diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
index 4c62c870..2b07ade4 100644
--- a/.devcontainer/devcontainer.json
+++ b/.devcontainer/devcontainer.json
@@ -25,7 +25,7 @@
 	// "forwardPorts": [],
 
 	// Use 'postCreateCommand' to run commands after the container is created.
-	"postCreateCommand": "pip3 install -r requirements.txt",
+	"postCreateCommand": "python -m pip install -e '.[scripts,dev]'",
 
 	// Configure tool-specific properties.
 	// "customizations": {},
diff --git a/.github/dependabot.yml b/.github/dependabot.yml
index e3a0a033..964bd6d6 100644
--- a/.github/dependabot.yml
+++ b/.github/dependabot.yml
@@ -12,13 +12,12 @@ updates:
           - "*"
     open-pull-requests-limit: 10
   - package-ecosystem: pip
-    directory: "/"
+    directories:
+      - "/"
+      - "/.github/actions/**"
     schedule:
       interval: daily
     groups:
-      pydantic-deps:
-        patterns:
-          - "pydantic*"
       python-deps:
         patterns:
           - "*"
diff --git a/.github/workflows/generate.yml b/.github/workflows/generate.yml
index 2b50b0ca..a38009eb 100644
--- a/.github/workflows/generate.yml
+++ b/.github/workflows/generate.yml
@@ -23,12 +23,13 @@ jobs:
         with:
           python-version: "3.x"
           cache: pip
+          cache-dependency-path: pyproject.toml
 
       - name: Install dependencies
         run: |
           set -euo pipefail
           python -m pip install --upgrade pip
-          if [ -f requirements.txt ]; then pip install -r requirements.txt; fi
+          pip install -e ".[scripts]"
 
       - name: Run generate
         run: |
diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index f2985a65..fb6a6a34 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -18,16 +18,16 @@ jobs:
         with:
           python-version: 3.x
           cache: "pip"
+          cache-dependency-path: pyproject.toml
       - name: Install pip packages
         run: |
           python -m pip install --upgrade pip
+          pip install -e ".[dev]"
       - name: flake8
         run: |
-          pip install flake8
           flake8 .
       - name: pydocstyle
         run: |
-          pip install pydocstyle
           pydocstyle .
 
   unit-test:
@@ -40,11 +40,12 @@ jobs:
         with:
           python-version: 3.x
           cache: pip
+          cache-dependency-path: pyproject.toml
 
       - name: Run action unit tests
         run: |
           python -m pip install --upgrade pip
-          if [ -f requirements.txt ]; then pip install -r requirements.txt; fi
+          pip install -e ".[scripts]"
           python -m unittest discover -s .github/actions -p 'test_*.py'
 
       - name: Run API unit tests
diff --git a/.gitignore b/.gitignore
index 09681cf1..cd699549 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,4 +1,5 @@
 __pycache__
+*.egg-info/
 site/
 .venv/
 .pytest_cache/
diff --git a/.vscode/tasks.json b/.vscode/tasks.json
index 3b2e9e6d..3af69609 100644
--- a/.vscode/tasks.json
+++ b/.vscode/tasks.json
@@ -95,13 +95,13 @@
     {
       "label": "upgrade",
       "type": "shell",
-      "command": " pip install --upgrade pip; for i in $(pip list -o | awk 'NR > 2 {print $1}'); do pip install -U $i; done && pip freeze > requirements.txt",
+      "command": "python -m pip install --upgrade pip && python -m pip install --upgrade -e '.[scripts,dev]'",
       "problemMatcher": []
     },
     {
       "label": "install",
       "type": "shell",
-      "command": "pip3 install -r requirements.txt",
+      "command": "python -m pip install -e '.[scripts,dev]'",
       "problemMatcher": []
     }
   ],
diff --git a/README.md b/README.md
index 3095f49e..dfa2ac0d 100644
--- a/README.md
+++ b/README.md
@@ -95,7 +95,7 @@ pip install "git+https://github.com/althack/dockerfiles.git@main"
 For local development (editable install):
 
 ```bash
-pip install -e .
+pip install -e ".[scripts,dev]"
 ```
 
 Example usage:
diff --git a/pyproject.toml b/pyproject.toml
index 29366d6f..e92ac425 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -17,6 +17,17 @@ dependencies = [
   "jsonschema>=4.0.0"
 ]
 
+[project.optional-dependencies]
+scripts = [
+  "actions-toolkit>=0.1.15",
+  "click>=8.1",
+  "Jinja2>=3.1"
+]
+dev = [
+  "flake8>=7.3",
+  "pydocstyle>=6.3"
+]
+
 [project.urls]
 Homepage = "https://github.com/althack/dockerfiles"
 Repository = "https://github.com/althack/dockerfiles"
diff --git a/requirements.txt b/requirements.txt
deleted file mode 100644
index 6198cf20..00000000
--- a/requirements.txt
+++ /dev/null
@@ -1,42 +0,0 @@
-actions-toolkit==0.1.15
-annotated-doc==0.0.5
-annotated-types==0.8.0
-attrs==26.1.0
-certifi==2026.7.22
-cffi==2.1.0
-charset-normalizer==3.4.9
-click==8.4.2
-cryptography==50.0.0
-flake8==7.3.0
-idna==3.18
-Jinja2==3.1.6
-jsonschema==4.26.0
-jsonschema-specifications==2025.9.1
-markdown-it-py==4.2.0
-MarkupSafe==3.0.3
-mccabe==0.7.0
-mdurl==0.1.2
-packaging==26.2
-pycodestyle==2.14.0
-pycparser==3.0
-pydantic==2.13.4
-pydantic_core==2.46.4
-pyflakes==3.4.0
-PyGithub==2.9.1
-Pygments==2.20.0
-PyJWT==2.13.0
-PyNaCl==1.6.2
-pyparsing==3.3.2
-referencing==0.37.0
-requests==2.34.2
-rich==15.0.0
-rpds-py==0.30.0
-ruamel.yaml==0.19.1
-ruamel.yaml.clib==0.2.15
-shellingham==1.5.4
-tqdm==4.70.0
-typer==0.27.0
-typing-inspection==0.4.2
-typing_extensions==4.16.0
-urllib3==2.7.0
-websocket-client==1.9.0