diff --git a/bifrost/cli.py b/bifrost/cli.py
index f43a9b111..214571baa 100644
--- a/bifrost/cli.py
+++ b/bifrost/cli.py
@@ -163,6 +163,7 @@ def cmd_install(args):
             testing=args.testenv,
             use_cirros=args.testenv,
             use_tinyipa=args.testenv,
+            developer_mode=args.develop,
             extra_vars=args.extra_vars,
             **kwargs)
     log("Ironic is installed and running, try it yourself:\n",
@@ -207,6 +208,8 @@ def parse_args():
     install.set_defaults(func=cmd_install)
     install.add_argument('--testenv', action='store_true',
                          help='running in a virtual environment')
+    install.add_argument('--develop', action='store_true', default=False,
+                         help='install packages in development mode')
     install.add_argument('--dhcp-pool', metavar='START-END',
                          help='DHCP pool to use')
     install.add_argument('--release',
diff --git a/playbooks/roles/bifrost-pip-install/defaults/main.yml b/playbooks/roles/bifrost-pip-install/defaults/main.yml
index bade9401d..019db9e14 100644
--- a/playbooks/roles/bifrost-pip-install/defaults/main.yml
+++ b/playbooks/roles/bifrost-pip-install/defaults/main.yml
@@ -10,6 +10,7 @@ source_install: false
 ansible_python_interpreter: "{{ bifrost_venv_dir + '/bin/python3' if enable_venv | bool else '/usr/bin/python3' }}"
 
 # Pip options
+developer_mode: false
 extra_args:
 pip_install_retries: 5
 pip_install_delay: 10
diff --git a/playbooks/roles/bifrost-pip-install/tasks/main.yml b/playbooks/roles/bifrost-pip-install/tasks/main.yml
index b75b0cf2c..5a13bbf84 100644
--- a/playbooks/roles/bifrost-pip-install/tasks/main.yml
+++ b/playbooks/roles/bifrost-pip-install/tasks/main.yml
@@ -71,7 +71,10 @@
   # NOTE(dtantsur): do not use constraints here, it does not work when the
   # package itself is constrained.
   - name: "Install from {{ sourcedir }} using pip"
-    command: pip3 install {{ sourcedir }} {{ extra_args | default('') }}
+    pip:
+      name: "{{ sourcedir }}"
+      editable: "{{ developer_mode | bool }}"
+      extra_args: "{{ extra_args | default('') }}"
     when: source_install | bool
     environment: "{{ bifrost_venv_env if (enable_venv | bool) else {} }}"
 
diff --git a/releasenotes/notes/developer-mode-000e7a125642b9e1.yaml b/releasenotes/notes/developer-mode-000e7a125642b9e1.yaml
new file mode 100644
index 000000000..cd6d9ebbf
--- /dev/null
+++ b/releasenotes/notes/developer-mode-000e7a125642b9e1.yaml
@@ -0,0 +1,6 @@
+---
+features:
+  - |
+    Set the new parameter ``developer_mode`` to ``true`` to make all packages
+    installed from source to be installed with the ``--editable`` flag.
+    The corresponding ``bifrost-cli`` argument is ``--develop``.