diff --git a/pyo3-macros-backend/src/lib.rs b/pyo3-macros-backend/src/lib.rs
index 90cc43ff98e..c4b0c9705ba 100644
--- a/pyo3-macros-backend/src/lib.rs
+++ b/pyo3-macros-backend/src/lib.rs
@@ -28,7 +28,9 @@ mod pymethod;
 mod pyproto;
 
 pub use frompyobject::build_derive_from_pyobject;
-pub use module::{process_functions_in_module, pymodule_impl, PyModuleOptions};
+pub use module::{
+    process_functions_in_module, pymodule_function_impl, pymodule_module_impl, PyModuleOptions,
+};
 pub use pyclass::{build_py_class, build_py_enum, PyClassArgs};
 pub use pyfunction::{build_py_function, PyFunctionOptions};
 pub use pyimpl::{build_py_methods, PyClassMethodsType};
diff --git a/pyo3-macros-backend/src/module.rs b/pyo3-macros-backend/src/module.rs
index 5cbd5f36630..b8a1de99299 100644
--- a/pyo3-macros-backend/src/module.rs
+++ b/pyo3-macros-backend/src/module.rs
@@ -5,6 +5,7 @@ use crate::{
     attributes::{
         self, is_attribute_ident, take_attributes, take_pyo3_options, CrateAttribute, NameAttribute,
     },
+    get_doc,
     pyfunction::{impl_wrap_pyfunction, PyFunctionOptions},
     utils::{get_pyo3_crate, PythonDoc},
 };
@@ -59,9 +60,103 @@ impl PyModuleOptions {
     }
 }
 
+pub fn pymodule_module_impl(mut module: syn::ItemMod) -> Result<TokenStream> {
+    let syn::ItemMod {
+        attrs,
+        vis,
+        ident,
+        mod_token,
+        content,
+        semi: _,
+    } = &mut module;
+    let items = match content {
+        Some((_, items)) => items,
+        None => bail_spanned!(module.span() => "`#[pymodule]` can only be used on inline modules"),
+    };
+    let options = PyModuleOptions::from_attrs(attrs)?;
+    let doc = get_doc(attrs, None);
+
+    let name = options.name.unwrap_or_else(|| ident.unraw());
+    let krate = get_pyo3_crate(&options.krate);
+    let pyinit_symbol = format!("PyInit_{}", name);
+
+    let mut module_items = Vec::new();
+
+    fn extract_use_items(source: &syn::UseTree, target: &mut Vec<Ident>) -> Result<()> {
+        match source {
+            syn::UseTree::Name(name) => target.push(name.ident.clone()),
+            syn::UseTree::Path(path) => extract_use_items(&path.tree, target)?,
+            syn::UseTree::Group(group) => {
+                for tree in &group.items {
+                    extract_use_items(tree, target)?
+                }
+            }
+            syn::UseTree::Glob(glob) => bail_spanned!(glob.span() => "#[pyo3] cannot import glob statements"),
+            syn::UseTree::Rename(rename) => target.push(rename.ident.clone()),
+        }
+        Ok(())
+    }
+
+    let mut pymodule_init = None;
+
+    for item in items.iter_mut() {
+        match item {
+            syn::Item::Use(item_use) => {
+                let mut is_pyo3 = false;
+                item_use.attrs.retain(|attr| {
+                    let found = attr.path.is_ident("pyo3");
+                    is_pyo3 |= found;
+                    !found
+                });
+                if is_pyo3 {
+                    extract_use_items(&item_use.tree, &mut module_items)?;
+                }
+            }
+            syn::Item::Fn(item_fn) => {
+                let mut is_module_init = false;
+                item_fn.attrs.retain(|attr| {
+                    let found = attr.path.is_ident("pymodule_init");
+                    is_module_init |= found;
+                    !found
+                });
+                if is_module_init {
+                    ensure_spanned!(pymodule_init.is_none(), item_fn.span() => "only one pymodule_init may be specified");
+                    let ident = &item_fn.sig.ident;
+                    pymodule_init = Some(quote! { #ident(module)?; });
+                }
+            }
+            _ => {}
+        }
+    }
+
+    Ok(quote! {
+        #vis #mod_token #ident {
+            #(#items)*
+
+            pub static DEF: #krate::impl_::pymodule::ModuleDef = unsafe {
+                use #krate::impl_::pymodule as impl_;
+                impl_::ModuleDef::new(concat!(stringify!(#name), "\0"), #doc, impl_::ModuleInitializer(__pyo3_pymodule))
+            };
+
+            pub fn __pyo3_pymodule(_py: #krate::Python, module: &#krate::types::PyModule) -> #krate::PyResult<()> {
+                #(#module_items::DEF.add_to_module(module)?;)*
+                #pymodule_init
+                Ok(())
+            }
+
+            /// This autogenerated function is called by the python interpreter when importing
+            /// the module.
+            #[export_name = #pyinit_symbol]
+            pub unsafe extern "C" fn __pyo3_init() -> *mut #krate::ffi::PyObject {
+                DEF.module_init()
+            }
+        }
+    })
+}
+
 /// Generates the function that is called by the python interpreter to initialize the native
 /// module
-pub fn pymodule_impl(
+pub fn pymodule_function_impl(
     fnname: &Ident,
     options: PyModuleOptions,
     doc: PythonDoc,
diff --git a/pyo3-macros/src/lib.rs b/pyo3-macros/src/lib.rs
index 65f85b55d5d..64b45badec0 100644
--- a/pyo3-macros/src/lib.rs
+++ b/pyo3-macros/src/lib.rs
@@ -9,8 +9,9 @@ use proc_macro::TokenStream;
 use proc_macro2::TokenStream as TokenStream2;
 use pyo3_macros_backend::{
     build_derive_from_pyobject, build_py_class, build_py_enum, build_py_function, build_py_methods,
-    get_doc, process_functions_in_module, pymodule_impl, PyClassArgs, PyClassMethodsType,
-    PyFunctionOptions, PyModuleOptions,
+    get_doc, process_functions_in_module, pymodule_function_impl, pymodule_module_impl,
+    PyClassArgs, PyClassMethodsType, PyFunctionOptions,
+    PyModuleOptions
 };
 use quote::quote;
 use syn::{parse::Nothing, parse_macro_input};
@@ -35,25 +36,30 @@ use syn::{parse::Nothing, parse_macro_input};
 pub fn pymodule(args: TokenStream, input: TokenStream) -> TokenStream {
     parse_macro_input!(args as Nothing);
 
-    let mut ast = parse_macro_input!(input as syn::ItemFn);
-    let options = match PyModuleOptions::from_attrs(&mut ast.attrs) {
-        Ok(options) => options,
-        Err(e) => return e.into_compile_error().into(),
-    };
-
-    if let Err(err) = process_functions_in_module(&options, &mut ast) {
-        return err.into_compile_error().into();
-    }
+    if let Ok(module) = syn::parse(input.clone()) {
+        pymodule_module_impl(module)
+            .unwrap_or_compile_error()
+            .into()
+    } else {
+        let mut ast = parse_macro_input!(input as syn::ItemFn);
+        let options = match PyModuleOptions::from_attrs(&mut ast.attrs) {
+            Ok(options) => options,
+            Err(e) => return e.into_compile_error().into(),
+        };
 
-    let doc = get_doc(&ast.attrs, None);
+        if let Err(err) = process_functions_in_module(&options, &mut ast) {
+            return err.into_compile_error().into();
+        }
 
-    let expanded = pymodule_impl(&ast.sig.ident, options, doc, &ast.vis);
+        let doc = get_doc(&ast.attrs, None);
 
-    quote!(
-        #ast
-        #expanded
-    )
-    .into()
+        let expanded = pymodule_function_impl(&ast.sig.ident, options, doc, &ast.vis);
+        quote!(
+            #ast
+            #expanded
+        )
+        .into()
+    }
 }
 
 /// A proc macro used to implement Python's [dunder methods][1].
diff --git a/pytests/src/lib.rs b/pytests/src/lib.rs
index 7847f0c5ced..aad99e3af4d 100644
--- a/pytests/src/lib.rs
+++ b/pytests/src/lib.rs
@@ -1,6 +1,4 @@
 use pyo3::prelude::*;
-use pyo3::types::PyDict;
-use pyo3::wrap_pymodule;
 
 pub mod buf_and_str;
 pub mod datetime;
@@ -14,35 +12,40 @@ pub mod pyfunctions;
 pub mod subclassing;
 
 #[pymodule]
-fn pyo3_pytests(py: Python<'_>, m: &PyModule) -> PyResult<()> {
-    #[cfg(not(Py_LIMITED_API))]
-    m.add_wrapped(wrap_pymodule!(buf_and_str::buf_and_str))?;
-    #[cfg(not(Py_LIMITED_API))]
-    m.add_wrapped(wrap_pymodule!(datetime::datetime))?;
-    m.add_wrapped(wrap_pymodule!(dict_iter::dict_iter))?;
-    m.add_wrapped(wrap_pymodule!(misc::misc))?;
-    m.add_wrapped(wrap_pymodule!(objstore::objstore))?;
-    m.add_wrapped(wrap_pymodule!(othermod::othermod))?;
-    m.add_wrapped(wrap_pymodule!(path::path))?;
-    m.add_wrapped(wrap_pymodule!(pyclasses::pyclasses))?;
-    m.add_wrapped(wrap_pymodule!(pyfunctions::pyfunctions))?;
-    m.add_wrapped(wrap_pymodule!(subclassing::subclassing))?;
+mod pyo3_pytests {
+    use pyo3::types::{PyDict, PyModule};
+    use pyo3::PyResult;
 
-    // Inserting to sys.modules allows importing submodules nicely from Python
-    // e.g. import pyo3_pytests.buf_and_str as bas
+    #[pyo3]
+    use {
+        // #[cfg(not(Py_LIMITED_API))]
+        crate::buf_and_str::buf_and_str,
+        // #[cfg(not(Py_LIMITED_API))]
+        crate::datetime::datetime,
+        crate::dict_iter::dict_iter,
+        crate::misc::misc,
+        crate::objstore::objstore,
+        crate::othermod::othermod,
+        crate::path::path,
+        crate::pyclasses::pyclasses,
+        crate::pyfunctions::pyfunctions,
+        crate::subclassing::subclassing,
+    };
 
-    let sys = PyModule::import(py, "sys")?;
-    let sys_modules: &PyDict = sys.getattr("modules")?.downcast()?;
-    sys_modules.set_item("pyo3_pytests.buf_and_str", m.getattr("buf_and_str")?)?;
-    sys_modules.set_item("pyo3_pytests.datetime", m.getattr("datetime")?)?;
-    sys_modules.set_item("pyo3_pytests.dict_iter", m.getattr("dict_iter")?)?;
-    sys_modules.set_item("pyo3_pytests.misc", m.getattr("misc")?)?;
-    sys_modules.set_item("pyo3_pytests.objstore", m.getattr("objstore")?)?;
-    sys_modules.set_item("pyo3_pytests.othermod", m.getattr("othermod")?)?;
-    sys_modules.set_item("pyo3_pytests.path", m.getattr("path")?)?;
-    sys_modules.set_item("pyo3_pytests.pyclasses", m.getattr("pyclasses")?)?;
-    sys_modules.set_item("pyo3_pytests.pyfunctions", m.getattr("pyfunctions")?)?;
-    sys_modules.set_item("pyo3_pytests.subclassing", m.getattr("subclassing")?)?;
-
-    Ok(())
+    #[pymodule_init]
+    fn init(m: &PyModule) -> PyResult<()> {
+        let sys = PyModule::import(m.py(), "sys")?;
+        let sys_modules: &PyDict = sys.getattr("modules")?.downcast()?;
+        sys_modules.set_item("pyo3_pytests.buf_and_str", m.getattr("buf_and_str")?)?;
+        sys_modules.set_item("pyo3_pytests.datetime", m.getattr("datetime")?)?;
+        sys_modules.set_item("pyo3_pytests.dict_iter", m.getattr("dict_iter")?)?;
+        sys_modules.set_item("pyo3_pytests.misc", m.getattr("misc")?)?;
+        sys_modules.set_item("pyo3_pytests.objstore", m.getattr("objstore")?)?;
+        sys_modules.set_item("pyo3_pytests.othermod", m.getattr("othermod")?)?;
+        sys_modules.set_item("pyo3_pytests.path", m.getattr("path")?)?;
+        sys_modules.set_item("pyo3_pytests.pyclasses", m.getattr("pyclasses")?)?;
+        sys_modules.set_item("pyo3_pytests.pyfunctions", m.getattr("pyfunctions")?)?;
+        sys_modules.set_item("pyo3_pytests.subclassing", m.getattr("subclassing")?)?;
+        Ok(())
+    }
 }
diff --git a/src/impl_/pymodule.rs b/src/impl_/pymodule.rs
index 41f892946c1..fd73513e7d2 100644
--- a/src/impl_/pymodule.rs
+++ b/src/impl_/pymodule.rs
@@ -90,6 +90,10 @@ impl ModuleDef {
             }),
         )
     }
+
+    pub fn add_to_module(&'static self, module: &PyModule) -> PyResult<()> {
+        module.add_object(self.make_module(module.py())?)
+    }
 }
 
 #[cfg(test)]
diff --git a/src/types/module.rs b/src/types/module.rs
index 0b43a16812f..d38a1ac40d8 100644
--- a/src/types/module.rs
+++ b/src/types/module.rs
@@ -3,7 +3,7 @@
 // based on Daniel Grunwald's https://github.com/dgrunwald/rust-cpython
 
 use crate::callback::IntoPyCallbackOutput;
-use crate::err::{PyErr, PyResult};
+use crate::err::{self, PyErr, PyResult};
 use crate::exceptions;
 use crate::ffi;
 use crate::pyclass::PyClass;
@@ -252,6 +252,16 @@ impl PyModule {
         self.setattr(name, value.into_py(self.py()))
     }
 
+    pub(crate) fn add_object(&self, value: PyObject) -> PyResult<()> {
+        let py = self.py();
+        let attr_name = value.getattr(py, "__name__")?;
+
+        unsafe {
+            let ret = ffi::PyObject_SetAttr(self.as_ptr(), attr_name.as_ptr(), value.as_ptr());
+            err::error_on_minusone(py, ret)
+        }
+    }
+
     /// Adds a new class to the module.
     ///
     /// Notice that this method does not take an argument.
diff --git a/tests/test_module.rs b/tests/test_module.rs
index 7364d7ec64c..463014f0e3a 100644
--- a/tests/test_module.rs
+++ b/tests/test_module.rs
@@ -443,3 +443,35 @@ fn test_module_doc_hidden() {
         py_assert!(py, m, "m.__doc__ == ''");
     })
 }
+
+/// A module written using declarative syntax.
+#[pymodule]
+mod declarative_module {
+
+    #[pyo3]
+    use super::module_with_functions;
+}
+
+#[test]
+fn test_declarative_module() {
+    Python::with_gil(|py| {
+        let m = pyo3::wrap_pymodule!(declarative_module)(py).into_ref(py);
+        py_assert!(
+            py,
+            m,
+            "m.__doc__ == 'A module written using declarative syntax.'"
+        );
+
+        let submodule = m.getattr("module_with_functions").unwrap();
+        assert_eq!(
+            submodule
+                .getattr("no_parameters")
+                .unwrap()
+                .call0()
+                .unwrap()
+                .extract::<i32>()
+                .unwrap(),
+            42
+        );
+    })
+}