diff --git a/.gitignore b/.gitignore
index ec5f36f4..07e79f1a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -96,3 +96,4 @@ ISSUES.index
 
 # Test artifacts and temporary files
 tmp/
+markitect/_version.py
diff --git a/markitect/__version__.py b/markitect/__version__.py
index ad576394..12c47c82 100644
--- a/markitect/__version__.py
+++ b/markitect/__version__.py
@@ -1,123 +1,16 @@
 """
 Version information for MarkiTect.
 
-This module provides version and release information for the MarkiTect package.
-Version information is sourced from pyproject.toml and git metadata when available.
+This module provides version information using setuptools-scm.
+Version is automatically derived from git tags.
 """
 
-import os
-import subprocess
-from pathlib import Path
-from typing import Optional
+try:
+    from ._version import version as __version__
+except ImportError:
+    # Fallback when _version.py is not available (e.g., during development without setuptools-scm)
+    __version__ = "unknown"
 
-# Base version from pyproject.toml
-__version__ = "0.5.0"
-
-def get_git_commit_hash() -> Optional[str]:
-    """Get the current git commit hash if available."""
-    try:
-        result = subprocess.run(
-            ['git', 'rev-parse', '--short', 'HEAD'],
-            capture_output=True,
-            text=True,
-            check=True,
-            cwd=Path(__file__).parent.parent
-        )
-        return result.stdout.strip()
-    except (subprocess.CalledProcessError, FileNotFoundError):
-        return None
-
-def get_git_branch() -> Optional[str]:
-    """Get the current git branch if available."""
-    try:
-        result = subprocess.run(
-            ['git', 'branch', '--show-current'],
-            capture_output=True,
-            text=True,
-            check=True,
-            cwd=Path(__file__).parent.parent
-        )
-        return result.stdout.strip()
-    except (subprocess.CalledProcessError, FileNotFoundError):
-        return None
-
-def get_git_tag() -> Optional[str]:
-    """Get the current git tag if available."""
-    try:
-        result = subprocess.run(
-            ['git', 'describe', '--tags', '--exact-match'],
-            capture_output=True,
-            text=True,
-            check=True,
-            cwd=Path(__file__).parent.parent
-        )
-        return result.stdout.strip()
-    except (subprocess.CalledProcessError, FileNotFoundError):
-        return None
-
-def is_development_version() -> bool:
-    """Check if this is a development version (has uncommitted changes)."""
-    try:
-        result = subprocess.run(
-            ['git', 'status', '--porcelain'],
-            capture_output=True,
-            text=True,
-            check=True,
-            cwd=Path(__file__).parent.parent
-        )
-        return bool(result.stdout.strip())
-    except (subprocess.CalledProcessError, FileNotFoundError):
-        return False
-
-def get_version_info() -> dict:
-    """Get comprehensive version information."""
-    git_commit = get_git_commit_hash()
-    git_branch = get_git_branch()
-    git_tag = get_git_tag()
-    is_dev = is_development_version()
-
-    # Build version string
-    version_parts = [__version__]
-
-    if git_tag and git_tag != f"v{__version__}":
-        # If we have a different tag, use it
-        version_parts = [git_tag.lstrip('v')]
-
-    if git_commit:
-        if is_dev:
-            version_parts.append(f"dev+{git_commit}")
-        elif not git_tag:
-            version_parts.append(f"+{git_commit}")
-
-    if is_dev and not git_commit:
-        version_parts.append("dev")
-
-    full_version = ".".join(version_parts)
-
-    return {
-        "version": __version__,
-        "full_version": full_version,
-        "git_commit": git_commit,
-        "git_branch": git_branch,
-        "git_tag": git_tag,
-        "is_development": is_dev,
-        "is_git_repo": git_commit is not None
-    }
-
-def get_release_info() -> dict:
-    """Get release information."""
-    version_info = get_version_info()
-
-    release_type = "development" if version_info["is_development"] else "release"
-    if version_info["git_tag"]:
-        release_type = "tagged-release"
-    elif version_info["git_commit"] and not version_info["is_development"]:
-        release_type = "commit-build"
-
-    return {
-        "release_type": release_type,
-        "build_from": version_info["git_branch"] or "unknown",
-        "commit": version_info["git_commit"] or "unknown",
-        "clean_build": not version_info["is_development"],
-        **version_info
-    }
\ No newline at end of file
+def get_version():
+    """Get the current version string."""
+    return __version__
\ No newline at end of file
diff --git a/pyproject.toml b/pyproject.toml
index 787ec9fe..c62e990c 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,10 +1,10 @@
 [build-system]
-requires = ["setuptools>=61.0"]
+requires = ["setuptools>=64", "setuptools-scm>=8"]
 build-backend = "setuptools.build_meta"
 
 [project]
 name = "markitect"
-version = "0.7.0"
+dynamic = ["version"]
 description = "Advanced Markdown engine for structured content"
 readme = "README.md"
 requires-python = ">=3.8"
@@ -100,3 +100,6 @@ module = [
     "yaml.*"
 ]
 ignore_missing_imports = true
+
+[tool.setuptools_scm]
+write_to = "markitect/_version.py"
diff --git a/release_simplified.py b/release_simplified.py
new file mode 100644
index 00000000..1cb4bcf3
--- /dev/null
+++ b/release_simplified.py
@@ -0,0 +1,258 @@
+#!/usr/bin/env python3
+"""
+MarkiTect Release Management Tool (setuptools-scm version)
+
+This simplified script works with setuptools-scm for automatic version management.
+Versions are automatically derived from git tags - no manual version bumping needed.
+
+Usage:
+    python release_simplified.py [command] [options]
+
+Commands:
+    status      Show current release status
+    validate    Validate current state for release
+    tag         Create git tag for version (e.g., v0.8.0)
+    build       Build release packages
+    publish     Complete release workflow (tag + build + distribute)
+
+Options:
+    --version VERSION    Git tag version (e.g., 0.8.0, 1.0.0-rc1)
+    --dry-run           Show what would be done without making changes
+    --force             Force operation even with warnings
+"""
+
+import subprocess
+import argparse
+import sys
+from pathlib import Path
+from datetime import datetime
+from typing import Dict, List, Optional, Tuple
+
+
+class SimpleReleaseManager:
+    """Simplified release manager using setuptools-scm."""
+
+    def __init__(self, dry_run=False, force=False):
+        self.dry_run = dry_run
+        self.force = force
+        self.project_root = Path(__file__).parent.absolute()
+
+    def run_command(self, cmd: List[str], capture=True, check=True, skip_dry_run=False) -> subprocess.CompletedProcess:
+        """Run a command with optional dry-run support."""
+        if self.dry_run and not skip_dry_run:
+            print(f"[DRY RUN] Would run: {' '.join(cmd)}")
+            return subprocess.CompletedProcess(cmd, 0, "", "")
+        return subprocess.run(cmd, capture_output=capture, text=True, check=check, cwd=self.project_root)
+
+    def get_current_version_from_scm(self) -> str:
+        """Get current version using setuptools-scm."""
+        try:
+            result = self.run_command(['python', '-m', 'setuptools_scm'], skip_dry_run=True)
+            return result.stdout.strip()
+        except subprocess.CalledProcessError:
+            return "unknown"
+
+    def get_git_status(self) -> Dict[str, any]:
+        """Get current git repository status."""
+        try:
+            # Get current branch
+            branch_result = self.run_command(['git', 'branch', '--show-current'], skip_dry_run=True)
+            current_branch = branch_result.stdout.strip()
+
+            # Check for uncommitted changes
+            status_result = self.run_command(['git', 'status', '--porcelain'], skip_dry_run=True)
+            has_changes = bool(status_result.stdout.strip())
+
+            # Get latest commit
+            commit_result = self.run_command(['git', 'rev-parse', '--short', 'HEAD'], skip_dry_run=True)
+            latest_commit = commit_result.stdout.strip()
+
+            # Get latest tag
+            try:
+                tag_result = self.run_command(['git', 'describe', '--tags', '--abbrev=0'], skip_dry_run=True)
+                latest_tag = tag_result.stdout.strip()
+            except subprocess.CalledProcessError:
+                latest_tag = None
+
+            return {
+                'is_repo': True,
+                'branch': current_branch,
+                'has_changes': has_changes,
+                'latest_commit': latest_commit,
+                'latest_tag': latest_tag
+            }
+        except subprocess.CalledProcessError:
+            return {'is_repo': False}
+
+    def validate_release_state(self) -> Tuple[bool, List[str]]:
+        """Validate that the repository is ready for release."""
+        issues = []
+        git_status = self.get_git_status()
+
+        if not git_status['is_repo']:
+            issues.append("Not in a git repository")
+        else:
+            if git_status['has_changes'] and not self.force:
+                issues.append("Repository has uncommitted changes")
+            if git_status['branch'] != 'main' and not self.force:
+                issues.append(f"Not on main branch (currently on {git_status['branch']})")
+
+        return len(issues) == 0, issues
+
+    def create_git_tag(self, version: str, message: str = None):
+        """Create and push git tag."""
+        if not version.startswith('v'):
+            tag_name = f"v{version}"
+        else:
+            tag_name = version
+
+        tag_message = message or f"Release {version}"
+        print(f"🏷️  Creating git tag {tag_name}")
+
+        # Create annotated tag
+        self.run_command(['git', 'tag', '-a', tag_name, '-m', tag_message])
+        print(f"✅ Tag {tag_name} created")
+
+        # Optionally push tag (can be done manually)
+        try:
+            print(f"📤 Pushing tag to origin...")
+            self.run_command(['git', 'push', 'origin', tag_name])
+            print(f"✅ Tag pushed to origin")
+        except subprocess.CalledProcessError as e:
+            print(f"⚠️  Could not push tag to origin: {e}")
+            print("You can push it manually with: git push origin " + tag_name)
+
+    def build_packages(self):
+        """Build release packages using setuptools-scm."""
+        print(f"📦 Building packages (version will be auto-determined by setuptools-scm)")
+
+        # Clean previous builds
+        for pattern in ['build', 'dist', '*.egg-info']:
+            try:
+                self.run_command(['rm', '-rf', pattern])
+            except subprocess.CalledProcessError:
+                pass
+
+        # Build source distribution and wheel
+        print("Building packages...")
+        self.run_command(['python', '-m', 'build'], capture=False)
+        print("✅ Packages built successfully")
+
+    def show_status(self):
+        """Show current release status."""
+        print("🔍 MarkiTect Release Status (setuptools-scm)")
+        print("=" * 60)
+
+        # Get version from setuptools-scm
+        scm_version = self.get_current_version_from_scm()
+        print(f"Current Version (setuptools-scm): {scm_version}")
+
+        git_status = self.get_git_status()
+        if git_status['is_repo']:
+            print(f"Git Branch: {git_status['branch']}")
+            print(f"Latest Commit: {git_status['latest_commit']}")
+            print(f"Latest Tag: {git_status['latest_tag'] or 'None'}")
+            print(f"Uncommitted Changes: {'Yes' if git_status['has_changes'] else 'No'}")
+        else:
+            print("Git Repository: Not available")
+
+        # Check build tools
+        print("\nBuild Tools:")
+        try:
+            self.run_command(['python', '-m', 'build', '--help'], skip_dry_run=True)
+            print("✅ build module available")
+        except (subprocess.CalledProcessError, FileNotFoundError):
+            print("❌ build module not available (pip install build)")
+
+        try:
+            self.run_command(['python', '-m', 'setuptools_scm'], skip_dry_run=True)
+            print("✅ setuptools-scm available")
+        except (subprocess.CalledProcessError, FileNotFoundError):
+            print("❌ setuptools-scm not available")
+
+        # Check existing packages
+        dist_dir = self.project_root / "dist"
+        if dist_dir.exists():
+            packages = list(dist_dir.glob("*"))
+            print(f"\nExisting Packages: {len(packages)} files in dist/")
+            for pkg in packages[-5:]:  # Show last 5
+                print(f"  - {pkg.name}")
+        else:
+            print("\nExisting Packages: None")
+
+    def publish_release(self, version: str):
+        """Complete release workflow."""
+        print(f"🚀 Publishing release {version}")
+
+        # Validate state
+        is_valid, issues = self.validate_release_state()
+        if not is_valid and not self.force:
+            print("❌ Cannot publish release:")
+            for issue in issues:
+                print(f"  - {issue}")
+            return False
+
+        # Create git tag (this determines the version for setuptools-scm)
+        self.create_git_tag(version)
+
+        # Build packages (setuptools-scm will use the tag for version)
+        self.build_packages()
+
+        print(f"✅ Release {version} completed!")
+        print("📦 Packages available in dist/")
+        print(f"🏷️  Git tag v{version} created")
+        return True
+
+
+def main():
+    parser = argparse.ArgumentParser(
+        description="MarkiTect Release Management Tool (setuptools-scm)",
+        formatter_class=argparse.RawDescriptionHelpFormatter,
+        epilog=__doc__.split('\n\n')[1]
+    )
+
+    parser.add_argument('command', choices=['status', 'validate', 'tag', 'build', 'publish'],
+                       help='Release command to execute')
+    parser.add_argument('--version', type=str, help='Target version for git tag (e.g., 0.8.0)')
+    parser.add_argument('--dry-run', action='store_true', help='Show what would be done')
+    parser.add_argument('--force', action='store_true', help='Force operation despite warnings')
+
+    args = parser.parse_args()
+    manager = SimpleReleaseManager(dry_run=args.dry_run, force=args.force)
+
+    try:
+        if args.command == 'status':
+            manager.show_status()
+
+        elif args.command == 'validate':
+            is_valid, issues = manager.validate_release_state()
+            if is_valid:
+                print("✅ Repository is ready for release")
+            else:
+                print("❌ Release validation failed:")
+                for issue in issues:
+                    print(f"  - {issue}")
+                sys.exit(1)
+
+        elif args.command == 'tag':
+            if not args.version:
+                print("❌ --version is required for tag command")
+                sys.exit(1)
+            manager.create_git_tag(args.version)
+
+        elif args.command == 'build':
+            manager.build_packages()
+
+        elif args.command == 'publish':
+            if not args.version:
+                print("❌ --version is required for publish command")
+                sys.exit(1)
+            manager.publish_release(args.version)
+
+    except Exception as e:
+        print(f"❌ Error: {e}")
+        sys.exit(1)
+
+
+if __name__ == "__main__":
+    main()
\ No newline at end of file