diff --git a/python/.gitignore b/python/.gitignore
index 53a2b7a76b0dd2d9095f9582540e455e2c1174e2..d0c7300f8c443f821543704976e2c81b2b540be2 100644
--- a/python/.gitignore
+++ b/python/.gitignore
@@ -7,3 +7,4 @@ paddlepaddle_gpu.egg-info
 .idea
 paddle/proto/*.py
 paddle/proto/*.pyc
+_foo.*
diff --git a/python/paddle/.gitignore b/python/paddle/.gitignore
index 98527864664d32f798edc06a53131e8d5a068295..b405a11db9a8df2e686bb1cb15276020b60e7fe1 100644
--- a/python/paddle/.gitignore
+++ b/python/paddle/.gitignore
@@ -1 +1,3 @@
 version.py
+cuda_env.py
+version
diff --git a/python/paddle/distributed/fleet/.gitignore b/python/paddle/distributed/fleet/.gitignore
new file mode 100644
index 0000000000000000000000000000000000000000..2ff540d5764b76cf7bac64fc2bb9df6e9c1b398a
--- /dev/null
+++ b/python/paddle/distributed/fleet/.gitignore
@@ -0,0 +1 @@
+proto
diff --git a/python/paddle/fluid/.gitignore b/python/paddle/fluid/.gitignore
index 80c1cf3fcb86aa50600e02e4765640a91560916e..0745bad8c6791b799ff01729c782736882162107 100644
--- a/python/paddle/fluid/.gitignore
+++ b/python/paddle/fluid/.gitignore
@@ -1,2 +1,3 @@
 proto
 core.so
+*.so
diff --git a/python/paddle/libs/.gitignore b/python/paddle/libs/.gitignore
new file mode 100644
index 0000000000000000000000000000000000000000..8d977535b81865b47946db403e71c50f35039abe
--- /dev/null
+++ b/python/paddle/libs/.gitignore
@@ -0,0 +1 @@
+*.so*
diff --git a/setup.py b/setup.py
index 75969c5f41cbba1ff5e98fe8f7452d7efc8c12ab..c4137d4222747dad8545f867850c4c40d88c7ae3 100644
--- a/setup.py
+++ b/setup.py
@@ -27,6 +27,7 @@ from distutils.spawn import find_executable
 from subprocess import CalledProcessError
 
 from setuptools import Command, Extension, setup
+from setuptools.command.develop import develop as DevelopCommandBase
 from setuptools.command.egg_info import egg_info
 from setuptools.command.install import install as InstallCommandBase
 from setuptools.command.install_lib import install_lib
@@ -222,6 +223,55 @@ class InstallCommand(InstallCommandBase):
         return ret
 
 
+class DevelopCommand(DevelopCommandBase):
+    def run(self):
+        # copy proto and .so to python_source_dir
+        fluid_proto_binary_path = (
+            paddle_binary_dir + '/python/paddle/fluid/proto/'
+        )
+        fluid_proto_source_path = (
+            paddle_source_dir + '/python/paddle/fluid/proto/'
+        )
+        distributed_proto_binary_path = (
+            paddle_binary_dir + '/python/paddle/distributed/fleet/proto/'
+        )
+        distributed_proto_source_path = (
+            paddle_source_dir + '/python/paddle/distributed/fleet/proto/'
+        )
+        os.system("rm -rf {}".format(fluid_proto_source_path))
+        shutil.copytree(fluid_proto_binary_path, fluid_proto_source_path)
+        os.system("rm -rf {}".format(distributed_proto_source_path))
+        shutil.copytree(
+            distributed_proto_binary_path, distributed_proto_source_path
+        )
+        shutil.copy(
+            paddle_binary_dir + '/python/paddle/fluid/libpaddle.so',
+            paddle_source_dir + '/python/paddle/fluid/',
+        )
+        dynamic_library_binary_path = paddle_binary_dir + '/python/paddle/libs/'
+        dynamic_library_source_path = paddle_source_dir + '/python/paddle/libs/'
+        for lib_so in os.listdir(dynamic_library_binary_path):
+            shutil.copy(
+                dynamic_library_binary_path + lib_so,
+                dynamic_library_source_path,
+            )
+        # write version.py and cuda_env_config_py to python_source_dir
+        write_version_py(
+            filename='{}/python/paddle/version/__init__.py'.format(
+                paddle_source_dir
+            )
+        )
+        write_cuda_env_config_py(
+            filename='{}/python/paddle/cuda_env.py'.format(paddle_source_dir)
+        )
+        write_parameter_server_version_py(
+            filename='{}/python/paddle/incubate/distributed/fleet/parameter_server/version.py'.format(
+                paddle_source_dir
+            )
+        )
+        DevelopCommandBase.run(self)
+
+
 class EggInfo(egg_info):
     """Copy license file into `.dist-info` folder."""
 
@@ -828,18 +878,7 @@ def get_package_data_and_package_dir():
         paddle_binary_dir + '/python/paddle/cost_model/static_op_benchmark.json'
     ]
     if 'develop' in sys.argv:
-        package_dir = {
-            '': paddle_binary_dir.split('/')[-1] + '/python',
-            # '':'build/python',
-            # The paddle.fluid.proto will be generated while compiling.
-            # So that package points to other directory.
-            'paddle.fluid.proto.profiler': paddle_binary_dir.split('/')[-1]
-            + '/paddle/fluid/platform',
-            'paddle.fluid.proto': paddle_binary_dir.split('/')[-1]
-            + '/paddle/fluid/framework',
-            'paddle.fluid': paddle_binary_dir.split('/')[-1]
-            + '/python/paddle/fluid',
-        }
+        package_dir = {'': 'python'}
     else:
         package_dir = {
             '': env_dict.get("PADDLE_BINARY_DIR") + '/python',
@@ -1470,6 +1509,7 @@ def main():
     # preparing parameters for setup()
     paddle_version = env_dict.get("PADDLE_VERSION")
     package_name = env_dict.get("PACKAGE_NAME")
+
     write_version_py(
         filename='{}/python/paddle/version/__init__.py'.format(
             paddle_binary_dir
@@ -1534,6 +1574,7 @@ def main():
             'install': InstallCommand,
             'egg_info': EggInfo,
             'install_lib': InstallLib,
+            'develop': DevelopCommand,
         },
         entry_points={
             'console_scripts': [