diff --git a/.vscodeignore b/.vscodeignore
index 953e1ae1..2675e013 100644
--- a/.vscodeignore
+++ b/.vscodeignore
@@ -4,6 +4,7 @@
 coverage/**
 out/**
 src/**
+usage.md
 .gitignore
 node_modules/**
 **/tsconfig.json
diff --git a/usage.md b/usage.md
new file mode 100644
index 00000000..304d17e1
--- /dev/null
+++ b/usage.md
@@ -0,0 +1,17 @@
+# Usage
+
+## How to share extensions with code-server
+
+When you install extensions remotely with VSCode, they are stored on the machine
+here:
+
+```shell
+~/.vscode-server/extensions
+```
+
+If you're using code-server and want to use those same extensions, you can use
+the `--extensions-dir` flag like so:
+
+```shell
+code-server --extensions-dir ~/.vscode-server/extensions
+```