheel, enable_sdist)
 
 
 def create_package(
@@ -193,7 +248,7 @@ def create_package(
         pip_output = get_pip_list_output(sys.executable)
         necessary_install_requirements = [req for req in setup_parsed.requires if parse_require(req).key not in pip_output.keys()]
         run([sys.executable, "-m", "pip", "install", *necessary_install_requirements], cwd=setup_parsed.folder)
-        run([sys.executable, "-m", "build", f"-n{'s' if enable_sdist else ''}{'w' if enable_wheel else ''}", "-o", dist], cwd=setup_parsed.folder)
+        run([sys.executable, "-m", "build", f"-n{'s' if enable_sdist else ''}{'w' if enable_wheel else ''}", "-o", dist], cwd=setup_parsed.folder, check=True)
     else:
         if enable_wheel:
             if setup_parsed.ext_modules:
diff --git a/tools/azure-sdk-tools/ci_tools/functions.py b/tools/azure-sdk-tools/ci_tools/functions.py
index 0daa47eba12c..ed1309314824 100644
--- a/tools/azure-sdk-tools/ci_tools/functions.py
+++ b/tools/azure-sdk-tools/ci_tools/functions.py
@@ -406,7 +406,7 @@ def process_requires(setup_py_path: str, is_dev_build: bool = False):
     else:
         logging.info("Packages not available on PyPI:{}".format(requirement_to_update))
         update_requires(setup_py_path, requirement_to_update)
-        logging.info("Package requirement is updated in setup.py")
+        logging.info(f"Package requirement is updated in {'pyproject.toml' if pkg_details.is_pyproject else 'setup.py'}.")
 
 
 def find_sdist(dist_dir: str, pkg_name: str, pkg_version: str) -> Optional[str]:
diff --git a/tools/azure-sdk-tools/ci_tools/parsing/parse_functions.py b/tools/azure-sdk-tools/ci_tools/parsing/parse_functions.py
index 866c8a12f892..638b3c2f8208 100644
--- a/tools/azure-sdk-tools/ci_tools/parsing/parse_functions.py
+++ b/tools/azure-sdk-tools/ci_tools/parsing/parse_functions.py
@@ -390,6 +390,7 @@ def parse_pyproject(
     python_requires = project_config.get("requires-python")
     requires = project_config.get("dependencies")
     is_new_sdk = name in NEW_REQ_PACKAGES or any(map(lambda x: (parse_require(x).key in NEW_REQ_PACKAGES), requires))
+    # todo: update traversal logic
     name_space = name.replace("-", ".")
     package_data = get_value_from_dict(toml_dict, "tool.setuptools.package-data", None)
     include_package_data = get_value_from_dict(toml_dict, "tool.setuptools.include-package-data", True)
diff --git a/tools/azure-sdk-tools/ci_tools/scenario/generation.py b/tools/azure-sdk-tools/ci_tools/scenario/generation.py
index 237511cedca5..4487e28bb674 100644
--- a/tools/azure-sdk-tools/ci_tools/scenario/generation.py
+++ b/tools/azure-sdk-tools/ci_tools/scenario/generation.py
@@ -51,7 +51,6 @@ def create_package_and_install(
 
     commands_options = []
     built_pkg_path = ""
-    setup_py_path = os.path.join(target_setup, "setup.py")
     additional_downloaded_reqs = []
 
     if not os.path.exists(distribution_directory):
@@ -69,10 +68,10 @@ def create_package_and_install(
         commands_options.extend(["--cache-dir", cache_dir])
 
     discovered_packages = discover_packages(
-        setup_py_path, distribution_directory, target_setup, package_type, force_create
+        target_setup, distribution_directory, target_setup, package_type, force_create
     )
 
-    target_package = ParsedSetup.from_path(setup_py_path)
+    target_package = ParsedSetup.from_path(target_setup)
 
     # ensure that discovered packages are always copied to the distribution directory regardless of other factors
     for built_package in discovered_packages:
@@ -104,7 +103,7 @@ def create_package_and_install(
                 logging.info("Installing {w} from fresh built package.".format(w=built_package))
 
             if not pre_download_disabled:
-                requirements = ParsedSetup.from_path(os.path.join(os.path.abspath(target_setup), "setup.py")).requires
+                requirements = ParsedSetup.from_path(os.path.join(os.path.abspath(target_setup))).requires
                 azure_requirements = [req.split(";")[0] for req in requirements if req.startswith("azure-")]
 
                 if azure_requirements:
diff --git a/tools/azure-sdk-tools/setup.py b/tools/azure-sdk-tools/setup.py
index 73e6586c3838..2ab37373ac01 100644
--- a/tools/azure-sdk-tools/setup.py
+++ b/tools/azure-sdk-tools/setup.py
@@ -43,6 +43,7 @@
             "sdk_generator=packaging_tools.sdk_generator:generate_main",
             "sdk_package=packaging_tools.sdk_package:generate_main",
             "sdk_build=ci_tools.build:build",
+            "sdk_build_package=ci_tools.build:build_package",
             "sdk_build_conda=ci_tools.conda:entrypoint",
             "sdk_set_dev_version=ci_tools.versioning.version_set_dev:version_set_dev_main",
             "sdk_set_version=ci_tools.versioning.version_set:version_set_main",