diff --git a/.github/workflows/tests-gpu.yml b/.github/workflows/tests-gpu.yml
index 4c82fdbf39c..058bf381ecb 100644
--- a/.github/workflows/tests-gpu.yml
+++ b/.github/workflows/tests-gpu.yml
@@ -102,7 +102,7 @@ jobs:
 
       - name: Install PennyLane
         run: |
-          python setup.py bdist_wheel
+          python -m build --wheel
           pip install dist/pennylane*.whl
 
       - name: Install Lightning-master
diff --git a/Makefile b/Makefile
index 8b3bec9be42..ca508c85ed6 100644
--- a/Makefile
+++ b/Makefile
@@ -25,15 +25,15 @@ install:
 ifndef PYTHON3
 	@echo "To install PennyLane you need to have Python 3 installed"
 endif
-	$(PYTHON) setup.py install
+	$(PYTHON) -m pip install .
 
 .PHONY: wheel
 wheel:
-	$(PYTHON) setup.py bdist_wheel
+	$(PYTHON) -m build --wheel
 
 .PHONY: dist
 dist:
-	$(PYTHON) setup.py sdist
+	$(PYTHON) -m build --sdist 
 
 .PHONY : clean
 clean:
diff --git a/doc/releases/changelog-dev.md b/doc/releases/changelog-dev.md
index 92ca0887554..39dea3881ec 100644
--- a/doc/releases/changelog-dev.md
+++ b/doc/releases/changelog-dev.md
@@ -180,9 +180,12 @@
   interface to maintain a list of special implementations.
   [(#7327)](https://github.com/PennyLaneAI/pennylane/pull/7327)
 
-* Sphinx version was updated to 8.1. Sphinx is upgraded to version 8.1 and uses Python 3.10. References to intersphinx (e.g. `<demos/>` or `<catalyst/>` are updated to remove the :doc: prefix that is incompatible with sphinx 8.1. 
+* Sphinx version was updated to 8.1. Sphinx is upgraded to version 8.1 and uses Python 3.10. References to intersphinx (e.g. `<demos/>` or `<catalyst/>` are updated to remove the :doc: prefix that is incompatible with sphinx 8.1.
   [(7212)](https://github.com/PennyLaneAI/pennylane/pull/7212)
 
+* Migrated `setup.py` package build and install to `pyproject.toml`
+  [(#7375)](https://github.com/PennyLaneAI/pennylane/pull/7375)
+
 * Updated GitHub Actions workflows (`rtd.yml`, `readthedocs.yml`, and `docs.yml`) to use `ubuntu-24.04` runners.
  [(#7396)](https://github.com/PennyLaneAI/pennylane/pull/7396)
 
diff --git a/docker/interfaces/gpu-cuda/cuda-base.dockerfile b/docker/interfaces/gpu-cuda/cuda-base.dockerfile
index 1c9ac554560..04d8b7d121f 100644
--- a/docker/interfaces/gpu-cuda/cuda-base.dockerfile
+++ b/docker/interfaces/gpu-cuda/cuda-base.dockerfile
@@ -42,7 +42,7 @@ COPY  . .
 RUN git submodule update --init --recursive \
     && pip install wheel \
     && pip install -r requirements.txt \
-    && python3 setup.py install \
+    && python3 -m pip install . \
     && pip install -r requirements-dev.txt \
     && make test
 
diff --git a/docker/pennylane.dockerfile b/docker/pennylane.dockerfile
index cbb7f40f0a4..80e562a5664 100644
--- a/docker/pennylane.dockerfile
+++ b/docker/pennylane.dockerfile
@@ -41,7 +41,7 @@ WORKDIR /opt/pennylane
 COPY  . .
 RUN git submodule update --init --recursive
 RUN pip install wheel && pip install -r requirements.txt
-RUN python3 setup.py install
+RUN python3 -m pip install .
 RUN pip install -r requirements-dev.txt
 RUN pip install -i https://test.pypi.org/simple/ pennylane-lightning --pre --upgrade
 # hotfix, remove when pyscf 2.1 is released (currently no wheel for python3.10)
diff --git a/pyproject.toml b/pyproject.toml
index 8f25644083c..3945ccca81b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,3 +1,83 @@
+[build-system]
+requires = ["setuptools>=75.8.1"]
+build-backend = "setuptools.build_meta"
+
+[project]
+name = "Pennylane"
+description = "PennyLane is a cross-platform Python library for quantum computing, quantum machine learning, and quantum chemistry. Train a quantum computer the same way as a neural network."
+readme = "README.md"
+license =  "Apache-2.0"
+requires-python = ">=3.10"
+dynamic = ["version"]
+dependencies = [
+    "scipy",
+    "networkx",
+    "rustworkx>=0.14.0",
+    "autograd",
+    "appdirs",
+    "autoray>=0.6.11",
+    "cachetools",
+    "pennylane-lightning>=0.41",
+    "requests",
+    "tomli",
+    "typing_extensions",
+    "packaging",
+    "diastatic-malt",
+    "numpy"
+]
+classifiers = [
+    "Development Status :: 4 - Beta",
+    "Environment :: Console",
+    "Intended Audience :: Science/Research",
+    "Natural Language :: English",
+    "Operating System :: POSIX",
+    "Operating System :: MacOS :: MacOS X",
+    "Operating System :: POSIX :: Linux",
+    "Operating System :: Microsoft :: Windows",
+    "Programming Language :: Python",
+    "Programming Language :: Python :: 3",
+    "Programming Language :: Python :: 3.10",
+    "Programming Language :: Python :: 3.11",
+    "Programming Language :: Python :: 3.12",
+    "Programming Language :: Python :: 3 :: Only",
+    "Topic :: Scientific/Engineering :: Physics",
+]
+[[project.maintainers]]
+name = "Xanadu Quantum Technologies Inc."
+email = "software@xanadu.ai"
+
+[project.urls]
+repository = "https://github.com/PennyLaneAI/pennylane"
+
+[project.optional-dependencies]
+kernels = ["cvxpy", "cvxopt"]
+
+[project.scripts]
+pl-device-test = "pennylane.devices.tests:cli"
+
+[project.entry-points."pennylane.plugins"]
+"default.qubit" = "pennylane.devices:DefaultQubit"
+"default.gaussian" = "pennylane.devices:DefaultGaussian"
+"default.mixed" = "pennylane.devices.default_mixed:DefaultMixed"
+"reference.qubit" = "pennylane.devices.reference_qubit:ReferenceQubit"
+"null.qubit" = "pennylane.devices.null_qubit:NullQubit"
+"default.qutrit" = "pennylane.devices.default_qutrit:DefaultQutrit"
+"default.clifford" = "pennylane.devices.default_clifford:DefaultClifford"
+"default.qutrit.mixed" = "pennylane.devices.default_qutrit_mixed:DefaultQutritMixed"
+"default.tensor" = "pennylane.devices.default_tensor:DefaultTensor"
+
+[tool.setuptools]
+include-package-data = true
+py-modules = []
+
+[tool.setuptools.dynamic]
+version = {attr = "pennylane._version.__version__"} 
+
+[tool.setuptools_scm]
+
+[tool.setuptools.package-data]
+pennylane = ["devices/tests/pytest.ini", "drawer/plot.mplstyle"]
+
 [tool.black]
 line-length = 100
 include = '\.pyi?$'
diff --git a/setup.py b/setup.py
index 1595dbc121a..3e1cbcd3f74 100644
--- a/setup.py
+++ b/setup.py
@@ -1,92 +1,3 @@
-# Copyright 2018-2024 Xanadu Quantum Technologies Inc.
-
-# Licensed under the Apache License, Version 2.0 (the "License");
-# you may not use this file except in compliance with the License.
-# You may obtain a copy of the License at
-
-#     http://www.apache.org/licenses/LICENSE-2.0
-
-# Unless required by applicable law or agreed to in writing, software
-# distributed under the License is distributed on an "AS IS" BASIS,
-# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-# See the License for the specific language governing permissions and
-# limitations under the License.
-
-"""Setup file for package installation."""
-# pylint: disable=unspecified-encoding, consider-using-with
-
 from setuptools import find_packages, setup
 
-with open("pennylane/_version.py") as f:
-    version = f.readlines()[-1].split()[-1].strip("\"'")
-
-requirements = [
-    "numpy",
-    "scipy",
-    "networkx",
-    "rustworkx>=0.14.0",
-    "autograd",
-    "tomlkit",
-    "appdirs",
-    "autoray>=0.6.11",
-    "cachetools",
-    "pennylane-lightning>=0.41",
-    "requests",
-    "typing_extensions",
-    "packaging",
-    "diastatic-malt",
-]
-
-info = {
-    "name": "PennyLane",
-    "version": version,
-    "maintainer": "Xanadu Inc.",
-    "maintainer_email": "software@xanadu.ai",
-    "url": "https://github.com/PennyLaneAI/pennylane",
-    "license": "Apache License 2.0",
-    "packages": find_packages(where="."),
-    "entry_points": {
-        # TODO: rename entry point 'pennylane.plugins' to 'pennylane.devices'.
-        # This requires a rename in the setup file of all devices, and is best done during another refactor
-        "pennylane.plugins": [
-            "default.qubit = pennylane.devices:DefaultQubit",
-            "default.gaussian = pennylane.devices:DefaultGaussian",
-            "default.mixed = pennylane.devices.default_mixed:DefaultMixed",
-            "reference.qubit = pennylane.devices.reference_qubit:ReferenceQubit",
-            "null.qubit = pennylane.devices.null_qubit:NullQubit",
-            "default.qutrit = pennylane.devices.default_qutrit:DefaultQutrit",
-            "default.clifford = pennylane.devices.default_clifford:DefaultClifford",
-            "default.qutrit.mixed = pennylane.devices.default_qutrit_mixed:DefaultQutritMixed",
-            "default.tensor = pennylane.devices.default_tensor:DefaultTensor",
-        ],
-        "console_scripts": ["pl-device-test=pennylane.devices.tests:cli"],
-    },
-    "description": "PennyLane is a cross-platform Python library for quantum computing, quantum machine learning, and quantum chemistry. Train a quantum computer the same way as a neural network.",
-    "long_description": open("README.md").read(),
-    "long_description_content_type": "text/markdown",
-    "provides": ["pennylane"],
-    "install_requires": requirements,
-    "extras_require": {"kernels": ["cvxpy", "cvxopt"]},
-    "package_data": {"pennylane": ["devices/tests/pytest.ini", "drawer/plot.mplstyle"]},
-    "include_package_data": True,
-}
-
-classifiers = [
-    "Development Status :: 4 - Beta",
-    "Environment :: Console",
-    "Intended Audience :: Science/Research",
-    "Natural Language :: English",
-    "Operating System :: POSIX",
-    "Operating System :: MacOS :: MacOS X",
-    "Operating System :: POSIX :: Linux",
-    "Operating System :: Microsoft :: Windows",
-    "Programming Language :: Python",
-    "Programming Language :: Python :: 3",
-    "Programming Language :: Python :: 3.10",
-    "Programming Language :: Python :: 3.11",
-    "Programming Language :: Python :: 3.12",
-    "Programming Language :: Python :: 3 :: Only",
-    "Topic :: Scientific/Engineering :: Physics",
-]
-
-setup(classifiers=classifiers, **(info))
+setup()