diff --git a/src/powershell/README.md b/src/powershell/README.md
new file mode 100644
index 0000000000..7745dd8c14
--- /dev/null
+++ b/src/powershell/README.md
@@ -0,0 +1,20 @@
+PowerShell
+==========
+
+The `powershell[.exe]` executable for Open PowerShell is built by this project,
+as it is the top dependency of the graph, and has `emitEntryPoint: true`,
+meaning a native executable is produced automatically by CLI (no need to own a
+separate native host).
+
+This project is a very simple shim that provides a `Main` function for .NET CLI
+to produce an app. It initializes PowerShell's custom `AssemblyLoadContext` and
+then delegates to the same `Start` function in
+`Microsoft.PowerShell.ConsoleHost` that the original native PowerShell host
+executes; thus we share the same entry point and the same PowerShell host, but
+use a different native host. This lets us take full advantage of .NET CLI's
+native host.
+
+We use this shim so that the `ConsoleHost` project and the original native host
+do not have to be changed. Additionally, until .NET CLI bugs surrounding content
+file deployment are solved, this shim allows us to continue with our split
+`Modules` folders work-around to deploy the correct versions.