diff --git a/npe2/__init__.py b/npe2/__init__.py
index d62037df..2c30c5a3 100644
--- a/npe2/__init__.py
+++ b/npe2/__init__.py
@@ -5,6 +5,7 @@
 __author__ = "Talley Lambert"
 __email__ = "talley.lambert@gmail.com"
 
+
 from ._dynamic_plugin import DynamicPlugin
 from ._inspection._fetch import fetch_manifest, get_manifest_from_wheel
 from ._plugin_manager import PluginContext, PluginManager
diff --git a/npe2/_inspection/_compile.py b/npe2/_inspection/_compile.py
index 6bb3f62e..3c3d645d 100644
--- a/npe2/_inspection/_compile.py
+++ b/npe2/_inspection/_compile.py
@@ -2,7 +2,7 @@
 from typing import Iterator, List, Sequence, Tuple, Union, cast
 
 from ..manifest import PluginManifest, contributions
-from ..manifest.utils import merge_contributions
+from ..manifest.utils import merge_contributions, merge_manifests
 from ._setuputils import get_package_dir_info
 from ._visitors import find_npe2_module_contributions
 
@@ -21,6 +21,7 @@ def compile(
     dest: Union[str, Path, None] = None,
     packages: Sequence[str] = (),
     plugin_name: str = "",
+    template: Union[str, Path, None] = None,
 ) -> PluginManifest:
     """Compile plugin manifest from `src_dir`, where is a top-level repo.
 
@@ -31,6 +32,20 @@ def compile(
     ----------
     src_dir : Union[str, Path]
         Repo root. Should contain a pyproject or setup.cfg file.
+    dest : Union[str, Path, None]
+        If provided, path where output manifest should be written.
+    packages : Sequence[str]
+        List of packages to include in the manifest.  By default, all packages
+        (subfolders that have an `__init__.py`) will be included.
+    plugin_name : str
+        Name of the plugin. If not provided, the name will be derived from the
+        package structure (this assumes a setuptools package.)
+    template : Union[str, Path, None]
+        If provided, path to a template manifest file to use. This file can contain
+        "non-command" contributions, like `display_name`, or `themes`, etc...
+        In the case of conflicts (discovered, decoratated contributions with the same
+        id as something in the template), discovered contributions will take
+        precedence.
 
     Returns
     -------
@@ -38,7 +53,6 @@ def compile(
         Manifest including all discovered contribution points, combined with any
         existing contributions explicitly stated in the manifest.
     """
-
     src_path = Path(src_dir)
     assert src_path.exists(), f"src_dir {src_dir} does not exist"
 
@@ -50,6 +64,9 @@ def compile(
                 f"dest {dest!r} must have an extension of .json, .yaml, or .toml"
             )
 
+    if template is not None:
+        template_mf = PluginManifest.from_file(template)
+
     _packages = find_packages(src_path)
     if packages:
         _packages = [p for p in _packages if p.name in packages]
@@ -75,6 +92,9 @@ def compile(
         contributions=merge_contributions(contribs),
     )
 
+    if template is not None:
+        mf = merge_manifests([template_mf, mf], overwrite=True)
+
     if dest is not None:
         manifest_string = getattr(mf, cast(str, suffix))(indent=2)
         pdest.write_text(manifest_string)
diff --git a/npe2/_inspection/_full_install.py b/npe2/_inspection/_full_install.py
index ee08da84..32862ee1 100644
--- a/npe2/_inspection/_full_install.py
+++ b/npe2/_inspection/_full_install.py
@@ -12,9 +12,9 @@
 from logging import getLogger
 from typing import TYPE_CHECKING, Iterator, Optional
 
-from build.env import IsolatedEnv, IsolatedEnvBuilder
-
 if TYPE_CHECKING:
+    from build.env import IsolatedEnv
+
     from npe2.manifest import PluginManifest
 
 logger = getLogger(__name__)
@@ -56,6 +56,10 @@ def isolated_plugin_env(
     build.env.IsolatedEnv
         env object that has an `install` method.
     """
+    # it's important that this import be lazy, otherwise we'll get a circular
+    # import when serving as a setuptools plugin with `python -m build`
+    from build.env import IsolatedEnvBuilder
+
     with IsolatedEnvBuilder() as env:
         # install the package
         pkg = f"{package}=={version}" if version else package
diff --git a/npe2/_setuptools_plugin.py b/npe2/_setuptools_plugin.py
new file mode 100644
index 00000000..9a614648
--- /dev/null
+++ b/npe2/_setuptools_plugin.py
@@ -0,0 +1,199 @@
+"""
+# pyproject.toml
+[build-system]
+requires = ["setuptools", "wheel", "setuptools_scm", "npe2"]
+build-backend = "setuptools.build_meta"
+
+[tool.npe2]
+"""
+from __future__ import annotations
+
+import os
+import re
+import sys
+import warnings
+from typing import TYPE_CHECKING, Optional, Tuple, cast
+
+from setuptools import Distribution
+from setuptools.command.build_py import build_py
+
+if TYPE_CHECKING:
+    from distutils.cmd import Command
+    from typing import Any, Union
+
+    PathT = Union["os.PathLike[str]", str]
+
+NPE2_ENTRY = "napari.manifest"
+DEBUG = bool(os.environ.get("SETUPTOOLS_NPE2_DEBUG"))
+EP_PATTERN = re.compile(
+    r"(?P<module>[\w.]+)\s*(:\s*(?P<attr>[\w.]+)\s*)?((?P<extras>\[.*\])\s*)?$"
+)
+
+
+def trace(*k: object) -> None:
+    if DEBUG:
+        print(*k, file=sys.stderr, flush=True)
+
+
+def _lazy_tomli_load(data: str) -> dict[str, Any]:
+    from pytomlpp import loads
+
+    return loads(data)
+
+
+def _read_dist_name_from_setup_cfg() -> str | None:
+    # minimal effort to read dist_name off setup.cfg metadata
+    import configparser
+
+    parser = configparser.ConfigParser()
+    parser.read(["setup.cfg"])
+    return parser.get("metadata", "name", fallback=None)
+
+
+def _check_absolute_root(root: PathT, relative_to: PathT | None) -> str:
+    trace("abs root", repr(locals()))
+    if relative_to:
+        if (
+            os.path.isabs(root)
+            and os.path.commonpath([root, relative_to]) != relative_to
+        ):
+            warnings.warn(
+                f"absolute root path '{root}' overrides relative_to '{relative_to}'"
+            )
+        if os.path.isdir(relative_to):
+            warnings.warn(
+                "relative_to is expected to be a file,"
+                " its the directory {relative_to!r}\n"
+                "assuming the parent directory was passed"
+            )
+            trace("dir", relative_to)
+            root = os.path.join(relative_to, root)
+        else:
+            trace("file", relative_to)
+            root = os.path.join(os.path.dirname(relative_to), root)
+    return os.path.abspath(root)
+
+
+class Configuration:
+    """Global configuration model"""
+
+    def __init__(
+        self,
+        relative_to: PathT | None = None,
+        root: PathT = ".",
+        write_to: PathT | None = None,
+        write_to_template: str | None = None,
+        dist_name: str | None = None,
+        template: str | None = None,
+    ):
+        self._relative_to = None if relative_to is None else os.fspath(relative_to)
+        self._root = "."
+        self.root = os.fspath(root)
+        self.write_to = write_to
+        self.write_to_template = write_to_template
+        self.dist_name = dist_name
+        self.template = template
+
+    @property
+    def relative_to(self) -> str | None:
+        return self._relative_to
+
+    @property
+    def root(self) -> str:
+        return self._root
+
+    @root.setter
+    def root(self, value: PathT) -> None:
+        self._absolute_root = _check_absolute_root(value, self._relative_to)
+        self._root = os.fspath(value)
+        trace("root", repr(self._absolute_root))
+        trace("relative_to", repr(self._relative_to))
+
+    @property
+    def absolute_root(self) -> str:
+        return self._absolute_root
+
+    @classmethod
+    def from_file(
+        cls, name: str = "pyproject.toml", dist_name: str | None = None, **kwargs: Any
+    ) -> Configuration:
+        """
+        Read Configuration from pyproject.toml (or similar).
+        Raises exceptions when file is not found or toml is
+        not installed or the file has invalid format or does
+        not contain the [tool.npe2] section.
+        """
+
+        with open(name, encoding="UTF-8") as strm:
+            data = strm.read()
+        defn = _lazy_tomli_load(data)
+        try:
+            section = defn.get("tool", {})["npe2"]
+        except LookupError as e:
+            raise LookupError(f"{name} does not contain a tool.npe2 section") from e
+        if "dist_name" in section:
+            if dist_name is None:
+                dist_name = section.pop("dist_name")
+            else:
+                assert dist_name == section["dist_name"]
+                del section["dist_name"]
+        if dist_name is None and "project" in defn:
+            # minimal pep 621 support for figuring the pretend keys
+            dist_name = defn["project"].get("name")
+        if dist_name is None:
+            dist_name = _read_dist_name_from_setup_cfg()
+
+        return cls(dist_name=dist_name, **section, **kwargs)
+
+
+def _mf_entry_from_dist(dist: Distribution) -> Optional[Tuple[str, str]]:
+    """Return (module, attr) for a distribution's npe2 entry point."""
+    eps: dict = getattr(dist, "entry_points", {})
+    if napari_entrys := eps.get(NPE2_ENTRY, []):
+        if match := EP_PATTERN.search(napari_entrys[0]):
+            return match.group("module"), match.group("attr")
+    return None
+
+
+class npe2_compile(build_py):
+    def run(self) -> None:
+        trace("RUN npe2_compile")
+        if ep := _mf_entry_from_dist(self.distribution):
+            from npe2._inspection._compile import compile
+
+            module, attr = ep
+            src = self.distribution.src_root or os.getcwd()
+            dest = os.path.join(self.get_package_dir(module), attr)
+            compile(src, dest, template=self.distribution.config.template)
+        else:
+            name = self.distribution.metadata.name
+            trace(f"no {NPE2_ENTRY!r} found in entry_points for {name}")
+
+
+def finalize_npe2(dist: Distribution):
+    # this hook is declared in the setuptools.finalize_distribution_options
+    # entry point in our setup.cfg
+    # https://setuptools.pypa.io/en/latest/userguide/extension.html#customizing-distribution-options
+    trace("finalize hook", vars(dist.metadata))
+    dist_name = dist.metadata.name
+    if dist_name is None:
+        dist_name = _read_dist_name_from_setup_cfg()
+    if not os.path.isfile("pyproject.toml"):
+        return
+    if dist_name == "npe2":
+        # if we're packaging npe2 itself, don't do anything
+        return
+    try:
+        # config will *only* be detected if there is a [tool.npe2]
+        # section in pyproject.toml.  This is how plugins opt in
+        # to the npe2 compile feature during build
+        config = Configuration.from_file(dist_name=dist_name)
+    except LookupError as e:
+        trace(e)
+    else:
+        # inject our `npe2_compile` command to be called whenever we're building an
+        # sdist or a wheel
+        dist.config = config
+        for cmd in ("build", "sdist"):
+            if base := dist.get_command_class(cmd):
+                cast("Command", base).sub_commands.insert(0, ("npe2_compile", None))
diff --git a/npe2/manifest/utils.py b/npe2/manifest/utils.py
index 7e4c5a49..a73e0ab0 100644
--- a/npe2/manifest/utils.py
+++ b/npe2/manifest/utils.py
@@ -288,9 +288,10 @@ def merge_manifests(
     assert (
         len({mf.package_version for mf in manifests}) == 1
     ), "All manifests must have same version"
-    assert (
-        len({mf.display_name for mf in manifests}) == 1
-    ), "All manifests must have same display_name"
+    if not overwrite:
+        assert (
+            len({mf.display_name for mf in manifests}) == 1
+        ), "All manifests must have same display_name"
 
     mf0 = manifests[0]
     info = mf0.dict(exclude={"contributions"}, exclude_unset=True)
diff --git a/setup.cfg b/setup.cfg
index ce111826..a7ae5c11 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -40,8 +40,12 @@ zip_safe = False
 [options.entry_points]
 console_scripts =
     npe2 = npe2.cli:main
+distutils.commands =
+    npe2_compile =  npe2._setuptools_plugin:npe2_compile
 pytest11 =
     npe2 = npe2._pytest_plugin
+setuptools.finalize_distribution_options =
+    finalize_npe2 =  npe2._setuptools_plugin:finalize_npe2
 
 [options.extras_require]
 dev =
@@ -111,6 +115,9 @@ omit =
     npe2/manifest/contributions/_keybindings.py
     npe2/manifest/menus.py
     npe2/manifest/package_metadata.py
+    # due to all of the isolated sub-environments and sub-processes,
+    # it's really hard to get coverage on the setuptools plugin.
+    npe2/_setuptools_plugin.py
 
 [coverage:report]
 exclude_lines =
diff --git a/tests/fixtures/my-compiled-plugin/setup.cfg b/tests/fixtures/my-compiled-plugin/setup.cfg
index 7221b7b4..1189b101 100644
--- a/tests/fixtures/my-compiled-plugin/setup.cfg
+++ b/tests/fixtures/my-compiled-plugin/setup.cfg
@@ -5,3 +5,6 @@ version = 0.1.0
 [options.entry_points]
 napari.manifest =
     my-compiled-plugin = my_module:napari.yaml
+
+[options.package_data]
+my_module = *.yaml
diff --git a/tests/test_compile.py b/tests/test_compile.py
index ce92ddca..678ef4e4 100644
--- a/tests/test_compile.py
+++ b/tests/test_compile.py
@@ -20,3 +20,12 @@ def test_compile(compiled_plugin_dir: Path, tmp_path: Path):
     assert mf.contributions.commands and len(mf.contributions.commands) == 5
     assert dest.exists()
     assert PluginManifest.from_file(dest) == mf
+
+
+def test_compile_with_template(compiled_plugin_dir: Path, tmp_path: Path):
+    """Test building from a template with npe2 compile."""
+    template = tmp_path / "template.yaml"
+    template.write_text("name: my_compiled_plugin\ndisplay_name: Display Name\n")
+    mf = compile(compiled_plugin_dir, template=template)
+    assert mf.name == "my_compiled_plugin"
+    assert mf.display_name == "Display Name"
diff --git a/tests/test_setuptools_plugin.py b/tests/test_setuptools_plugin.py
new file mode 100644
index 00000000..d039cf1b
--- /dev/null
+++ b/tests/test_setuptools_plugin.py
@@ -0,0 +1,61 @@
+import os
+import subprocess
+import sys
+import zipfile
+from pathlib import Path
+
+import pytest
+
+from npe2 import PluginManifest
+
+ROOT = Path(__file__).parent.parent
+
+TEMPLATE = Path("my_module") / "_napari.yaml"
+PYPROJECT = """
+[build-system]
+requires = ["setuptools", "wheel", "npe2 @ file://{}"]
+build-backend = "setuptools.build_meta"
+
+[tool.npe2]
+template="{}"
+""".format(
+    ROOT, TEMPLATE
+)
+
+
+@pytest.mark.skipif(not os.getenv("CI"), reason="slow, only run on CI")
+@pytest.mark.parametrize("dist_type", ["sdist", "wheel"])
+def test_compile(compiled_plugin_dir: Path, tmp_path: Path, dist_type: str) -> None:
+    """
+    Test that the plugin manager can be compiled.
+    """
+    pyproject = compiled_plugin_dir / "pyproject.toml"
+    pyproject.write_text(PYPROJECT)
+
+    template = compiled_plugin_dir / TEMPLATE
+    template.write_text("name: my_compiled_plugin\ndisplay_name: My Compiled Plugin\n")
+    os.chdir(compiled_plugin_dir)
+    subprocess.check_call([sys.executable, "-m", "build", f"--{dist_type}"])
+    dist_dir = compiled_plugin_dir / "dist"
+    assert dist_dir.is_dir()
+    if dist_type == "sdist":
+        # for sdist, test pip install into a temporary directory
+        # and make sure the compiled manifest is there
+        dist = next(dist_dir.glob("*.tar.gz"))
+        site = tmp_path / "site"
+        subprocess.check_call(
+            [sys.executable, "-m", "pip", "install", str(dist), "--target", str(site)]
+        )
+        mf_file = site / "my_module" / "napari.yaml"
+    else:
+        # for wheel, make sure that the manifest is included in the wheel
+        dist = next(dist_dir.glob("*.whl"))
+        with zipfile.ZipFile(dist) as zip:
+            zip.extractall(dist_dir)
+        mf_file = dist_dir / "my_module" / "napari.yaml"
+
+    assert mf_file.exists()
+    mf = PluginManifest.from_file(mf_file)
+    assert mf.display_name == "My Compiled Plugin"
+    assert len(mf.contributions.readers) == 1
+    assert len(mf.contributions.writers) == 2