diff --git a/.bazelrc b/.bazelrc
index 1ca469c..b484751 100644
--- a/.bazelrc
+++ b/.bazelrc
@@ -4,8 +4,8 @@
 # (Note, we cannot use `common --deleted_packages` because the bazel version command doesn't support it)
 # To update these lines, execute
 # `bazel run @rules_bazel_integration_test//tools:update_deleted_packages`
-build --deleted_packages=examples/build_file_generation,examples/build_file_generation/random_number_generator,examples/bzlmod,examples/bzlmod_build_file_generation,examples/bzlmod_build_file_generation/other_module/other_module/pkg,examples/bzlmod_build_file_generation/runfiles,examples/bzlmod/entry_points,examples/bzlmod/entry_points/tests,examples/bzlmod/libs/my_lib,examples/bzlmod/other_module,examples/bzlmod/other_module/other_module/pkg,examples/bzlmod/patches,examples/bzlmod/py_proto_library,examples/bzlmod/py_proto_library/example.com/another_proto,examples/bzlmod/py_proto_library/example.com/proto,examples/bzlmod/runfiles,examples/bzlmod/tests,examples/bzlmod/tests/other_module,examples/bzlmod/whl_mods,examples/multi_python_versions/libs/my_lib,examples/multi_python_versions/requirements,examples/multi_python_versions/tests,examples/pip_parse,examples/pip_parse_vendored,examples/pip_repository_annotations,examples/py_proto_library,examples/py_proto_library/example.com/another_proto,examples/py_proto_library/example.com/proto,gazelle,gazelle/manifest,gazelle/manifest/generate,gazelle/manifest/hasher,gazelle/manifest/test,gazelle/modules_mapping,gazelle/python,gazelle/pythonconfig,gazelle/python/private,tests/integration/compile_pip_requirements,tests/integration/compile_pip_requirements_test_from_external_repo,tests/integration/custom_commands,tests/integration/ignore_root_user_error,tests/integration/ignore_root_user_error/submodule,tests/integration/local_toolchains,tests/integration/pip_parse,tests/integration/pip_parse/empty,tests/integration/py_cc_toolchain_registered
-query --deleted_packages=examples/build_file_generation,examples/build_file_generation/random_number_generator,examples/bzlmod,examples/bzlmod_build_file_generation,examples/bzlmod_build_file_generation/other_module/other_module/pkg,examples/bzlmod_build_file_generation/runfiles,examples/bzlmod/entry_points,examples/bzlmod/entry_points/tests,examples/bzlmod/libs/my_lib,examples/bzlmod/other_module,examples/bzlmod/other_module/other_module/pkg,examples/bzlmod/patches,examples/bzlmod/py_proto_library,examples/bzlmod/py_proto_library/example.com/another_proto,examples/bzlmod/py_proto_library/example.com/proto,examples/bzlmod/runfiles,examples/bzlmod/tests,examples/bzlmod/tests/other_module,examples/bzlmod/whl_mods,examples/multi_python_versions/libs/my_lib,examples/multi_python_versions/requirements,examples/multi_python_versions/tests,examples/pip_parse,examples/pip_parse_vendored,examples/pip_repository_annotations,examples/py_proto_library,examples/py_proto_library/example.com/another_proto,examples/py_proto_library/example.com/proto,gazelle,gazelle/manifest,gazelle/manifest/generate,gazelle/manifest/hasher,gazelle/manifest/test,gazelle/modules_mapping,gazelle/python,gazelle/pythonconfig,gazelle/python/private,tests/integration/compile_pip_requirements,tests/integration/compile_pip_requirements_test_from_external_repo,tests/integration/custom_commands,tests/integration/ignore_root_user_error,tests/integration/ignore_root_user_error/submodule,tests/integration/local_toolchains,tests/integration/pip_parse,tests/integration/pip_parse/empty,tests/integration/py_cc_toolchain_registered
+build --deleted_packages=examples/build_file_generation,examples/build_file_generation/random_number_generator,examples/bzlmod,examples/bzlmod/entry_points,examples/bzlmod/entry_points/tests,examples/bzlmod/libs/my_lib,examples/bzlmod/other_module,examples/bzlmod/other_module/other_module/pkg,examples/bzlmod/patches,examples/bzlmod/py_proto_library,examples/bzlmod/py_proto_library/example.com/another_proto,examples/bzlmod/py_proto_library/example.com/proto,examples/bzlmod/runfiles,examples/bzlmod/tests,examples/bzlmod/tests/other_module,examples/bzlmod/whl_mods,examples/bzlmod_build_file_generation,examples/bzlmod_build_file_generation/other_module/other_module/pkg,examples/bzlmod_build_file_generation/runfiles,examples/multi_python_versions/libs/my_lib,examples/multi_python_versions/requirements,examples/multi_python_versions/tests,examples/pip_parse,examples/pip_parse_vendored,examples/pip_repository_annotations,examples/py_proto_library,examples/py_proto_library/example.com/another_proto,examples/py_proto_library/example.com/proto,gazelle,gazelle/manifest,gazelle/manifest/generate,gazelle/manifest/hasher,gazelle/manifest/test,gazelle/modules_mapping,gazelle/python,gazelle/python/private,gazelle/pythonconfig,tests/integration/compile_pip_requirements,tests/integration/compile_pip_requirements_test_from_external_repo,tests/integration/custom_commands,tests/integration/ignore_root_user_error,tests/integration/ignore_root_user_error/submodule,tests/integration/local_toolchains,tests/integration/pip_parse,tests/integration/pip_parse/empty,tests/integration/py_cc_toolchain_registered
+query --deleted_packages=examples/build_file_generation,examples/build_file_generation/random_number_generator,examples/bzlmod,examples/bzlmod/entry_points,examples/bzlmod/entry_points/tests,examples/bzlmod/libs/my_lib,examples/bzlmod/other_module,examples/bzlmod/other_module/other_module/pkg,examples/bzlmod/patches,examples/bzlmod/py_proto_library,examples/bzlmod/py_proto_library/example.com/another_proto,examples/bzlmod/py_proto_library/example.com/proto,examples/bzlmod/runfiles,examples/bzlmod/tests,examples/bzlmod/tests/other_module,examples/bzlmod/whl_mods,examples/bzlmod_build_file_generation,examples/bzlmod_build_file_generation/other_module/other_module/pkg,examples/bzlmod_build_file_generation/runfiles,examples/multi_python_versions/libs/my_lib,examples/multi_python_versions/requirements,examples/multi_python_versions/tests,examples/pip_parse,examples/pip_parse_vendored,examples/pip_repository_annotations,examples/py_proto_library,examples/py_proto_library/example.com/another_proto,examples/py_proto_library/example.com/proto,gazelle,gazelle/manifest,gazelle/manifest/generate,gazelle/manifest/hasher,gazelle/manifest/test,gazelle/modules_mapping,gazelle/python,gazelle/python/private,gazelle/pythonconfig,tests/integration/compile_pip_requirements,tests/integration/compile_pip_requirements_test_from_external_repo,tests/integration/custom_commands,tests/integration/ignore_root_user_error,tests/integration/ignore_root_user_error/submodule,tests/integration/local_toolchains,tests/integration/pip_parse,tests/integration/pip_parse/empty,tests/integration/py_cc_toolchain_registered
 
 test --test_output=errors
 
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3ea99a7..5473dc5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -68,6 +68,8 @@
     * `3.12 -> 3.12.7`
 [20241008]: https://github.com/indygreg/python-build-standalone/releases/tag/20241008
 * (coverage) Add support for python 3.13 and bump `coverage.py` to 7.6.1.
+* (bzlmod) Add support for `download_only` flag to disable usage of `sdists`
+  when {bzl:attr}`pip.parse.experimental_index_url` is set.
 
 
 ### Removed
diff --git a/MODULE.bazel b/MODULE.bazel
index 58c7ae2..780d7f8 100644
--- a/MODULE.bazel
+++ b/MODULE.bazel
@@ -91,6 +91,7 @@
     dev_dependency = True,
 )
 dev_pip.parse(
+    download_only = True,  # this will not add the `sdist` values to the transitive closures at all.
     hub_name = "dev_pip",
     python_version = "3.11",
     requirements_lock = "//docs:requirements.txt",
diff --git a/examples/bzlmod/MODULE.bazel.lock b/examples/bzlmod/MODULE.bazel.lock
index 2ddbe40..8ef6e97 100644
--- a/examples/bzlmod/MODULE.bazel.lock
+++ b/examples/bzlmod/MODULE.bazel.lock
@@ -1231,7 +1231,7 @@
     },
     "@@rules_python~//python/extensions:pip.bzl%pip": {
       "general": {
-        "bzlTransitiveDigest": "kPvx0u6SR68H+8BqqEfxd3NpVZjuMOyzI9Xml01rdrQ=",
+        "bzlTransitiveDigest": "Rc0r+OwZ3f57lwygvIXLejgTsJKr8ezIcd136SpMyDo=",
         "usagesDigest": "MChlcSw99EuW3K7OOoMcXQIdcJnEh6YmfyjJm+9mxIg=",
         "recordedFileInputs": {
           "@@other_module~//requirements_lock_3_11.txt": "a7d0061366569043d5efcf80e34a32c732679367cb3c831c4cdc606adc36d314",
@@ -6138,7 +6138,7 @@
     },
     "@@rules_python~//python/private/pypi:pip.bzl%pip_internal": {
       "general": {
-        "bzlTransitiveDigest": "c3OA6iewVGq8nz0o3iI2AtIQhsRZIg/E/PDq2vuAQTw=",
+        "bzlTransitiveDigest": "s4J1aKQE20A+qzGkeB4XwzitVphP4H3vYmeLg6pMZxA=",
         "usagesDigest": "Y8ihY+R57BAFhalrVLVdJFrpwlbsiKz9JPJ99ljF7HA=",
         "recordedFileInputs": {
           "@@rules_python~//tools/publish/requirements.txt": "031e35d03dde03ae6305fe4b3d1f58ad7bdad857379752deede0f93649991b8a",
diff --git a/python/private/pypi/extension.bzl b/python/private/pypi/extension.bzl
index 200aa43..36fb20e 100644
--- a/python/private/pypi/extension.bzl
+++ b/python/private/pypi/extension.bzl
@@ -151,9 +151,6 @@
 
     get_index_urls = None
     if pip_attr.experimental_index_url:
-        if pip_attr.download_only:
-            fail("Currently unsupported to use `download_only` and `experimental_index_url`")
-
         get_index_urls = lambda ctx, distributions: simpleapi_download(
             ctx,
             attr = struct(
@@ -263,11 +260,11 @@
             is_exposed = False
             for requirement in requirements:
                 is_exposed = is_exposed or requirement.is_exposed
-                for distribution in requirement.whls + [requirement.sdist]:
-                    if not distribution:
-                        # sdist may be None
-                        continue
+                dists = requirement.whls
+                if not pip_attr.download_only and requirement.sdist:
+                    dists = dists + [requirement.sdist]
 
+                for distribution in dists:
                     found_something = True
                     is_hub_reproducible = False
 
@@ -564,6 +561,11 @@
 stable.
 
 This is equivalent to `--index-url` `pip` option.
+
+:::{versionchanged} 0.37.0
+If {attr}`download_only` is set, then `sdist` archives will be discarded and `pip.parse` will
+operate in wheel-only mode.
+:::
 """,
         ),
         "experimental_index_url_overrides": attr.string_dict(
diff --git a/tests/pypi/integration/BUILD.bazel b/tests/pypi/integration/BUILD.bazel
index f846bfb..9ea8dce 100644
--- a/tests/pypi/integration/BUILD.bazel
+++ b/tests/pypi/integration/BUILD.bazel
@@ -1,5 +1,5 @@
 load("@bazel_skylib//rules:build_test.bzl", "build_test")
-load("@dev_pip//:requirements.bzl", "all_requirements")
+load("@rules_python_publish_deps//:requirements.bzl", "all_requirements")
 load(":transitions.bzl", "transition_rule")
 
 build_test(