diff --git a/docs/advanced/pyproject_toml.md b/docs/advanced/pyproject_toml.md
index c55f362e0..7018a391e 100644
--- a/docs/advanced/pyproject_toml.md
+++ b/docs/advanced/pyproject_toml.md
@@ -14,8 +14,11 @@ platforms = ["linux-64", "osx-arm64", "osx-64", "win-64"]
 ```
 This is the minimum requirement for pixi to understand and parse the project.
 
-If you use `pixi init` in a folder that has a `pyproject.toml` file, pixi will automatically add the `[tool.pixi.project]` section to the file.
-And will also add some defaults to the `.gitignore` and `.gitattributes` file.
+However, it is recommended you use `pixi init` in a folder that has a `pyproject.toml` file. Pixi will automatically
+
+ - Add the above `[tool.pixi.project]` section to the file, auto-detecting your current platform;
+ - Add the current project as an editable pypi dependency;
+ - Add some defaults to the `.gitignore` and `.gitattributes` file.
 
 ## Python dependency
 The `pyproject.toml` file supports the `requires_python` field.
@@ -144,11 +147,19 @@ test = ["test"]
 ```
 
 ## Build-system section
-The `pyproject.toml` file normally contains a `[build-system]` section.
-Currently, pixi does not use this section, but it is recommended to keep it in the file for compatibility with other tools.
+The `pyproject.toml` file normally contains a `[build-system]` section.  Pixi will use this section to build and install the project if it is added as a pypi path dependency.
+
+If the `pyproject.toml` file does not contain any `[build-system]` section, pixi will fall back to [uv](https://github.com/astral-sh/uv)'s default, which is equivalent to the below:
+
+```toml title="pyproject.toml"
+[build-system]
+requires = ["setuptools >= 40.8.0"]
+build-backend = "setuptools.build_meta:__legacy__"
+```
+Including a `[build-system]` section is **highly recommended**. If you are not sure of the [build-backend](https://packaging.python.org/en/latest/tutorials/packaging-projects/#choosing-build-backend) you want to use, including the `[build-system]` section below in your `pyproject.toml` is a good starting point
 
 ```toml title="pyproject.toml"
 [build-system]
-requires = ["setuptools", "wheel"]
+requires = ["setuptools"]
 build-backend = "setuptools.build_meta"
 ```
diff --git a/examples/flask-hello-world-pyproject/.gitignore b/examples/flask-hello-world-pyproject/.gitignore
new file mode 100644
index 000000000..11041c783
--- /dev/null
+++ b/examples/flask-hello-world-pyproject/.gitignore
@@ -0,0 +1 @@
+*.egg-info
diff --git a/examples/flask-hello-world-pyproject/flask_hello_world_pyproject/__init__.py b/examples/flask-hello-world-pyproject/flask_hello_world_pyproject/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/examples/flask-hello-world-pyproject/app.py b/examples/flask-hello-world-pyproject/flask_hello_world_pyproject/app.py
similarity index 100%
rename from examples/flask-hello-world-pyproject/app.py
rename to examples/flask-hello-world-pyproject/flask_hello_world_pyproject/app.py
diff --git a/examples/flask-hello-world-pyproject/pixi.lock b/examples/flask-hello-world-pyproject/pixi.lock
index 940a3cd35..709004e6f 100644
--- a/examples/flask-hello-world-pyproject/pixi.lock
+++ b/examples/flask-hello-world-pyproject/pixi.lock
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+  - exceptiongroup >=1.0.0rc8 ; python_version < '3.11'
+  - tomli >=1 ; python_version < '3.11'
+  - colorama ; sys_platform == 'win32'
+  - argcomplete ; extra == 'testing'
+  - attrs >=19.2 ; extra == 'testing'
+  - hypothesis >=3.56 ; extra == 'testing'
+  - mock ; extra == 'testing'
+  - pygments >=2.7.2 ; extra == 'testing'
+  - requests ; extra == 'testing'
+  - setuptools ; extra == 'testing'
+  - xmlschema ; extra == 'testing'
+  requires_python: '>=3.8'
+- kind: conda
+  name: python
+  version: 3.12.2
+  build: h2628c8c_0_cpython
+  subdir: win-64
+  url: https://conda.anaconda.org/conda-forge/win-64/python-3.12.2-h2628c8c_0_cpython.conda
+  sha256: b8eda863b48ae4531635e23fd15e759d93212b6204c6847d591e25fa5fd67477
+  md5: be8803e9f75a477df61d4aabea3c1246
+  depends:
+  - bzip2 >=1.0.8,<2.0a0
+  - libexpat >=2.5.0,<3.0a0
+  - libffi >=3.4,<4.0a0
+  - libsqlite >=3.45.1,<4.0a0
+  - libzlib >=1.2.13,<1.3.0a0
+  - openssl >=3.2.1,<4.0a0
+  - tk >=8.6.13,<8.7.0a0
+  - tzdata
+  - ucrt >=10.0.20348.0
+  - vc >=14.2,<15
+  - vc14_runtime >=14.29.30139
+  - xz >=5.2.6,<6.0a0
+  constrains:
+  - python_abi 3.12.* *_cp312
+  license: Python-2.0
+  size: 16083296
+  timestamp: 1708116662336
+- kind: conda
+  name: python
+  version: 3.12.2
+  build: h9f0c242_0_cpython
+  subdir: osx-64
+  url: https://conda.anaconda.org/conda-forge/osx-64/python-3.12.2-h9f0c242_0_cpython.conda
+  sha256: 7647ac06c3798a182a4bcb1ff58864f1ef81eb3acea6971295304c23e43252fb
+  md5: 0179b8007ba008cf5bec11f3b3853902
+  depends:
+  - bzip2 >=1.0.8,<2.0a0
+  - libexpat >=2.5.0,<3.0a0
+  - libffi >=3.4,<4.0a0
+  - libsqlite >=3.45.1,<4.0a0
+  - libzlib >=1.2.13,<1.3.0a0
+  - ncurses >=6.4,<7.0a0
+  - openssl >=3.2.1,<4.0a0
+  - readline >=8.2,<9.0a0
+  - tk >=8.6.13,<8.7.0a0
+  - tzdata
+  - xz >=5.2.6,<6.0a0
+  constrains:
+  - python_abi 3.12.* *_cp312
+  license: Python-2.0
+  size: 14596811
+  timestamp: 1708118065292
 - kind: conda
   name: python
   version: 3.12.2
@@ -352,6 +893,31 @@ packages:
   license: Python-2.0
   size: 32312631
   timestamp: 1708118077305
+- kind: conda
+  name: python
+  version: 3.12.2
+  build: hdf0ec26_0_cpython
+  subdir: osx-arm64
+  url: https://conda.anaconda.org/conda-forge/osx-arm64/python-3.12.2-hdf0ec26_0_cpython.conda
+  sha256: ccd6c55a286d51d907c878ed2bfa7d1becce0fee71374a9386c5eb90d803ac72
+  md5: 85e91138ae921a2771f57a50120272bd
+  depends:
+  - bzip2 >=1.0.8,<2.0a0
+  - libexpat >=2.5.0,<3.0a0
+  - libffi >=3.4,<4.0a0
+  - libsqlite >=3.45.1,<4.0a0
+  - libzlib >=1.2.13,<1.3.0a0
+  - ncurses >=6.4,<7.0a0
+  - openssl >=3.2.1,<4.0a0
+  - readline >=8.2,<9.0a0
+  - tk >=8.6.13,<8.7.0a0
+  - tzdata
+  - xz >=5.2.6,<6.0a0
+  constrains:
+  - python_abi 3.12.* *_cp312
+  license: Python-2.0
+  size: 13085901
+  timestamp: 1708117361381
 - kind: conda
   name: readline
   version: '8.2'
@@ -368,6 +934,83 @@ packages:
   license_family: GPL
   size: 281456
   timestamp: 1679532220005
+- kind: conda
+  name: readline
+  version: '8.2'
+  build: h92ec313_1
+  build_number: 1
+  subdir: osx-arm64
+  url: https://conda.anaconda.org/conda-forge/osx-arm64/readline-8.2-h92ec313_1.conda
+  sha256: a1dfa679ac3f6007362386576a704ad2d0d7a02e98f5d0b115f207a2da63e884
+  md5: 8cbb776a2f641b943d413b3e19df71f4
+  depends:
+  - ncurses >=6.3,<7.0a0
+  license: GPL-3.0-only
+  license_family: GPL
+  size: 250351
+  timestamp: 1679532511311
+- kind: conda
+  name: readline
+  version: '8.2'
+  build: h9e318b2_1
+  build_number: 1
+  subdir: osx-64
+  url: https://conda.anaconda.org/conda-forge/osx-64/readline-8.2-h9e318b2_1.conda
+  sha256: 41e7d30a097d9b060037f0c6a2b1d4c4ae7e942c06c943d23f9d481548478568
+  md5: f17f77f2acf4d344734bda76829ce14e
+  depends:
+  - ncurses >=6.3,<7.0a0
+  license: GPL-3.0-only
+  license_family: GPL
+  size: 255870
+  timestamp: 1679532707590
+- kind: conda
+  name: tk
+  version: 8.6.13
+  build: h1abcd95_1
+  build_number: 1
+  subdir: osx-64
+  url: https://conda.anaconda.org/conda-forge/osx-64/tk-8.6.13-h1abcd95_1.conda
+  sha256: 30412b2e9de4ff82d8c2a7e5d06a15f4f4fef1809a72138b6ccb53a33b26faf5
+  md5: bf830ba5afc507c6232d4ef0fb1a882d
+  depends:
+  - libzlib >=1.2.13,<1.3.0a0
+  license: TCL
+  license_family: BSD
+  size: 3270220
+  timestamp: 1699202389792
+- kind: conda
+  name: tk
+  version: 8.6.13
+  build: h5083fa2_1
+  build_number: 1
+  subdir: osx-arm64
+  url: https://conda.anaconda.org/conda-forge/osx-arm64/tk-8.6.13-h5083fa2_1.conda
+  sha256: 72457ad031b4c048e5891f3f6cb27a53cb479db68a52d965f796910e71a403a8
+  md5: b50a57ba89c32b62428b71a875291c9b
+  depends:
+  - libzlib >=1.2.13,<1.3.0a0
+  license: TCL
+  license_family: BSD
+  size: 3145523
+  timestamp: 1699202432999
+- kind: conda
+  name: tk
+  version: 8.6.13
+  build: h5226925_1
+  build_number: 1
+  subdir: win-64
+  url: https://conda.anaconda.org/conda-forge/win-64/tk-8.6.13-h5226925_1.conda
+  sha256: 2c4e914f521ccb2718946645108c9bd3fc3216ba69aea20c2c3cedbd8db32bb1
+  md5: fc048363eb8f03cd1737600a5d08aafe
+  depends:
+  - ucrt >=10.0.20348.0
+  - vc >=14.2,<15
+  - vc14_runtime >=14.29.30139
+  license: TCL
+  license_family: BSD
+  size: 3503410
+  timestamp: 1699202577803
 - kind: conda
   name: tk
   version: 8.6.13
@@ -396,11 +1039,74 @@ packages:
   license: LicenseRef-Public-Domain
   size: 119815
   timestamp: 1706886945727
+- kind: conda
+  name: ucrt
+  version: 10.0.22621.0
+  build: h57928b3_0
+  subdir: win-64
+  url: https://conda.anaconda.org/conda-forge/win-64/ucrt-10.0.22621.0-h57928b3_0.tar.bz2
+  sha256: f29cdaf8712008f6b419b8b1a403923b00ab2504bfe0fb2ba8eb60e72d4f14c6
+  md5: 72608f6cd3e5898229c3ea16deb1ac43
+  constrains:
+  - vs2015_runtime >=14.29.30037
+  license: LicenseRef-Proprietary
+  license_family: PROPRIETARY
+  size: 1283972
+  timestamp: 1666630199266
+- kind: conda
+  name: vc
+  version: '14.3'
+  build: hcf57466_18
+  build_number: 18
+  subdir: win-64
+  url: https://conda.anaconda.org/conda-forge/win-64/vc-14.3-hcf57466_18.conda
+  sha256: 447a8d8292a7b2107dcc18afb67f046824711a652725fc0f522c368e7a7b8318
+  md5: 20e1e652a4c740fa719002a8449994a2
+  depends:
+  - vc14_runtime >=14.38.33130
+  track_features:
+  - vc14
+  license: BSD-3-Clause
+  license_family: BSD
+  size: 16977
+  timestamp: 1702511255313
+- kind: conda
+  name: vc14_runtime
+  version: 14.38.33130
+  build: h82b7239_18
+  build_number: 18
+  subdir: win-64
+  url: https://conda.anaconda.org/conda-forge/win-64/vc14_runtime-14.38.33130-h82b7239_18.conda
+  sha256: bf94c9af4b2e9cba88207001197e695934eadc96a5c5e4cd7597e950aae3d8ff
+  md5: 8be79fdd2725ddf7bbf8a27a4c1f79ba
+  depends:
+  - ucrt >=10.0.20348.0
+  constrains:
+  - vs2015_runtime 14.38.33130.* *_18
+  license: LicenseRef-ProprietaryMicrosoft
+  license_family: Proprietary
+  size: 749868
+  timestamp: 1702511239004
+- kind: conda
+  name: vs2015_runtime
+  version: 14.38.33130
+  build: hcb4865c_18
+  build_number: 18
+  subdir: win-64
+  url: https://conda.anaconda.org/conda-forge/win-64/vs2015_runtime-14.38.33130-hcb4865c_18.conda
+  sha256: a2fec221f361d6263c117f4ea6d772b21c90a2f8edc6f3eb0eadec6bfe8843db
+  md5: 10d42885e3ed84e575b454db30f1aa93
+  depends:
+  - vc14_runtime >=14.38.33130
+  license: BSD-3-Clause
+  license_family: BSD
+  size: 16988
+  timestamp: 1702511261442
 - kind: pypi
   name: werkzeug
-  version: 3.0.1
-  url: https://files.pythonhosted.org/packages/c3/fc/254c3e9b5feb89ff5b9076a23218dafbc99c96ac5941e900b71206e6313b/werkzeug-3.0.1-py3-none-any.whl
-  sha256: 90a285dc0e42ad56b34e696398b8122ee4c681833fb35b8334a095d82c56da10
+  version: 3.0.2
+  url: https://files.pythonhosted.org/packages/e3/23/c9843d7550092ae7ad380611c238f44afef66f58f76c1dab7dcf313e4339/werkzeug-3.0.2-py3-none-any.whl
+  sha256: 3aac3f5da756f93030740bc235d3e09449efcf65f2f55e3602e1d851b8f48795
   requires_dist:
   - markupsafe >=2.1.1
   - watchdog >=2.3 ; extra == 'watchdog'
@@ -418,3 +1124,39 @@ packages:
   license: LGPL-2.1 and GPL-2.0
   size: 418368
   timestamp: 1660346797927
+- kind: conda
+  name: xz
+  version: 5.2.6
+  build: h57fd34a_0
+  subdir: osx-arm64
+  url: https://conda.anaconda.org/conda-forge/osx-arm64/xz-5.2.6-h57fd34a_0.tar.bz2
+  sha256: 59d78af0c3e071021cfe82dc40134c19dab8cdf804324b62940f5c8cd71803ec
+  md5: 39c6b54e94014701dd157f4f576ed211
+  license: LGPL-2.1 and GPL-2.0
+  size: 235693
+  timestamp: 1660346961024
+- kind: conda
+  name: xz
+  version: 5.2.6
+  build: h775f41a_0
+  subdir: osx-64
+  url: https://conda.anaconda.org/conda-forge/osx-64/xz-5.2.6-h775f41a_0.tar.bz2
+  sha256: eb09823f34cc2dd663c0ec4ab13f246f45dcd52e5b8c47b9864361de5204a1c8
+  md5: a72f9d4ea13d55d745ff1ed594747f10
+  license: LGPL-2.1 and GPL-2.0
+  size: 238119
+  timestamp: 1660346964847
+- kind: conda
+  name: xz
+  version: 5.2.6
+  build: h8d14728_0
+  subdir: win-64
+  url: https://conda.anaconda.org/conda-forge/win-64/xz-5.2.6-h8d14728_0.tar.bz2
+  sha256: 54d9778f75a02723784dc63aff4126ff6e6749ba21d11a6d03c1f4775f269fe0
+  md5: 515d77642eaa3639413c6b1bc3f94219
+  depends:
+  - vc >=14.1,<15
+  - vs2015_runtime >=14.16.27033
+  license: LGPL-2.1 and GPL-2.0
+  size: 217804
+  timestamp: 1660346976440
diff --git a/examples/flask-hello-world-pyproject/pyproject.toml b/examples/flask-hello-world-pyproject/pyproject.toml
index 4e04495df..f98149cd1 100644
--- a/examples/flask-hello-world-pyproject/pyproject.toml
+++ b/examples/flask-hello-world-pyproject/pyproject.toml
@@ -2,16 +2,22 @@
 name = "flask-hello-world-pyproject"
 version = "0.1.0"
 description = "Example how to get started with flask in a pixi environment."
-license = "MIT OR Apache-2.0"
-homepage = "https://github.com/prefix/pixi"
 readme = "README.md"
 requires-python = ">=3.11"
-dependencies = ["flask==2.*"]
+dependencies = ["flask==2.*", "pytest"]
+
+[build-system]
+requires = ["setuptools", "wheel"]
+build-backend = "setuptools.build_meta"
 
 [tool.pixi.project]
 name = "flask-hello-world-pyproject"
 channels = ["conda-forge"]
-platforms = ["linux-64"]
+platforms = ["linux-64", "osx-arm64", "osx-64", "win-64"]
+
+[tool.pixi.pypi-dependencies]
+flask-hello-world-pyproject = { path = ".", editable = true }
 
 [tool.pixi.tasks]
-start = "python -m flask run --port=5050"
+start = "python -m flask --app flask_hello_world_pyproject.app:app run --port=5050"
+test = "pytest -v tests/*"
diff --git a/examples/flask-hello-world-pyproject/tests/test.py b/examples/flask-hello-world-pyproject/tests/test.py
new file mode 100644
index 000000000..f81c8c708
--- /dev/null
+++ b/examples/flask-hello-world-pyproject/tests/test.py
@@ -0,0 +1,6 @@
+import flask_hello_world_pyproject  # noqa: F401
+
+
+def test_import():
+    """Simple test to validate the package itself has been installed."""
+    assert True
diff --git a/src/cli/init.rs b/src/cli/init.rs
index 88089297a..756827ea6 100644
--- a/src/cli/init.rs
+++ b/src/cli/init.rs
@@ -7,6 +7,7 @@ use clap::Parser;
 use indexmap::IndexMap;
 use miette::IntoDiagnostic;
 use minijinja::{context, Environment};
+use pyproject_toml::PyProjectToml;
 use rattler_conda_types::Platform;
 use std::io::{Error, ErrorKind, Write};
 use std::path::Path;
@@ -58,10 +59,14 @@ name = "{{ name }}"
 channels = [{%- if channels %}"{{ channels|join("\", \"") }}"{%- endif %}]
 platforms = ["{{ platforms|join("\", \"") }}"]
 
+[tool.pixi.pypi-dependencies]
+{{ name }} = { path = ".", editable = true }
+
 "#;
 
 const GITIGNORE_TEMPLATE: &str = r#"# pixi environments
 .pixi
+*.egg-info
 
 "#;
 
@@ -147,12 +152,20 @@ pub async fn execute(args: Args) -> miette::Result<()> {
         if pyproject_manifest_path.is_file() {
             let file = fs::read_to_string(pyproject_manifest_path.clone()).unwrap();
             if !file.contains("[tool.pixi.project]") {
+                // Get name from the pyproject [project] table
+                let name = match PyProjectToml::new(file.as_str()) {
+                    Ok(pyproject) => pyproject
+                        .project
+                        .map(|p| p.name)
+                        .expect("'name' should be defined in the [project] table"),
+                    Err(e) => miette::bail!("Failed to parse 'pyproject.toml'. Error is {}", e),
+                };
                 let rv = env
                     .render_named_str(
                         consts::PYPROJECT_MANIFEST,
                         PYROJECT_TEMPLATE,
                         context! {
-                            default_name,
+                            name,
                             channels,
                             platforms
                         },
@@ -169,6 +182,13 @@ pub async fn execute(args: Args) -> miette::Result<()> {
                         pyproject_manifest_path.to_string_lossy(),
                         e
                     );
+                } else {
+                    // Inform about the addition of the package itself as an editable dependency of the project
+                    eprintln!(
+                        "{}Added package '{}' as an editable dependency.",
+                        console::style(console::Emoji("✔ ", "")).green(),
+                        name
+                    );
                 }
             }
 
diff --git a/src/project/manifest/pyproject.rs b/src/project/manifest/pyproject.rs
index a6bedc9d6..65bcd5d85 100644
--- a/src/project/manifest/pyproject.rs
+++ b/src/project/manifest/pyproject.rs
@@ -39,18 +39,22 @@ impl PyProjectManifest {
 
 impl From<PyProjectManifest> for ProjectManifest {
     fn from(item: PyProjectManifest) -> Self {
-        // Start by loading the data nested under "tool.pixi"
+        // Start by loading the data nested under "tool.pixi" as manifest,
+        // and create a reference to the 'pyproject.toml' project table
         let mut manifest = item.tool.pixi.clone();
+        let pyproject = item
+            .project
+            .as_ref()
+            .expect("the [project] table should exist");
 
         // TODO: tool.pixi.project.name should be made optional or read from project.name
         // TODO: could copy across / convert some other optional fields if relevant
 
         // Add python as dependency based on the project.requires_python property (if any)
-        let pythonspec = item
-            .project
-            .as_ref()
-            .and_then(|p| p.requires_python.as_ref())
-            .map(|v| VersionOrUrl::VersionSpecifier(v.clone()));
+        let pythonspec = pyproject
+            .requires_python
+            .clone()
+            .map(VersionOrUrl::VersionSpecifier);
         let target = manifest.default_feature_mut().targets.default_mut();
         target.add_dependency(
             PackageName::from_str("python").unwrap(),
@@ -58,13 +62,8 @@ impl From<PyProjectManifest> for ProjectManifest {
             SpecType::Run,
         );
 
-        // add pyproject dependencies as pypi dependencies
-        if let Some(deps) = item
-            .project
-            .as_ref()
-            .and_then(|p| p.dependencies.as_ref())
-            .cloned()
-        {
+        // Add pyproject dependencies as pypi dependencies
+        if let Some(deps) = pyproject.dependencies.clone() {
             for d in deps.into_iter() {
                 target.add_pypi_dependency(
                     PyPiPackageName::from_normalized(d.name.clone()),
@@ -115,6 +114,9 @@ mod tests {
     };
 
     const PYPROJECT_FULL: &str = r#"
+        [project]
+        name = "project"
+
         [tool.pixi.project]
         name = "project"
         version = "0.1.0"
diff --git a/tests/test_examples.sh b/tests/test_examples.sh
index f656b3979..3df23fa13 100644
--- a/tests/test_examples.sh
+++ b/tests/test_examples.sh
@@ -12,3 +12,6 @@ pixi run -v --manifest-path examples/pypi-source-deps/pixi.toml test
 echo "Running the solve-groups example:"
 pixi run -v --manifest-path examples/solve-groups/pixi.toml -e min-py38 test
 pixi run -v --manifest-path examples/solve-groups/pixi.toml -e max-py310 test
+
+echo "Running the flask-hello-world-pyproject example:"
+pixi run -v --manifest-path examples/flask-hello-world-pyproject/pyproject.toml test