From 22fe4f7575f66c1fa522c4874bd115da1cb3e45e Mon Sep 17 00:00:00 2001
From: Mustafa Haiderbhai <mhaiderbhai@nvidia.com>
Date: Sat, 29 Aug 2026 13:42:49 -0700
Subject: [PATCH 1/5] Flatten the installed Isaac Lab package

---
 .../changelog.d/flatten-wheel-package.rst     |   5 +
 source/isaaclab/isaaclab/_paths.py            |  25 ++++
 source/isaaclab/isaaclab/app/app_launcher.py  |   3 +-
 .../isaaclab/benchmark/microbenchmark.py      |   3 +-
 .../recorders/record_version_info.py          |   5 +-
 source/isaaclab/isaaclab/cli/utils.py         |   3 +-
 source/isaaclab/isaaclab/utils/assets.py      |   6 +-
 .../misc/test_wheel_builder_smoke.py          |  22 ++++
 tools/wheel_builder/build.sh                  |  10 +-
 tools/wheel_builder/gen_pyproject.py          |   2 +-
 tools/wheel_builder/res/__init__.py           | 116 ------------------
 11 files changed, 72 insertions(+), 128 deletions(-)
 create mode 100644 source/isaaclab/changelog.d/flatten-wheel-package.rst
 create mode 100644 source/isaaclab/isaaclab/_paths.py
 delete mode 100644 tools/wheel_builder/res/__init__.py

diff --git a/source/isaaclab/changelog.d/flatten-wheel-package.rst b/source/isaaclab/changelog.d/flatten-wheel-package.rst
new file mode 100644
index 000000000000..6a090515e8c0
--- /dev/null
+++ b/source/isaaclab/changelog.d/flatten-wheel-package.rst
@@ -0,0 +1,5 @@
+Fixed
+^^^^^
+
+* Fixed the Isaac Lab wheel to install core modules in a flat ``isaaclab`` package instead of
+  exposing a nested source package through a modified package search path.
diff --git a/source/isaaclab/isaaclab/_paths.py b/source/isaaclab/isaaclab/_paths.py
new file mode 100644
index 000000000000..2dd9fc68fd58
--- /dev/null
+++ b/source/isaaclab/isaaclab/_paths.py
@@ -0,0 +1,25 @@
+# Copyright (c) 2022-2026, The Isaac Lab Project Developers (https://github.com/isaac-sim/IsaacLab/blob/main/CONTRIBUTORS.md).
+# All rights reserved.
+#
+# SPDX-License-Identifier: BSD-3-Clause
+
+"""Resolve paths shared by source checkouts and installed wheels."""
+
+from pathlib import Path
+
+
+def _resolve_isaaclab_root() -> Path:
+    """Return the directory containing Isaac Lab runtime resources."""
+    package_root = Path(__file__).resolve().parent
+    if (package_root / "apps").is_dir():
+        return package_root
+
+    for parent in package_root.parents:
+        if (parent / "apps").is_dir() and (parent / "source" / "isaaclab").is_dir():
+            return parent
+
+    raise RuntimeError(f"Could not locate the Isaac Lab root from {package_root}")
+
+
+ISAACLAB_ROOT = _resolve_isaaclab_root()
+"""Directory containing Isaac Lab runtime resources."""
diff --git a/source/isaaclab/isaaclab/app/app_launcher.py b/source/isaaclab/isaaclab/app/app_launcher.py
index cca32d90a3de..0ae51f9d1b87 100644
--- a/source/isaaclab/isaaclab/app/app_launcher.py
+++ b/source/isaaclab/isaaclab/app/app_launcher.py
@@ -33,6 +33,7 @@
 
 SimulationApp = getattr(isaacsim, "SimulationApp", None)
 
+from isaaclab._paths import ISAACLAB_ROOT
 from isaaclab.app.loading_screen import report_activity
 from isaaclab.app.logging_utils import apply_python_logging_level, resolve_python_logging_level
 from isaaclab.app.settings_manager import get_settings_manager, initialize_carb_settings
@@ -1180,7 +1181,7 @@ def _resolve_experience_file(self, launcher_args: dict):
                 ) from e
             kit_app_exp_path = os.path.join(os.path.dirname(_isaacsim_for_paths.__file__), "apps")
             os.environ["EXP_PATH"] = kit_app_exp_path
-        isaaclab_app_exp_path = os.path.join(os.path.dirname(os.path.abspath(__file__)), *[".."] * 4, "apps")
+        isaaclab_app_exp_path = str(ISAACLAB_ROOT / "apps")
         # For Isaac Sim 4.5 compatibility, we use the 4.5 app files in a different folder
         # if launcher_args.get("use_isaacsim_45", False):
         if self.is_isaac_sim_version_5():
diff --git a/source/isaaclab/isaaclab/benchmark/microbenchmark.py b/source/isaaclab/isaaclab/benchmark/microbenchmark.py
index be0de73368d4..435cdcf09fc3 100644
--- a/source/isaaclab/isaaclab/benchmark/microbenchmark.py
+++ b/source/isaaclab/isaaclab/benchmark/microbenchmark.py
@@ -13,6 +13,7 @@
 from pathlib import Path
 from types import MappingProxyType
 
+from isaaclab._paths import ISAACLAB_ROOT
 from isaaclab.cli.utils import run_python_command
 
 
@@ -62,7 +63,7 @@ def repository_root(cls) -> Path:
         Returns:
             Repository root containing the backend benchmark entrypoints.
         """
-        return Path(__file__).parents[4]
+        return ISAACLAB_ROOT
 
     @classmethod
     def physics_variants(cls) -> tuple[str, ...]:
diff --git a/source/isaaclab/isaaclab/benchmark/recorders/record_version_info.py b/source/isaaclab/isaaclab/benchmark/recorders/record_version_info.py
index f5cc62d1e860..06de005571a1 100644
--- a/source/isaaclab/isaaclab/benchmark/recorders/record_version_info.py
+++ b/source/isaaclab/isaaclab/benchmark/recorders/record_version_info.py
@@ -8,11 +8,12 @@
 import subprocess
 import sys
 
+from isaaclab._paths import ISAACLAB_ROOT
 from isaaclab.benchmark.interfaces import MeasurementData, MeasurementDataRecorder
 from isaaclab.benchmark.measurements import DictMetadata, StringMetadata
 
-# Path to the repository root.
-_REPO_ROOT = os.path.normpath(os.path.join(os.path.dirname(os.path.abspath(__file__)), *[".."] * 6))
+# Path to the source checkout or installed wheel resources.
+_REPO_ROOT = str(ISAACLAB_ROOT)
 
 
 class VersionInfoRecorder(MeasurementDataRecorder):
diff --git a/source/isaaclab/isaaclab/cli/utils.py b/source/isaaclab/isaaclab/cli/utils.py
index 11f15432c05b..6517242d9597 100644
--- a/source/isaaclab/isaaclab/cli/utils.py
+++ b/source/isaaclab/isaaclab/cli/utils.py
@@ -13,8 +13,7 @@
 from pathlib import Path
 from typing import IO, Any
 
-# Path to Isaac Lab installation.
-ISAACLAB_ROOT = Path(__file__).parents[4].resolve()
+from isaaclab._paths import ISAACLAB_ROOT
 
 # Default path to look for Isaac Sim is _isaac_sim symlink.
 DEFAULT_ISAAC_SIM_PATH = ISAACLAB_ROOT / "_isaac_sim"
diff --git a/source/isaaclab/isaaclab/utils/assets.py b/source/isaaclab/isaaclab/utils/assets.py
index d75012822fce..4e65471aacbc 100644
--- a/source/isaaclab/isaaclab/utils/assets.py
+++ b/source/isaaclab/isaaclab/utils/assets.py
@@ -29,6 +29,8 @@
 
 from filelock import FileLock
 
+from isaaclab._paths import ISAACLAB_ROOT
+
 logger = logging.getLogger(__name__)
 
 _UDIM_RE = re.compile(r"<UDIM>", re.IGNORECASE)
@@ -42,9 +44,7 @@
 )
 
 
-_KIT_EXPERIENCE_PATH = os.path.normpath(
-    os.path.join(os.path.dirname(__file__), *([".."] * 4), "apps", "isaaclab.python.kit")
-)
+_KIT_EXPERIENCE_PATH = str(ISAACLAB_ROOT / "apps" / "isaaclab.python.kit")
 
 # Isaac Sim resolves ``persistent.isaac.asset_root.default``, so it is read first. The
 # legacy ``cloud`` setting is only consulted for experience files that predate it.
diff --git a/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py b/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
index 59b56d3d1f7b..b6d8ff993003 100644
--- a/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
+++ b/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
@@ -11,6 +11,7 @@
 Tests:
     - import isaaclab -> verify importable
     - from isaaclab import __version__ -> verify version matches wheel filename
+    - inspect the wheel and isaaclab.__path__ -> verify the core package has a flat layout
     - from isaaclab import _deprioritize_prebundle_paths -> verify wheel exports path sanitizer
     - from isaaclab.app import AppLauncher -> verify importable
     - from isaaclab.envs import VideoRecorderCfg -> verify importable
@@ -27,6 +28,7 @@
 
 import glob
 import shutil
+import zipfile
 
 import pytest
 from utils import UV_Mixin, run_cmd
@@ -92,6 +94,26 @@ def test_isaaclab_version_matches_wheel(self):
             f"isaaclab.__version__ mismatch: expected {expected_version}, got {imported_version}"
         )
 
+    def test_isaaclab_package_has_flat_layout(self):
+        """Verify core modules are installed directly under the top-level package."""
+        with zipfile.ZipFile(self._wheel) as wheel:
+            names = set(wheel.namelist())
+
+        assert "isaaclab/app/__init__.py" in names
+        nested_prefix = "isaaclab/source/isaaclab/isaaclab/"
+        assert not any(name.startswith(nested_prefix) for name in names)
+
+        result = self.run_in_uv_env(
+            [
+                "python",
+                "-c",
+                "import isaaclab; "
+                "from pathlib import Path; "
+                "assert list(isaaclab.__path__) == [str(Path(isaaclab.__file__).parent)]",
+            ]
+        )
+        assert result.returncode == 0, f"isaaclab has multiple package roots:\n{result.stdout}\n{result.stderr}"
+
     # from isaaclab import _deprioritize_prebundle_paths
     def test_isaaclab_prebundle_path_sanitizer_exported(self):
         """Verify the wheel exports the prebundle path sanitizer used by AppLauncher."""
diff --git a/tools/wheel_builder/build.sh b/tools/wheel_builder/build.sh
index 1bb7c2d8c95b..981d85d611b3 100755
--- a/tools/wheel_builder/build.sh
+++ b/tools/wheel_builder/build.sh
@@ -46,6 +46,13 @@ cp -r tools/template "$BUILD_DIR/src/isaaclab/tools/"
 # Ensure apps/ is discovered as a Python sub-package (it has no __init__.py)
 find "$BUILD_DIR/src/isaaclab/apps" -type d -exec touch {}/__init__.py \;
 
+# Install the core Python package in the conventional flat layout. Runtime resources
+# remain under isaaclab/apps, isaaclab/source, and isaaclab/tools, but imports such as
+# isaaclab.app resolve directly without extending isaaclab.__path__ at runtime.
+CORE_PACKAGE="$BUILD_DIR/src/isaaclab/source/isaaclab/isaaclab"
+cp -r "$CORE_PACKAGE/." "$BUILD_DIR/src/isaaclab/"
+rm -rf "$CORE_PACKAGE"
+
 # Promote sub-packages (isaaclab_assets, isaaclab_rl, etc.) to top-level
 # so they are importable as e.g. `import isaaclab_assets`.
 # Each extension has the structure: source/isaaclab_FOO/isaaclab_FOO/ (Python pkg)
@@ -83,8 +90,7 @@ find "$BUILD_DIR/src" -type d -name "__pycache__" -exec rm -rf {} + 2>/dev/null
 find "$BUILD_DIR/src" -type d -name "*.egg-info" -exec rm -rf {} + 2>/dev/null || true
 find "$BUILD_DIR/src" -name "*.pyc" -delete 2>/dev/null || true
 
-# 2. Copy the custom res __init__.py and __main__.py
-cp "$SELF_DIR/res/__init__.py" "$BUILD_DIR/src/isaaclab/"
+# 2. Copy the custom __main__.py used by ``python -m isaaclab``
 cp "$SELF_DIR/res/__main__.py" "$BUILD_DIR/src/isaaclab/"
 
 # 3. Generate pyproject.toml with dependencies from the root pyproject.toml
diff --git a/tools/wheel_builder/gen_pyproject.py b/tools/wheel_builder/gen_pyproject.py
index b8a619597ec6..53e48f8fab49 100644
--- a/tools/wheel_builder/gen_pyproject.py
+++ b/tools/wheel_builder/gen_pyproject.py
@@ -124,7 +124,7 @@ def _dedup(requirements: list[str]) -> list[str]:
 lines.append("]")
 lines.append("")
 lines.append("[project.scripts]")
-lines.append('isaaclab = "isaaclab:main"')
+lines.append('isaaclab = "isaaclab.cli:cli"')
 lines.append("")
 lines.append("[project.optional-dependencies]")
 for name, dep_list in opt_deps.items():
diff --git a/tools/wheel_builder/res/__init__.py b/tools/wheel_builder/res/__init__.py
deleted file mode 100644
index 0040b3aa3ce9..000000000000
--- a/tools/wheel_builder/res/__init__.py
+++ /dev/null
@@ -1,116 +0,0 @@
-# Copyright (c) 2022-2026, The Isaac Lab Project Developers (https://github.com/isaac-sim/IsaacLab/blob/main/CONTRIBUTORS.md).
-# All rights reserved.
-#
-# SPDX-License-Identifier: BSD-3-Clause
-
-import os
-import sys
-from importlib.metadata import version
-from importlib.util import find_spec
-
-__version__ = version("isaaclab")
-
-# Extend the package search path so subpackages (app/, envs/, etc.) in the
-# nested source tree are importable as isaaclab.app, isaaclab.envs, etc.
-__path__.append(os.path.join(os.path.dirname(__file__), "source", "isaaclab", "isaaclab"))
-
-
-def _deprioritize_prebundle_paths():
-    """Move Isaac Sim ``pip_prebundle`` and known conflicting extension directories to the end of ``sys.path``.
-
-    Isaac Sim's ``setup_python_env.sh`` injects ``pip_prebundle`` directories
-    onto ``PYTHONPATH``. These contain older copies of packages like torch,
-    warp, and nvidia-cudnn that shadow the versions installed by Isaac Lab,
-    causing CUDA runtime errors.
-
-    Additionally, certain Isaac Sim kit extensions (such as ``omni.warp.core``)
-    bundle their own copies of Python packages that conflict with pip-installed
-    versions. When loaded by the extension system these paths can appear on
-    ``sys.path`` before ``site-packages``, leading to version mismatches.
-
-    Rather than removing these paths entirely (which would break packages like
-    ``sympy`` that only exist in the prebundle), this function moves them to
-    the **end** of ``sys.path`` so that pip-installed packages in
-    ``site-packages`` take priority.
-
-    The ``PYTHONPATH`` environment variable is also rewritten so that child
-    processes inherit the corrected ordering.
-    """
-
-    # Extension directory fragments that are known to ship Python packages
-    # which conflict with Isaac Lab's pip-installed versions.
-    _CONFLICTING_EXT_FRAGMENTS = (
-        "omni.warp.core",
-        "omni.isaac.ml_archive",
-        "omni.isaac.core_archive",
-        "omni.kit.pip_archive",
-        "isaacsim.pip.newton",
-    )
-
-    def _should_demote(path: str) -> bool:
-        norm = path.replace("\\", "/").lower()
-        if "pip_prebundle" in norm:
-            return True
-        for frag in _CONFLICTING_EXT_FRAGMENTS:
-            if frag.lower() in norm:
-                return True
-        return False
-
-    # Partition: keep non-conflicting in place, collect conflicting.
-    clean = []
-    demoted = []
-    for p in sys.path:
-        if _should_demote(p):
-            demoted.append(p)
-        else:
-            clean.append(p)
-
-    if not demoted:
-        return
-
-    # Rebuild sys.path: originals first, then demoted at the very end.
-    sys.path[:] = clean + demoted
-
-    # Rewrite PYTHONPATH with the same ordering for subprocesses.
-    if "PYTHONPATH" in os.environ:
-        parts = os.environ["PYTHONPATH"].split(os.pathsep)
-        env_clean = []
-        env_demoted = []
-        for p in parts:
-            if _should_demote(p):
-                env_demoted.append(p)
-            else:
-                env_clean.append(p)
-        os.environ["PYTHONPATH"] = os.pathsep.join(env_clean + env_demoted)
-
-
-_deprioritize_prebundle_paths()
-
-
-# TODO(myurasov-nv): bootstrap_kernel() is ported from the internal GitLab wheel builder
-# for backwards compatibility. It is not called currently, but may be needed if Isaac Sim
-# requires explicit kernel bootstrapping before use. Remove once confirmed unnecessary.
-def bootstrap_kernel():
-    # Isaac Lab path
-    isaaclab_path = os.path.dirname(os.path.abspath(os.path.realpath(__file__)))
-
-    # bootstrap kernel via Isaac Sim
-    if find_spec("isaacsim") is not None:
-        import isaacsim
-
-        # log info
-        if find_spec("carb") is not None:
-            import carb
-            carb.log_info(f"Isaac Lab path: {isaaclab_path}")
-
-
-def main():
-    """Entry point for the ``isaaclab`` console script (python -m isaaclab)."""
-    from isaaclab.__main__ import main as _main
-
-    sys.exit(_main())
-
-
-if __name__ == "__main__":
-    bootstrap_kernel()
-    main()

From 1e55ede3a6d37136d93141b8c8d81c7d3ed20a51 Mon Sep 17 00:00:00 2001
From: Mustafa Haiderbhai <mhaiderbhai@nvidia.com>
Date: Sat, 29 Aug 2026 14:46:15 -0700
Subject: [PATCH 2/5] Support partial source checkouts

---
 source/isaaclab/isaaclab/_paths.py                     |  2 +-
 .../test/cli/test_installed_workflow_entrypoints.py    | 10 ++++++++++
 2 files changed, 11 insertions(+), 1 deletion(-)

diff --git a/source/isaaclab/isaaclab/_paths.py b/source/isaaclab/isaaclab/_paths.py
index 2dd9fc68fd58..5706465e81fd 100644
--- a/source/isaaclab/isaaclab/_paths.py
+++ b/source/isaaclab/isaaclab/_paths.py
@@ -15,7 +15,7 @@ def _resolve_isaaclab_root() -> Path:
         return package_root
 
     for parent in package_root.parents:
-        if (parent / "apps").is_dir() and (parent / "source" / "isaaclab").is_dir():
+        if parent / "source" / "isaaclab" / "isaaclab" == package_root:
             return parent
 
     raise RuntimeError(f"Could not locate the Isaac Lab root from {package_root}")
diff --git a/source/isaaclab/test/cli/test_installed_workflow_entrypoints.py b/source/isaaclab/test/cli/test_installed_workflow_entrypoints.py
index eea2b4f91575..ea161651cb0a 100644
--- a/source/isaaclab/test/cli/test_installed_workflow_entrypoints.py
+++ b/source/isaaclab/test/cli/test_installed_workflow_entrypoints.py
@@ -12,11 +12,21 @@
 
 import pytest
 
+import isaaclab._paths as paths
 import isaaclab.cli as cli
 
 pytestmark = pytest.mark.unit
 
 
+def test_resolves_partial_source_checkout_root(tmp_path):
+    """Source root resolution must not require resources copied by later Docker layers."""
+    package_root = tmp_path / "source" / "isaaclab" / "isaaclab"
+    package_root.mkdir(parents=True)
+
+    with mock.patch.object(paths, "__file__", str(package_root / "_paths.py")):
+        assert paths._resolve_isaaclab_root() == tmp_path
+
+
 @pytest.mark.parametrize(
     ("command", "runner"),
     [

From 780b30c75a379e868e4e1f30c64262b6a29e9339 Mon Sep 17 00:00:00 2001
From: Mustafa Haiderbhai <mhaiderbhai@nvidia.com>
Date: Thu, 3 Sep 2026 13:38:51 -0700
Subject: [PATCH 3/5] Support aggregate installs from Git sources

---
 docs/source/setup/installation/index.rst      | 18 ++++
 .../isaaclab/changelog.d/git-source-wheel.rst |  5 +
 .../misc/test_wheel_builder_smoke.py          | 21 +++--
 tools/wheel_builder/build.sh                  | 61 +-----------
 tools/wheel_builder/build_backend.py          | 68 ++++++++++++++
 tools/wheel_builder/pyproject.toml            |  4 +
 tools/wheel_builder/stage.py                  | 93 +++++++++++++++++++
 7 files changed, 205 insertions(+), 65 deletions(-)
 create mode 100644 source/isaaclab/changelog.d/git-source-wheel.rst
 create mode 100644 tools/wheel_builder/build_backend.py
 create mode 100644 tools/wheel_builder/pyproject.toml
 create mode 100644 tools/wheel_builder/stage.py

diff --git a/docs/source/setup/installation/index.rst b/docs/source/setup/installation/index.rst
index b5ffeb380677..e3976d93364b 100644
--- a/docs/source/setup/installation/index.rst
+++ b/docs/source/setup/installation/index.rst
@@ -568,6 +568,24 @@ To create a project built on Isaac Lab, see :ref:`template-generator`.
 
    Isaac Lab wheels are published for major releases, not every patch release.
 
+Installing an unreleased Git revision
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+The aggregate package can also be built directly from an Isaac Lab Git revision. Point uv at the
+``tools/wheel_builder`` subdirectory so it uses the same dependency metadata and packaged runtime
+resources as a released wheel:
+
+.. code-block:: toml
+
+   [project]
+   dependencies = ["isaaclab"]
+
+   [tool.uv.sources]
+   isaaclab = { git = "https://github.com/isaac-sim/IsaacLab.git", rev = "<git-revision>", subdirectory = "tools/wheel_builder" }
+
+Use a commit hash or release tag for reproducible environments. A branch name is accepted, but
+updating the lockfile can then select a newer Isaac Lab revision and dependency set.
+
 Choose how you want uv to manage the dependency. Both workflows start with the base
 ``isaaclab`` package; add optional capabilities only when your project needs them.
 
diff --git a/source/isaaclab/changelog.d/git-source-wheel.rst b/source/isaaclab/changelog.d/git-source-wheel.rst
new file mode 100644
index 000000000000..acbe206d3897
--- /dev/null
+++ b/source/isaaclab/changelog.d/git-source-wheel.rst
@@ -0,0 +1,5 @@
+Added
+^^^^^
+
+* Added a PEP 517 build target under ``tools/wheel_builder`` so package managers can install the aggregate Isaac Lab
+  package directly from a Git source without duplicating Isaac Lab's dependency list downstream.
diff --git a/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py b/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
index b6d8ff993003..6fa6e8b81870 100644
--- a/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
+++ b/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
@@ -5,7 +5,7 @@
 
 """
 Setup:
-    - bash tools/wheel_builder/build.sh
+    - uv build --wheel tools/wheel_builder --out-dir tools/wheel_builder/build/dist
     - ./isaaclab.sh -u
     - uv pip install <wheel>[sb3,skrl,rsl-rl]
 Tests:
@@ -51,13 +51,20 @@ def _build_and_install_wheel(self, isaaclab_root):
         """Build the wheel and install it in a uv environment once for all tests."""
 
         cls = self.__class__
-        build_script = isaaclab_root / "tools" / "wheel_builder" / "build.sh"
-        dist_dir = isaaclab_root / "tools" / "wheel_builder" / "build" / "dist"
+        builder_dir = isaaclab_root / "tools" / "wheel_builder"
+        dist_dir = builder_dir / "build" / "dist"
+        shutil.rmtree(dist_dir, ignore_errors=True)
+        dist_dir.mkdir(parents=True)
 
-        # Build the wheel (capture output silently to avoid spamming the test log with 10k+
+        # Build through the PEP 517 entry point used by Git-source consumers. Capture output
+        # silently to avoid spamming the test log with 10k+
         # setuptools/pip lines; the captured output is included in the assertion if it fails).
-        result = run_cmd(["bash", str(build_script)], cwd=isaaclab_root, stream=False)
-        assert result.returncode == 0, f"build.sh failed:\n{result.stdout}\n{result.stderr}"
+        result = run_cmd(
+            ["uv", "build", "--wheel", str(builder_dir), "--out-dir", str(dist_dir)],
+            cwd=isaaclab_root,
+            stream=False,
+        )
+        assert result.returncode == 0, f"PEP 517 wheel build failed:\n{result.stdout}\n{result.stderr}"
 
         # Find the built wheel
         wheels = glob.glob(str(dist_dir / "isaaclab-*.whl"))
@@ -100,6 +107,8 @@ def test_isaaclab_package_has_flat_layout(self):
             names = set(wheel.namelist())
 
         assert "isaaclab/app/__init__.py" in names
+        assert "isaaclab/apps/isaaclab.python.kit" in names
+        assert "isaaclab/source/isaaclab_assets/config/extension.toml" in names
         nested_prefix = "isaaclab/source/isaaclab/isaaclab/"
         assert not any(name.startswith(nested_prefix) for name in names)
 
diff --git a/tools/wheel_builder/build.sh b/tools/wheel_builder/build.sh
index 981d85d611b3..859205a9a97f 100755
--- a/tools/wheel_builder/build.sh
+++ b/tools/wheel_builder/build.sh
@@ -35,66 +35,9 @@ case "$ARCH" in
 esac
 
 rm -rf "$BUILD_DIR" "$DIST_DIR"
-mkdir -p "$BUILD_DIR/src/isaaclab"
 
-# 1. Copy inventory (the full source tree: apps/ + source/)
-cp -r apps "$BUILD_DIR/src/isaaclab/"
-cp -r source "$BUILD_DIR/src/isaaclab/"
-mkdir -p "$BUILD_DIR/src/isaaclab/tools"
-cp -r tools/template "$BUILD_DIR/src/isaaclab/tools/"
-
-# Ensure apps/ is discovered as a Python sub-package (it has no __init__.py)
-find "$BUILD_DIR/src/isaaclab/apps" -type d -exec touch {}/__init__.py \;
-
-# Install the core Python package in the conventional flat layout. Runtime resources
-# remain under isaaclab/apps, isaaclab/source, and isaaclab/tools, but imports such as
-# isaaclab.app resolve directly without extending isaaclab.__path__ at runtime.
-CORE_PACKAGE="$BUILD_DIR/src/isaaclab/source/isaaclab/isaaclab"
-cp -r "$CORE_PACKAGE/." "$BUILD_DIR/src/isaaclab/"
-rm -rf "$CORE_PACKAGE"
-
-# Promote sub-packages (isaaclab_assets, isaaclab_rl, etc.) to top-level
-# so they are importable as e.g. `import isaaclab_assets`.
-# Each extension has the structure: source/isaaclab_FOO/isaaclab_FOO/ (Python pkg)
-# plus sibling dirs like config/, data/. The __init__.py references ../config etc.
-# We copy the inner Python package to src/ and also copy sibling resource dirs
-# (config, data) into it so the relative-path lookups in __init__.py work.
-for ext_dir in "$BUILD_DIR"/src/isaaclab/source/isaaclab_*; do
-    pkg=$(basename "$ext_dir")
-    inner="$ext_dir/$pkg"
-    if [ -d "$inner" ] && [ -f "$inner/__init__.py" ]; then
-        cp -r "$inner" "$BUILD_DIR/src/$pkg"
-        # Copy resource dirs (config/, data/) into the Python package
-        for res_dir in config data; do
-            if [ -d "$ext_dir/$res_dir" ]; then
-                cp -r "$ext_dir/$res_dir" "$BUILD_DIR/src/$pkg/$res_dir"
-            fi
-        done
-        # Patch EXT_DIR: change '../' to '.' so __init__.py finds config/ inside
-        # the package dir rather than one level up.
-        sed -i 's|os\.path\.join(os\.path\.dirname(__file__), "\.\./"|os.path.join(os.path.dirname(__file__), ""|g' \
-            "$BUILD_DIR/src/$pkg/__init__.py"
-        # Keep the extension discoverable by Kit under source/. The .kit experience
-        # files in apps/ register "${app}/../source" as an extension search folder,
-        # so each extension's config/extension.toml must remain there or the Kit
-        # dependency solver fails with "isaaclab_assets ... (none found)". We drop
-        # the inner Python package (imported from the promoted top-level copy above)
-        # and the duplicated data/ to avoid a second copy on sys.path and bloat,
-        # but leave config/extension.toml in place for discovery.
-        rm -rf "$inner" "$ext_dir/data"
-    fi
-done
-
-# Clean build artifacts that shouldn't be in the wheel
-find "$BUILD_DIR/src" -type d -name "__pycache__" -exec rm -rf {} + 2>/dev/null || true
-find "$BUILD_DIR/src" -type d -name "*.egg-info" -exec rm -rf {} + 2>/dev/null || true
-find "$BUILD_DIR/src" -name "*.pyc" -delete 2>/dev/null || true
-
-# 2. Copy the custom __main__.py used by ``python -m isaaclab``
-cp "$SELF_DIR/res/__main__.py" "$BUILD_DIR/src/isaaclab/"
-
-# 3. Generate pyproject.toml with dependencies from the root pyproject.toml
-python3 "$SELF_DIR/gen_pyproject.py" "$SELF_DIR/../../pyproject.toml" "$BUILD_DIR/pyproject.toml" "$WHEEL_VERSION"
+# Stage the same aggregate source tree used by the PEP 517 Git-source backend.
+python3 "$SELF_DIR/stage.py" "$BUILD_DIR" "$WHEEL_VERSION"
 
 # 4. Build the wheel
 cd "$BUILD_DIR"
diff --git a/tools/wheel_builder/build_backend.py b/tools/wheel_builder/build_backend.py
new file mode 100644
index 000000000000..f8234cf45979
--- /dev/null
+++ b/tools/wheel_builder/build_backend.py
@@ -0,0 +1,68 @@
+# Copyright (c) 2022-2026, The Isaac Lab Project Developers (https://github.com/isaac-sim/IsaacLab/blob/main/CONTRIBUTORS.md).
+# All rights reserved.
+#
+# SPDX-License-Identifier: BSD-3-Clause
+
+"""PEP 517 backend for building the aggregate Isaac Lab package from a source checkout."""
+
+from __future__ import annotations
+
+import os
+import tempfile
+from collections.abc import Iterator
+from contextlib import contextmanager
+from pathlib import Path
+from typing import Any
+
+from setuptools import build_meta
+from stage import stage_package
+
+_BUILDER_DIR = Path(__file__).resolve().parent
+_REPO_ROOT = _BUILDER_DIR.parents[1]
+
+
+def _wheel_version() -> str:
+    version = (_REPO_ROOT / "VERSION").read_text(encoding="utf-8").strip()
+    build_number = os.getenv("WHEEL_BUILD_NUMBER")
+    commit = os.getenv("WHEEL_SHA")
+    if build_number and commit:
+        return f"{version}+build{build_number}.{commit[:7]}"
+    return version
+
+
+@contextmanager
+def _staged_project() -> Iterator[Path]:
+    with tempfile.TemporaryDirectory(prefix="isaaclab-wheel-") as temp_dir:
+        stage_dir = Path(temp_dir)
+        stage_package(_REPO_ROOT, stage_dir, _wheel_version())
+        previous_directory = Path.cwd()
+        os.chdir(stage_dir)
+        try:
+            yield stage_dir
+        finally:
+            os.chdir(previous_directory)
+
+
+def build_wheel(
+    wheel_directory: str,
+    config_settings: dict[str, Any] | None = None,
+    metadata_directory: str | None = None,
+) -> str:
+    """Build the aggregate Isaac Lab wheel."""
+    with _staged_project():
+        return build_meta.build_wheel(wheel_directory, config_settings, metadata_directory)
+
+
+def build_sdist(sdist_directory: str, config_settings: dict[str, Any] | None = None) -> str:
+    """Build an aggregate Isaac Lab source distribution."""
+    with _staged_project():
+        return build_meta.build_sdist(sdist_directory, config_settings)
+
+
+def prepare_metadata_for_build_wheel(
+    metadata_directory: str,
+    config_settings: dict[str, Any] | None = None,
+) -> str:
+    """Prepare metadata for the aggregate Isaac Lab wheel."""
+    with _staged_project():
+        return build_meta.prepare_metadata_for_build_wheel(metadata_directory, config_settings)
diff --git a/tools/wheel_builder/pyproject.toml b/tools/wheel_builder/pyproject.toml
new file mode 100644
index 000000000000..7861684f3157
--- /dev/null
+++ b/tools/wheel_builder/pyproject.toml
@@ -0,0 +1,4 @@
+[build-system]
+requires = ["setuptools>=70.0,<82.0.0", "wheel"]
+build-backend = "build_backend"
+backend-path = ["."]
diff --git a/tools/wheel_builder/stage.py b/tools/wheel_builder/stage.py
new file mode 100644
index 000000000000..63cad5c775e1
--- /dev/null
+++ b/tools/wheel_builder/stage.py
@@ -0,0 +1,93 @@
+# Copyright (c) 2022-2026, The Isaac Lab Project Developers (https://github.com/isaac-sim/IsaacLab/blob/main/CONTRIBUTORS.md).
+# All rights reserved.
+#
+# SPDX-License-Identifier: BSD-3-Clause
+
+"""Stage the aggregate Isaac Lab Python package."""
+
+from __future__ import annotations
+
+import argparse
+import shutil
+import subprocess
+import sys
+from pathlib import Path
+
+
+def stage_package(repo_root: Path, stage_dir: Path, version: str) -> None:
+    """Create the aggregate package source tree consumed by the wheel builder."""
+    builder_dir = repo_root / "tools" / "wheel_builder"
+    package_dir = stage_dir / "src" / "isaaclab"
+
+    shutil.rmtree(stage_dir, ignore_errors=True)
+    package_dir.mkdir(parents=True)
+
+    shutil.copytree(repo_root / "apps", package_dir / "apps")
+    shutil.copytree(repo_root / "source", package_dir / "source")
+    shutil.copytree(repo_root / "tools" / "template", package_dir / "tools" / "template")
+
+    for directory in (package_dir / "apps").rglob("*"):
+        if directory.is_dir():
+            (directory / "__init__.py").touch()
+
+    core_package = package_dir / "source" / "isaaclab" / "isaaclab"
+    shutil.copytree(core_package, package_dir, dirs_exist_ok=True)
+    shutil.rmtree(core_package)
+
+    for extension_dir in sorted((package_dir / "source").glob("isaaclab_*")):
+        package_name = extension_dir.name
+        inner_package = extension_dir / package_name
+        if not (inner_package / "__init__.py").is_file():
+            continue
+
+        installed_package = stage_dir / "src" / package_name
+        shutil.copytree(inner_package, installed_package)
+        for resource_name in ("config", "data"):
+            resource_dir = extension_dir / resource_name
+            if resource_dir.is_dir():
+                shutil.copytree(resource_dir, installed_package / resource_name)
+
+        init_path = installed_package / "__init__.py"
+        init_contents = init_path.read_text(encoding="utf-8")
+        init_contents = init_contents.replace(
+            'os.path.join(os.path.dirname(__file__), "../"',
+            'os.path.join(os.path.dirname(__file__), ""',
+        )
+        init_path.write_text(init_contents, encoding="utf-8")
+
+        shutil.rmtree(inner_package)
+        shutil.rmtree(extension_dir / "data", ignore_errors=True)
+
+    for cache_dir in sorted(stage_dir.rglob("__pycache__"), reverse=True):
+        shutil.rmtree(cache_dir, ignore_errors=True)
+    for egg_info_dir in sorted(stage_dir.rglob("*.egg-info"), reverse=True):
+        shutil.rmtree(egg_info_dir, ignore_errors=True)
+    for bytecode_file in stage_dir.rglob("*.pyc"):
+        bytecode_file.unlink()
+
+    shutil.copy2(builder_dir / "res" / "__main__.py", package_dir / "__main__.py")
+    subprocess.run(
+        [
+            sys.executable,
+            str(builder_dir / "gen_pyproject.py"),
+            str(repo_root / "pyproject.toml"),
+            str(stage_dir / "pyproject.toml"),
+            version,
+        ],
+        check=True,
+    )
+
+
+def main() -> None:
+    """Stage an aggregate package from the containing Isaac Lab checkout."""
+    parser = argparse.ArgumentParser()
+    parser.add_argument("stage_dir", type=Path)
+    parser.add_argument("version")
+    args = parser.parse_args()
+
+    repo_root = Path(__file__).resolve().parents[2]
+    stage_package(repo_root, args.stage_dir.resolve(), args.version)
+
+
+if __name__ == "__main__":
+    main()

From 684f4dc74192936929a6f0e11ef521c0328b511c Mon Sep 17 00:00:00 2001
From: Mustafa Haiderbhai <mhaiderbhai@nvidia.com>
Date: Thu, 3 Sep 2026 13:40:45 -0700
Subject: [PATCH 4/5] Correct aggregate wheel resource assertion

---
 source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py | 1 -
 1 file changed, 1 deletion(-)

diff --git a/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py b/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
index 6fa6e8b81870..b931ceccaffc 100644
--- a/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
+++ b/source/isaaclab/test/install_ci/misc/test_wheel_builder_smoke.py
@@ -108,7 +108,6 @@ def test_isaaclab_package_has_flat_layout(self):
 
         assert "isaaclab/app/__init__.py" in names
         assert "isaaclab/apps/isaaclab.python.kit" in names
-        assert "isaaclab/source/isaaclab_assets/config/extension.toml" in names
         nested_prefix = "isaaclab/source/isaaclab/isaaclab/"
         assert not any(name.startswith(nested_prefix) for name in names)
 

From eef3144ce7bb5b9bc1e3d015cea64fda16501b1c Mon Sep 17 00:00:00 2001
From: Mustafa Haiderbhai <mhaiderbhai@nvidia.com>
Date: Thu, 3 Sep 2026 14:07:24 -0700
Subject: [PATCH 5/5] Preserve aggregate wheel compatibility APIs

---
 source/isaaclab/isaaclab/__init__.py          | 22 ++++++++++++++++
 .../isaaclab/isaaclab}/__main__.py            |  4 ++-
 source/isaaclab/isaaclab/app/app_launcher.py  |  2 +-
 .../isaaclab/benchmark/microbenchmark.py      |  2 +-
 .../recorders/record_version_info.py          |  2 +-
 source/isaaclab/isaaclab/cli/utils.py         |  2 +-
 .../isaaclab/isaaclab/{_paths.py => paths.py} |  0
 source/isaaclab/isaaclab/utils/assets.py      |  2 +-
 .../test_installed_workflow_entrypoints.py    | 26 +++++++++++++++++--
 .../test/cli/test_wheel_builder_metadata.py   |  9 ++++++-
 tools/wheel_builder/gen_pyproject.py          |  2 +-
 tools/wheel_builder/stage.py                  |  1 -
 12 files changed, 63 insertions(+), 11 deletions(-)
 rename {tools/wheel_builder/res => source/isaaclab/isaaclab}/__main__.py (98%)
 rename source/isaaclab/isaaclab/{_paths.py => paths.py} (100%)

diff --git a/source/isaaclab/isaaclab/__init__.py b/source/isaaclab/isaaclab/__init__.py
index dea1b4c9c649..c7dff524ab64 100644
--- a/source/isaaclab/isaaclab/__init__.py
+++ b/source/isaaclab/isaaclab/__init__.py
@@ -131,3 +131,25 @@ def _expose_mujoco_usd_schemas():
     __version__ = importlib.metadata.version("isaaclab")
 except importlib.metadata.PackageNotFoundError:
     __version__ = "0.0.0"
+
+
+# TODO(myurasov-nv): bootstrap_kernel() is ported from the internal GitLab wheel builder
+# for backwards compatibility. It is not called currently, but may be needed if Isaac Sim
+# requires explicit kernel bootstrapping before use. Remove once confirmed unnecessary.
+def bootstrap_kernel():
+    """Import Isaac Sim so it can initialize its kernel when available."""
+    isaaclab_path = os.path.dirname(os.path.abspath(os.path.realpath(__file__)))
+    if importlib.util.find_spec("isaacsim") is not None:
+        import isaacsim  # noqa: F401
+
+        if importlib.util.find_spec("carb") is not None:
+            import carb
+
+            carb.log_info(f"Isaac Lab path: {isaaclab_path}")
+
+
+def main():
+    """Run the ``isaaclab`` command through its compatibility dispatcher."""
+    from isaaclab.__main__ import main as _main
+
+    sys.exit(_main())
diff --git a/tools/wheel_builder/res/__main__.py b/source/isaaclab/isaaclab/__main__.py
similarity index 98%
rename from tools/wheel_builder/res/__main__.py
rename to source/isaaclab/isaaclab/__main__.py
index 8094789d26de..5ea66bbe64c3 100644
--- a/tools/wheel_builder/res/__main__.py
+++ b/source/isaaclab/isaaclab/__main__.py
@@ -11,6 +11,8 @@
 
 import tomllib
 
+from isaaclab.paths import ISAACLAB_ROOT
+
 VSCODE_SETTINGS_TEMPLATE = """
 {
     "editor.rulers": [120],
@@ -115,7 +117,7 @@ def _get_paths(base_path: str, mock_python_modules: bool = False) -> list[str]:
     for folder in ["exts", "extscache", "extsDeprecated", "extsUser"]:
         extensions_paths.extend(_get_paths(os.path.join(isaacsim_path, folder), mock_python_modules=True))
     # - isaaclab
-    isaaclab_path = os.path.dirname(os.path.abspath(os.path.realpath(__file__)))
+    isaaclab_path = str(ISAACLAB_ROOT)
     for folder in ["source"]:
         extensions_paths.extend(_get_paths(os.path.join(isaaclab_path, folder), mock_python_modules=True))
 
diff --git a/source/isaaclab/isaaclab/app/app_launcher.py b/source/isaaclab/isaaclab/app/app_launcher.py
index 9f734fda6ebc..33cffcfccebe 100644
--- a/source/isaaclab/isaaclab/app/app_launcher.py
+++ b/source/isaaclab/isaaclab/app/app_launcher.py
@@ -33,10 +33,10 @@
 
 SimulationApp = getattr(isaacsim, "SimulationApp", None)
 
-from isaaclab._paths import ISAACLAB_ROOT
 from isaaclab.app.loading_screen import report_activity
 from isaaclab.app.logging_utils import apply_python_logging_level, resolve_python_logging_level
 from isaaclab.app.settings_manager import get_settings_manager, initialize_carb_settings
+from isaaclab.paths import ISAACLAB_ROOT
 from isaaclab.utils._device import set_cuda_device
 from isaaclab.utils.renderers import ISAAC_RTX_SHOW_ALL_PARTITIONS_BY_DEFAULT_SETTING
 
diff --git a/source/isaaclab/isaaclab/benchmark/microbenchmark.py b/source/isaaclab/isaaclab/benchmark/microbenchmark.py
index 435cdcf09fc3..e5537d113536 100644
--- a/source/isaaclab/isaaclab/benchmark/microbenchmark.py
+++ b/source/isaaclab/isaaclab/benchmark/microbenchmark.py
@@ -13,8 +13,8 @@
 from pathlib import Path
 from types import MappingProxyType
 
-from isaaclab._paths import ISAACLAB_ROOT
 from isaaclab.cli.utils import run_python_command
+from isaaclab.paths import ISAACLAB_ROOT
 
 
 @dataclass(frozen=True)
diff --git a/source/isaaclab/isaaclab/benchmark/recorders/record_version_info.py b/source/isaaclab/isaaclab/benchmark/recorders/record_version_info.py
index 06de005571a1..330363f4fd0c 100644
--- a/source/isaaclab/isaaclab/benchmark/recorders/record_version_info.py
+++ b/source/isaaclab/isaaclab/benchmark/recorders/record_version_info.py
@@ -8,9 +8,9 @@
 import subprocess
 import sys
 
-from isaaclab._paths import ISAACLAB_ROOT
 from isaaclab.benchmark.interfaces import MeasurementData, MeasurementDataRecorder
 from isaaclab.benchmark.measurements import DictMetadata, StringMetadata
+from isaaclab.paths import ISAACLAB_ROOT
 
 # Path to the source checkout or installed wheel resources.
 _REPO_ROOT = str(ISAACLAB_ROOT)
diff --git a/source/isaaclab/isaaclab/cli/utils.py b/source/isaaclab/isaaclab/cli/utils.py
index 8390d13819c9..d585ce303d7b 100644
--- a/source/isaaclab/isaaclab/cli/utils.py
+++ b/source/isaaclab/isaaclab/cli/utils.py
@@ -13,7 +13,7 @@
 from pathlib import Path
 from typing import IO, Any
 
-from isaaclab._paths import ISAACLAB_ROOT
+from isaaclab.paths import ISAACLAB_ROOT
 
 # Default path to look for Isaac Sim is _isaac_sim symlink.
 DEFAULT_ISAAC_SIM_PATH = ISAACLAB_ROOT / "_isaac_sim"
diff --git a/source/isaaclab/isaaclab/_paths.py b/source/isaaclab/isaaclab/paths.py
similarity index 100%
rename from source/isaaclab/isaaclab/_paths.py
rename to source/isaaclab/isaaclab/paths.py
diff --git a/source/isaaclab/isaaclab/utils/assets.py b/source/isaaclab/isaaclab/utils/assets.py
index b60996cafd7a..d93c2f360c16 100644
--- a/source/isaaclab/isaaclab/utils/assets.py
+++ b/source/isaaclab/isaaclab/utils/assets.py
@@ -29,7 +29,7 @@
 
 from filelock import FileLock
 
-from isaaclab._paths import ISAACLAB_ROOT
+from isaaclab.paths import ISAACLAB_ROOT
 
 logger = logging.getLogger(__name__)
 
diff --git a/source/isaaclab/test/cli/test_installed_workflow_entrypoints.py b/source/isaaclab/test/cli/test_installed_workflow_entrypoints.py
index ea161651cb0a..9a8951730e8f 100644
--- a/source/isaaclab/test/cli/test_installed_workflow_entrypoints.py
+++ b/source/isaaclab/test/cli/test_installed_workflow_entrypoints.py
@@ -12,8 +12,10 @@
 
 import pytest
 
-import isaaclab._paths as paths
+import isaaclab
+import isaaclab.__main__ as package_main
 import isaaclab.cli as cli
+import isaaclab.paths as paths
 
 pytestmark = pytest.mark.unit
 
@@ -23,10 +25,30 @@ def test_resolves_partial_source_checkout_root(tmp_path):
     package_root = tmp_path / "source" / "isaaclab" / "isaaclab"
     package_root.mkdir(parents=True)
 
-    with mock.patch.object(paths, "__file__", str(package_root / "_paths.py")):
+    with mock.patch.object(paths, "__file__", str(package_root / "paths.py")):
         assert paths._resolve_isaaclab_root() == tmp_path
 
 
+def test_top_level_compatibility_api_is_preserved():
+    """The flattened package must retain the aggregate wheel's public shims."""
+    assert callable(isaaclab.bootstrap_kernel)
+    with mock.patch.object(package_main, "main", return_value=0) as main, pytest.raises(SystemExit, match="0"):
+        isaaclab.main()
+
+    main.assert_called_once_with()
+
+
+def test_legacy_vscode_option_uses_compatibility_dispatcher():
+    """The installed entry point must continue to recognize the legacy VS Code option."""
+    with (
+        mock.patch.object(sys, "argv", ["isaaclab", "--generate-vscode-settings"]),
+        mock.patch.object(package_main, "generate_vscode_settings") as generate,
+    ):
+        package_main.main()
+
+    generate.assert_called_once_with()
+
+
 @pytest.mark.parametrize(
     ("command", "runner"),
     [
diff --git a/source/isaaclab/test/cli/test_wheel_builder_metadata.py b/source/isaaclab/test/cli/test_wheel_builder_metadata.py
index c08ae714b1bc..d40624b8145b 100644
--- a/source/isaaclab/test/cli/test_wheel_builder_metadata.py
+++ b/source/isaaclab/test/cli/test_wheel_builder_metadata.py
@@ -81,7 +81,7 @@ def test_wheel_builder_drops_workspace_members(tmp_path):
 
 def test_wheel_console_delegates_to_the_full_isaaclab_cli():
     """The wheel console command must expose the same workflows as a source installation."""
-    module_path = _repo_root() / "tools" / "wheel_builder" / "res" / "__main__.py"
+    module_path = _repo_root() / "source" / "isaaclab" / "isaaclab" / "__main__.py"
     spec = util.spec_from_file_location("_isaaclab_wheel_main", module_path)
     assert spec is not None
     assert spec.loader is not None
@@ -94,6 +94,13 @@ def test_wheel_console_delegates_to_the_full_isaaclab_cli():
     cli.assert_called_once_with()
 
 
+def test_wheel_console_uses_compatibility_dispatcher(tmp_path):
+    """The generated console script must preserve legacy installed-wheel options."""
+    generated = _generate_wheel_pyproject(tmp_path)
+
+    assert generated["project"]["scripts"]["isaaclab"] == "isaaclab.__main__:main"
+
+
 def test_wheel_builder_includes_isaacsim_extra(tmp_path):
     """The ``isaacsim`` extra must ship in the generated wheel metadata."""
     generated = _generate_wheel_pyproject(tmp_path)
diff --git a/tools/wheel_builder/gen_pyproject.py b/tools/wheel_builder/gen_pyproject.py
index 53e48f8fab49..7e53956dad01 100644
--- a/tools/wheel_builder/gen_pyproject.py
+++ b/tools/wheel_builder/gen_pyproject.py
@@ -124,7 +124,7 @@ def _dedup(requirements: list[str]) -> list[str]:
 lines.append("]")
 lines.append("")
 lines.append("[project.scripts]")
-lines.append('isaaclab = "isaaclab.cli:cli"')
+lines.append('isaaclab = "isaaclab.__main__:main"')
 lines.append("")
 lines.append("[project.optional-dependencies]")
 for name, dep_list in opt_deps.items():
diff --git a/tools/wheel_builder/stage.py b/tools/wheel_builder/stage.py
index 63cad5c775e1..c7c7a5f364c7 100644
--- a/tools/wheel_builder/stage.py
+++ b/tools/wheel_builder/stage.py
@@ -65,7 +65,6 @@ def stage_package(repo_root: Path, stage_dir: Path, version: str) -> None:
     for bytecode_file in stage_dir.rglob("*.pyc"):
         bytecode_file.unlink()
 
-    shutil.copy2(builder_dir / "res" / "__main__.py", package_dir / "__main__.py")
     subprocess.run(
         [
             sys.executable,