diff --git a/.gitignore b/.gitignore
index 021524e..85ba537 100644
--- a/.gitignore
+++ b/.gitignore
@@ -20,4 +20,9 @@ settings.json
 
 logs/
 .claude/
-data/
\ No newline at end of file
+data/
+.ruff_cache/
+.vscode/
+.idea/
+*.iml
+*.log
diff --git a/CLAUDE.md b/CLAUDE.md
index a60ce0f..d6c8f9f 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -45,7 +45,7 @@ source env/bin/activate && python main.py --dump
 The application requires:
 - Python 3.10+
 - Virtual environment at `env/` (must be activated before running commands)
-- Dependencies from `requirements.txt` (includes FastAPI, uvicorn, Socket.IO)
+- Dependencies from `pyproject.toml` (includes FastAPI, uvicorn, Socket.IO)
 
 Docker deployment:
 ```bash
@@ -278,7 +278,7 @@ The application uses a web-based interface accessible via browser:
 
 **Dockerfile:**
 - Based on `python:3.11-slim`
-- Installs dependencies from `requirements.txt`
+- Installs dependencies from `pyproject.toml`
 - Exposes port 8080
 - Health check on `/api/status`
 
diff --git a/Dockerfile b/Dockerfile
index 493d2ef..e5d735e 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -30,11 +30,11 @@ RUN apt-get update && apt-get install -y \
     --no-install-recommends \
     && rm -rf /var/lib/apt/lists/*
 
-# Copy requirements file
-COPY requirements.txt .
+# Copy project metadata and install dependencies
+COPY pyproject.toml .
 
 # Install Python dependencies
-RUN pip install --no-cache-dir -r requirements.txt
+RUN pip install --no-cache-dir .
 
 # Copy application code
 COPY main.py ./
diff --git a/README.md b/README.md
index bce4262..59c5962 100644
--- a/README.md
+++ b/README.md
@@ -40,7 +40,7 @@ docker-compose up -d
 
 ```bash
 # Install Python 3.10+ and dependencies
-pip install -r requirements.txt
+pip install -e .
 
 # Run the application
 python main.py
@@ -131,7 +131,7 @@ python -m venv env
 source env/bin/activate  # On Windows: env\Scripts\activate
 
 # Install dependencies
-pip install -r requirements.txt
+pip install -e .
 
 # Run the application
 python main.py
diff --git a/pyproject.toml b/pyproject.toml
index 68ef7f7..83e0d79 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,3 +1,30 @@
+[project]
+name = "twitch-drops-miner"
+version = "1.0.0"  # Update from src/version.py as needed
+description = "Automatically mine Twitch drops without downloading stream data"
+readme = "README.md"
+requires-python = ">=3.10"
+dependencies = [
+    "aiohttp>=3.9",
+    "Pillow",
+    "truststore",
+    "python-dateutil",
+    "fastapi>=0.104.0",
+    "uvicorn[standard]>=0.24.0",
+    "python-socketio>=5.10.0",
+    "jinja2>=3.1.2",
+]
+
+[project.optional-dependencies]
+dev = [
+    "ruff",
+    "mypy",
+]
+
+[build-system]
+requires = ["setuptools>=61.0"]
+build-backend = "setuptools.build_meta"
+
 [tool.ruff]
 # Set the maximum line length to 100 (more reasonable than 88)
 line-length = 100
diff --git a/requirements.txt b/requirements.txt
deleted file mode 100644
index fc66290..0000000
--- a/requirements.txt
+++ /dev/null
@@ -1,11 +0,0 @@
-# Core dependencies
-aiohttp>=3.9,<4.0
-Pillow
-truststore
-python-dateutil
-
-# Web GUI dependencies (required)
-fastapi>=0.104.0
-uvicorn[standard]>=0.24.0
-python-socketio>=5.10.0
-jinja2>=3.1.2
diff --git a/setup_env.sh b/setup_env.sh
index 44f8a68..37030f8 100755
--- a/setup_env.sh
+++ b/setup_env.sh
@@ -25,15 +25,15 @@ if [ ! -d "$dirpath/env" ]; then
     fi
 fi
 
-# Activate the virtual environment and install requirements
+# Activate the virtual environment and install dependencies
 echo
-echo "Installing requirements.txt..."
+echo "Installing dependencies from pyproject.toml..."
 "$dirpath/env/bin/python" -m pip install -U pip
 "$dirpath/env/bin/pip" install wheel
-"$dirpath/env/bin/pip" install -r "$dirpath/requirements.txt"
+"$dirpath/env/bin/pip" install -e "$dirpath"
 if [ $? -ne 0 ]; then
     echo
-    echo "Failed to install requirements."
+    echo "Failed to install dependencies."
     echo
     read -p "Press any key to continue..."
     exit 1