diff --git a/CMakeLists.txt b/CMakeLists.txt
index fb4b02b2..766708c7 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -78,7 +78,6 @@ endif()
 
 if(XGRAMMAR_BUILD_PYTHON_BINDINGS)
   add_subdirectory(${PROJECT_SOURCE_DIR}/cpp/nanobind)
-  install(TARGETS xgrammar_bindings DESTINATION .)
 endif()
 
 if(XGRAMMAR_BUILD_CXX_TESTS)
diff --git a/cpp/nanobind/CMakeLists.txt b/cpp/nanobind/CMakeLists.txt
index 8ea5622b..4c9fba6e 100644
--- a/cpp/nanobind/CMakeLists.txt
+++ b/cpp/nanobind/CMakeLists.txt
@@ -18,11 +18,41 @@ target_link_libraries(xgrammar_bindings PRIVATE python_methods)
 
 if(DEFINED SKBUILD_PROJECT_NAME)
   # Building wheel through scikit-build-core
-  set(LIB_OUTPUT_DIRECTORY xgrammar)
+  set(LIB_OUTPUT_DIRECTORY ${CMAKE_CURRENT_BINARY_DIR}/xgrammar)
 else()
   set(LIB_OUTPUT_DIRECTORY ${PROJECT_SOURCE_DIR}/python/xgrammar)
 endif()
 
+set(STUBFILE_OUTPUTS
+    ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/__init__.pyi
+    ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/config.pyi
+    ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/kernels.pyi
+    ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/testing/__init__.pyi
+    ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/testing/grammar_functor.pyi
+)
+
+add_custom_command(
+  OUTPUT ${STUBFILE_OUTPUTS}
+  COMMAND "${Python_EXECUTABLE}" -m nanobind.stubgen -m xgrammar_bindings -r -O
+          "${LIB_OUTPUT_DIRECTORY}"
+  COMMAND ${CMAKE_COMMAND} -E make_directory ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/testing
+  # See https://github.com/wjakob/nanobind/issues/989 - the default place that these bindings are
+  # generated in is incorrect.
+  COMMAND ${CMAKE_COMMAND} -E rename ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings.pyi
+          ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/__init__.pyi
+  COMMAND ${CMAKE_COMMAND} -E rename ${LIB_OUTPUT_DIRECTORY}/config/__init__.pyi
+          ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/config.pyi
+  COMMAND ${CMAKE_COMMAND} -E rename ${LIB_OUTPUT_DIRECTORY}/kernels/__init__.pyi
+          ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/kernels.pyi
+  COMMAND ${CMAKE_COMMAND} -E rename ${LIB_OUTPUT_DIRECTORY}/testing/__init__.pyi
+          ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/testing/__init__.pyi
+  COMMAND ${CMAKE_COMMAND} -E rename ${LIB_OUTPUT_DIRECTORY}/testing/grammar_functor/__init__.pyi
+          ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings/testing/grammar_functor.pyi
+  WORKING_DIRECTORY "$<TARGET_FILE_DIR:xgrammar_bindings>"
+  DEPENDS xgrammar_bindings
+)
+add_custom_target(xgrammar_stubfiles ALL DEPENDS ${STUBFILE_OUTPUTS})
+
 set_target_properties(xgrammar_bindings PROPERTIES LIBRARY_OUTPUT_DIRECTORY ${LIB_OUTPUT_DIRECTORY})
 set_target_properties(
   xgrammar_bindings PROPERTIES LIBRARY_OUTPUT_DIRECTORY_DEBUG ${LIB_OUTPUT_DIRECTORY}
@@ -33,3 +63,6 @@ set_target_properties(
 set_target_properties(
   xgrammar_bindings PROPERTIES LIBRARY_OUTPUT_DIRECTORY_REL_WITH_DEB_INFO ${LIB_OUTPUT_DIRECTORY}
 )
+
+install(TARGETS xgrammar_bindings DESTINATION .)
+install(DIRECTORY ${LIB_OUTPUT_DIRECTORY}/xgrammar_bindings DESTINATION .)