diff --git a/.github/workflows/yapf.yml b/.github/workflows/yapf.yml
index 14a3ae9..0f980d9 100644
--- a/.github/workflows/yapf.yml
+++ b/.github/workflows/yapf.yml
@@ -48,6 +48,7 @@ jobs:
       - name: Install dependencies
         run: |
           python -m pip install --upgrade pip
+          pip install toml
           pip install yapf==0.32.0
       - name: Running yapf
         run: |
diff --git a/.gitignore b/.gitignore
index c5d83d8..e32c065 100644
--- a/.gitignore
+++ b/.gitignore
@@ -193,3 +193,6 @@ cython_debug/
 .pypirc
 
 kernel_meta/
+
+# version file generated by setuptools-scm
+/vllm_ascend/_version.py
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 0000000..9e14e51
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,11 @@
+[build-system]
+# Should be mirrored in requirements.txt
+requires = [
+    "setuptools>=64",
+    "setuptools-scm>=8",
+    "decorator",
+    "pyyaml",
+    "scipy",
+    "torch-npu == 2.5.1rc1"
+]
+build-backend = "setuptools.build_meta"
diff --git a/requirements.txt b/requirements.txt
index 51cb33f..9ef2cd0 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -2,4 +2,5 @@ decorator
 pyyaml
 scipy
 setuptools
-torch_npu == 2.5.1rc1
+setuptools-scm
+torch-npu == 2.5.1rc1
diff --git a/setup.py b/setup.py
index 4aaab99..a2e0066 100644
--- a/setup.py
+++ b/setup.py
@@ -21,8 +21,15 @@ import os
 from typing import List
 
 from setuptools import setup
+from setuptools_scm import get_version
 
 ROOT_DIR = os.path.dirname(__file__)
+try:
+    VERSION = get_version(write_to="vllm_ascend/_version.py")
+except LookupError:
+    # The checkout action in github action CI does not checkout the tag. It
+    # only checks out the commit. In this case, we set a dummy version.
+    VERSION = "0.0.0"
 
 
 def get_path(*filepath) -> str:
@@ -66,7 +73,7 @@ setup(
     name='vllm_ascend',
     # Follow:
     # https://packaging.python.org/en/latest/specifications/version-specifiers
-    version='0.1.0a1',
+    version=VERSION,
     author="vLLM-Ascend team",
     license="Apache 2.0",
     description=("vLLM Ascend backend plugin"),