diff --git a/CHANGELOG.md b/CHANGELOG.md
index a41ce61..2373ce2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -16,6 +16,12 @@ surface is governed by [`COMPATIBILITY.md`](COMPATIBILITY.md).
   (completes within budget) and `--mode runaway` (governor kills it), a bundled
   sample codebase, and expected terminal output. No RAG, vector DB, or framework.
 
+### Fixed
+- **Python SDK packaged an empty wheel** — `pip install riskkernel` (and installing
+  the SDK by path) installed no modules, so `import riskkernel` failed. The project
+  sits in a repo subdirectory and hatchling's VCS file selector excluded the package
+  files; selecting from the filesystem (`ignore-vcs`) fixes it. ([#32](https://github.com/prashar32/riskkernel/issues/32))
+
 ## [0.1.0] - 2026-05-31
 
 The first release: the deterministic reliability runtime for AI agents —
diff --git a/sdks/python/pyproject.toml b/sdks/python/pyproject.toml
index 45bf4a8..dc306d7 100644
--- a/sdks/python/pyproject.toml
+++ b/sdks/python/pyproject.toml
@@ -28,5 +28,12 @@ Source = "https://github.com/prashar32/riskkernel"
 langchain = ["langchain-core"]
 dev = ["pytest"]
 
+# This project lives in a subdirectory (sdks/python) of the repo. Hatchling's
+# VCS-aware file selector lists tracked files relative to the repo root, which
+# don't match the project-root-relative `packages` include — so the wheel comes
+# out empty. Selecting files from the filesystem instead of git fixes it. (#32)
+[tool.hatch.build]
+ignore-vcs = true
+
 [tool.hatch.build.targets.wheel]
 packages = ["riskkernel"]