diff --git a/.github/workflows/pip.yml b/.github/workflows/pip.yml
index 18d8edd..8db578d 100644
--- a/.github/workflows/pip.yml
+++ b/.github/workflows/pip.yml
@@ -15,7 +15,7 @@ jobs:
       fail-fast: false
       matrix:
         platform: [windows-latest, macos-latest, ubuntu-latest]
-        python-version: ["3.8", "3.12"]
+        python-version: ["3.12"]
 
     steps:
     - uses: actions/checkout@v5
@@ -36,3 +36,55 @@ jobs:
 
     - name: Test
       run: python -m pytest
+
+  typecheck:
+    name: Type checking
+    runs-on: ubuntu-latest
+
+    steps:
+    - uses: actions/checkout@v5
+
+    - name: Install uv
+      uses: astral-sh/setup-uv@v5
+
+    - name: Build package
+      run: uv sync
+
+    - name: Type check with ty
+      run: uvx ty check
+
+    - name: Type check with pyright
+      run: uvx pyright
+
+    - name: Type check with mypy
+      run: uv run --with mypy mypy .
+
+    - name: Verify type stubs work (ty)
+      run: |
+        # This should fail - if it doesn't, stubs aren't working
+        if uvx ty check typecheck_smoke.py 2>&1 | grep -q "Found 2 diagnostics"; then
+          echo "✓ ty correctly detected type errors in smoke test"
+        else
+          echo "✗ ty did not detect expected type errors"
+          exit 1
+        fi
+
+    - name: Verify type stubs work (pyright)
+      run: |
+        # This should fail - if it doesn't, stubs aren't working
+        if uvx pyright typecheck_smoke.py 2>&1 | grep -q "2 errors"; then
+          echo "✓ pyright correctly detected type errors in smoke test"
+        else
+          echo "✗ pyright did not detect expected type errors"
+          exit 1
+        fi
+
+    - name: Verify type stubs work (mypy)
+      run: |
+        # This should fail - if it doesn't, stubs aren't working
+        if uv run --with mypy mypy typecheck_smoke.py 2>&1 | grep -q 'Argument 1 to "add" has incompatible type'; then
+          echo "✓ mypy correctly detected type errors in smoke test"
+        else
+          echo "✗ mypy did not detect expected type errors"
+          exit 1
+        fi
diff --git a/.gitignore b/.gitignore
index 29f2c4e..6ab71bc 100644
--- a/.gitignore
+++ b/.gitignore
@@ -7,3 +7,4 @@ build
 *.egg-info
 .vscode
 .vs
+.venv
diff --git a/.python-version b/.python-version
new file mode 100644
index 0000000..fdcfcfd
--- /dev/null
+++ b/.python-version
@@ -0,0 +1 @@
+3.12
\ No newline at end of file
diff --git a/CMakeLists.txt b/CMakeLists.txt
index af8ce44..7965a75 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -1,7 +1,17 @@
 cmake_minimum_required(VERSION 3.15...3.26)
 
+if(CMAKE_SOURCE_DIR STREQUAL CMAKE_BINARY_DIR)
+  message(FATAL_ERROR "In-tree builds are not supported. Run CMake from a separate directory: cmake -B build")
+endif()
+
 project(nanobind_example LANGUAGES CXX)
 
+# Try to import all Python components potentially needed by nanobind
+find_package(Python 3.12
+  REQUIRED COMPONENTS Interpreter Development.Module
+  OPTIONAL_COMPONENTS Development.SABIModule
+)
+
 if (NOT SKBUILD)
   message(WARNING "\
   This CMake file is meant to be executed using 'scikit-build'. Running
@@ -17,26 +27,51 @@ if (NOT SKBUILD)
   in your environment once and use the following command that avoids
   a costly creation of a new virtual environment at every compilation:
   =====================================================================
-   $ pip install nanobind scikit-build-core[pyproject]
-   $ pip install --no-build-isolation -ve .
+   $ uv sync
   =====================================================================
-  You may optionally add -Ceditable.rebuild=true to auto-rebuild when
-  the package is imported. Otherwise, you need to re-run the above
-  after editing C++ files.")
-endif()
+  When using uv run, the package is already rebuilt automatically if
+  it detects sources listed in cache-keys are updated.")
 
-# Try to import all Python components potentially needed by nanobind
-find_package(Python 3.8
-  REQUIRED COMPONENTS Interpreter Development.Module
-  OPTIONAL_COMPONENTS Development.SABIModule)
+  # NOTE: We allow fetching nanobind directly here for development this allows
+  # `cmake -B build -G Ninja -DCMAKE_EXPORT_COMPILE_COMMANDS=ON` to work as
+  # expected and get proper language server support in editors like VSCode.
 
-# Import nanobind through CMake's find_package mechanism
-find_package(nanobind CONFIG REQUIRED)
+  # Extract the minimum nanobind version from pyproject.toml
+  file(READ "${CMAKE_CURRENT_SOURCE_DIR}/pyproject.toml" PYPROJECT_TOML_CONTENT)
+  if(PYPROJECT_TOML_CONTENT MATCHES "\"nanobind *[>=]= *([^\"]+)\"")
+    set(NANOBIND_TAG "v${CMAKE_MATCH_1}")
+  else()
+    message(FATAL_ERROR "Could not find nanobind version in pyproject.toml")
+  endif()
+  
+  # Fix warnings about DOWNLOAD_EXTRACT_TIMESTAMP
+  if(POLICY CMP0135)
+    cmake_policy(SET CMP0135 NEW)
+  endif()
+  include(FetchContent)
+  message(STATUS "Fetching nanobind (${NANOBIND_TAG})...")
+  FetchContent_Declare(nanobind
+    GIT_REPOSITORY
+      "https://github.com/wjakob/nanobind"
+    GIT_TAG
+      ${NANOBIND_TAG}
+  )
+  FetchContent_MakeAvailable(nanobind)
+else()
+  # Use the nanobind provided by scikit-build-core
+  find_package(nanobind REQUIRED)
+endif()
+
+set(PYTHON_MODULE nanobind_example)
+set(EXTENSION_MODULE nanobind_example_ext)
+set(EXTENSION_SOURCES
+  src/nanobind_example_ext.cpp
+)
 
 # We are now ready to compile the actual extension module
 nanobind_add_module(
   # Name of the extension
-  nanobind_example_ext
+  ${EXTENSION_MODULE}
 
   # Target the stable ABI for Python 3.12+, which reduces
   # the number of binary wheels that must be built. This
@@ -52,8 +87,23 @@ nanobind_add_module(
   NB_STATIC
 
   # Source code goes here
-  src/nanobind_example_ext.cpp
+  ${EXTENSION_SOURCES}
+)
+
+# Generate type stubs for the extension module
+nanobind_add_stub(
+  ${EXTENSION_MODULE}_stub
+  MODULE ${EXTENSION_MODULE}
+  OUTPUT ${CMAKE_CURRENT_BINARY_DIR}/${EXTENSION_MODULE}.pyi
+  PYTHON_PATH $<TARGET_FILE_DIR:${EXTENSION_MODULE}>
+  DEPENDS ${EXTENSION_MODULE}
 )
 
-# Install directive for scikit-build-core
-install(TARGETS nanobind_example_ext LIBRARY DESTINATION nanobind_example)
+# Install the extension module and type stubs
+install(TARGETS ${EXTENSION_MODULE} LIBRARY DESTINATION ${PYTHON_MODULE})
+file(WRITE "${CMAKE_CURRENT_BINARY_DIR}/py.typed" "")
+install(FILES "${CMAKE_CURRENT_BINARY_DIR}/py.typed" DESTINATION ${PYTHON_MODULE})
+install(FILES ${CMAKE_CURRENT_BINARY_DIR}/${EXTENSION_MODULE}.pyi DESTINATION ${PYTHON_MODULE})
+
+# Install the Python package files
+install(FILES ${CMAKE_CURRENT_SOURCE_DIR}/src/${PYTHON_MODULE}/__init__.py DESTINATION ${PYTHON_MODULE})
diff --git a/README.md b/README.md
index fc81f0a..d92b758 100644
--- a/README.md
+++ b/README.md
@@ -37,6 +37,65 @@ interactive Python session):
 3
 ```
 
+Development
+-----------
+
+This project uses [uv](https://docs.astral.sh/uv/) for development.
+
+### Building
+
+```bash
+# Build native project (installs in editable mode)
+uv sync
+
+# Rebuild native project from scratch (usually not necessary)
+uv sync --reinstall
+
+# Build and run tests
+uv run pytest
+```
+
+When using `uv run` the native code will automatically be rebuilt if changes
+are detected in the `cache-keys`.
+
+### Local C++ Development
+
+Generate `compile_commands.json` for IDE/LSP support (clangd, etc.):
+
+```bash
+cmake -B build -G Ninja -DCMAKE_EXPORT_COMPILE_COMMANDS=ON
+```
+
+### Type Checking
+
+The project includes type stubs (`.pyi` files) generated automatically by
+nanobind. A `py.typed` marker file is installed for
+[PEP 561](https://peps.python.org/pep-0561/) compliance, so language servers
+like Pylance, Pyright, and ty will provide completions and type checking.
+
+To run type checking:
+
+```bash
+uvx ty check
+uvx pyright
+uv run --with mypy mypy .
+```
+
+### Package Structure
+
+The extension module is built as `nanobind_example_ext` and re-exported through
+`nanobind_example/__init__.py`. When adding new bindings:
+
+1. Add the binding in `src/nanobind_example_ext.cpp`
+2. Update `src/nanobind_example/__init__.py` to re-export the new symbols
+
+Imports must be absolute:
+
+```python
+from nanobind_example import add  # Correct
+from nanobind_example_ext import add  # Won't work
+```
+
 CI Examples
 -----------
 
diff --git a/pyproject.toml b/pyproject.toml
index e49c78d..2b4221c 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,5 +1,5 @@
 [build-system]
-requires = ["scikit-build-core >=0.10", "nanobind >=1.3.2"]
+requires = ["scikit-build-core >=0.11.6", "nanobind >=2.10.2"]
 build-backend = "scikit_build_core.build"
 
 [project]
@@ -7,7 +7,8 @@ name = "nanobind-example"
 version = "0.0.1"
 description = "An example minimal project that compiles bindings using nanobind and scikit-build"
 readme = "README.md"
-requires-python = ">=3.8"
+requires-python = ">=3.12"
+dependencies = []
 authors = [
     { name = "Wenzel Jakob", email = "wenzel.jakob@epfl.ch" },
 ]
@@ -18,6 +19,10 @@ classifiers = [
 [project.urls]
 Homepage = "https://github.com/wjakob/nanobind_example"
 
+[dependency-groups]
+dev = [
+    "pytest",
+]
 
 [tool.scikit-build]
 # Protect the configuration against future changes in scikit-build-core
@@ -29,6 +34,41 @@ build-dir = "build/{wheel_tag}"
 # Build stable ABI wheels for CPython 3.12+
 wheel.py-api = "cp312"
 
+# This setup only works properly in redirect mode
+editable.mode = "redirect"
+
+[tool.uv]
+cache-keys = [
+    { file = "CMakeLists.txt" },
+    { file = "src/**/*.cpp" },
+    { file = "src/**/*.h" },
+]
+
+[tool.ty.environment]
+# Don't include src/ in first-party search path so ty finds the installed
+# package (with .pyi stubs) in .venv/lib/python3.12/site-packages/ instead
+root = ["."]
+
+[tool.ty.src]
+exclude = ["typecheck_smoke.py"]
+
+[tool.pyright]
+include = ["tests"]
+exclude = [
+    "build/**",
+    ".venv/**",
+    "**/__pycache__",
+]
+extraPaths = []
+venvPath = "."
+venv = ".venv"
+
+[tool.mypy]
+exclude = [
+    "^build/",
+    "^typecheck_smoke\\.py$",
+]
+
 [tool.cibuildwheel]
 # Necessary to see build output from the actual compilation
 build-verbosity = 1
@@ -37,9 +77,6 @@ build-verbosity = 1
 test-command = "pytest {project}/tests"
 test-requires = "pytest"
 
-# Don't test Python 3.8 wheels on macOS/arm64
-test-skip="cp38-macosx_*:arm64"
-
 # Needed for full C++17 support
 [tool.cibuildwheel.macos.environment]
 MACOSX_DEPLOYMENT_TARGET = "10.14"
diff --git a/src/nanobind_example/__init__.py b/src/nanobind_example/__init__.py
index fe8a74c..34941c7 100644
--- a/src/nanobind_example/__init__.py
+++ b/src/nanobind_example/__init__.py
@@ -1 +1,6 @@
-from .nanobind_example_ext import add, __doc__
+# NOTE: we use an absolute import here to get the type checking to work properly.
+# Additionally we re-export the imported symbols to make ruff happy.
+from nanobind_example.nanobind_example_ext import (
+    add as add,
+    __doc__ as __doc__,
+)
diff --git a/src/nanobind_example_ext.cpp b/src/nanobind_example_ext.cpp
index 6d30dbf..01358d6 100644
--- a/src/nanobind_example_ext.cpp
+++ b/src/nanobind_example_ext.cpp
@@ -4,7 +4,9 @@ namespace nb = nanobind;
 
 using namespace nb::literals;
 
+static int add(int a, int b) { return a + b; }
+
 NB_MODULE(nanobind_example_ext, m) {
-    m.doc() = "This is a \"hello world\" example with nanobind";
-    m.def("add", [](int a, int b) { return a + b; }, "a"_a, "b"_a);
+  m.doc() = "This is a \"hello world\" example with nanobind";
+  m.def("add", &add, "a"_a, "b"_a, R"(Add two integers together.)");
 }
diff --git a/tests/test_basic.py b/tests/test_basic.py
index 9c670fc..61aabff 100644
--- a/tests/test_basic.py
+++ b/tests/test_basic.py
@@ -1,4 +1,5 @@
 import nanobind_example as m
 
+
 def test_add():
     assert m.add(1, 2) == 3
diff --git a/typecheck_smoke.py b/typecheck_smoke.py
new file mode 100644
index 0000000..e9abcab
--- /dev/null
+++ b/typecheck_smoke.py
@@ -0,0 +1,10 @@
+# This file contains intentional type errors to verify that type stubs work.
+# CI runs type checkers on this file and expects them to fail.
+# Do not import this file in actual tests.
+
+import nanobind_example as m
+
+
+def bad_add_call(a: str, b: str) -> int:
+    """Intentionally passing str to int parameters - should fail type checking."""
+    return m.add(a, b)
diff --git a/uv.lock b/uv.lock
new file mode 100644
index 0000000..29ed645
--- /dev/null
+++ b/uv.lock
@@ -0,0 +1,79 @@
+version = 1
+revision = 3
+requires-python = ">=3.12"
+
+[[package]]
+name = "colorama"
+version = "0.4.6"
+source = { registry = "https://pypi.org/simple" }
+sdist = { url = "https://files.pythonhosted.org/packages/d8/53/6f443c9a4a8358a93a6792e2acffb9d9d5cb0a5cfd8802644b7b1c9a02e4/colorama-0.4.6.tar.gz", hash = "sha256:08695f5cb7ed6e0531a20572697297273c47b8cae5a63ffc6d6ed5c201be6e44", size = 27697, upload-time = "2022-10-25T02:36:22.414Z" }
+wheels = [
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+]
+
+[[package]]
+name = "iniconfig"
+version = "2.3.0"
+source = { registry = "https://pypi.org/simple" }
+sdist = { url = "https://files.pythonhosted.org/packages/72/34/14ca021ce8e5dfedc35312d08ba8bf51fdd999c576889fc2c24cb97f4f10/iniconfig-2.3.0.tar.gz", hash = "sha256:c76315c77db068650d49c5b56314774a7804df16fee4402c1f19d6d15d8c4730", size = 20503, upload-time = "2025-10-18T21:55:43.219Z" }
+wheels = [
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+]
+
+[[package]]
+name = "nanobind-example"
+version = "0.0.1"
+source = { editable = "." }
+
+[package.dev-dependencies]
+dev = [
+    { name = "pytest" },
+]
+
+[package.metadata]
+
+[package.metadata.requires-dev]
+dev = [{ name = "pytest" }]
+
+[[package]]
+name = "packaging"
+version = "25.0"
+source = { registry = "https://pypi.org/simple" }
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+[[package]]
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+version = "9.0.2"
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+dependencies = [
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+    { name = "iniconfig" },
+    { name = "packaging" },
+    { name = "pluggy" },
+    { name = "pygments" },
+]
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+wheels = [
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