diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index bcbd72719d..2f113788b5 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -5,7 +5,7 @@ on:
     branches:
       - main
       - dev
-      - '1.x'
+      - "1.x"
     paths-ignore:
       - "docs/**"
       - "news/**"
@@ -51,11 +51,6 @@ jobs:
       - uses: actions/checkout@v2
         with:
           submodules: true
-      - name: Set Python 2.7
-        uses: actions/setup-python@v2
-        with:
-          python-version: 2.7
-          architecture: ${{ matrix.arch }}
       - name: Set Python 3.6
         uses: actions/setup-python@v2
         with:
@@ -79,6 +74,12 @@ jobs:
         with:
           python-version: 3.9
           architecture: ${{ matrix.arch }}
+      - name: Set Python 3.10
+        uses: actions/setup-python@v2
+        if: matrix.python-version != '3.10'
+        with:
+          python-version: "3.10"
+          architecture: ${{ matrix.arch }}
       - name: Set up Python ${{ matrix.python-version }}
         uses: actions/setup-python@v2
         with:
diff --git a/docs/docs/usage/project.md b/docs/docs/usage/project.md
index 373ceb57a0..19927ba052 100644
--- a/docs/docs/usage/project.md
+++ b/docs/docs/usage/project.md
@@ -215,10 +215,13 @@ PDM provides `import` command so that you don't have to initialize the project m
 1. Pipenv's `Pipfile`
 2. Poetry's section in `pyproject.toml`
 3. Flit's section in `pyproject.toml`
-4. `requirements.txt` format used by Pip
+4. `requirements.txt` format used by pip
+5. setuptools `setup.py`
 
-Also, when you are executing `pdm init` or `pdm install`, PDM can auto-detect possible files to import
-if your PDM project has not been initialized yet.
+Also, when you are executing `pdm init` or `pdm install`, PDM can auto-detect possible files to import if your PDM project has not been initialized yet.
+
+!!! attention "CAUTION"
+    Converting a `setup.py` will execute the file with the project interpreter. Make sure `setuptools` is installed with the interpreter and the `setup.py` is trusted.
 
 ## Export locked packages to alternative formats
 
diff --git a/news/1062.feature.md b/news/1062.feature.md
new file mode 100644
index 0000000000..48fdfef017
--- /dev/null
+++ b/news/1062.feature.md
@@ -0,0 +1 @@
+Add support for importing from a `setup.py` project.
diff --git a/pdm.lock b/pdm.lock
index 5c4d5d1be0..9115ee949b 100644
--- a/pdm.lock
+++ b/pdm.lock
@@ -265,7 +265,7 @@ version = "8.2.13"
 requires_python = ">=3.7"
 summary = "Documentation that simply works"
 dependencies = [
-    "jinja2>=3.0.2",
+    "jinja2>=2.11.1",
     "markdown>=3.2",
     "mkdocs-material-extensions>=1.0.3",
     "mkdocs>=1.3.0",
@@ -620,6 +620,11 @@ version = "1.26.9"
 requires_python = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*, !=3.4.*, <4"
 summary = "HTTP library with thread-safe connection pooling, file post, and more."
 
+[[package]]
+name = "verspec"
+version = "0.1.0"
+summary = "Flexible version handling"
+
 [[package]]
 name = "watchdog"
 version = "2.1.7"
@@ -640,7 +645,7 @@ summary = "Backport of pathlib-compatible object wrapper for zip files"
 
 [metadata]
 lock_version = "3.1"
-content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49a663e86"
+content_hash = "sha256:ba404c54dee3fe0aa4fc110749724b2fbb86806b89e7b9d526357fb8293266e1"
 
 [metadata.files]
 "arpeggio 1.10.2" = [
@@ -694,7 +699,6 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "commonmark-0.9.1.tar.gz", hash = "sha256:452f9dc859be7f06631ddcb328b6919c67984aca654e5fefb3914d54691aed60"},
 ]
 "coverage 6.3.2" = [
-    {file = "coverage-6.3.2-cp39-cp39-win_amd64.whl", hash = "sha256:9548f10d8be799551eb3a9c74bbf2b4934ddb330e08a73320123c07f95cc2d92"},
     {file = "coverage-6.3.2-cp310-cp310-macosx_10_9_x86_64.whl", hash = "sha256:9b27d894748475fa858f9597c0ee1d4829f44683f3813633aaf94b19cb5453cf"},
     {file = "coverage-6.3.2-cp310-cp310-macosx_11_0_arm64.whl", hash = "sha256:37d1141ad6b2466a7b53a22e08fe76994c2d35a5b6b469590424a9953155afac"},
     {file = "coverage-6.3.2-cp310-cp310-manylinux_2_17_aarch64.manylinux2014_aarch64.whl", hash = "sha256:f9987b0354b06d4df0f4d3e0ec1ae76d7ce7cbca9a2f98c25041eb79eec766f1"},
@@ -733,6 +737,7 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "coverage-6.3.2-cp39-cp39-musllinux_1_1_i686.whl", hash = "sha256:dd035edafefee4d573140a76fdc785dc38829fe5a455c4bb12bac8c20cfc3d69"},
     {file = "coverage-6.3.2-cp39-cp39-musllinux_1_1_x86_64.whl", hash = "sha256:5ca5aeb4344b30d0bec47481536b8ba1181d50dbe783b0e4ad03c95dc1296684"},
     {file = "coverage-6.3.2-cp39-cp39-win32.whl", hash = "sha256:f5fa5803f47e095d7ad8443d28b01d48c0359484fec1b9d8606d0e3282084bc4"},
+    {file = "coverage-6.3.2-cp39-cp39-win_amd64.whl", hash = "sha256:9548f10d8be799551eb3a9c74bbf2b4934ddb330e08a73320123c07f95cc2d92"},
     {file = "coverage-6.3.2-pp36.pp37.pp38-none-any.whl", hash = "sha256:18d520c6860515a771708937d2f78f63cc47ab3b80cb78e86573b0a760161faf"},
     {file = "coverage-6.3.2.tar.gz", hash = "sha256:03e2a7826086b91ef345ff18742ee9fc47a6839ccd517061ef8fa1976e652ce9"},
 ]
@@ -788,7 +793,6 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "markdown-include-0.6.0.tar.gz", hash = "sha256:6f5d680e36f7780c7f0f61dca53ca581bd50d1b56137ddcd6353efafa0c3e4a2"},
 ]
 "markupsafe 2.1.1" = [
-    {file = "MarkupSafe-2.1.1-cp39-cp39-win_amd64.whl", hash = "sha256:46d00d6cfecdde84d40e572d63735ef81423ad31184100411e6e3388d405e247"},
     {file = "MarkupSafe-2.1.1-cp310-cp310-macosx_10_9_universal2.whl", hash = "sha256:86b1f75c4e7c2ac2ccdaec2b9022845dbb81880ca318bb7a0a01fbf7813e3812"},
     {file = "MarkupSafe-2.1.1-cp310-cp310-macosx_10_9_x86_64.whl", hash = "sha256:f121a1420d4e173a5d96e47e9a0c0dcff965afdf1626d28de1460815f7c4ee7a"},
     {file = "MarkupSafe-2.1.1-cp310-cp310-manylinux_2_17_aarch64.manylinux2014_aarch64.whl", hash = "sha256:a49907dd8420c5685cfa064a1335b6754b74541bbb3706c259c02ed65b644b3e"},
@@ -827,6 +831,7 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "MarkupSafe-2.1.1-cp39-cp39-musllinux_1_1_i686.whl", hash = "sha256:43093fb83d8343aac0b1baa75516da6092f58f41200907ef92448ecab8825135"},
     {file = "MarkupSafe-2.1.1-cp39-cp39-musllinux_1_1_x86_64.whl", hash = "sha256:8e3dcf21f367459434c18e71b2a9532d96547aef8a871872a5bd69a715c15f96"},
     {file = "MarkupSafe-2.1.1-cp39-cp39-win32.whl", hash = "sha256:d4306c36ca495956b6d568d276ac11fdd9c30a36f1b6eb928070dc5360b22e1c"},
+    {file = "MarkupSafe-2.1.1-cp39-cp39-win_amd64.whl", hash = "sha256:46d00d6cfecdde84d40e572d63735ef81423ad31184100411e6e3388d405e247"},
     {file = "MarkupSafe-2.1.1.tar.gz", hash = "sha256:7f91197cc9e48f989d12e4e6fbc46495c446636dfc81b9ccf50bb0ec74b91d4b"},
 ]
 "mergedeep 1.3.4" = [
@@ -866,7 +871,6 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "mkdocstrings-python-legacy-0.2.2.tar.gz", hash = "sha256:f0e7ec6a19750581b752acb38f6b32fcd1efe006f14f6703125d2c2c9a5c6f02"},
 ]
 "msgpack 1.0.3" = [
-    {file = "msgpack-1.0.3-cp39-cp39-win_amd64.whl", hash = "sha256:f01b26c2290cbd74316990ba84a14ac3d599af9cebefc543d241a66e785cf17d"},
     {file = "msgpack-1.0.3-cp310-cp310-macosx_10_9_universal2.whl", hash = "sha256:96acc674bb9c9be63fa8b6dabc3248fdc575c4adc005c440ad02f87ca7edd079"},
     {file = "msgpack-1.0.3-cp310-cp310-macosx_10_9_x86_64.whl", hash = "sha256:2c3ca57c96c8e69c1a0d2926a6acf2d9a522b41dc4253a8945c4c6cd4981a4e3"},
     {file = "msgpack-1.0.3-cp310-cp310-manylinux_2_17_aarch64.manylinux2014_aarch64.whl", hash = "sha256:b0a792c091bac433dfe0a70ac17fc2087d4595ab835b47b89defc8bbabcf5c73"},
@@ -899,6 +903,7 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "msgpack-1.0.3-cp39-cp39-manylinux_2_17_x86_64.manylinux2014_x86_64.whl", hash = "sha256:a598d0685e4ae07a0672b59792d2cc767d09d7a7f39fd9bd37ff84e060b1a996"},
     {file = "msgpack-1.0.3-cp39-cp39-manylinux_2_5_i686.manylinux1_i686.manylinux_2_17_i686.manylinux2014_i686.whl", hash = "sha256:e4c309a68cb5d6bbd0c50d5c71a25ae81f268c2dc675c6f4ea8ab2feec2ac4e2"},
     {file = "msgpack-1.0.3-cp39-cp39-win32.whl", hash = "sha256:494471d65b25a8751d19c83f1a482fd411d7ca7a3b9e17d25980a74075ba0e88"},
+    {file = "msgpack-1.0.3-cp39-cp39-win_amd64.whl", hash = "sha256:f01b26c2290cbd74316990ba84a14ac3d599af9cebefc543d241a66e785cf17d"},
     {file = "msgpack-1.0.3.tar.gz", hash = "sha256:51fdc7fb93615286428ee7758cecc2f374d5ff363bdd884c7ea622a7a327a81e"},
 ]
 "packaging 21.3" = [
@@ -982,7 +987,6 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "pytkdocs-0.16.1.tar.gz", hash = "sha256:e2ccf6dfe9dbbceb09818673f040f1a7c32ed0bffb2d709b06be6453c4026045"},
 ]
 "pyyaml 6.0" = [
-    {file = "PyYAML-6.0-cp39-cp39-win_amd64.whl", hash = "sha256:b3d267842bf12586ba6c734f89d1f5b871df0273157918b0ccefa29deb05c21c"},
     {file = "PyYAML-6.0-cp310-cp310-macosx_10_9_x86_64.whl", hash = "sha256:d4db7c7aef085872ef65a8fd7d6d09a14ae91f691dec3e87ee5ee0539d516f53"},
     {file = "PyYAML-6.0-cp310-cp310-macosx_11_0_arm64.whl", hash = "sha256:9df7ed3b3d2e0ecfe09e14741b857df43adb5a3ddadc919a2d94fbdf78fea53c"},
     {file = "PyYAML-6.0-cp310-cp310-manylinux_2_17_aarch64.manylinux2014_aarch64.whl", hash = "sha256:77f396e6ef4c73fdc33a9157446466f1cff553d979bd00ecb64385760c6babdc"},
@@ -1014,6 +1018,7 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "PyYAML-6.0-cp39-cp39-manylinux_2_17_s390x.manylinux2014_s390x.whl", hash = "sha256:cba8c411ef271aa037d7357a2bc8f9ee8b58b9965831d9e51baf703280dc73d3"},
     {file = "PyYAML-6.0-cp39-cp39-manylinux_2_5_x86_64.manylinux1_x86_64.manylinux_2_12_x86_64.manylinux2010_x86_64.whl", hash = "sha256:40527857252b61eacd1d9af500c3337ba8deb8fc298940291486c465c8b46ec0"},
     {file = "PyYAML-6.0-cp39-cp39-win32.whl", hash = "sha256:b5b9eccad747aabaaffbc6064800670f0c297e52c12754eb1d976c57e4f74dcb"},
+    {file = "PyYAML-6.0-cp39-cp39-win_amd64.whl", hash = "sha256:b3d267842bf12586ba6c734f89d1f5b871df0273157918b0ccefa29deb05c21c"},
     {file = "PyYAML-6.0.tar.gz", hash = "sha256:68fb519c14306fec9720a2a5b45bc9f0c8d1b9c72adf45c37baedfcd949c35a2"},
 ]
 "pyyaml-env-tag 0.1" = [
@@ -1072,8 +1077,11 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "urllib3-1.26.9-py2.py3-none-any.whl", hash = "sha256:44ece4d53fb1706f667c9bd1c648f5469a2ec925fcf3a776667042d645472c14"},
     {file = "urllib3-1.26.9.tar.gz", hash = "sha256:aabaf16477806a5e1dd19aa41f8c2b7950dd3c746362d7e3223dbe6de6ac448e"},
 ]
+"verspec 0.1.0" = [
+    {file = "verspec-0.1.0-py3-none-any.whl", hash = "sha256:741877d5633cc9464c45a469ae2a31e801e6dbbaa85b9675d481cda100f11c31"},
+    {file = "verspec-0.1.0.tar.gz", hash = "sha256:c4504ca697b2056cdb4bfa7121461f5a0e81809255b41c03dda4ba823637c01e"},
+]
 "watchdog 2.1.7" = [
-    {file = "watchdog-2.1.7-py3-none-win_amd64.whl", hash = "sha256:340b875aecf4b0e6672076a6f05cfce6686935559bb6d34cebedee04126a9566"},
     {file = "watchdog-2.1.7-cp310-cp310-macosx_10_9_universal2.whl", hash = "sha256:177bae28ca723bc00846466016d34f8c1d6a621383b6caca86745918d55c7383"},
     {file = "watchdog-2.1.7-cp310-cp310-macosx_10_9_x86_64.whl", hash = "sha256:1d1cf7dfd747dec519486a98ef16097e6c480934ef115b16f18adb341df747a4"},
     {file = "watchdog-2.1.7-cp310-cp310-macosx_11_0_arm64.whl", hash = "sha256:7f14ce6adea2af1bba495acdde0e510aecaeb13b33f7bd2f6324e551b26688ca"},
@@ -1095,6 +1103,7 @@ content_hash = "sha256:81d85f3e6b79cd961a23c768dbe8c3307c7c7a484ad14db7357ec0d49
     {file = "watchdog-2.1.7-py3-none-manylinux2014_s390x.whl", hash = "sha256:03b43d583df0f18782a0431b6e9e9965c5b3f7cf8ec36a00b930def67942c385"},
     {file = "watchdog-2.1.7-py3-none-manylinux2014_x86_64.whl", hash = "sha256:ae934e34c11aa8296c18f70bf66ed60e9870fcdb4cc19129a04ca83ab23e7055"},
     {file = "watchdog-2.1.7-py3-none-win32.whl", hash = "sha256:49639865e3db4be032a96695c98ac09eed39bbb43fe876bb217da8f8101689a6"},
+    {file = "watchdog-2.1.7-py3-none-win_amd64.whl", hash = "sha256:340b875aecf4b0e6672076a6f05cfce6686935559bb6d34cebedee04126a9566"},
     {file = "watchdog-2.1.7-py3-none-win_ia64.whl", hash = "sha256:351e09b6d9374d5bcb947e6ac47a608ec25b9d70583e9db00b2fcdb97b00b572"},
     {file = "watchdog-2.1.7.tar.gz", hash = "sha256:3fd47815353be9c44eebc94cc28fe26b2b0c5bd889dafc4a5a7cbdf924143480"},
 ]
diff --git a/pdm/cli/utils.py b/pdm/cli/utils.py
index 0838742bad..75ded92914 100644
--- a/pdm/cli/utils.py
+++ b/pdm/cli/utils.py
@@ -500,6 +500,7 @@ def find_importable_files(project: Project) -> Iterable[tuple[str, Path]]:
         "pyproject.toml",
         "requirements.in",
         "requirements.txt",
+        "setup.py",
     ):
         project_file = project.root / filename
         if not project_file.exists():
diff --git a/pdm/formats/setup_py.py b/pdm/formats/setup_py.py
index cc0adc1b50..068471a809 100644
--- a/pdm/formats/setup_py.py
+++ b/pdm/formats/setup_py.py
@@ -1,7 +1,8 @@
 import os
 from pathlib import Path
-from typing import Any, List, Optional
+from typing import Any, Dict, List, Mapping, Optional, Tuple
 
+from pdm.formats.base import array_of_inline_tables, make_array, make_inline_table
 from pdm.project import Project
 
 
@@ -9,8 +10,54 @@ def check_fingerprint(project: Project, filename: Path) -> bool:
     return os.path.basename(filename) == "setup.py"
 
 
-def convert(project: Project, filename: Path, options: Optional[Any]) -> None:
-    raise NotImplementedError()
+def convert(
+    project: Project, filename: Path, options: Optional[Any]
+) -> Tuple[Mapping[str, Any], Mapping[str, Any]]:
+    from pdm.models.in_process import parse_setup_py
+
+    parsed = parse_setup_py(
+        str(project.environment.interpreter.executable), str(filename)
+    )
+    metadata: Dict[str, Any] = {}
+    settings: Dict[str, Any] = {}
+    for name in [
+        "name",
+        "version",
+        "description",
+        "keywords",
+        "urls",
+        "readme",
+    ]:
+        if name in parsed:
+            metadata[name] = parsed[name]
+    if "authors" in parsed:
+        metadata["authors"] = array_of_inline_tables(parsed["authors"])
+    if "maintainers" in parsed:
+        metadata["maintainers"] = array_of_inline_tables(parsed["maintainers"])
+    if "classifiers" in parsed:
+        metadata["classifiers"] = make_array(sorted(parsed["classifiers"]), True)
+    if "python_requires" in parsed:
+        metadata["requires-python"] = parsed["python_requires"]
+    if "install_requires" in parsed:
+        metadata["dependencies"] = make_array(sorted(parsed["install_requires"]), True)
+    if "extras_require" in parsed:
+        metadata["optional-dependencies"] = {
+            k: make_array(sorted(v), True) for k, v in parsed["extras_require"].items()
+        }
+    if "license" in parsed:
+        metadata["license"] = make_inline_table({"text": parsed["license"]})
+    if "package_dir" in parsed:
+        settings["package-dir"] = parsed["package_dir"]
+
+    entry_points = parsed.get("entry_points", {})
+    if "console_scripts" in entry_points:
+        metadata["scripts"] = entry_points.pop("console_scripts")
+    if "gui_scripts" in entry_points:
+        metadata["gui-scripts"] = entry_points.pop("gui_scripts")
+    if entry_points:
+        metadata["entry-points"] = entry_points
+
+    return metadata, settings
 
 
 def export(project: Project, candidates: List, options: Optional[Any]) -> str:
diff --git a/pdm/models/in_process/__init__.py b/pdm/models/in_process/__init__.py
index bd8b57480e..2687940a48 100644
--- a/pdm/models/in_process/__init__.py
+++ b/pdm/models/in_process/__init__.py
@@ -6,7 +6,7 @@
 import os
 import subprocess
 from pathlib import Path
-from typing import Dict, Optional
+from typing import Any, Dict, Optional
 
 FOLDER_PATH = Path(__file__).parent
 
@@ -35,3 +35,9 @@ def get_pep508_environment(executable: str) -> Dict[str, str]:
     script = str(FOLDER_PATH / "pep508.py")
     args = [executable, "-Es", script]
     return json.loads(subprocess.check_output(args))
+
+
+def parse_setup_py(executable: str, path: str) -> Dict[str, Any]:
+    """Parse setup.py and return the kwargs"""
+    cmd = [executable, "-Es", str(FOLDER_PATH / "parse_setup.py"), path]
+    return json.loads(subprocess.check_output(cmd))
diff --git a/pdm/models/in_process/parse_setup.py b/pdm/models/in_process/parse_setup.py
new file mode 100644
index 0000000000..a36d0c206f
--- /dev/null
+++ b/pdm/models/in_process/parse_setup.py
@@ -0,0 +1,211 @@
+import os
+import sys
+from typing import Any, Dict
+
+
+def _parse_setup_cfg(path: str) -> Dict[str, Any]:
+    import configparser
+
+    setup_cfg = configparser.ConfigParser()
+    setup_cfg.read(path, encoding="utf-8")
+
+    result: Dict[str, Any] = {}
+    if not setup_cfg.has_section("metadata"):
+        return result
+
+    metadata = setup_cfg["metadata"]
+
+    if "name" in metadata:
+        result["name"] = metadata["name"]
+
+    if "description" in metadata:
+        result["description"] = metadata["description"]
+
+    if "license" in metadata:
+        result["license"] = metadata["license"]
+
+    if "author" in metadata:
+        result["author"] = metadata["author"]
+
+    if "author_email" in metadata:
+        result["author_email"] = metadata["author_email"]
+
+    if "maintainer" in metadata:
+        result["maintainer"] = metadata["maintainer"]
+
+    if "maintainer_email" in metadata:
+        result["maintainer_email"] = metadata["maintainer_email"]
+
+    if "keywords" in metadata:
+        keywords = metadata["keywords"].strip().splitlines()
+        result["keywords"] = keywords if len(keywords) > 1 else keywords[0]
+
+    if "classifiers" in metadata:
+        result["classifiers"] = metadata["classifiers"].strip().splitlines()
+
+    if "url" in metadata:
+        result["url"] = metadata["url"]
+
+    if "download_url" in metadata:
+        result["download_url"] = metadata["download_url"]
+
+    if "project_urls" in metadata:
+        result["project_urls"] = dict(
+            [u.strip() for u in url.split("=", 1)]
+            for url in metadata["project_urls"].strip().splitlines()
+        )
+
+    if "long_description" in metadata:
+        long_description = metadata["long_description"].strip()
+        if long_description.startswith("file:"):
+            result["readme"] = long_description[5:].strip()
+
+    if setup_cfg.has_section("options"):
+        options = setup_cfg["options"]
+
+        if "python_requires" in options:
+            result["python_requires"] = options["python_requires"]
+
+        if "install_requires" in options:
+            result["install_requires"] = (
+                options["install_requires"].strip().splitlines()
+            )
+
+        if "package_dir" in options:
+            result["package_dir"] = dict(
+                [p.strip() for p in d.split("=", 1)]
+                for d in options["package_dir"].strip().splitlines()
+            )
+
+    if setup_cfg.has_section("options.extras_require"):
+        result["extras_require"] = {
+            feature: dependencies.strip().splitlines()
+            for feature, dependencies in setup_cfg["options.extras_require"].items()
+        }
+
+    if setup_cfg.has_section("options.entry_points"):
+        result["entry_points"] = {
+            entry_point: definitions.strip().splitlines()
+            for entry_point, definitions in setup_cfg["options.entry_points"].items()
+        }
+
+    return result
+
+
+setup_kwargs = {}
+SUPPORTED_ARGS = (
+    "name",
+    "version",
+    "description",
+    "license",
+    "author",
+    "author_email",
+    "maintainer",
+    "maintainer_email",
+    "keywords",
+    "classifiers",
+    "url",
+    "download_url",
+    "project_urls",
+    "python_requires",
+    "install_requires",
+    "extras_require",
+    "entry_points",
+    "package_dir",
+)
+
+
+def fake_setup(**kwargs):
+    setup_kwargs.update((k, v) for k, v in kwargs.items() if k in SUPPORTED_ARGS)
+
+
+def clean_metadata(metadata: Dict[str, Any]) -> None:
+    author = {}
+    if "author" in metadata:
+        author["name"] = metadata.pop("author")
+    if "author_email" in metadata:
+        author["email"] = metadata.pop("author_email")
+    if author:
+        metadata["authors"] = [author]
+    maintainer = {}
+    if "maintainer" in metadata:
+        maintainer["name"] = metadata.pop("maintainer")
+    if "maintainer_email" in metadata:
+        maintainer["email"] = metadata.pop("maintainer_email")
+    if maintainer:
+        metadata["maintainers"] = [maintainer]
+
+    urls = {}
+    if "url" in metadata:
+        urls["Homepage"] = metadata.pop("url")
+    if "download_url" in metadata:
+        urls["Downloads"] = metadata.pop("download_url")
+    if "project_urls" in metadata:
+        urls.update(metadata.pop("project_urls"))
+    if urls:
+        metadata["urls"] = urls
+
+    if "" in metadata.get("package_dir", {}):
+        metadata["package_dir"] = metadata["package_dir"][""]
+
+    if "keywords" in metadata:
+        keywords = metadata["keywords"]
+        if isinstance(keywords, str):
+            keywords = [k.strip() for k in keywords.split(",")]
+        metadata["keywords"] = keywords
+
+    if "entry_points" in metadata and isinstance(metadata["entry_points"], dict):
+        entry_points = {}
+        for entry_point, definitions in metadata["entry_points"].items():
+            if isinstance(definitions, str):
+                definitions = [definitions]
+            definitions = dict(
+                sorted(d.replace(" ", "").split("=", 1) for d in definitions)
+            )
+
+            entry_points[entry_point] = definitions
+        if entry_points:
+            metadata["entry_points"] = dict(sorted(entry_points.items()))
+
+
+def parse_setup(path: str) -> Dict[str, Any]:
+    import tokenize
+
+    import setuptools
+
+    setuptools.setup = fake_setup
+
+    parsed: Dict[str, Any] = {}
+    path = os.path.abspath(path)
+    project_path = os.path.dirname(path)
+    os.chdir(project_path)
+    if os.path.exists("setup.cfg"):
+        parsed.update(_parse_setup_cfg("setup.cfg"))
+
+    # Execute setup.py and get the kwargs
+    __file__ = sys.argv[0] = path
+    sys.path.insert(0, project_path)
+    setup_kwargs.clear()
+
+    with tokenize.open(path) as f:
+        code = f.read()
+    exec(
+        compile(code, __file__, "exec"),
+        {"__name__": "__main__", "__file__": __file__, "setup_kwargs": setup_kwargs},
+    )
+    parsed.update(setup_kwargs)
+
+    if "readme" not in parsed:
+        for readme_file in ("README.md", "README.rst", "README.txt"):
+            readme_path = os.path.join(project_path, readme_file)
+            if os.path.exists(readme_path):
+                parsed["readme"] = readme_file
+                break
+    clean_metadata(parsed)
+    return parsed
+
+
+if __name__ == "__main__":
+    import json
+
+    print(json.dumps(parse_setup(sys.argv[1])))
diff --git a/tests/fixtures/projects/test-setuptools/AUTHORS b/tests/fixtures/projects/test-setuptools/AUTHORS
new file mode 100644
index 0000000000..900c418024
--- /dev/null
+++ b/tests/fixtures/projects/test-setuptools/AUTHORS
@@ -0,0 +1 @@
+frostming
diff --git a/tests/fixtures/projects/test-setuptools/README.md b/tests/fixtures/projects/test-setuptools/README.md
new file mode 100644
index 0000000000..005ce84941
--- /dev/null
+++ b/tests/fixtures/projects/test-setuptools/README.md
@@ -0,0 +1 @@
+# My Module
diff --git a/tests/fixtures/projects/test-setuptools/mymodule.py b/tests/fixtures/projects/test-setuptools/mymodule.py
new file mode 100644
index 0000000000..3dc1f76bc6
--- /dev/null
+++ b/tests/fixtures/projects/test-setuptools/mymodule.py
@@ -0,0 +1 @@
+__version__ = "0.1.0"
diff --git a/tests/fixtures/projects/test-setuptools/setup.cfg b/tests/fixtures/projects/test-setuptools/setup.cfg
new file mode 100644
index 0000000000..8275a81b4b
--- /dev/null
+++ b/tests/fixtures/projects/test-setuptools/setup.cfg
@@ -0,0 +1,20 @@
+[metadata]
+name = mymodule
+description = A test module
+keywords = one, two
+classifiers =
+    Framework :: Django
+    Programming Language :: Python :: 3
+
+[options]
+zip_safe = False
+include_package_data = True
+python_requires = >=3.5
+package_dir = = src
+install_requires =
+    requests
+    importlib-metadata; python_version<"3.8"
+
+[options.entry_points]
+console_scripts =
+    mycli = mymodule:main
diff --git a/tests/fixtures/projects/test-setuptools/setup.py b/tests/fixtures/projects/test-setuptools/setup.py
new file mode 100644
index 0000000000..58d6436d46
--- /dev/null
+++ b/tests/fixtures/projects/test-setuptools/setup.py
@@ -0,0 +1,18 @@
+from setuptools import setup
+from mymodule import __version__
+
+with open("AUTHORS", "r") as f:
+    authors = f.read().strip()
+
+kwargs = {
+    "name": "mymodule",
+    "version": __version__,
+    "author": authors,
+}
+
+if 1 + 1 >= 2:
+    kwargs.update(license="MIT")
+
+
+if __name__ == "__main__":
+    setup(**kwargs)
diff --git a/tests/test_formats.py b/tests/test_formats.py
index 957f128662..963de253df 100644
--- a/tests/test_formats.py
+++ b/tests/test_formats.py
@@ -181,3 +181,23 @@ def test_export_replace_project_root(project):
         req = parse_requirement(f"./{artifact.name}")
     result = requirements.export(project, [req], Namespace(hashes=False))
     assert "${PROJECT_ROOT}" not in result
+
+
+def test_convert_setup_py_project(project):
+    golden_file = FIXTURES / "projects/test-setuptools/setup.py"
+    assert setup_py.check_fingerprint(project, golden_file)
+    result, settings = setup_py.convert(project, golden_file, Namespace())
+    assert result == {
+        "name": "mymodule",
+        "version": "0.1.0",
+        "description": "A test module",
+        "keywords": ["one", "two"],
+        "readme": "README.md",
+        "authors": [{"name": "frostming"}],
+        "license": {"text": "MIT"},
+        "classifiers": ["Framework :: Django", "Programming Language :: Python :: 3"],
+        "requires-python": ">=3.5",
+        "dependencies": ['importlib-metadata; python_version<"3.8"', "requests"],
+        "scripts": {"mycli": "mymodule:main"},
+    }
+    assert settings == {"package-dir": "src"}
diff --git a/tests/test_integration.py b/tests/test_integration.py
index 25dbe5fee5..2667a7c2fd 100644
--- a/tests/test_integration.py
+++ b/tests/test_integration.py
@@ -5,7 +5,7 @@
 
 @pytest.mark.integration
 @pytest.mark.network
-@pytest.mark.parametrize("python_version", ["2.7", "3.6", "3.7", "3.8", "3.9"])
+@pytest.mark.parametrize("python_version", ["3.6", "3.7", "3.8", "3.9", "3.10"])
 def test_basic_integration(python_version, core, tmp_path, invoke):
     """An e2e test case to ensure PDM works on all supported Python versions"""
     project = core.create_project(tmp_path)