diff --git a/specgen/README.md b/specgen/README.md
index 56b089a1..e89cc811 100644
--- a/specgen/README.md
+++ b/specgen/README.md
@@ -1,3 +1,44 @@
-# Specgen
+# specgen
 
-TBD
+## Overview
+
+`specgen` is a tool that generates connector specifications and writes them to a
+`connector.yaml`. The input to `specgen` are source and destination
+configuration structs returned by the `Config()` methods in the connectors.
+
+`specgen` is run as part of `go generate`. It also needs access to the
+`sdk.Connector` variable that holds references to constructor functions for the
+source and the destination, so it's best to place it in the `connector.go` file.
+The following is an example from the Kafka connector:
+
+```go
+//go:generate specgen
+
+// Package kafka contains implementations for Kafka source and destination
+// connectors for Conduit.
+package kafka
+
+import (
+	_ "embed"
+
+	sdk "github.com/conduitio/conduit-connector-sdk"
+)
+
+//go:embed connector.yaml
+var specs string
+
+var Connector = sdk.Connector{
+	NewSpecification: sdk.YAMLSpecification(specs),
+	NewSource:        NewSource,
+	NewDestination:   NewDestination,
+}
+```
+
+`specgen` generates the specification in the following phases:
+
+1. Extracts the specifications from the source and destination configuration
+   struct.
+2. Combines the extracted specification with the existing one in `connector.yaml`.
+
+More detailed information about `specgen` and `connector.yaml` can be found in
+the [Conduit documentation](https://conduit.io/docs/developing/connectors/connector-specification).