diff --git a/noxfile.py b/noxfile.py
index a123a01..1f4906b 100644
--- a/noxfile.py
+++ b/noxfile.py
@@ -1,13 +1,13 @@
 """
 Tests for the py-build-cmake package.
 
- - Build all example projects
+ - Build all example and test projects
    - Run the package's pytest tests
    - Check the contents of the sdist and Wheel packages produced
  - Build the component backend example
    - Run the package's pytest tests
    - Check the contents of the Wheel packages produced
- - Test all three editable modes for the pybind11-project example
+ - Test all three (+1) editable modes for the example and test projects
    -  Install in editable mode and run the package's pytest
  - Run the py-build-cmake pytest tests
 """
@@ -185,30 +185,52 @@ def component(session: nox.Session):
             session.run("pytest")
 
 
-def test_editable(session: nox.Session, mode: str):
+def test_editable(
+    session: nox.Session, name: str, mode: str, dir: Path = Path("examples")
+):
     tmpdir = Path(session.create_tmp()).resolve()
+    m = mode.split("+", 1)
+    bh = str(len(m) > 1 and m[1] == "build_hook").lower()
+    skip_wrapper = ("namespace", "bare", "cmake-preset")
+    if m[0] == "wrapper" and any(k in name for k in skip_wrapper):
+        return
     try:
-        with session.chdir("examples/pybind11-project"):
+        with session.chdir(dir / name):
             shutil.rmtree(".py-build-cmake_cache", ignore_errors=True)
             with (tmpdir / f"{mode}.toml").open("w") as f:
-                f.write(f'[editable]\nmode = "{mode}"')
-            session.install("-e", ".", "--config-settings=--local=" + f.name)
+                f.write(f'[editable]\nmode = "{m[0]}"\nbuild_hook = {bh}')
+            args = ("--config-settings=--local=" + f.name,)
+            if bh:
+                args += ("--no-build-isolation",)
+            session.install("-e", ".", *args)
             session.run("pytest")
     finally:
         shutil.rmtree(tmpdir, ignore_errors=True)
 
 
 @nox.session
-def editable(session: nox.Session):
-    session.install("-U", "pip", "build", "pytest")
+@nox.parametrize("mode", ["symlink", "symlink+build_hook", "hook", "wrapper"])
+def editable(session: nox.Session, mode):
+    session.install(
+        "-U",
+        "pip",
+        "build",
+        "pytest",
+        "pybind11~=2.10.1",
+        "pybind11-stubgen~=0.16.2",
+        "nanobind~=1.5.1",
+        "nanobind-stubgen~=0.1.1",
+    )
     dist_dir = os.getenv("PY_BUILD_CMAKE_WHEEL_DIR")
     if dist_dir is None:
         session.run("python", "-m", "build", ".")
         dist_dir = "dist"
     session.env["PIP_FIND_LINKS"] = str(Path(dist_dir).resolve())
     session.install(f"py-build-cmake=={version}")
-    for mode in "wrapper", "hook", "symlink":
-        test_editable(session, mode)
+    for name in examples:
+        test_editable(session, name, mode)
+    for name in test_packages:
+        test_editable(session, name, mode, dir=Path("test-packages"))
 
 
 @nox.session
diff --git a/src/py_build_cmake/build.py b/src/py_build_cmake/build.py
index d0561f1..d79e3e7 100644
--- a/src/py_build_cmake/build.py
+++ b/src/py_build_cmake/build.py
@@ -205,11 +205,10 @@ def build_wheel_in_dir(
         )
 
         # Copy the module's Python source files to the temporary folder
-        if not module.is_generated:
-            if not editable:
-                export_util.copy_pkg_source_to(paths.staging_dir, module)
-            else:
-                paths = export_editable.do_editable_install(cfg, paths, module)
+        if not editable:
+            export_util.copy_pkg_source_to(paths.staging_dir, module)
+        else:
+            paths = export_editable.do_editable_install(cfg, paths, module)
 
         # Create dist-info folder
         distinfo_dir = f"{pkg_info.norm_name}-{pkg_info.version}.dist-info"
diff --git a/src/py_build_cmake/common/__init__.py b/src/py_build_cmake/common/__init__.py
index ef56f84..4bf1f4f 100644
--- a/src/py_build_cmake/common/__init__.py
+++ b/src/py_build_cmake/common/__init__.py
@@ -68,6 +68,10 @@ def iter_files_abs(self):
         """
         assert self.is_package or not self.is_namespace
 
+        if self.is_generated:
+            # Generated modules/packages don't exist in the source directory
+            return
+
         def _include(s: str | Path):
             p = Path(s)
             return p.name != "__pycache__" and not p.name.endswith(".pyc")
@@ -115,6 +119,11 @@ def check(self):
         ):
             msg = "Namespace packages cannot use editable mode 'wrapper'"
             raise ConfigError(msg)
+        if self.module.get("generated") and any(
+            e["mode"] == "wrapper" for e in self.editable.values()
+        ):
+            msg = "Generated modules/packages cannot use editable mode 'wrapper'"
+            raise ConfigError(msg)
 
 
 @dataclass
diff --git a/src/py_build_cmake/config/options/pyproject_options.py b/src/py_build_cmake/config/options/pyproject_options.py
index 0b9e120..ffbab80 100644
--- a/src/py_build_cmake/config/options/pyproject_options.py
+++ b/src/py_build_cmake/config/options/pyproject_options.py
@@ -63,7 +63,7 @@ def get_options(project_path: Path, *, test: bool = False):
                          "Set to true for PEP 420 namespace packages.",
                          default=DefaultValueValue(False)),
         EnumConfigOption("generated",
-                         "Do not try to locate the module in the source "
+                         "Do not try to locate the main module in the source "
                          "directory, but assume that it is generated by CMake. "
                          "Dynamic metadata cannot be used when set.",
                          options=["module", "package"]),
diff --git a/src/py_build_cmake/export/editable/build_hook.py b/src/py_build_cmake/export/editable/build_hook.py
index 3d9707b..53c466b 100644
--- a/src/py_build_cmake/export/editable/build_hook.py
+++ b/src/py_build_cmake/export/editable/build_hook.py
@@ -1,5 +1,6 @@
 from __future__ import annotations
 
+import logging
 import textwrap
 from pathlib import Path
 
@@ -7,12 +8,17 @@
 from ...common import Config, Module
 from ...common.util import get_os_name
 
+logger = logging.getLogger(__name__)
+
 
 def write_build_hook(cfg: Config, staging_dir: Path, module: Module, cmaker: CMaker):
     """Write a hook that re-compiles extension modules."""
     edit_cfg = cfg.editable["cross" if cfg.cross else get_os_name()]
     if not edit_cfg.get("build_hook"):
         return
+    if edit_cfg.get("mode") != "symlink":
+        logger.warning("Skipping build_hook: only supported for symlink mode")
+        return
     name = module.name
     pkg_hook = staging_dir / (name + "_build_hook")
     pkg_hook.mkdir(parents=True, exist_ok=True)
diff --git a/src/py_build_cmake/export/editable/hook.py b/src/py_build_cmake/export/editable/hook.py
index 021398e..dd32d73 100644
--- a/src/py_build_cmake/export/editable/hook.py
+++ b/src/py_build_cmake/export/editable/hook.py
@@ -22,7 +22,9 @@ def __init__(self, name, extra_path):
             def find_spec(self, name, path=None, target=None):
                 if name.split('.', 1)[0] != self.name:
                     return None
-                path = (path or []) + [self.extra_path]
+                if path is None:
+                    path = []
+                path.append(self.extra_path)
                 return super().find_spec(name, path, target)
 
         def install(name: str):
diff --git a/src/py_build_cmake/export/sdist.py b/src/py_build_cmake/export/sdist.py
index 969cc30..809aa07 100644
--- a/src/py_build_cmake/export/sdist.py
+++ b/src/py_build_cmake/export/sdist.py
@@ -152,8 +152,7 @@ def select_files(self):
         include tests, docs, etc. for a 'gold standard' sdist.
         """
         make_rel = lambda p: p.relative_to(self.module.base_path)
-        if not self.module.is_generated:
-            yield from map(make_rel, self.module.iter_files_abs())
+        yield from map(make_rel, self.module.iter_files_abs())
         yield from map(make_rel, self.extra_files)
 
     def crucial_files(self):