diff --git a/cli/src/init.rs b/cli/src/init.rs
index f2a8558b..73a355ce 100644
--- a/cli/src/init.rs
+++ b/cli/src/init.rs
@@ -445,9 +445,44 @@ pub fn generate_grammar_files(
             let lang_path = path.join(format!("tree_sitter_{}", language_name.to_snake_case()));
             missing_path(&lang_path, create_dir)?;
 
-            missing_path(lang_path.join("binding.c"), |path| {
-                generate_file(path, PY_BINDING_C_TEMPLATE, language_name, &generate_opts)
-            })?;
+            missing_path_else(
+                lang_path.join("binding.c"),
+                allow_update,
+                |path| generate_file(path, PY_BINDING_C_TEMPLATE, language_name, &generate_opts),
+                |path| {
+                    let mut contents = fs::read_to_string(path)?;
+                    if !contents.contains("PyModuleDef_Init") {
+                        contents = contents
+                            .replace("PyModule_Create", "PyModuleDef_Init")
+                            .replace(
+                                "static PyMethodDef methods[] = {\n",
+                                indoc! {"
+                                static struct PyModuleDef_Slot slots[] = {
+                                #ifdef Py_GIL_DISABLED
+                                    {Py_mod_gil, Py_MOD_GIL_NOT_USED},
+                                #endif
+                                    {0, NULL}
+                                };
+
+                                static PyMethodDef methods[] = {
+                                "},
+                            )
+                            .replace(
+                                indoc! {"
+                                .m_size = -1,
+                                    .m_methods = methods
+                                "},
+                                indoc! {"
+                                .m_size = 0,
+                                    .m_methods = methods,
+                                    .m_slots = slots,
+                                "},
+                            );
+                        write_file(path, contents)?;
+                    }
+                    Ok(())
+                },
+            )?;
 
             missing_path(lang_path.join("__init__.py"), |path| {
                 generate_file(path, INIT_PY_TEMPLATE, language_name, &generate_opts)
@@ -478,51 +513,27 @@ pub fn generate_grammar_files(
                 allow_update,
                 |path| generate_file(path, SETUP_PY_TEMPLATE, language_name, &generate_opts),
                 |path| {
-                    let mut contents = fs::read_to_string(path)?;
-                    if contents.contains("sources.extend") || !contents.contains("egg_info") {
-                        contents = contents
-                            .replace("sources.extend", "sources.append")
-                            .replace(
-                                "from setuptools.command.build import build\n",
-                                indoc! {"
-                                from setuptools.command.build import build
-                                from setuptools.command.egg_info import egg_info
-                                "},
-                            )
-                            .replace(
-                                "setup(\n",
-                                indoc! {r#"
-                                class EggInfo(egg_info):
-                                    def find_sources(self):
-                                        super().find_sources()
-                                        self.filelist.recursive_include("queries", "*.scm")
-                                        self.filelist.include("src/tree_sitter/*.h")
-
-
-                                setup(
-                                "#},
-                            )
-                            .replace(
-                                "\"bdist_wheel\": BdistWheel\n",
-                                indoc! {r#"
-                                "bdist_wheel": BdistWheel,
-                                        "egg_info": EggInfo,
-                                "#},
-                            );
-                        write_file(path, contents)?;
+                    let contents = fs::read_to_string(path)?;
+                    if !contents.contains("egg_info") || !contents.contains("Py_GIL_DISABLED") {
+                        eprintln!("Replacing setup.py");
+                        generate_file(path, SETUP_PY_TEMPLATE, language_name, &generate_opts)?;
                     }
                     Ok(())
                 },
             )?;
 
-            missing_path_else(repo_path.join("pyproject.toml"), allow_update, |path| {
-                generate_file(
-                    path,
-                    PYPROJECT_TOML_TEMPLATE,
-                    dashed_language_name.as_str(),
-                    &generate_opts,
-                )
-            }, |path| {
+            missing_path_else(
+                repo_path.join("pyproject.toml"),
+                allow_update,
+                |path| {
+                    generate_file(
+                        path,
+                        PYPROJECT_TOML_TEMPLATE,
+                        dashed_language_name.as_str(),
+                        &generate_opts,
+                    )
+                },
+                |path| {
                     let mut contents = fs::read_to_string(path)?;
                     if !contents.contains("cp310-*") {
                         contents = contents
@@ -532,7 +543,8 @@ pub fn generate_grammar_files(
                         write_file(path, contents)?;
                     }
                     Ok(())
-                })?;
+                },
+            )?;
 
             Ok(())
         })?;
diff --git a/cli/src/templates/py-binding.c b/cli/src/templates/py-binding.c
index 74309fa8..c74db112 100644
--- a/cli/src/templates/py-binding.c
+++ b/cli/src/templates/py-binding.c
@@ -8,6 +8,13 @@ static PyObject* _binding_language(PyObject *Py_UNUSED(self), PyObject *Py_UNUSE
     return PyCapsule_New(tree_sitter_LOWER_PARSER_NAME(), "tree_sitter.Language", NULL);
 }
 
+static struct PyModuleDef_Slot slots[] = {
+#ifdef Py_GIL_DISABLED
+    {Py_mod_gil, Py_MOD_GIL_NOT_USED},
+#endif
+    {0, NULL}
+};
+
 static PyMethodDef methods[] = {
     {"language", _binding_language, METH_NOARGS,
      "Get the tree-sitter language for this grammar."},
@@ -18,10 +25,11 @@ static struct PyModuleDef module = {
     .m_base = PyModuleDef_HEAD_INIT,
     .m_name = "_binding",
     .m_doc = NULL,
-    .m_size = -1,
-    .m_methods = methods
+    .m_size = 0,
+    .m_methods = methods,
+    .m_slots = slots,
 };
 
 PyMODINIT_FUNC PyInit__binding(void) {
-    return PyModule_Create(&module);
+    return PyModuleDef_Init(&module);
 }
diff --git a/cli/src/templates/setup.py b/cli/src/templates/setup.py
index 0daba087..534bd9f2 100644
--- a/cli/src/templates/setup.py
+++ b/cli/src/templates/setup.py
@@ -1,5 +1,6 @@
 from os import path
 from platform import system
+from sysconfig import get_config_var
 
 from setuptools import Extension, find_packages, setup
 from setuptools.command.build import build
@@ -13,6 +14,13 @@ sources = [
 if path.exists("src/scanner.c"):
     sources.append("src/scanner.c")
 
+macros: list[tuple[str, str | None]] = [
+    ("PY_SSIZE_T_CLEAN", None),
+    ("TREE_SITTER_HIDE_SYMBOLS", None),
+]
+if limited_api := not get_config_var("Py_GIL_DISABLED"):
+    macros.append(("Py_LIMITED_API", "0x030A0000"))
+
 if system() != "Windows":
     cflags = ["-std=c11", "-fvisibility=hidden"]
 else:
@@ -55,13 +63,9 @@ setup(
             name="_binding",
             sources=sources,
             extra_compile_args=cflags,
-            define_macros=[
-                ("Py_LIMITED_API", "0x03090000"),
-                ("PY_SSIZE_T_CLEAN", None),
-                ("TREE_SITTER_HIDE_SYMBOLS", None),
-            ],
+            define_macros=macros,
             include_dirs=["src"],
-            py_limited_api=True,
+            py_limited_api=limited_api,
         )
     ],
     cmdclass={