What is README.md?

README.md meaning

`README.md` is a Markdown file usually placed at the root of a repository or project folder. The `.md` extension marks it as a Markdown document, and the uppercase `README` name is a long-standing convention that tells both people and tools "read this first". On platforms like GitHub, GitLab, and Bitbucket, the README is automatically rendered as the project homepage, so it is the first document most users and contributors see.

Because it is plain text, README.md works everywhere: in a code editor, in a terminal, on a Git host, and inside AI coding tools. It travels with the code, versions cleanly in Git, and stays readable even without a renderer.

What should README.md include?

A strong README answers the questions a new user or contributor asks in their first few minutes. Most well-structured README files include:

• Project name and a one-line summary that states what the project does
• Who it is for and the problem it solves
• Installation or setup steps with copy-ready commands
• Usage examples showing the most common workflow
• Configuration notes, environment variables, and requirements
• Badges for build status, version, and license
• Links to full docs, support, the license, and contribution rules

A simple README.md example

A minimal README written in Markdown might look like this:

# Project Name

Short description of what the project does.

## Install

```bash
npm install project-name
```

## Usage

```js
import { run } from "project-name";
run();
```

## License

MIT

Notice the heading hierarchy, fenced code blocks, and short sections. That structure is easy for humans to scan and easy for AI tools to parse.

How AI tools use README.md

AI coding assistants and agents often read README.md first to understand the purpose of a project before editing files. A clear README gives the model better context, which can improve code changes, explanations, documentation updates, and generated setup instructions. Tools such as Claude Code, GitHub Copilot, and Cursor benefit from a README that states the stack, entry points, and build commands in plain language.

For deeper, agent-specific rules you can pair the README with an AGENTS.md file or a CLAUDE.md file, while the README stays focused on humans.

README.md best practices

• Lead with the value: say what the project does in the first sentence
• Keep setup steps copy-ready and tested
• Use headings, lists, and tables instead of long paragraphs
• Show a real usage example, not just an API reference
• Keep it current: an outdated README is worse than a short one
• Link out to other project Markdown files rather than cramming everything into one file

README.md vs AGENTS.md

README.md is primarily for humans and public project context. AGENTS.md is primarily for coding agents and contains rules about commands, style, testing, and workflows. Use both when a project needs strong human and AI guidance.

Edit and preview README.md

Use Markdown Docs online editor to preview README content in your browser, or download Markdown Docs for local Windows editing.

Related references

• GitHub Docs: About READMEs for official README guidance.
• GitHub Markdown syntax for Markdown formatting basics.