diff --git a/.changes/unreleased/Features-20240603-174544.yaml b/.changes/unreleased/Features-20240603-174544.yaml
new file mode 100644
index 0000000000..a70200fe89
--- /dev/null
+++ b/.changes/unreleased/Features-20240603-174544.yaml
@@ -0,0 +1,6 @@
+kind: Features
+body: Update `dbt-metricflow` dependencies to use `dbt*` 1.8 packages
+time: 2024-06-03T17:45:44.215307-07:00
+custom:
+  Author: plypaul
+  Issue: "1243"
diff --git a/.github/workflows/ci-metricflow-unit-tests.yaml b/.github/workflows/ci-metricflow-unit-tests.yaml
index 9106eaf83a..d135da5927 100644
--- a/.github/workflows/ci-metricflow-unit-tests.yaml
+++ b/.github/workflows/ci-metricflow-unit-tests.yaml
@@ -14,7 +14,7 @@ jobs:
     runs-on: ubuntu-latest
     strategy:
       matrix:
-        python-version: ["3.8", "3.11"]
+        python-version: ["3.8", "3.12"]
     steps:
       - name: Check-out the repo
         uses: actions/checkout@v3
@@ -46,10 +46,10 @@ jobs:
       - name: Check-out the repo
         uses: actions/checkout@v3
 
-      - name: Test w/ Python 3.11
+      - name: Test w/ Python 3.12
         uses: ./.github/actions/run-mf-tests
         with:
-          python-version: "3.11"
+          python-version: "3.12"
           make-target: "test-postgresql"
 
   metricflow-unit-tests:
diff --git a/dbt-metricflow/dbt_metricflow/cli/dbt_connectors/adapter_backed_client.py b/dbt-metricflow/dbt_metricflow/cli/dbt_connectors/adapter_backed_client.py
index 4dcc8a8f84..98d76916b9 100644
--- a/dbt-metricflow/dbt_metricflow/cli/dbt_connectors/adapter_backed_client.py
+++ b/dbt-metricflow/dbt_metricflow/cli/dbt_connectors/adapter_backed_client.py
@@ -5,7 +5,7 @@
 import time
 
 from dbt.adapters.base.impl import BaseAdapter
-from dbt.exceptions import DbtDatabaseError
+from dbt_common.exceptions.base import DbtDatabaseError
 from dbt_semantic_interfaces.enum_extension import assert_values_exhausted
 from metricflow_semantics.errors.error_classes import SqlBindParametersNotSupportedError
 from metricflow_semantics.mf_logging.formatting import indent
@@ -132,9 +132,8 @@ def query(
 
         Args:
             stmt: The SQL query statement to run. This should produce output via a SELECT
-            sql_bind_parameters: The parameter replacement mapping for filling in
-                concrete values for SQL query parameters.
-            extra_tags: An object containing JSON serialized tags meant for annotating queries.
+            sql_bind_parameters: The parameter replacement mapping for filling in concrete values for SQL query
+            parameters.
         """
         start = time.time()
         request_id = SqlRequestId(f"mf_rid__{random_id()}")
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-cli.txt b/dbt-metricflow/extra-hatch-configuration/requirements-cli.txt
new file mode 100644
index 0000000000..ae9d0ae471
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-cli.txt
@@ -0,0 +1,13 @@
+# Internal dependencies
+dbt-core>=1.8.0, <1.9.0
+
+# dsi version should be fixed by MetricFlow/dbt-core, not set here
+dbt-semantic-interfaces
+
+# CLI-related
+Jinja2>=3.1.3
+halo>=0.0.31, <0.1.0
+update-checker>=0.18.0, <0.19.0
+
+# Bug with mypy: https://github.com/pallets/click/issues/2558#issuecomment-1656546003
+click>=8.1.6
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-dbt-bigquery.txt b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-bigquery.txt
new file mode 100644
index 0000000000..3ef6a2994c
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-bigquery.txt
@@ -0,0 +1 @@
+dbt-bigquery>=1.8.0, <1.9.0
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-dbt-databricks.txt b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-databricks.txt
new file mode 100644
index 0000000000..ab8e6417ea
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-databricks.txt
@@ -0,0 +1 @@
+dbt-databricks>=1.8.0, <1.9.0
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-dbt-duckdb.txt b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-duckdb.txt
new file mode 100644
index 0000000000..a91d11d94d
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-duckdb.txt
@@ -0,0 +1 @@
+dbt-duckdb>=1.8.0, <1.9.0
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-dbt-postgres.txt b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-postgres.txt
new file mode 100644
index 0000000000..832aa9e91f
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-postgres.txt
@@ -0,0 +1 @@
+dbt-postgres>=1.8.0, <1.9.0
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-dbt-redshift.txt b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-redshift.txt
new file mode 100644
index 0000000000..7658ca24f1
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-redshift.txt
@@ -0,0 +1 @@
+dbt-redshift>=1.8.0, <1.9.0
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-dbt-snowflake.txt b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-snowflake.txt
new file mode 100644
index 0000000000..937f1b52fc
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-snowflake.txt
@@ -0,0 +1 @@
+dbt-snowflake>=1.8.0, <1.9.0
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-dbt-trino.txt b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-trino.txt
new file mode 100644
index 0000000000..bc3390eacb
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-dbt-trino.txt
@@ -0,0 +1 @@
+dbt-trino>=1.8.0, <1.9.0
diff --git a/dbt-metricflow/extra-hatch-configuration/requirements-metricflow.txt b/dbt-metricflow/extra-hatch-configuration/requirements-metricflow.txt
new file mode 100644
index 0000000000..ac4dc48b30
--- /dev/null
+++ b/dbt-metricflow/extra-hatch-configuration/requirements-metricflow.txt
@@ -0,0 +1 @@
+metricflow>=0.206.0.dev3, <0.207.0
diff --git a/dbt-metricflow/pyproject.toml b/dbt-metricflow/pyproject.toml
index 497aad6542..f7fa9fa95e 100644
--- a/dbt-metricflow/pyproject.toml
+++ b/dbt-metricflow/pyproject.toml
@@ -1,5 +1,5 @@
 [build-system]
-requires = ["hatchling~=1.14.0"]
+requires = ["hatchling~=1.14.0", "hatch-requirements-txt >= 0.4.1, <0.5.0"]
 build-backend = "hatchling.build"
 
 [project]
@@ -7,7 +7,7 @@ name = "dbt-metricflow"
 version = "0.6.0"
 description = "Execute commands against the MetricFlow semantic layer with dbt."
 readme = "README.md"
-requires-python = ">=3.8,<3.12"
+requires-python = ">=3.8,<3.13"
 license = "BUSL-1.1"
 authors = [
   { name = "dbt Labs", email = "info@dbtlabs.com" },
@@ -20,22 +20,18 @@ classifiers = [
   "Programming Language :: Python :: 3.9",
   "Programming Language :: Python :: 3.10",
   "Programming Language :: Python :: 3.11",
+  "Programming Language :: Python :: 3.12",
   "Programming Language :: Python :: Implementation :: CPython",
   "Programming Language :: Python :: Implementation :: PyPy",
 ]
-dependencies = [
-  # cli dependencies
-  "Jinja2>=3.1.3",
-  "click>=7.1.2",
-  "halo>=0.0.31, <0.1.0",
-  "update-checker>=0.18.0, <0.19.0",
 
-  # Internal dependencies
-  "dbt-core>=1.7.4, <1.8.0",
-  "metricflow>=0.205.0, <0.206.0",
+# Dependencies are specified through the `hatch-requirements-txt` plug-in.
+dynamic = ["dependencies", "optional-dependencies"]
 
-  # dsi version should be fixed by MetricFlow/dbt-core, not set here
-  "dbt-semantic-interfaces",
+[tool.hatch.metadata.hooks.requirements_txt]
+files = [
+  "extra-hatch-configuration/requirements-cli.txt",
+  "extra-hatch-configuration/requirements-metricflow.txt",
 ]
 
 [project.urls]
@@ -44,27 +40,27 @@ dependencies = [
 [project.scripts]
 mf = 'dbt_metricflow.cli.main:cli'
 
-[project.optional-dependencies]
-bigquery = [
-  "dbt-bigquery>=1.7.0, <1.8.0"
+[tool.hatch.metadata.hooks.requirements_txt.optional-dependencies]
+dbt-bigquery = [
+  "extra-hatch-configuration/requirements-dbt-bigquery.txt"
 ]
-databricks = [
-  "dbt-databricks>=1.7.0, <1.8.0"
+dbt-databricks = [
+  "extra-hatch-configuration/requirements-dbt-databricks.txt"
 ]
-duckdb = [
-  "dbt-duckdb>=1.7.0, <1.8.0"
+dbt-duckdb = [
+  "extra-hatch-configuration/requirements-dbt-duckdb.txt"
 ]
-postgres = [
-  "dbt-postgres>=1.7.0, <1.8.0"
+dbt-postgres = [
+  "extra-hatch-configuration/requirements-dbt-postgres.txt"
 ]
-redshift = [
-  "dbt-redshift>=1.7.0, <1.8.0"
+dbt-redshift = [
+  "extra-hatch-configuration/requirements-dbt-redshift.txt"
 ]
-snowflake = [
-  "dbt-snowflake>=1.7.0, <1.8.0"
+dbt-snowflake = [
+  "extra-hatch-configuration/requirements-dbt-snowflake.txt"
 ]
-trino = [
-  "dbt-trino>=1.7.0, <1.8.0"
+dbt-trino = [
+  "extra-hatch-configuration/requirements-dbt-trino.txt"
 ]
 
 [tool.hatch.build.targets.sdist]
diff --git a/extra-hatch-configuration/requirements-dev-packages.txt b/extra-hatch-configuration/requirements-dev-packages.txt
new file mode 100644
index 0000000000..b0ddd88f8d
--- /dev/null
+++ b/extra-hatch-configuration/requirements-dev-packages.txt
@@ -0,0 +1,9 @@
+# Developer tools
+mypy>=1.7.0, <1.8.0
+pre-commit>=3.2.2, <3.3.0
+pytest-mock>=3.7.0, <3.8.0
+pytest-xdist>=3.2.1, <3.3.0
+pytest>=7.1.1, < 7.2.0
+types-PyYAML
+types-python-dateutil
+types-tabulate
diff --git a/extra-hatch-configuration/requirements-sql-client-packages.txt b/extra-hatch-configuration/requirements-sql-client-packages.txt
new file mode 100644
index 0000000000..8fa34decb8
--- /dev/null
+++ b/extra-hatch-configuration/requirements-sql-client-packages.txt
@@ -0,0 +1,4 @@
+# These are currently separate for ease of removal, but due to the way Python
+# handles import statements they are required in all test environments
+SQLAlchemy>=1.4.42, <1.5.0
+sqlalchemy2-stubs>=0.0.2a21, <0.0.3
diff --git a/extra-hatch-configuration/requirements-trino-sql-client-packages.txt b/extra-hatch-configuration/requirements-trino-sql-client-packages.txt
new file mode 100644
index 0000000000..ce89b89bcc
--- /dev/null
+++ b/extra-hatch-configuration/requirements-trino-sql-client-packages.txt
@@ -0,0 +1 @@
+trino>=0.328.0, <0.329.0
diff --git a/pyproject.toml b/pyproject.toml
index 5baa9d9ae2..1c19397bed 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,5 +1,5 @@
 [build-system]
-requires = ["hatchling~=1.14.0"]
+requires = ["hatchling~=1.14.0", "hatch-requirements-txt >= 0.4.1, <0.5.0"]
 build-backend = "hatchling.build"
 
 [project]
@@ -39,50 +39,44 @@ dependencies = [
   "typing_extensions>=4.4, <5.0",
 ]
 
+# Optional dependencies are specified through the `hatch-requirements-txt` plug-in.
+dynamic = ["optional-dependencies"]
+
 [project.urls]
 Documentation = "https://docs.getdbt.com/docs/build/about-metricflow"
 "Source Code" = "https://github.com/dbt-labs/metricflow"
 
-[project.optional-dependencies]
+[tool.hatch.metadata.hooks.requirements_txt.optional-dependencies]
+dbt-bigquery = [
+  "dbt-metricflow/extra-hatch-configuration/requirements-dbt-bigquery.txt"
+]
+dbt-databricks = [
+  "dbt-metricflow/extra-hatch-configuration/requirements-dbt-databricks.txt"
+]
+dbt-duckdb = [
+  "dbt-metricflow/extra-hatch-configuration/requirements-dbt-duckdb.txt"
+]
+dbt-postgres = [
+  "dbt-metricflow/extra-hatch-configuration/requirements-dbt-postgres.txt"
+]
+dbt-redshift = [
+  "dbt-metricflow/extra-hatch-configuration/requirements-dbt-redshift.txt"
+]
+dbt-snowflake = [
+  "dbt-metricflow/extra-hatch-configuration/requirements-dbt-snowflake.txt"
+]
+dbt-trino = [
+  "dbt-metricflow/extra-hatch-configuration/requirements-dbt-trino.txt"
+]
 dev-packages = [
-  # Developer tools
-  "mypy>=1.7.0, <1.8.0",
-  "pre-commit>=3.2.2, <3.3.0",
-  "pytest-mock>=3.7.0, <3.8.0",
-  "pytest-xdist>=3.2.1, <3.3.0",
-  "pytest>=7.1.1, < 7.2.0",
-  "types-PyYAML",
-  "types-python-dateutil",
-  "types-tabulate",
-
-  # Test and CLI development dependencies.
-  # These should generally match what's in dbt-metricflow/pyproject.toml, but may
-  # diverge during upgrade phases or for other reasons
-  #
-  # Note we do not currently depend on dbt-core because updates across minor version
-  # boundaries cause problems with tests against future versions of dbt-semantic-interfaces.
-  # In future we will refine this packaging to depend on stable dbt-adapter interfaces in
-  # the development builds, but those packages do not yet support all of our needs so we
-  # hack around the problem with editable pre-installs in the various dev environments.
-  # Note this only works because we don't use the dbt packages for anything other than
-  # managing warehouse connections and dispatching queries, so this is not a pattern
-  # anyone else should be emulating even as a short-term hack.
-
-  "halo>=0.0.31, <0.1.0",
-  "update-checker>=0.18.0, <0.19.0",
-
-  # Bug with mypy: https://github.com/pallets/click/issues/2558#issuecomment-1656546003
-  "click>=8.1.6",
-]
-
-# These are currently separate for ease of removal, but due to the way Python
-# handles import statements they are required in all test environments
+  "extra-hatch-configuration/requirements-dev-packages.txt",
+  "dbt-metricflow/extra-hatch-configuration/requirements-cli.txt"
+]
 sql-client-packages = [
-  "SQLAlchemy>=1.4.42, <1.5.0",
-  "sqlalchemy2-stubs>=0.0.2a21, <0.0.3",
+  "extra-hatch-configuration/requirements-sql-client-packages.txt"
 ]
 trino-sql-client-packages = [
-  "trino>=0.327.0, <0.328.0",
+  "extra-hatch-configuration/requirements-trino-sql-client-packages.txt"
 ]
 
 # There are files that hatch will always include as well (e.g. the LICENSE file).
@@ -102,30 +96,26 @@ packages = ["metricflow", "metricflow-semantics/metricflow_semantics"]
 
 
 # Environment setup
-# Due to our current wonky package organization, we need to do an editable install
-# of dbt-metricflow in every test running environment in order for the tests to work.
-# In theory we can install the adapter extra for dbt-metricflow and rely on that, but
-# for ease of managing versioning through upgrade phases we retain the explicit
-# dependencies on the specific adapter versions defined here.
-
 [tool.hatch.envs.dev-env]
 description = "Environment for development. Includes a DuckDB-backed client."
-
-pre-install-commands = [
-  "pip install -e ./metricflow-semantics",
-  "pip install -e ./dbt-metricflow[duckdb]",
-]
+run = "run-coverage --no-cov"
 
 features = [
   "dev-packages",
   "sql-client-packages",
+  "dbt-duckdb",
 ]
 
 [tool.hatch.envs.dev-env.env-vars]
 MF_TEST_ADAPTER_TYPE="duckdb"
 MF_SQL_ENGINE_URL="duckdb://"
+# This allows us to use the classes in the `dbt-metricflow` package for tests without installing the package.
+# `dbt-metricflow` can't be installed as it has `metricflow` as a dependency.
+PYTHONPATH="metricflow-semantics:dbt-metricflow"
+
 
 [tool.hatch.envs.postgres-env.env-vars]
+PYTHONPATH="metricflow-semantics:dbt-metricflow"
 MF_SQL_ENGINE_URL="postgresql://metricflow@localhost:5432/metricflow"
 MF_SQL_ENGINE_PASSWORD="metricflowing"
 MF_TEST_ADAPTER_TYPE="postgres"
@@ -133,84 +123,75 @@ MF_TEST_ADAPTER_TYPE="postgres"
 [tool.hatch.envs.postgres-env]
 description = "Dev environment for working with Postgres adapter"
 
-pre-install-commands = [
-  "pip install -e ./metricflow-semantics",
-  "pip install -e ./dbt-metricflow[postgres]"
-]
-
 features = [
   "dev-packages",
   "sql-client-packages",
+  "dbt-postgres",
 ]
 
+
 # NOTE: All of the below should have their authentication credentials
 # configured independently of the hatch env construction
 
 [tool.hatch.envs.bigquery-env.env-vars]
+PYTHONPATH="metricflow-semantics:dbt-metricflow"
 MF_TEST_ADAPTER_TYPE="bigquery"
 
 [tool.hatch.envs.bigquery-env]
 description = "Dev environment for working with the BigQuery adapter"
 
-pre-install-commands = [
-  "pip install -e ./metricflow-semantics",
-  "pip install -e ./dbt-metricflow[bigquery]"
-]
-
 features = [
   "dev-packages",
   "sql-client-packages",
+  "dbt-bigquery",
 ]
 
+
 [tool.hatch.envs.databricks-env.env-vars]
+PYTHONPATH="metricflow-semantics:dbt-metricflow"
 MF_TEST_ADAPTER_TYPE="databricks"
 
+
 [tool.hatch.envs.databricks-env]
 description = "Dev environment for working with the Databricks adapter"
 
-pre-install-commands = [
-  "pip install -e ./metricflow-semantics",
-  "pip install -e ./dbt-metricflow[databricks]"
-]
-
 features = [
   "dev-packages",
   "sql-client-packages",
+  "dbt-databricks",
 ]
 
+
 [tool.hatch.envs.redshift-env.env-vars]
+PYTHONPATH="metricflow-semantics:dbt-metricflow"
 MF_TEST_ADAPTER_TYPE="redshift"
 
 [tool.hatch.envs.redshift-env]
 description = "Dev environment for working with the Redshift adapter"
 
-pre-install-commands = [
-  "pip install -e ./metricflow-semantics",
-  "pip install -e ./dbt-metricflow[redshift]"
-]
-
 features = [
   "dev-packages",
   "sql-client-packages",
+  "dbt-redshift"
 ]
 
+
 [tool.hatch.envs.snowflake-env.env-vars]
+PYTHONPATH="metricflow-semantics:dbt-metricflow"
 MF_TEST_ADAPTER_TYPE="snowflake"
 
 [tool.hatch.envs.snowflake-env]
 description = "Dev environment for working with Snowflake adapter"
 
-pre-install-commands = [
-  "pip install -e ./metricflow-semantics",
-  "pip install -e ./dbt-metricflow[snowflake]"
-]
-
 features = [
   "dev-packages",
   "sql-client-packages",
+  "dbt-snowflake",
 ]
 
+
 [tool.hatch.envs.trino-env.env-vars]
+PYTHONPATH="metricflow-semantics:dbt-metricflow"
 MF_TEST_ADAPTER_TYPE = "trino"
 MF_SQL_ENGINE_URL = "trino://trino@localhost:8080/"
 DBT_ENV_SECRET_CATALOG="memory"
@@ -218,24 +199,21 @@ DBT_ENV_SECRET_CATALOG="memory"
 [tool.hatch.envs.trino-env]
 description = "Dev environment for working with the Trino adapter"
 
-pre-install-commands = [
-  "pip install -e ./metricflow-semantics",
-  "pip install -e ./dbt-metricflow[trino]"
-]
-
 features = [
   "dev-packages",
   "sql-client-packages",
   "trino-sql-client-packages",
+  "dbt-trino"
 ]
 
+
 [tool.black]
 line-length = 120
 
+[tool.pytest.ini_options]
 # Many deprecation warnings come from 3rd-party libraries and make the
 # output of pytest noisy. Since no action is going to be taken, hide those
 # warnings.
-[tool.pytest.ini_options]
 filterwarnings = [
   "ignore:Deprecated call to.*",
   "ignore:pkg_resources is deprecated as an API"