diff --git a/news/8212.feature.rst b/news/8212.feature.rst
new file mode 100644
index 00000000000..dec2240e0bb
--- /dev/null
+++ b/news/8212.feature.rst
@@ -0,0 +1,2 @@
+Support editable installs for projects that have a ``pyproject.toml`` and use a
+build backend that supports :pep:`660`.
diff --git a/src/pip/_internal/commands/install.py b/src/pip/_internal/commands/install.py
index a427c6c5929..3d87e1af12d 100644
--- a/src/pip/_internal/commands/install.py
+++ b/src/pip/_internal/commands/install.py
@@ -306,6 +306,12 @@ def run(self, options: Values, args: List[str]) -> int:
         try:
             reqs = self.get_requirements(args, options, finder, session)
 
+            # Only when installing is it permitted to use PEP 660.
+            # In other circumstances (pip wheel, pip download) we generate
+            # regular (i.e. non editable) metadata and wheels.
+            for req in reqs:
+                req.permit_editable_wheels = True
+
             reject_location_related_install_options(reqs, options.install_options)
 
             preparer = self.make_requirement_preparer(
@@ -361,22 +367,22 @@ def run(self, options: Values, args: List[str]) -> int:
                 global_options=[],
             )
 
-            # If we're using PEP 517, we cannot do a direct install
+            # If we're using PEP 517, we cannot do a legacy setup.py install
             # so we fail here.
             pep517_build_failure_names: List[str] = [
                 r.name for r in build_failures if r.use_pep517  # type: ignore
             ]
             if pep517_build_failure_names:
                 raise InstallationError(
-                    "Could not build wheels for {} which use"
-                    " PEP 517 and cannot be installed directly".format(
+                    "Could not build wheels for {}, which is required to "
+                    "install pyproject.toml-based projects".format(
                         ", ".join(pep517_build_failure_names)
                     )
                 )
 
             # For now, we just warn about failures building legacy
-            # requirements, as we'll fall through to a direct
-            # install for those.
+            # requirements, as we'll fall through to a setup.py install for
+            # those.
             for r in build_failures:
                 if not r.use_pep517:
                     r.legacy_install_reason = 8368
diff --git a/src/pip/_internal/distributions/sdist.py b/src/pip/_internal/distributions/sdist.py
index 573fefae7ba..b4e2892931b 100644
--- a/src/pip/_internal/distributions/sdist.py
+++ b/src/pip/_internal/distributions/sdist.py
@@ -1,5 +1,5 @@
 import logging
-from typing import Set, Tuple
+from typing import Iterable, Set, Tuple
 
 from pip._internal.build_env import BuildEnvironment
 from pip._internal.distributions.base import AbstractDistribution
@@ -37,23 +37,17 @@ def prepare_distribution_metadata(
         self.req.prepare_metadata()
 
     def _setup_isolation(self, finder: PackageFinder) -> None:
-        def _raise_conflicts(
-            conflicting_with: str, conflicting_reqs: Set[Tuple[str, str]]
-        ) -> None:
-            format_string = (
-                "Some build dependencies for {requirement} "
-                "conflict with {conflicting_with}: {description}."
-            )
-            error_message = format_string.format(
-                requirement=self.req,
-                conflicting_with=conflicting_with,
-                description=", ".join(
-                    f"{installed} is incompatible with {wanted}"
-                    for installed, wanted in sorted(conflicting)
-                ),
-            )
-            raise InstallationError(error_message)
+        self._prepare_build_backend(finder)
+        # Install any extra build dependencies that the backend requests.
+        # This must be done in a second pass, as the pyproject.toml
+        # dependencies must be installed before we can call the backend.
+        if self.req.editable and self.req.permit_editable_wheels:
+            build_reqs = self._get_build_requires_editable()
+        else:
+            build_reqs = self._get_build_requires_wheel()
+        self._install_build_reqs(finder, build_reqs)
 
+    def _prepare_build_backend(self, finder: PackageFinder) -> None:
         # Isolate in a BuildEnvironment and install the build-time
         # requirements.
         pyproject_requires = self.req.pyproject_requires
@@ -67,7 +61,7 @@ def _raise_conflicts(
             self.req.requirements_to_check
         )
         if conflicting:
-            _raise_conflicts("PEP 517/518 supported requirements", conflicting)
+            self._raise_conflicts("PEP 517/518 supported requirements", conflicting)
         if missing:
             logger.warning(
                 "Missing build requirements in pyproject.toml for %s.",
@@ -78,19 +72,46 @@ def _raise_conflicts(
                 "pip cannot fall back to setuptools without %s.",
                 " and ".join(map(repr, sorted(missing))),
             )
-        # Install any extra build dependencies that the backend requests.
-        # This must be done in a second pass, as the pyproject.toml
-        # dependencies must be installed before we can call the backend.
+
+    def _get_build_requires_wheel(self) -> Iterable[str]:
         with self.req.build_env:
             runner = runner_with_spinner_message("Getting requirements to build wheel")
             backend = self.req.pep517_backend
             assert backend is not None
             with backend.subprocess_runner(runner):
-                reqs = backend.get_requires_for_build_wheel()
+                return backend.get_requires_for_build_wheel()
 
+    def _get_build_requires_editable(self) -> Iterable[str]:
+        with self.req.build_env:
+            runner = runner_with_spinner_message(
+                "Getting requirements to build editable"
+            )
+            backend = self.req.pep517_backend
+            assert backend is not None
+            with backend.subprocess_runner(runner):
+                return backend.get_requires_for_build_editable()
+
+    def _install_build_reqs(self, finder: PackageFinder, reqs: Iterable[str]) -> None:
         conflicting, missing = self.req.build_env.check_requirements(reqs)
         if conflicting:
-            _raise_conflicts("the backend dependencies", conflicting)
+            self._raise_conflicts("the backend dependencies", conflicting)
         self.req.build_env.install_requirements(
             finder, missing, "normal", "Installing backend dependencies"
         )
+
+    def _raise_conflicts(
+        self, conflicting_with: str, conflicting_reqs: Set[Tuple[str, str]]
+    ) -> None:
+        format_string = (
+            "Some build dependencies for {requirement} "
+            "conflict with {conflicting_with}: {description}."
+        )
+        error_message = format_string.format(
+            requirement=self.req,
+            conflicting_with=conflicting_with,
+            description=", ".join(
+                f"{installed} is incompatible with {wanted}"
+                for installed, wanted in sorted(conflicting_reqs)
+            ),
+        )
+        raise InstallationError(error_message)
diff --git a/src/pip/_internal/operations/build/metadata.py b/src/pip/_internal/operations/build/metadata.py
index e7672352715..e99af4697c9 100644
--- a/src/pip/_internal/operations/build/metadata.py
+++ b/src/pip/_internal/operations/build/metadata.py
@@ -23,7 +23,9 @@ def generate_metadata(build_env: BuildEnvironment, backend: Pep517HookCaller) ->
         # Note that Pep517HookCaller implements a fallback for
         # prepare_metadata_for_build_wheel, so we don't have to
         # consider the possibility that this hook doesn't exist.
-        runner = runner_with_spinner_message("Preparing wheel metadata")
+        runner = runner_with_spinner_message(
+            "Preparing wheel metadata (pyproject.toml)"
+        )
         with backend.subprocess_runner(runner):
             distinfo_dir = backend.prepare_metadata_for_build_wheel(metadata_dir)
 
diff --git a/src/pip/_internal/operations/build/metadata_editable.py b/src/pip/_internal/operations/build/metadata_editable.py
new file mode 100644
index 00000000000..13de75f6c98
--- /dev/null
+++ b/src/pip/_internal/operations/build/metadata_editable.py
@@ -0,0 +1,34 @@
+"""Metadata generation logic for source distributions.
+"""
+
+import os
+
+from pip._vendor.pep517.wrappers import Pep517HookCaller
+
+from pip._internal.build_env import BuildEnvironment
+from pip._internal.utils.subprocess import runner_with_spinner_message
+from pip._internal.utils.temp_dir import TempDirectory
+
+
+def generate_editable_metadata(
+    build_env: BuildEnvironment, backend: Pep517HookCaller
+) -> str:
+    """Generate metadata using mechanisms described in PEP 660.
+
+    Returns the generated metadata directory.
+    """
+    metadata_tmpdir = TempDirectory(kind="modern-metadata", globally_managed=True)
+
+    metadata_dir = metadata_tmpdir.path
+
+    with build_env:
+        # Note that Pep517HookCaller implements a fallback for
+        # prepare_metadata_for_build_wheel/editable, so we don't have to
+        # consider the possibility that this hook doesn't exist.
+        runner = runner_with_spinner_message(
+            "Preparing editable metadata (pyproject.toml)"
+        )
+        with backend.subprocess_runner(runner):
+            distinfo_dir = backend.prepare_metadata_for_build_editable(metadata_dir)
+
+    return os.path.join(metadata_dir, distinfo_dir)
diff --git a/src/pip/_internal/operations/build/metadata_legacy.py b/src/pip/_internal/operations/build/metadata_legacy.py
index 2013046fcf2..ff52de9c4cf 100644
--- a/src/pip/_internal/operations/build/metadata_legacy.py
+++ b/src/pip/_internal/operations/build/metadata_legacy.py
@@ -5,6 +5,7 @@
 import os
 
 from pip._internal.build_env import BuildEnvironment
+from pip._internal.cli.spinners import open_spinner
 from pip._internal.exceptions import InstallationError
 from pip._internal.utils.setuptools_build import make_setuptools_egg_info_args
 from pip._internal.utils.subprocess import call_subprocess
@@ -54,11 +55,13 @@ def generate_metadata(
     )
 
     with build_env:
-        call_subprocess(
-            args,
-            cwd=source_dir,
-            command_desc="python setup.py egg_info",
-        )
+        with open_spinner("Preparing metadata (setup.py)") as spinner:
+            call_subprocess(
+                args,
+                cwd=source_dir,
+                command_desc="python setup.py egg_info",
+                spinner=spinner,
+            )
 
     # Return the .egg-info directory.
     return _find_egg_info(egg_info_dir)
diff --git a/src/pip/_internal/operations/build/wheel.py b/src/pip/_internal/operations/build/wheel.py
index 6249a9bfdb1..b0d2fc9eadb 100644
--- a/src/pip/_internal/operations/build/wheel.py
+++ b/src/pip/_internal/operations/build/wheel.py
@@ -23,7 +23,9 @@ def build_wheel_pep517(
     try:
         logger.debug("Destination directory: %s", tempd)
 
-        runner = runner_with_spinner_message(f"Building wheel for {name} (PEP 517)")
+        runner = runner_with_spinner_message(
+            f"Building wheel for {name} (pyproject.toml)"
+        )
         with backend.subprocess_runner(runner):
             wheel_name = backend.build_wheel(
                 tempd,
diff --git a/src/pip/_internal/operations/build/wheel_editable.py b/src/pip/_internal/operations/build/wheel_editable.py
new file mode 100644
index 00000000000..cf7b01aed5a
--- /dev/null
+++ b/src/pip/_internal/operations/build/wheel_editable.py
@@ -0,0 +1,46 @@
+import logging
+import os
+from typing import Optional
+
+from pip._vendor.pep517.wrappers import HookMissing, Pep517HookCaller
+
+from pip._internal.utils.subprocess import runner_with_spinner_message
+
+logger = logging.getLogger(__name__)
+
+
+def build_wheel_editable(
+    name: str,
+    backend: Pep517HookCaller,
+    metadata_directory: str,
+    tempd: str,
+) -> Optional[str]:
+    """Build one InstallRequirement using the PEP 660 build process.
+
+    Returns path to wheel if successfully built. Otherwise, returns None.
+    """
+    assert metadata_directory is not None
+    try:
+        logger.debug("Destination directory: %s", tempd)
+
+        runner = runner_with_spinner_message(
+            f"Building editable for {name} (pyproject.toml)"
+        )
+        with backend.subprocess_runner(runner):
+            try:
+                wheel_name = backend.build_editable(
+                    tempd,
+                    metadata_directory=metadata_directory,
+                )
+            except HookMissing as e:
+                logger.error(
+                    "Cannot build editable %s because the build "
+                    "backend does not have the %s hook",
+                    name,
+                    e,
+                )
+                return None
+    except Exception:
+        logger.error("Failed building editable for %s", name)
+        return None
+    return os.path.join(tempd, wheel_name)
diff --git a/src/pip/_internal/req/constructors.py b/src/pip/_internal/req/constructors.py
index b9b18139aaf..0a6b3367e1e 100644
--- a/src/pip/_internal/req/constructors.py
+++ b/src/pip/_internal/req/constructors.py
@@ -22,7 +22,6 @@
 from pip._internal.models.index import PyPI, TestPyPI
 from pip._internal.models.link import Link
 from pip._internal.models.wheel import Wheel
-from pip._internal.pyproject import make_pyproject_path
 from pip._internal.req.req_file import ParsedRequirement
 from pip._internal.req.req_install import InstallRequirement
 from pip._internal.utils.filetypes import is_archive_file
@@ -75,21 +74,6 @@ def parse_editable(editable_req: str) -> Tuple[Optional[str], str, Set[str]]:
     url_no_extras, extras = _strip_extras(url)
 
     if os.path.isdir(url_no_extras):
-        setup_py = os.path.join(url_no_extras, "setup.py")
-        setup_cfg = os.path.join(url_no_extras, "setup.cfg")
-        if not os.path.exists(setup_py) and not os.path.exists(setup_cfg):
-            msg = (
-                'File "setup.py" or "setup.cfg" not found. Directory cannot be '
-                "installed in editable mode: {}".format(os.path.abspath(url_no_extras))
-            )
-            pyproject_path = make_pyproject_path(url_no_extras)
-            if os.path.isfile(pyproject_path):
-                msg += (
-                    '\n(A "pyproject.toml" file was found, but editable '
-                    "mode currently requires a setuptools-based build.)"
-                )
-            raise InstallationError(msg)
-
         # Treating it as code that has already been checked out
         url_no_extras = path_to_url(url_no_extras)
 
@@ -197,6 +181,7 @@ def install_req_from_editable(
     options: Optional[Dict[str, Any]] = None,
     constraint: bool = False,
     user_supplied: bool = False,
+    permit_editable_wheels: bool = False,
 ) -> InstallRequirement:
 
     parts = parse_req_from_editable(editable_req)
@@ -206,6 +191,7 @@ def install_req_from_editable(
         comes_from=comes_from,
         user_supplied=user_supplied,
         editable=True,
+        permit_editable_wheels=permit_editable_wheels,
         link=parts.link,
         constraint=constraint,
         use_pep517=use_pep517,
diff --git a/src/pip/_internal/req/req_install.py b/src/pip/_internal/req/req_install.py
index 0df0ff6f438..933b2ea6709 100644
--- a/src/pip/_internal/req/req_install.py
+++ b/src/pip/_internal/req/req_install.py
@@ -16,7 +16,7 @@
 from pip._vendor.packaging.utils import canonicalize_name
 from pip._vendor.packaging.version import Version
 from pip._vendor.packaging.version import parse as parse_version
-from pip._vendor.pep517.wrappers import Pep517HookCaller
+from pip._vendor.pep517.wrappers import HookMissing, Pep517HookCaller
 from pip._vendor.pkg_resources import Distribution
 
 from pip._internal.build_env import BuildEnvironment, NoOpBuildEnvironment
@@ -24,6 +24,7 @@
 from pip._internal.locations import get_scheme
 from pip._internal.models.link import Link
 from pip._internal.operations.build.metadata import generate_metadata
+from pip._internal.operations.build.metadata_editable import generate_editable_metadata
 from pip._internal.operations.build.metadata_legacy import (
     generate_metadata as generate_metadata_legacy,
 )
@@ -36,7 +37,10 @@
 from pip._internal.pyproject import load_pyproject_toml, make_pyproject_path
 from pip._internal.req.req_uninstall import UninstallPathSet
 from pip._internal.utils.deprecation import deprecated
-from pip._internal.utils.direct_url_helpers import direct_url_from_link
+from pip._internal.utils.direct_url_helpers import (
+    direct_url_for_editable,
+    direct_url_from_link,
+)
 from pip._internal.utils.hashes import Hashes
 from pip._internal.utils.logging import indent_log
 from pip._internal.utils.misc import (
@@ -105,12 +109,14 @@ def __init__(
         constraint: bool = False,
         extras: Collection[str] = (),
         user_supplied: bool = False,
+        permit_editable_wheels: bool = False,
     ) -> None:
         assert req is None or isinstance(req, Requirement), req
         self.req = req
         self.comes_from = comes_from
         self.constraint = constraint
         self.editable = editable
+        self.permit_editable_wheels = permit_editable_wheels
         self.legacy_install_reason: Optional[int] = None
 
         # source_dir is the local directory where the linked requirement is
@@ -191,6 +197,11 @@ def __init__(
         # but after loading this flag should be treated as read only.
         self.use_pep517 = use_pep517
 
+        # supports_pyproject_editable will be set to True or False when we try
+        # to prepare editable metadata or build an editable wheel. None means
+        # "we don't know yet".
+        self.supports_pyproject_editable: Optional[bool] = None
+
         # This requirement needs more preparation before it can be built
         self.needs_more_preparation = False
 
@@ -455,6 +466,13 @@ def setup_py_path(self) -> str:
 
         return setup_py
 
+    @property
+    def setup_cfg_path(self) -> str:
+        assert self.source_dir, f"No source dir for {self}"
+        setup_cfg = os.path.join(self.unpacked_source_directory, "setup.cfg")
+
+        return setup_cfg
+
     @property
     def pyproject_toml_path(self) -> str:
         assert self.source_dir, f"No source dir for {self}"
@@ -486,29 +504,79 @@ def load_pyproject_toml(self) -> None:
             backend_path=backend_path,
         )
 
-    def _generate_metadata(self) -> str:
+    def _generate_editable_metadata(self) -> str:
         """Invokes metadata generator functions, with the required arguments."""
-        if not self.use_pep517:
-            assert self.unpacked_source_directory
+        if self.use_pep517:
+            assert self.pep517_backend is not None
+            try:
+                metadata_directory = generate_editable_metadata(
+                    build_env=self.build_env,
+                    backend=self.pep517_backend,
+                )
+            except HookMissing as e:
+                self.supports_pyproject_editable = False
+                if not os.path.exists(self.setup_py_path) and not os.path.exists(
+                    self.setup_cfg_path
+                ):
+                    raise InstallationError(
+                        f"Project {self} has a 'pyproject.toml' and its build "
+                        f"backend is missing the {e} hook. Since it does not "
+                        f"have a 'setup.py' nor a 'setup.cfg', "
+                        f"it cannot be installed in editable mode. "
+                        f"Consider using a build backend that supports PEP 660."
+                    )
+                # At this point we have determined that the build_editable hook
+                # is missing, and there is a setup.py or setup.cfg
+                # so we fallback to the legacy metadata generation
+                logger.info(
+                    "Build backend does not support editables, "
+                    "falling back to setup.py egg_info."
+                )
+            else:
+                self.supports_pyproject_editable = True
+                return metadata_directory
+        elif not os.path.exists(self.setup_py_path) and not os.path.exists(
+            self.setup_cfg_path
+        ):
+            raise InstallationError(
+                f"File 'setup.py' or 'setup.cfg' not found "
+                f"for legacy project {self}. "
+                f"It cannot be installed in editable mode."
+            )
+
+        return generate_metadata_legacy(
+            build_env=self.build_env,
+            setup_py_path=self.setup_py_path,
+            source_dir=self.unpacked_source_directory,
+            isolated=self.isolated,
+            details=self.name or f"from {self.link}",
+        )
 
-            if not os.path.exists(self.setup_py_path):
+    def _generate_metadata(self) -> str:
+        """Invokes metadata generator functions, with the required arguments."""
+        if self.use_pep517:
+            assert self.pep517_backend is not None
+            try:
+                return generate_metadata(
+                    build_env=self.build_env,
+                    backend=self.pep517_backend,
+                )
+            except HookMissing as e:
                 raise InstallationError(
-                    f'File "setup.py" not found for legacy project {self}.'
+                    f"Project {self} has a pyproject.toml but its build "
+                    f"backend is missing the required {e} hook."
                 )
-
-            return generate_metadata_legacy(
-                build_env=self.build_env,
-                setup_py_path=self.setup_py_path,
-                source_dir=self.unpacked_source_directory,
-                isolated=self.isolated,
-                details=self.name or f"from {self.link}",
+        elif not os.path.exists(self.setup_py_path):
+            raise InstallationError(
+                f"File 'setup.py' not found for legacy project {self}."
             )
 
-        assert self.pep517_backend is not None
-
-        return generate_metadata(
+        return generate_metadata_legacy(
             build_env=self.build_env,
-            backend=self.pep517_backend,
+            setup_py_path=self.setup_py_path,
+            source_dir=self.unpacked_source_directory,
+            isolated=self.isolated,
+            details=self.name or f"from {self.link}",
         )
 
     def prepare_metadata(self) -> None:
@@ -520,7 +588,10 @@ def prepare_metadata(self) -> None:
         assert self.source_dir
 
         with indent_log():
-            self.metadata_directory = self._generate_metadata()
+            if self.editable and self.permit_editable_wheels:
+                self.metadata_directory = self._generate_editable_metadata()
+            else:
+                self.metadata_directory = self._generate_metadata()
 
         # Act on the newly generated metadata, based on the name and version.
         if not self.name:
@@ -728,7 +799,7 @@ def install(
         )
 
         global_options = global_options if global_options is not None else []
-        if self.editable:
+        if self.editable and not self.is_wheel:
             install_editable_legacy(
                 install_options,
                 global_options,
@@ -747,7 +818,9 @@ def install(
         if self.is_wheel:
             assert self.local_file_path
             direct_url = None
-            if self.original_link:
+            if self.editable:
+                direct_url = direct_url_for_editable(self.unpacked_source_directory)
+            elif self.original_link:
                 direct_url = direct_url_from_link(
                     self.original_link,
                     self.source_dir,
diff --git a/src/pip/_internal/resolution/resolvelib/candidates.py b/src/pip/_internal/resolution/resolvelib/candidates.py
index 5c6f9a04a97..60fad55db00 100644
--- a/src/pip/_internal/resolution/resolvelib/candidates.py
+++ b/src/pip/_internal/resolution/resolvelib/candidates.py
@@ -82,6 +82,7 @@ def make_install_req_from_editable(
         use_pep517=template.use_pep517,
         isolated=template.isolated,
         constraint=template.constraint,
+        permit_editable_wheels=template.permit_editable_wheels,
         options=dict(
             install_options=template.install_options,
             global_options=template.global_options,
diff --git a/src/pip/_internal/utils/direct_url_helpers.py b/src/pip/_internal/utils/direct_url_helpers.py
index 088e977b5b1..0e8e5e1608b 100644
--- a/src/pip/_internal/utils/direct_url_helpers.py
+++ b/src/pip/_internal/utils/direct_url_helpers.py
@@ -2,6 +2,7 @@
 
 from pip._internal.models.direct_url import ArchiveInfo, DirectUrl, DirInfo, VcsInfo
 from pip._internal.models.link import Link
+from pip._internal.utils.urls import path_to_url
 from pip._internal.vcs import vcs
 
 
@@ -28,6 +29,13 @@ def direct_url_as_pep440_direct_reference(direct_url: DirectUrl, name: str) -> s
     return requirement
 
 
+def direct_url_for_editable(source_dir: str) -> DirectUrl:
+    return DirectUrl(
+        url=path_to_url(source_dir),
+        info=DirInfo(editable=True),
+    )
+
+
 def direct_url_from_link(
     link: Link, source_dir: Optional[str] = None, link_is_in_wheel_cache: bool = False
 ) -> DirectUrl:
diff --git a/src/pip/_internal/wheel_builder.py b/src/pip/_internal/wheel_builder.py
index cf039fe763b..b4855a9a7fb 100644
--- a/src/pip/_internal/wheel_builder.py
+++ b/src/pip/_internal/wheel_builder.py
@@ -16,6 +16,7 @@
 from pip._internal.models.link import Link
 from pip._internal.models.wheel import Wheel
 from pip._internal.operations.build.wheel import build_wheel_pep517
+from pip._internal.operations.build.wheel_editable import build_wheel_editable
 from pip._internal.operations.build.wheel_legacy import build_wheel_legacy
 from pip._internal.req.req_install import InstallRequirement
 from pip._internal.utils.logging import indent_log
@@ -66,7 +67,13 @@ def _should_build(
     # From this point, this concerns the pip install command only
     # (need_wheel=False).
 
-    if req.editable or not req.source_dir:
+    if not req.source_dir:
+        return False
+
+    if req.editable:
+        if req.use_pep517 and req.supports_pyproject_editable is not False:
+            return True
+        # we don't build legacy editable requirements
         return False
 
     if req.use_pep517:
@@ -194,16 +201,19 @@ def _build_one(
     verify: bool,
     build_options: List[str],
     global_options: List[str],
+    editable: bool,
 ) -> Optional[str]:
     """Build one wheel.
 
     :return: The filename of the built wheel, or None if the build failed.
     """
+    artifact = "editable" if editable else "wheel"
     try:
         ensure_dir(output_dir)
     except OSError as e:
         logger.warning(
-            "Building wheel for %s failed: %s",
+            "Building %s for %s failed: %s",
+            artifact,
             req.name,
             e,
         )
@@ -212,13 +222,13 @@ def _build_one(
     # Install build deps into temporary directory (PEP 518)
     with req.build_env:
         wheel_path = _build_one_inside_env(
-            req, output_dir, build_options, global_options
+            req, output_dir, build_options, global_options, editable
         )
     if wheel_path and verify:
         try:
             _verify_one(req, wheel_path)
         except (InvalidWheelFilename, UnsupportedWheel) as e:
-            logger.warning("Built wheel for %s is invalid: %s", req.name, e)
+            logger.warning("Built %s for %s is invalid: %s", artifact, req.name, e)
             return None
     return wheel_path
 
@@ -228,6 +238,7 @@ def _build_one_inside_env(
     output_dir: str,
     build_options: List[str],
     global_options: List[str],
+    editable: bool,
 ) -> Optional[str]:
     with TempDirectory(kind="wheel") as temp_dir:
         assert req.name
@@ -242,12 +253,20 @@ def _build_one_inside_env(
                 logger.warning(
                     "Ignoring --build-option when building %s using PEP 517", req.name
                 )
-            wheel_path = build_wheel_pep517(
-                name=req.name,
-                backend=req.pep517_backend,
-                metadata_directory=req.metadata_directory,
-                tempd=temp_dir.path,
-            )
+            if editable:
+                wheel_path = build_wheel_editable(
+                    name=req.name,
+                    backend=req.pep517_backend,
+                    metadata_directory=req.metadata_directory,
+                    tempd=temp_dir.path,
+                )
+            else:
+                wheel_path = build_wheel_pep517(
+                    name=req.name,
+                    backend=req.pep517_backend,
+                    metadata_directory=req.metadata_directory,
+                    tempd=temp_dir.path,
+                )
         else:
             wheel_path = build_wheel_legacy(
                 name=req.name,
@@ -324,9 +343,15 @@ def build(
     with indent_log():
         build_successes, build_failures = [], []
         for req in requirements:
+            assert req.name
             cache_dir = _get_cache_dir(req, wheel_cache)
             wheel_file = _build_one(
-                req, cache_dir, verify, build_options, global_options
+                req,
+                cache_dir,
+                verify,
+                build_options,
+                global_options,
+                req.editable and req.permit_editable_wheels,
             )
             if wheel_file:
                 # Update the link for this.
diff --git a/tests/functional/test_install.py b/tests/functional/test_install.py
index 3af75cb5639..368973d9b99 100644
--- a/tests/functional/test_install.py
+++ b/tests/functional/test_install.py
@@ -644,7 +644,7 @@ def test_install_from_local_directory_with_no_setup_py(script, data):
     assert "Neither 'setup.py' nor 'pyproject.toml' found." in result.stderr
 
 
-def test_editable_install__local_dir_no_setup_py(script, data, deprecated_python):
+def test_editable_install__local_dir_no_setup_py(script, data):
     """
     Test installing in editable mode from a local directory with no setup.py.
     """
@@ -652,16 +652,12 @@ def test_editable_install__local_dir_no_setup_py(script, data, deprecated_python
     assert not result.files_created
 
     msg = result.stderr
-    if deprecated_python:
-        assert 'File "setup.py" or "setup.cfg" not found. ' in msg
-    else:
-        assert msg.startswith('ERROR: File "setup.py" or "setup.cfg" not found. ')
+    assert msg.startswith("ERROR: File 'setup.py' or 'setup.cfg' not found ")
+    assert "cannot be installed in editable mode" in msg
     assert "pyproject.toml" not in msg
 
 
-def test_editable_install__local_dir_no_setup_py_with_pyproject(
-    script, deprecated_python
-):
+def test_editable_install__local_dir_no_setup_py_with_pyproject(script):
     """
     Test installing in editable mode from a local directory with no setup.py
     but that does have pyproject.toml.
@@ -675,11 +671,9 @@ def test_editable_install__local_dir_no_setup_py_with_pyproject(
     assert not result.files_created
 
     msg = result.stderr
-    if deprecated_python:
-        assert 'File "setup.py" or "setup.cfg" not found. ' in msg
-    else:
-        assert msg.startswith('ERROR: File "setup.py" or "setup.cfg" not found. ')
-    assert 'A "pyproject.toml" file was found' in msg
+    assert "has a 'pyproject.toml'" in msg
+    assert "does not have a 'setup.py' nor a 'setup.cfg'" in msg
+    assert "cannot be installed in editable mode" in msg
 
 
 @pytest.mark.network
diff --git a/tests/functional/test_pep660.py b/tests/functional/test_pep660.py
new file mode 100644
index 00000000000..b7d97c8d8d8
--- /dev/null
+++ b/tests/functional/test_pep660.py
@@ -0,0 +1,209 @@
+import os
+
+import tomli_w
+
+from pip._internal.utils.urls import path_to_url
+
+SETUP_PY = """
+from setuptools import setup
+
+setup()
+"""
+
+SETUP_CFG = """
+[metadata]
+name = project
+version = 1.0.0
+"""
+
+BACKEND_WITHOUT_PEP660 = """
+from setuptools.build_meta import (
+    build_wheel as _build_wheel,
+    prepare_metadata_for_build_wheel as _prepare_metadata_for_build_wheel,
+    get_requires_for_build_wheel as _get_requires_for_build_wheel,
+)
+
+def get_requires_for_build_wheel(config_settings=None):
+    with open("log.txt", "a") as f:
+        print(":get_requires_for_build_wheel called", file=f)
+    return _get_requires_for_build_wheel(config_settings)
+
+def prepare_metadata_for_build_wheel(metadata_directory, config_settings=None):
+    with open("log.txt", "a") as f:
+        print(":prepare_metadata_for_build_wheel called", file=f)
+    return _prepare_metadata_for_build_wheel(metadata_directory, config_settings)
+
+def build_wheel(wheel_directory, config_settings=None, metadata_directory=None):
+    with open("log.txt", "a") as f:
+        print(":build_wheel called", file=f)
+    return _build_wheel(wheel_directory, config_settings, metadata_directory)
+"""
+
+# fmt: off
+BACKEND_WITH_PEP660 = BACKEND_WITHOUT_PEP660 + """
+def get_requires_for_build_editable(config_settings=None):
+    with open("log.txt", "a") as f:
+        print(":get_requires_for_build_editable called", file=f)
+    return _get_requires_for_build_wheel(config_settings)
+
+def prepare_metadata_for_build_editable(metadata_directory, config_settings=None):
+    with open("log.txt", "a") as f:
+        print(":prepare_metadata_for_build_editable called", file=f)
+    return _prepare_metadata_for_build_wheel(metadata_directory, config_settings)
+
+def build_editable(wheel_directory, config_settings=None, metadata_directory=None):
+    with open("log.txt", "a") as f:
+        print(":build_editable called", file=f)
+    return _build_wheel(wheel_directory, config_settings, metadata_directory)
+"""
+# fmt: on
+
+
+def _make_project(tmpdir, backend_code, with_setup_py):
+    project_dir = tmpdir / "project"
+    project_dir.mkdir()
+    project_dir.joinpath("setup.cfg").write_text(SETUP_CFG)
+    if with_setup_py:
+        project_dir.joinpath("setup.py").write_text(SETUP_PY)
+    if backend_code:
+        buildsys = {"requires": ["setuptools", "wheel"]}
+        buildsys["build-backend"] = "test_backend"
+        buildsys["backend-path"] = ["."]
+        data = tomli_w.dumps({"build-system": buildsys})
+        project_dir.joinpath("pyproject.toml").write_text(data)
+        project_dir.joinpath("test_backend.py").write_text(backend_code)
+    project_dir.joinpath("log.txt").touch()
+    return project_dir
+
+
+def _assert_hook_called(project_dir, hook):
+    log = project_dir.joinpath("log.txt").read_text()
+    assert f":{hook} called" in log, f"{hook} has not been called"
+
+
+def _assert_hook_not_called(project_dir, hook):
+    log = project_dir.joinpath("log.txt").read_text()
+    assert f":{hook} called" not in log, f"{hook} should not have been called"
+
+
+def test_install_pep517_basic(tmpdir, script, with_wheel):
+    """
+    Check that the test harness we have in this file is sane.
+    """
+    project_dir = _make_project(tmpdir, BACKEND_WITHOUT_PEP660, with_setup_py=False)
+    script.pip(
+        "install",
+        "--use-feature=in-tree-build",
+        "--no-index",
+        "--no-build-isolation",
+        project_dir,
+    )
+    _assert_hook_called(project_dir, "prepare_metadata_for_build_wheel")
+    _assert_hook_called(project_dir, "build_wheel")
+
+
+def test_install_pep660_basic(tmpdir, script, with_wheel):
+    """
+    Test with backend that supports build_editable.
+    """
+    project_dir = _make_project(tmpdir, BACKEND_WITH_PEP660, with_setup_py=False)
+    result = script.pip(
+        "install",
+        "--no-index",
+        "--no-build-isolation",
+        "--editable",
+        project_dir,
+    )
+    _assert_hook_called(project_dir, "prepare_metadata_for_build_editable")
+    _assert_hook_called(project_dir, "build_editable")
+    assert (
+        result.test_env.site_packages.joinpath("project.egg-link")
+        not in result.files_created
+    ), "a .egg-link file should not have been created"
+
+
+def test_install_no_pep660_setup_py_fallback(tmpdir, script, with_wheel):
+    """
+    Test that we fall back to setuptools develop when using a backend that
+    does not support build_editable .
+    """
+    project_dir = _make_project(tmpdir, BACKEND_WITHOUT_PEP660, with_setup_py=True)
+    result = script.pip(
+        "install",
+        "--no-index",
+        "--no-build-isolation",
+        "--editable",
+        project_dir,
+        allow_stderr_warning=False,
+    )
+    assert (
+        result.test_env.site_packages.joinpath("project.egg-link")
+        in result.files_created
+    ), "a .egg-link file should have been created"
+
+
+def test_install_no_pep660_setup_cfg_fallback(tmpdir, script, with_wheel):
+    """
+    Test that we fall back to setuptools develop when using a backend that
+    does not support build_editable .
+    """
+    project_dir = _make_project(tmpdir, BACKEND_WITHOUT_PEP660, with_setup_py=False)
+    result = script.pip(
+        "install",
+        "--no-index",
+        "--no-build-isolation",
+        "--editable",
+        project_dir,
+        allow_stderr_warning=False,
+    )
+    print(result.stdout, result.stderr)
+    assert (
+        result.test_env.site_packages.joinpath("project.egg-link")
+        in result.files_created
+    ), ".egg-link file should have been created"
+
+
+def test_wheel_editable_pep660_basic(tmpdir, script, with_wheel):
+    """
+    Test 'pip wheel' of an editable pep 660 project.
+    It must *not* call prepare_metadata_for_build_editable.
+    """
+    project_dir = _make_project(tmpdir, BACKEND_WITH_PEP660, with_setup_py=False)
+    wheel_dir = tmpdir / "dist"
+    script.pip(
+        "wheel",
+        "--no-index",
+        "--no-build-isolation",
+        "--editable",
+        project_dir,
+        "-w",
+        wheel_dir,
+    )
+    _assert_hook_not_called(project_dir, "prepare_metadata_for_build_editable")
+    _assert_hook_not_called(project_dir, "build_editable")
+    _assert_hook_called(project_dir, "prepare_metadata_for_build_wheel")
+    _assert_hook_called(project_dir, "build_wheel")
+    assert len(os.listdir(str(wheel_dir))) == 1, "a wheel should have been created"
+
+
+def test_download_editable_pep660_basic(tmpdir, script, with_wheel):
+    """
+    Test 'pip download' of an editable pep 660 project.
+    It must *not* call prepare_metadata_for_build_editable.
+    """
+    project_dir = _make_project(tmpdir, BACKEND_WITH_PEP660, with_setup_py=False)
+    reqs_file = tmpdir / "requirements.txt"
+    reqs_file.write_text(f"-e {path_to_url(project_dir)}\n")
+    download_dir = tmpdir / "download"
+    script.pip(
+        "download",
+        "--no-index",
+        "--no-build-isolation",
+        "-r",
+        reqs_file,
+        "-d",
+        download_dir,
+    )
+    _assert_hook_not_called(project_dir, "prepare_metadata_for_build_editable")
+    _assert_hook_called(project_dir, "prepare_metadata_for_build_wheel")
+    assert len(os.listdir(str(download_dir))) == 1, "a zip should have been created"
diff --git a/tests/unit/test_wheel_builder.py b/tests/unit/test_wheel_builder.py
index 30b4060212d..2b8ec2fa94d 100644
--- a/tests/unit/test_wheel_builder.py
+++ b/tests/unit/test_wheel_builder.py
@@ -39,6 +39,7 @@ def __init__(
         constraint: bool = False,
         source_dir: Optional[str] = "/tmp/pip-install-123/pendulum",
         use_pep517: bool = True,
+        supports_pyproject_editable: Optional[bool] = None,
     ) -> None:
         self.name = name
         self.is_wheel = is_wheel
@@ -47,6 +48,7 @@ def __init__(
         self.constraint = constraint
         self.source_dir = source_dir
         self.use_pep517 = use_pep517
+        self.supports_pyproject_editable = supports_pyproject_editable
 
 
 @pytest.mark.parametrize(
@@ -63,8 +65,18 @@ def __init__(
         (ReqMock(constraint=True), False, False),
         # We don't build reqs that are already wheels.
         (ReqMock(is_wheel=True), False, False),
-        # We don't build editables.
-        (ReqMock(editable=True), False, False),
+        (ReqMock(editable=True, use_pep517=False), False, False),
+        (ReqMock(editable=True, use_pep517=True), False, True),
+        (
+            ReqMock(editable=True, use_pep517=True, supports_pyproject_editable=True),
+            False,
+            True,
+        ),
+        (
+            ReqMock(editable=True, use_pep517=True, supports_pyproject_editable=False),
+            False,
+            False,
+        ),
         (ReqMock(source_dir=None), False, False),
         # By default (i.e. when binaries are allowed), VCS requirements
         # should be built in install mode.
@@ -108,7 +120,8 @@ def test_should_build_for_install_command(
         (ReqMock(), True),
         (ReqMock(constraint=True), False),
         (ReqMock(is_wheel=True), False),
-        (ReqMock(editable=True), True),
+        (ReqMock(editable=True, use_pep517=False), True),
+        (ReqMock(editable=True, use_pep517=True), True),
         (ReqMock(source_dir=None), True),
         (ReqMock(link=Link("git+https://g.c/org/repo")), True),
     ],
@@ -145,7 +158,8 @@ def test_should_build_legacy_wheel_installed(is_wheel_installed: mock.Mock) -> N
 @pytest.mark.parametrize(
     "req, expected",
     [
-        (ReqMock(editable=True), False),
+        (ReqMock(editable=True, use_pep517=False), False),
+        (ReqMock(editable=True, use_pep517=True), False),
         (ReqMock(source_dir=None), False),
         (ReqMock(link=Link("git+https://g.c/org/repo")), False),
         (ReqMock(link=Link("https://g.c/dist.tgz")), False),