diff --git a/README.md b/README.md
index 3763a81..6ab7249 100644
--- a/README.md
+++ b/README.md
@@ -43,6 +43,9 @@ when you initialise the ADR log.
     superceded by the new ADR.  It then opens the new ADR in your
     editor of choice.
     
+    If the ADR directory contains a file `templates/template.md`, this is used
+    as the template for the new ADR. Otherwise a default template is used.
+    
 3. For further information, use the built in help:
 
         adr help