diff --git a/pyproject.toml b/pyproject.toml
index 675ee101a..170788a1c 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -136,6 +136,27 @@ Repository = "https://github.com/topoteretes/cognee"
 requires = ["hatchling"]
 build-backend = "hatchling.build"
 
+[tool.hatch.build]
+exclude = [
+  "/bin",
+  "/dist",
+  "/.data",
+  "/.github",
+  "/alembic",
+  "/distributed",
+  "/deployment",
+  "/cognee-mcp",
+  "/cognee-frontend",
+  "/examples",
+  "/helm",
+  "/licenses",
+  "/logs",
+  "/notebooks",
+  "/profiling",
+  "/tests",
+  "/tools",
+]
+
 [tool.ruff]
 line-length = 100
 exclude = [
diff --git a/uv.lock b/uv.lock
index 0e6236625..e7c0d79f8 100644
--- a/uv.lock
+++ b/uv.lock
@@ -860,7 +860,7 @@ wheels = [
 
 [[package]]
 name = "cognee"
-version = "0.1.39"
+version = "0.1.40"
 source = { editable = "." }
 dependencies = [
     { name = "aiofiles" },