diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index e5363c2..0005272 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -8,7 +8,7 @@ jobs:
     steps:
       - uses: actions/checkout@v4
       - name: Download actionlint
-        run: bash <(curl https://raw.githubusercontent.com/rhysd/actionlint/main/scripts/download-actionlint.bash) 1.6.21
+        run: bash <(curl https://raw.githubusercontent.com/rhysd/actionlint/main/scripts/download-actionlint.bash) 1.7.11
         shell: bash
       - name: Check workflow files
         run: ./actionlint -color
@@ -19,22 +19,28 @@ jobs:
 
     steps:
       - uses: actions/checkout@v4
-      - uses: actions/setup-python@v5
+      - name: Install uv
+        uses: astral-sh/setup-uv@v7
         with:
+          enable-cache: false
           python-version: "3.12"
-      - run: python -m pip install pre-commit
-      - run: pre-commit run --all-files
+          activate-environment: true
+      - run: uv pip install prek
+      - run: prek run --all-files
 
   test:
     runs-on: ubuntu-latest
 
     steps:
       - uses: actions/checkout@v4
-      - uses: actions/setup-python@v5
+      - name: Install uv
+        uses: astral-sh/setup-uv@v7
         with:
+          enable-cache: false
           python-version: "3.12"
-      - run: python -m pip install cookiecutter pytest pyyaml toml
-      - run: pytest
+          activate-environment: true
+      - run: uv pip install cookiecutter pytest pyyaml toml
+      - run: uv run pytest
 
   lint-generated-project:
     runs-on: ubuntu-latest
@@ -44,8 +50,8 @@ jobs:
       - uses: actions/setup-python@v5
         with:
           python-version: "3.12"
-      - run: python -m pip install cookiecutter poetry
-      - run: bash <(curl https://raw.githubusercontent.com/rhysd/actionlint/main/scripts/download-actionlint.bash) 1.6.21
+      - run: python -m pip install cookiecutter uv prek
+      - run: bash <(curl https://raw.githubusercontent.com/rhysd/actionlint/main/scripts/download-actionlint.bash) 1.7.11
       - name: Generate project
         run: |
           cookiecutter --config-file tests/context.yaml --no-input .
@@ -63,6 +69,6 @@ jobs:
       - name: Lint project
         run: |
           cd example-project
-          poetry install
-          poetry run pre-commit run -a
-          poetry run mkdocs build
+          uv sync
+          prek run --all-files
+          uv run mkdocs build
diff --git a/.gitignore b/.gitignore
index c18dd8d..9cb7b23 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1 +1,5 @@
 __pycache__/
+
+# Claude Code
+.agents/
+.claude/
diff --git a/README.md b/README.md
index ca34de7..e8266d7 100644
--- a/README.md
+++ b/README.md
@@ -27,7 +27,7 @@ A [cookiecutter](https://cookiecutter.readthedocs.io/en/latest/README.html) (pro
 * Powered by [mkdocs-material](https://github.com/squidfunk/mkdocs-material)
 * Auto-generated API documentation from docstrings via [mkdocstrings](https://github.com/mkdocstrings/mkdocstrings)
 * See the extensive list of [MkDocs plugins](https://github.com/mkdocs/mkdocs/wiki/MkDocs-Plugins) which can help you
- to tune the documentation to fit your project's needs
+  to tune the documentation to fit your project's needs
 
 #### Automated releases
 
@@ -42,9 +42,10 @@ A [cookiecutter](https://cookiecutter.readthedocs.io/en/latest/README.html) (pro
 
 #### Bells and whistles
 
-* [Poetry](https://python-poetry.org/docs/) for managing dependencies and packaging
-* [pre-commit](https://pre-commit.com/) for running all the goodies listed below
-* [mypy](https://mypy.readthedocs.io/en/stable/) for static type checking
+* [uv](https://docs.astral.sh/uv/) for managing dependencies and packaging
+* [hatchling](https://github.com/pypa/hatch) as the build backend
+* [prek](https://github.com/j178/prek) for running all the goodies listed below
+* [pyrefly](https://pyrefly.org/) for static type checking
 * [ruff](https://docs.astral.sh/ruff/) for automatic formatting, linting and automatically fixing some linting errors
 
 #### Automation
diff --git a/cookiecutter.json b/cookiecutter.json
index 9ba6450..a1331e3 100644
--- a/cookiecutter.json
+++ b/cookiecutter.json
@@ -12,7 +12,8 @@
     "3.10+",
     "3.11+",
     "3.12+",
-    "3.13+"
+    "3.13+",
+    "3.14+"
   ],
   "_python_version_specs": {
     "3.9+": {
@@ -21,7 +22,8 @@
         "3.10",
         "3.11",
         "3.12",
-        "3.13"
+        "3.13",
+        "3.14"
       ]
     },
     "3.10+": {
@@ -29,25 +31,34 @@
         "3.10",
         "3.11",
         "3.12",
-        "3.13"
+        "3.13",
+        "3.14"
       ]
     },
     "3.11+": {
       "versions": [
         "3.11",
         "3.12",
-        "3.13"
+        "3.13",
+        "3.14"
       ]
     },
     "3.12+": {
       "versions": [
         "3.12",
-        "3.13"
+        "3.13",
+        "3.14"
       ]
     },
     "3.13+": {
       "versions": [
-        "3.13"
+        "3.13",
+        "3.14"
+      ]
+    },
+    "3.14+": {
+      "versions": [
+        "3.14"
       ]
     }
   },
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 0000000..6c24800
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,29 @@
+[project]
+name = "cookiecutter-python-package"
+version = "0.1.0"
+description = "Cookiecutter template for Python packages"
+authors = [{name = "Szymon Cader", email = "szymon.sc.cader@gmail.com"}]
+readme = "README.md"
+requires-python = ">=3.11"
+dependencies = [
+    "cookiecutter>=2.2.3",
+    "pytest>=7.4.0",
+    "pyyaml>=6.0.1",
+    "toml>=0.10.2",
+]
+
+[dependency-groups]
+dev = [
+    "flake8-to-ruff>=0.0.233",
+    "black>=23.7.0",
+    "pre-commit>=3.3.3",
+    "python-redmine>=2.4.0",
+    "cffi>=1.17.1",
+]
+
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[tool.hatch.build.targets.wheel]
+packages = ["."]
diff --git a/tests/test_project_generation.py b/tests/test_project_generation.py
index 8effe19..03345d9 100644
--- a/tests/test_project_generation.py
+++ b/tests/test_project_generation.py
@@ -1,3 +1,4 @@
+import subprocess
 from typing import Any
 
 import pytest
@@ -38,16 +39,27 @@ def test_generate_new_project(tmp_path, generated_project_path):
     assert generated_project_path == tmp_path / PROJECT_NAME
 
 
-def test_poetry_uses_dev_group(generated_project_path):
+def test_uses_hatchling_build_system(generated_project_path):
     pyproject_toml_content = generated_project_path.joinpath(
         "pyproject.toml"
     ).read_text()
 
-    assert "dev-dependencies" not in pyproject_toml_content
-    assert "[tool.poetry.group.dev.dependencies]" in pyproject_toml_content.splitlines()
+    assert '[build-system]' in pyproject_toml_content
+    assert 'hatchling' in pyproject_toml_content
+    assert 'poetry' not in pyproject_toml_content
 
 
-def test_python_version_is_correctly_included_in_black_config(generated_project_path):
+def test_uses_dependency_groups(generated_project_path):
+    pyproject_toml_content = generated_project_path.joinpath(
+        "pyproject.toml"
+    ).read_text()
+
+    assert '[dependency-groups]' in pyproject_toml_content
+    assert 'pyrefly' in pyproject_toml_content
+    assert 'prek' in pyproject_toml_content
+
+
+def test_python_version_is_correctly_included_in_ruff_config(generated_project_path):
     parsed_pyproject_toml = toml.loads(
         generated_project_path.joinpath("pyproject.toml").read_text()
     )
@@ -65,7 +77,7 @@ def test_python_version_is_correctly_included_in_github_workflow(
 
     assert parsed_github_workflow["jobs"]["test"]["strategy"]["matrix"][
                "python-version"
-           ] == ["3.9", "3.10", "3.11", "3.12", "3.13"]
+           ] == ["3.9", "3.10", "3.11", "3.12", "3.13", "3.14"]
 
 
 def test_specific_files_and_packages_are_not_include_if_package_is_meant_to_be_not_releasable(tmp_path):
@@ -77,5 +89,40 @@ def test_specific_files_and_packages_are_not_include_if_package_is_meant_to_be_n
     parsed_pyproject_toml = toml.loads(
         project_path.joinpath("pyproject.toml").read_text()
     )
-    assert "python-kacl" not in parsed_pyproject_toml["tool"]["poetry"]["group"]["dev"]["dependencies"]
+    dev_deps = parsed_pyproject_toml.get("dependency-groups", {}).get("dev", [])
+    assert "python-kacl" not in dev_deps
     assert "pypi" not in Path(project_path / "README.md").read_text().lower()
+
+
+def test_dependencies_can_be_installed(generated_project_path):
+    """Verify that all dependencies in the generated project can be installed with uv sync."""
+    result = subprocess.run(
+        ["uv", "sync"],
+        cwd=generated_project_path,
+        capture_output=True,
+        text=True,
+    )
+    assert result.returncode == 0, f"uv sync failed: {result.stderr}"
+
+
+def test_precommit_hooks_pass(generated_project_path):
+    """Verify that all pre-commit hooks pass on the generated project."""
+    subprocess.run(
+        ["git", "init"],
+        cwd=generated_project_path,
+        capture_output=True,
+        text=True,
+    )
+    subprocess.run(
+        ["git", "add", "."],
+        cwd=generated_project_path,
+        capture_output=True,
+        text=True,
+    )
+    result = subprocess.run(
+        ["uv", "run", "prek", "run", "--all-files"],
+        cwd=generated_project_path,
+        capture_output=True,
+        text=True,
+    )
+    assert result.returncode == 0, f"prek run failed:\nstdout: {result.stdout}\nstderr: {result.stderr}"
diff --git a/{{cookiecutter.project_slug}}/.github/actions/python-poetry-env/action.yml b/{{cookiecutter.project_slug}}/.github/actions/python-poetry-env/action.yml
deleted file mode 100644
index 2883e78..0000000
--- a/{{cookiecutter.project_slug}}/.github/actions/python-poetry-env/action.yml
+++ /dev/null
@@ -1,21 +0,0 @@
-name: 'Setup Python + Poetry environment'
-description: 'Setup Python + Poetry environment'
-{% raw %}
-inputs:
-  python-version:
-    required: false
-    description: 'Python version'
-    default: '3.12'
-outputs: {}
-runs:
-  using: 'composite'
-  steps:
-    - uses: actions/setup-python@v5
-      with:
-        python-version: ${{inputs.python-version}}
-    - name: Install poetry
-      run: python -m pip install poetry
-      shell: bash
-    - name: Create virtual environment
-      run: poetry install
-      shell: bash{% endraw +%}
diff --git a/{{cookiecutter.project_slug}}/.github/workflows/cookiecutter.yml b/{{cookiecutter.project_slug}}/.github/workflows/cookiecutter.yml
index ef28db5..9c72837 100644
--- a/{{cookiecutter.project_slug}}/.github/workflows/cookiecutter.yml
+++ b/{{cookiecutter.project_slug}}/.github/workflows/cookiecutter.yml
@@ -15,7 +15,7 @@ jobs:
           python-version: "3.12"
 
       - name: Install dependencies
-        run: python -m pip install cruft poetry jello tabulate
+        run: python -m pip install cruft jello tabulate prek
 
       - name: Update project structure
         run: |
@@ -23,14 +23,20 @@ jobs:
 
       - name: Check if there are changes
         id: changes
-        run: echo "::set-output name=changed::$(git status --porcelain | wc -l)"
+        run: echo "changed=$(git status --porcelain | wc -l)" >> "$GITHUB_OUTPUT"
 
-      - name: apply additional changes and fixes
+      - name: Install uv
+        if: steps.changes.outputs.changed > 0
+        uses: astral-sh/setup-uv@v7
+        with:
+          enable-cache: false
+
+      - name: Apply additional changes and fixes
         if: steps.changes.outputs.changed > 0
         run: |
-          poetry lock --no-update  # add new dependencies
-          poetry install
-          poetry run pre-commit run -a || true  # we have to fix other issues manually
+          uv lock  # add new dependencies
+          uv sync
+          prek run --all-files
 
       - name: Get template versions
         id: get_versions
@@ -39,8 +45,8 @@ jobs:
         run: |
           CURRENT_VERSION=$(git show HEAD:.cruft.json | jello -r "_['commit'][:8]")
           NEXT_VERSION=$(jello -r "_['commit'][:8]" < .cruft.json)
-          echo ::set-output name="current_version::$CURRENT_VERSION"
-          echo ::set-output name="next_version::$NEXT_VERSION"
+          echo "current_version=$CURRENT_VERSION" >> "$GITHUB_OUTPUT"
+          echo "next_version=$NEXT_VERSION" >> "$GITHUB_OUTPUT"
 
       - name: Get changelog
         id: get_changelog
@@ -60,7 +66,7 @@ jobs:
           body="${body//'%'/'%25'}"
           body="${body//$'\n'/'%0A'}"
           body="${body//$'\r'/'%0D'}"
-          echo ::set-output name="changelog::$body"
+          echo "changelog=$body" >> "$GITHUB_OUTPUT"
 
       # behaviour if PR already exists: https://github.com/marketplace/actions/create-pull-request#action-behaviour
       - name: Create Pull Request
@@ -68,7 +74,7 @@ jobs:
           # a PAT is required to be able to update workflows
           GITHUB_TOKEN: ${{ secrets.AUTO_UPDATE_GITHUB_TOKEN }}
         if: ${{ steps.changes.outputs.changed > 0 && env.GITHUB_TOKEN != 0 }}
-        uses: peter-evans/create-pull-request@v3
+        uses: peter-evans/create-pull-request@v6
         with:
           token: ${{ env.GITHUB_TOKEN }}
           commit-message: >-
diff --git a/{{cookiecutter.project_slug}}/.github/workflows/dependencies.yml b/{{cookiecutter.project_slug}}/.github/workflows/dependencies.yml
index 38203bd..e6d710d 100644
--- a/{{cookiecutter.project_slug}}/.github/workflows/dependencies.yml
+++ b/{{cookiecutter.project_slug}}/.github/workflows/dependencies.yml
@@ -9,7 +9,16 @@ jobs:
     runs-on: ubuntu-latest
     steps:
       - uses: actions/checkout@v4
-      - uses: ./.github/actions/python-poetry-env
+      - name: Install uv
+        uses: astral-sh/setup-uv@v7
+        with:
+          enable-cache: false
+{% endraw %}
+          python-version: "{{ cookiecutter._python_version_specs[cookiecutter.python_version]['versions'][0] }}"
+{% raw %}
+
+      - name: Sync project dependencies
+        run: uv sync
 
       - name: Install tabulate
         run: python -m pip install tabulate
@@ -17,15 +26,17 @@ jobs:
       - name: Gather outdated dependencies
         id: check_for_outdated_dependencies
         run: |
-          body=$(poetry show -o -n)
-          echo ::set-output name="body::$body"
+          body=$(uv pip list --outdated --format json --python .venv/bin/python)
+          if [ "$body" != "[]" ]; then
+            echo "body=$body" >> "$GITHUB_OUTPUT"
+          fi
 
-      - name: Format PR message
+      - name: Format PR Message
         if: ${{ steps.check_for_outdated_dependencies.outputs.body != 0 }}
         id: get_outdated_dependencies
         shell: bash
         run: |
-          body=$(poetry show -o -n | sed 's/(!)//' | awk 'BEGIN {print "Package","Used","Update"}; {print $1,$2,$3}' | tabulate --header --format github -)
+          body=$(echo '${{ steps.check_for_outdated_dependencies.outputs.body }}' | jq -r '.[] | "\(.name) \(.version) \(.latest_version)"' | awk 'BEGIN {print "Package","Used","Latest"}; {print $1,$2,$3}' | tabulate --header --format github -)
           body=$(cat <<EOF
           The following packages are outdated
 
@@ -35,18 +46,18 @@ jobs:
           body="${body//'%'/'%25'}"
           body="${body//$'\n'/'%0A'}"
           body="${body//$'\r'/'%0D'}"
-          echo ::set-output name="body::$body"
+          echo "body=$body" >> "$GITHUB_OUTPUT"
 
       - name: Update outdated packages
         if: ${{ steps.check_for_outdated_dependencies.outputs.body != 0 }}
-        run: poetry lock
+        run: uv lock
 
       # behaviour if PR already exists: https://github.com/marketplace/actions/create-pull-request#action-behaviour
       - name: Create Pull Request
         env:
           GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
         if: ${{ steps.check_for_outdated_dependencies.outputs.body != 0 }}
-        uses: peter-evans/create-pull-request@v3
+        uses: peter-evans/create-pull-request@v6
         with:
           token: ${{ env.GITHUB_TOKEN }}
           commit-message: >-
diff --git a/{{cookiecutter.project_slug}}/.github/workflows/draft_release.yml b/{{cookiecutter.project_slug}}/.github/workflows/draft_release.yml
index c67ae6e..51c49e5 100644
--- a/{{cookiecutter.project_slug}}/.github/workflows/draft_release.yml
+++ b/{{cookiecutter.project_slug}}/.github/workflows/draft_release.yml
@@ -13,21 +13,27 @@ jobs:
     runs-on: ubuntu-latest
     steps:
       - uses: actions/checkout@v4
-      - uses: ./.github/actions/python-poetry-env
+      - name: Install uv
+        uses: astral-sh/setup-uv@v7
+        with:
+          enable-cache: false
+{% endraw %}
+          python-version: "{{ cookiecutter._python_version_specs[cookiecutter.python_version]['versions'][0] }}"
+{% raw %}
       - name: Update version
         id: updated_version
         shell: bash
         run: |
-          poetry version ${{ github.event.inputs.version }}
-          version=$(poetry version --short)
+          uv version ${{ github.event.inputs.version }}
+          version=$(uv version --short)
           echo ::set-output name="version::$version"
       - name: Update changelog
         id: changelog
         shell: bash
         run: |
-          poetry run kacl-cli release ${{ steps.updated_version.outputs.version }} --modify --auto-link
+          uv run kacl-cli release ${{ steps.updated_version.outputs.version }} --modify --auto-link
           echo "" >> CHANGELOG.md
-          body=$(poetry run kacl-cli get ${{ steps.updated_version.outputs.version }})
+          body=$(uv run kacl-cli get ${{ steps.updated_version.outputs.version }})
           body="${body//'%'/'%25'}"
           body="${body//$'\n'/'%0A'}"
           body="${body//$'\r'/'%0D'}"
diff --git a/{{cookiecutter.project_slug}}/.github/workflows/release.yml b/{{cookiecutter.project_slug}}/.github/workflows/release.yml
index 8100ddd..aee386f 100644
--- a/{{cookiecutter.project_slug}}/.github/workflows/release.yml
+++ b/{{cookiecutter.project_slug}}/.github/workflows/release.yml
@@ -9,10 +9,16 @@ jobs:
     runs-on: ubuntu-latest
     steps:
       - uses: actions/checkout@v4
-      - uses: ./.github/actions/python-poetry-env
+      - name: Install uv
+        uses: astral-sh/setup-uv@v7
+        with:
+          enable-cache: false
+{% endraw %}
+          python-version: "{{ cookiecutter._python_version_specs[cookiecutter.python_version]['versions'][0] }}"
+{% raw %}
       - name: Publish to pypi
-        run: |
-          poetry config pypi-token.pypi ${{ secrets.PYPI_TOKEN }}
-          poetry publish --build --no-interaction
+        env:
+          UV_PUBLISH_TOKEN: ${{ secrets.PYPI_TOKEN }}
+        run: uv publish --build
       - name: Deploy docs
-        run: poetry run mkdocs gh-deploy --force{% endraw +%}
+        run: uv run mkdocs gh-deploy --force{% endraw +%}
diff --git a/{{cookiecutter.project_slug}}/.github/workflows/test.yml b/{{cookiecutter.project_slug}}/.github/workflows/test.yml
index 8676966..e9db5cb 100644
--- a/{{cookiecutter.project_slug}}/.github/workflows/test.yml
+++ b/{{cookiecutter.project_slug}}/.github/workflows/test.yml
@@ -12,7 +12,7 @@ jobs:
     steps:
       - uses: actions/checkout@v4
       - name: Download actionlint
-        run: bash <(curl https://raw.githubusercontent.com/rhysd/actionlint/main/scripts/download-actionlint.bash) 1.6.21
+        run: bash <(curl https://raw.githubusercontent.com/rhysd/actionlint/main/scripts/download-actionlint.bash) 1.7.11
         shell: bash
       - name: Check workflow files
         run: ./actionlint -color
@@ -30,9 +30,15 @@ jobs:
     runs-on: ubuntu-latest
     steps:
       - uses: actions/checkout@v4
-      - uses: ./.github/actions/python-poetry-env
-      - run: poetry run pre-commit run --all-files
-  {%- endraw %}
+      - name: Install uv
+        uses: astral-sh/setup-uv@v7
+        with:
+          enable-cache: false
+          python-version: "3.12"
+      - name: Install prek
+        run: uv pip install prek
+      - run: prek run --all-files
+{%- endraw %}
 
   test:
     runs-on: ubuntu-latest
@@ -42,14 +48,20 @@ jobs:
         python-version: {{ cookiecutter._python_version_specs[cookiecutter.python_version].versions }}
     steps:
       - uses: actions/checkout@v4
-      - uses: ./.github/actions/python-poetry-env
+      - name: Install uv
+        uses: astral-sh/setup-uv@v7
         with:
+          enable-cache: false
           python-version: {% raw %}${{ matrix.python-version }}{% endraw +%}
-      - run: poetry run pytest
+      - run: uv run pytest
 
   docs:
     runs-on: ubuntu-latest
     steps:
       - uses: actions/checkout@v4
-      - uses: ./.github/actions/python-poetry-env
-      - run: poetry run mkdocs build
+      - name: Install uv
+        uses: astral-sh/setup-uv@v7
+        with:
+          enable-cache: false
+          python-version: "3.12"
+      - run: uv run mkdocs build
diff --git a/{{cookiecutter.project_slug}}/.gitignore b/{{cookiecutter.project_slug}}/.gitignore
index cd7bdfe..4b33e59 100644
--- a/{{cookiecutter.project_slug}}/.gitignore
+++ b/{{cookiecutter.project_slug}}/.gitignore
@@ -84,3 +84,7 @@ CHANGELOG.md
 .github/workflows/draft_release.yml
 .github/workflows/release.yml
 {% endif %}
+
+# Claude Code
+.agents/
+.claude/
diff --git a/{{cookiecutter.project_slug}}/.pre-commit-config.yaml b/{{cookiecutter.project_slug}}/.pre-commit-config.yaml
index a1d1bc3..8d4c937 100644
--- a/{{cookiecutter.project_slug}}/.pre-commit-config.yaml
+++ b/{{cookiecutter.project_slug}}/.pre-commit-config.yaml
@@ -1,45 +1,79 @@
 repos:
--   repo: https://github.com/pre-commit/pre-commit-hooks
-    rev: v4.0.1
-    hooks:
-      - id: check-ast
-      - id: check-added-large-files
-      - id: check-merge-conflict
-      - id: check-case-conflict
-      - id: check-docstring-first
-      - id: check-json
-      - id: check-yaml
-      - id: debug-statements
-      - id: end-of-file-fixer
-      - id: trailing-whitespace
-      - id: mixed-line-ending
--   repo: local
-    hooks:
-      - id: ruff-format
-        name: ruff-format
-        entry: poetry run ruff format
-        require_serial: true
-        language: system
-        types: [ python ]
-      - id: ruff
-        name: ruff
-        # Remove --fix, in case you want it to disable autofix when this hook runs
-        entry: poetry run ruff check --fix --force-exclude
-        require_serial: true
-        language: system
-        types: [ python ]
-      - id: mypy
-        name: mypy
-        entry: poetry run mypy .
-        require_serial: true
-        language: system
-        types: [python]
-        pass_filenames: false
-      {% if cookiecutter.releasable %}
-      - id: kacl-verify
-        name: kacl-verify
-        entry: poetry run kacl-cli verify
-        language: system
-        files: 'CHANGELOG.md'
-        pass_filenames: false
-      {% endif %}
+    # Prek builtin hooks (fast Rust implementations)
+    - repo: builtin
+      hooks:
+          # Phase 0-2: File fixers run sequentially
+          - id: mixed-line-ending
+            priority: 0
+          - id: trailing-whitespace
+            priority: 1
+          - id: end-of-file-fixer
+            priority: 2
+
+    # Project-specific hooks
+    - repo: local
+      hooks:
+          # Phase 10: Format code (runs alone, sequentially)
+          - id: ruff-format
+            name: ruff-format
+            entry: uv run ruff format
+            require_serial: true
+            language: system
+            types: [python]
+            priority: 10
+
+          # Phase 20: Fix linting issues (runs alone, sequentially)
+          - id: ruff
+            name: ruff
+            entry: uv run ruff check --fix --force-exclude
+            require_serial: true
+            language: system
+            types: [python]
+            priority: 20
+
+    # Phase 100: All read-only checks run in parallel
+    - repo: builtin
+      hooks:
+          - id: check-added-large-files
+            priority: 100
+          - id: check-merge-conflict
+            priority: 100
+          - id: check-case-conflict
+            priority: 100
+          - id: check-json
+            priority: 100
+          - id: check-yaml
+            priority: 100
+
+    - repo: https://github.com/pre-commit/pre-commit-hooks
+      rev: v4.0.1
+      hooks:
+          - id: check-ast
+            priority: 100
+          - id: check-docstring-first
+            priority: 100
+          - id: debug-statements
+            priority: 100
+
+    - repo: local
+      hooks:
+          - id: pyrefly
+            name: pyrefly
+            entry: uv run pyrefly check
+            require_serial: false
+            language: system
+            types: [python]
+            pass_filenames: false
+            priority: 100
+
+{% if cookiecutter.releasable %}
+    - repo: local
+      hooks:
+          - id: kacl-verify
+            name: kacl-verify
+            entry: uv run kacl-cli verify
+            language: system
+            files: 'CHANGELOG.md'
+            pass_filenames: false
+            priority: 100
+{% endif %}
diff --git a/{{cookiecutter.project_slug}}/poetry.toml b/{{cookiecutter.project_slug}}/poetry.toml
deleted file mode 100644
index ab1033b..0000000
--- a/{{cookiecutter.project_slug}}/poetry.toml
+++ /dev/null
@@ -1,2 +0,0 @@
-[virtualenvs]
-in-project = true
diff --git a/{{cookiecutter.project_slug}}/pyproject.toml b/{{cookiecutter.project_slug}}/pyproject.toml
index 11b551a..845d7b3 100644
--- a/{{cookiecutter.project_slug}}/pyproject.toml
+++ b/{{cookiecutter.project_slug}}/pyproject.toml
@@ -28,29 +28,28 @@ documentation = "https://{{ cookiecutter.github_username }}.github.io/{{ cookiec
 homepage = "https://{{ cookiecutter.github_username }}.github.io/{{ cookiecutter.project_slug }}"
 repository = "https://github.com/{{ cookiecutter.github_username }}/{{ cookiecutter.project_slug }}"
 
-
-[tool.poetry]
-packages = [
-    { include = "{{ cookiecutter.package_name }}", from = "src" }
-]
-
-[tool.poetry.group.dev.dependencies]
-mkdocstrings = {version = ">=0.23", extras = ["python"]}
-mkdocs-material = "*"
-mypy = "*"
-pre-commit = "*"
-pymdown-extensions = "*"
-pytest = "*"
-pytest-github-actions-annotate-failures = "*"
-pytest-cov = "*"
+[dependency-groups]
+dev = [
+    "pyrefly",
+    "prek",
+    "pytest",
+    "pytest-cov",
+    "ruff",
+    "mkdocs-material",
+    "mkdocstrings[python]",
+    "pymdown-extensions",
+    "pytest-github-actions-annotate-failures",
 {% if cookiecutter.releasable %}
-python-kacl = "*"
+    "python-kacl",
 {% endif %}
-ruff = "*"
+]
 
 [build-system]
-requires = ["poetry-core>=1.0.0"]
-build-backend = "poetry.core.masonry.api"
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[tool.hatch.build.targets.wheel]
+packages = ["src/{{ cookiecutter.package_name }}"]
 
 [tool.ruff]
 target-version = "py{{ cookiecutter._python_version_specs[cookiecutter.python_version]['versions'][0].replace('.', '') }}"
@@ -119,24 +118,4 @@ exclude_lines = [
     'pragma: no cover'
 ]
 
-[tool.mypy]
-# This is the global mypy configuration.
-# Avoid changing this!
-strict = true  # See all the enabled flags `mypy --help | grep -A 10 'Strict mode'`
-disallow_any_unimported = true
-
-# If you need to ignore something for some specific module,
-# add overrides for them. Avoid changing the global config!
-# For example:
-# [[tool.mypy.overrides]]
-# module = [
-#  "my_unpyted_dependency1.*",
-#  "my_unpyted_dependency2.*"
-# ]
-# ignore_missing_imports = true
-
-# [[tool.mypy.overrides]]
-# module = [
-#   "tests/my_thing/test_my_thing",
-# ]
-# disallow_untyped_defs = false
+[tool.pyrefly]