diff --git a/.cirrus.yml b/.cirrus.yml
index 1da0aba52b..891245be22 100644
--- a/.cirrus.yml
+++ b/.cirrus.yml
@@ -15,7 +15,7 @@ fedora_35_task:
       # Latest LTS release is 103.x
       - AVOCADO_SRC: avocado-framework<104.0
     matrix:
-      - SETUP: setup.py develop --user
+      - SETUP: -m pip install --user -e .
       - SETUP: -m pip install .
       - SETUP: -m pip install PYPI_UPLOAD/*.whl
     matrix:
@@ -25,6 +25,7 @@ fedora_35_task:
     - (echo $SETUP | grep -v PYPI_UPLOAD) || make pypi
   setup_script: &setup_scr
     - python3 --version
+    - python3 -m pip install --upgrade pip
     - test -z $AVOCADO_SRC || python3 -m pip install $AVOCADO_SRC
     - python3 $SETUP
   bootstrap_script: &bootstrap_scr
@@ -61,7 +62,7 @@ avocado_devel_task:
       # 103lts tree (from where new 103.x releases will come)
       - AVOCADO_SRC: git+https://github.com/avocado-framework/avocado@103lts#egg=avocado_framework
     matrix:
-      - SETUP: setup.py develop --user
+      - SETUP: -m pip install --user -e .
       - SETUP: -m pip install .
       - SETUP: -m pip install PYPI_UPLOAD/*.whl
     matrix:
diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index f5d7f69531..5c40aaf618 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -59,7 +59,6 @@ jobs:
         working-directory: ./avocado-libs
         run: |
          python -m pip install --upgrade pip
-         pip install 'setuptools-rust==1.1.2'
          pip install -e .
       - name: Finish installing dependencies
         run: |
diff --git a/CODING_STYLE b/CODING_STYLE
index cb1028c927..9901c6d61c 100644
--- a/CODING_STYLE
+++ b/CODING_STYLE
@@ -15,7 +15,7 @@ Base coding style
 
 The coding style for all Python code is the one enforced by black (see
 https://black.readthedocs.io/en/stable/the_black_code_style/).  The
-selftests/style.sh script can be used to verify the code style matches.
+"hatch fmt -f" command can be used to verify the code style matches.
 
 
 Variable names and UpPeR cAsE
diff --git a/Makefile b/Makefile
index 63109feb28..842dfce1f6 100644
--- a/Makefile
+++ b/Makefile
@@ -1,8 +1,7 @@
 ifndef PYTHON
-PYTHON=$(shell which python3 2>/dev/null || which python2 2>/dev/null || which python 2>/dev/null)
+PYTHON=$(shell which python3 2>/dev/null || which python 2>/dev/null)
 endif
-VERSION=$(shell $(PYTHON) setup.py --version 2>/dev/null)
-PYTHON_DEVELOP_ARGS=$(shell if ($(PYTHON) setup.py develop --help 2>/dev/null | grep -q '\-\-user'); then echo "--user"; else echo ""; fi)
+VERSION=$(shell $(PYTHON) -m hatchling version 2>/dev/null)
 DESTDIR=/
 AVOCADO_DIRNAME?=avocado
 
@@ -14,15 +13,17 @@ COMMIT_DATE=$(shell git log --pretty='format:%cd' --date='format:%Y%m%d' -n 1)
 SHORT_COMMIT=$(shell git log --abbrev=8 --pretty=format:'%h' -n 1)
 MOCK_CONFIG=default
 ARCHIVE_BASE_NAME=avocado-vt
+PKG_NAME=avocado-framework-plugin-vt
 RPM_BASE_NAME=avocado-plugins-vt
 
+CLEAN_LIST := MANIFEST BUILD BUILDROOT SPECS RPMS SRPMS SOURCES PYPI_UPLOAD build dist
 
 all:
 	@echo
 	@echo "Development related targets:"
 	@echo "check:    Runs tree static check, unittests and fast functional tests"
-	@echo "develop:  Runs 'python setup.py --develop' on this tree alone"
-	@echo "link:     Runs 'python setup.py --develop' in all subprojects and links the needed resources"
+	@echo "develop:  Runs 'python -m pip install -e .' on this tree alone"
+	@echo "link:     Runs 'python -m pip install -e .' in all subprojects and links the needed resources"
 	@echo "clean:    Get rid of scratch, byte files and removes the links to other subprojects"
 	@echo "unlink:   Disables egg links and unlinks needed resources"
 	@echo
@@ -42,25 +43,23 @@ all:
 
 include Makefile.include
 
-requirements: pip
-	- $(PYTHON) -m pip install -r requirements.txt
-
 check:
-	./selftests/style.sh
-	./selftests/isort.sh
-	inspekt lint --disable W,R,C,E0203,E0601,E1002,E1101,E1102,E1103,E1120,F0401,I0011,E1003,W605,I1101 --exclude avocado-libs,scripts/github
-	pylint --errors-only --disable=all --enable=spelling --spelling-dict=en_US --spelling-private-dict-file=spell.ignore *
+	hatch fmt --check
+	inspekt lint --disable W,R,C,E0203,E0601,E1002,E1101,E1102,E1103,E1120,F0401,I0011,E1003,W605,I1101 --exclude scripts/github
 
 clean:
-	$(PYTHON) setup.py clean
+	rm -rf $(CLEAN_LIST)
+	for pattern in "*.pyc" "__pycache__"; do \
+		find . -name "$$pattern" -exec rm -rf {} +; \
+	done
 
 develop:
-	$(PYTHON) setup.py develop $(PYTHON_DEVELOP_ARGS)
+	$(PYTHON) -m pip install --user -e .
 
 link: develop
 
 unlink:
-	$(PYTHON) setup.py develop --uninstall $(PYTHON_DEVELOP_ARGS)
+	$(PYTHON) -m pip uninstall -y $(PKG_NAME)
 	# For compatibility reasons remove old symlinks
 	for NAME in $$(ls -1 avocado_vt/conf.d); do\
 		CONF="etc/avocado/conf.d/$$NAME";\
@@ -70,8 +69,8 @@ unlink:
 
 pypi: clean
 	if test ! -d PYPI_UPLOAD; then mkdir PYPI_UPLOAD; fi
-	$(PYTHON) setup.py bdist_wheel -d PYPI_UPLOAD
-	$(PYTHON) setup.py sdist -d PYPI_UPLOAD
+	$(PYTHON) -m pip install build
+	$(PYTHON) -m build -o PYPI_UPLOAD
 	@echo
 	@echo "Please use the files on PYPI_UPLOAD dir to upload a new version to PyPI"
 	@echo "The URL to do that may be a bit tricky to find, so here it is:"
diff --git a/Makefile.include b/Makefile.include
index 3505c31209..54e1faec8e 100644
--- a/Makefile.include
+++ b/Makefile.include
@@ -7,11 +7,7 @@ source-release: clean
 	git archive --prefix="$(ARCHIVE_BASE_NAME)-$(VERSION)/" -o "SOURCES/$(ARCHIVE_BASE_NAME)-$(VERSION).tar.gz" $(VERSION)
 
 install:
-	if [ "$$($(PYTHON) --version 2>&1 | cut -d' ' -f2 | cut -d'.' -f1)" == "2" ]; then \
-		$(PYTHON) setup.py install --root $(DESTDIR) $(COMPILE); \
-	else \
-		$(PYTHON) -m pip install --prefix $(DESTDIR) --upgrade .; \
-	fi
+	$(PYTHON) -m pip install --prefix $(DESTDIR) --upgrade .
 
 srpm: source
 	if test ! -d BUILD/SRPM; then mkdir -p BUILD/SRPM; fi
diff --git a/avocado-plugins-vt.spec b/avocado-plugins-vt.spec
index e5c4d717a8..dd761c3a64 100644
--- a/avocado-plugins-vt.spec
+++ b/avocado-plugins-vt.spec
@@ -43,7 +43,7 @@ Source0: https://github.com/avocado-framework/%{srcname}/archive/%{commit}.tar.g
 # old way of retrieving snapshot sources
 #Source0: https://github.com/avocado-framework/%{srcname}/archive/%{commit}/%{srcname}-%{version}-%{shortcommit}.tar.gz
 %endif
-BuildRequires: python3-devel, python3-setuptools, python3-six
+BuildRequires: python3-devel, python3-six, python3-hatchling, python3-wheel
 Requires: python3-six
 BuildArch: noarch
 Requires: autotest-framework, xz, tcpdump, iproute, iputils, gcc, glibc-headers, nc, git
@@ -88,7 +88,7 @@ Xunit output, among others.
 
 %install
 %{__mkdir} -p %{buildroot}%{_sysconfdir}/avocado/conf.d
-%{__python3} setup.py install --root %{buildroot} --skip-build
+%{__python3} -m pip install --prefix=%{buildroot} --no-build-isolation .
 %{__mv} %{buildroot}%{python3_sitelib}/avocado_vt/conf.d/* %{buildroot}%{_sysconfdir}/avocado/conf.d
 
 %files -n python3-%{name}
diff --git a/contrib/packages/debian/Makefile b/contrib/packages/debian/Makefile
index 6485e3a2f7..2e76150722 100644
--- a/contrib/packages/debian/Makefile
+++ b/contrib/packages/debian/Makefile
@@ -12,7 +12,7 @@ prepare-source:
 	# build the source package in the parent directory
 	# then rename it to project_version.orig.tar.gz
 	dch -D "bionic" -M -v "$(VERSION)" "Automated (make builddeb) build."
-	$(PYTHON) setup.py sdist $(COMPILE) --dist-dir=../ --prune
+	$(PYTHON) -m build --sdist --outdir=../
 	rename -f 's/$(PROJECT)-(.*)\.tar\.gz/$(PROJECT)_$$1\.orig\.tar\.gz/' ../*
 
 deb-src: prepare-source
diff --git a/docs/source/contributing/Guidelines.rst b/docs/source/contributing/Guidelines.rst
index 7d6e25606b..94b28fc86e 100644
--- a/docs/source/contributing/Guidelines.rst
+++ b/docs/source/contributing/Guidelines.rst
@@ -77,7 +77,7 @@ Rules for Maintainers
 Rules for Contributors
 ======================
 
-1. [Must] Coding style should conform to what's enforced by black (see ``selftests/style.sh``)
+1. [Must] Coding style should conform to what's enforced by black and isort (see black configuration in ``pyproject.toml``)
 2. [Must] PR commit message is meaningful. Refer to the link on how to write a good commit message
 3. [Must] Travis CI pass and no conflict
 4. [Must] Provide test results. If no, provide justification. Apply to any PR
diff --git a/requirements-travis.txt b/requirements-travis.txt
index e08c76d8fc..fe8b0b6054 100644
--- a/requirements-travis.txt
+++ b/requirements-travis.txt
@@ -7,3 +7,4 @@ netifaces==0.11.0
 pyenchant==3.2.2
 black==22.3.0
 isort==5.10.1
+hatch
diff --git a/selftests/isort.sh b/selftests/isort.sh
deleted file mode 100755
index f0309ac66d..0000000000
--- a/selftests/isort.sh
+++ /dev/null
@@ -1,3 +0,0 @@
-#!/bin/sh -e
-
-isort --check-only .
diff --git a/selftests/style.sh b/selftests/style.sh
deleted file mode 100755
index 18ad91b79f..0000000000
--- a/selftests/style.sh
+++ /dev/null
@@ -1,4 +0,0 @@
-#!/bin/sh -e
-echo "** Running black..."
-
-black --check --diff --color .
diff --git a/virttest/utils_test/__init__.py b/virttest/utils_test/__init__.py
index d05926f56e..f77b872803 100755
--- a/virttest/utils_test/__init__.py
+++ b/virttest/utils_test/__init__.py
@@ -1034,7 +1034,7 @@ def env_check(self):
             if self.session.cmd_status(cmd, timeout=self.timeout) != 0:
                 LOG.error("Failed to restart libvirtd inside guest")
                 return False
-            pip_pack = ["setuptools", "netifaces", "aexpect"]
+            pip_pack = ["hatchling", "netifaces", "aexpect"]
             cmd = ""
             for each in pip_pack:
                 cmd = "%s install %s --upgrade" % (self.pip_bin, each)
@@ -1091,7 +1091,7 @@ def install_avocado(self):
                 return False
             for plugin in self.plugins[self.installtype]:
                 cmd = "cd %s;" % os.path.join(self.plugins_path, plugin)
-                cmd += "%s setup.py install" % self.python
+                cmd += "%s install ." % self.pip_bin
                 if self.session.cmd_status(cmd, timeout=self.timeout) != 0:
                     LOG.error("Avocado plugin %s git " "installation failed", plugin)
                     return False
@@ -1121,7 +1121,7 @@ def git_install(self, repo_path, branch="", make="", install=True):
         if make:
             cmd += "make %s;" % make
         if install:
-            cmd += "%s setup.py install" % self.python
+            cmd += "%s install ." % self.pip_bin
         return self.session.cmd_status(cmd, timeout=self.timeout) == 0
 
     def repo_name(self, repo_path):