diff --git a/.gitignore b/.gitignore
index 2c0ea2b..abdff60 100644
--- a/.gitignore
+++ b/.gitignore
@@ -4,6 +4,7 @@ __pycache__/
 .env/
 .idea/
 .mypy_cache/
+.poetry/
 .pytest_cache/
 .ruff_cache/
 .tox/
diff --git a/CHANGELOG.md b/CHANGELOG.md
index db8fcdb..3d087ef 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,16 @@
+## Unreleased
+
+* Added:
+  * CLI: When pyproject.toml contains the `project` section,
+    the `enable` command will add the required fields for Poetry 2.0.0+.
+* Fixed:
+  * For compatibility with Poetry 2.0.0,
+    adjusted Poetry constraint from `^1.2.0` to `>=1.2.0`.
+  * For compatibility with Poetry 2.0.0,
+    when inserting the dynamic version into pyproject.toml with PEP 621 mode activated,
+    the plugin ensures not to set `project.version` and `tool.poetry.version` at the same time.
+  * An `UnboundLocalError` could happen when pyproject.toml was misconfigured.
+
 ## v1.4.1 (2024-09-10)
 
 * Fixed:
diff --git a/README.md b/README.md
index fa270af..5243713 100644
--- a/README.md
+++ b/README.md
@@ -31,16 +31,28 @@ be sure to uninstall it before proceeding.
 
 * Install the plugin using one of the options below:
 
-  * In most cases: `poetry self add "poetry-dynamic-versioning[plugin]"`
-  * If you installed Poetry with Pipx: `pipx inject poetry "poetry-dynamic-versioning[plugin]"`
+  * For Poetry 2.0.0+, add this to your pyproject.toml and then run `poetry install`:
+    ```toml
+    [tool.poetry.requires-plugins]
+    poetry-dynamic-versioning = { version = ">=1.0.0,<2.0.0", extras = ["plugin"] }
+    ```
+  * For older Poetry versions, depending on how you installed Poetry:
+    * In most cases: `poetry self add "poetry-dynamic-versioning[plugin]"`
+    * If you installed Poetry with Pipx: `pipx inject poetry "poetry-dynamic-versioning[plugin]"`
 
   See the [Poetry plugin documentation](https://python-poetry.org/docs/plugins/#using-plugins)
   for more information about these options.
-* Run in your project: `poetry dynamic-versioning enable`
+* Run this in your project: `poetry dynamic-versioning enable`
 
-  Or you can update your pyproject.toml manually:
+  Or you can update your pyproject.toml manually to include these fields:
 
   ```toml
+  [project]
+  dynamic = ["version"]
+
+  [tool.poetry]
+  version = "0.0.0"
+
   [tool.poetry-dynamic-versioning]
   enable = true
   ```
diff --git a/poetry_dynamic_versioning/__init__.py b/poetry_dynamic_versioning/__init__.py
index 5c05cb3..6537365 100644
--- a/poetry_dynamic_versioning/__init__.py
+++ b/poetry_dynamic_versioning/__init__.py
@@ -595,6 +595,7 @@ def _apply_version(
     elif mode == _Mode.Pep621:
         pyproject["project"]["dynamic"].remove("version")  # type: ignore
         pyproject["project"]["version"] = version  # type: ignore
+        pyproject["tool"]["poetry"].pop("version")  # type: ignore
 
     # Disable the plugin in case we're building a source distribution,
     # which won't have access to the VCS info at install time.
@@ -654,6 +655,9 @@ def _get_and_apply_version(
         and "dynamic" in pyproject["project"]
         and "version" in pyproject["project"]["dynamic"]
         and "version" not in pyproject["project"]
+        and "tool" in pyproject
+        and "poetry" in pyproject["tool"]
+        and "version" in pyproject["tool"]["poetry"]
     )
 
     if classic:
@@ -662,10 +666,10 @@ def _get_and_apply_version(
         dynamic_index = None
     elif pep621:
         name = pyproject["project"]["name"]
-        original = pyproject["project"].get("version")
+        original = pyproject["tool"]["poetry"]["version"]
         dynamic_index = pyproject["project"]["dynamic"].index("version")
     else:
-        return name if name in _state.projects else None
+        return None
 
     if name in _state.projects:
         return name
@@ -726,6 +730,8 @@ def _revert_version(retain: bool = False) -> None:
                 pyproject["project"]["dynamic"].insert(index, "version")  # type: ignore
             if "version" in pyproject["project"]:  # type: ignore
                 pyproject["project"].pop("version")  # type: ignore
+            if state.original_version is not None:
+                pyproject["tool"]["poetry"]["version"] = state.original_version  # type: ignore
 
         if not retain and not _state.cli_mode:
             pyproject["tool"]["poetry-dynamic-versioning"]["enable"] = True  # type: ignore
diff --git a/poetry_dynamic_versioning/cli.py b/poetry_dynamic_versioning/cli.py
index bf0a69f..d10cd1e 100644
--- a/poetry_dynamic_versioning/cli.py
+++ b/poetry_dynamic_versioning/cli.py
@@ -25,6 +25,10 @@ class Key:
     build_system = "build-system"
     requires = "requires"
     build_backend = "build-backend"
+    project = "project"
+    poetry = "poetry"
+    dynamic = "dynamic"
+    version = "version"
 
 
 class Command:
@@ -120,4 +124,19 @@ def _enable_in_doc(doc: tomlkit.TOMLDocument) -> tomlkit.TOMLDocument:
     else:
         doc[Key.build_system].update(build_system_table)  # type: ignore
 
+    # Poetry 2.0.0+
+    if doc.get(Key.project) is not None:
+        if doc[Key.project].get(Key.version) is not None:
+            del doc[Key.project][Key.version]
+
+        if doc[Key.project].get(Key.dynamic) is None:
+            doc[Key.project][Key.dynamic] = [Key.version]
+        else:
+            doc[Key.project][Key.dynamic].append(Key.version)
+
+        if doc[Key.tool].get(Key.poetry) is None:
+            doc[Key.tool][Key.poetry] = tomlkit.table().add(Key.version, "0.0.0")
+        else:
+            doc[Key.tool][Key.poetry][Key.version] = "0.0.0"
+
     return doc