diff --git a/README.md b/README.md
index 58c647f8d..62ed54d47 100644
--- a/README.md
+++ b/README.md
@@ -91,6 +91,17 @@ agent = Agent(tools=[word_count])
 response = agent("How many words are in this sentence?")
 ```
 
+**Hot Reloading from Directory:**
+Enable automatic tool loading and reloading from the `./tools/` directory:
+
+```python
+from strands import Agent
+
+# Agent will watch ./tools/ directory for changes
+agent = Agent(load_tools_from_directory=True)
+response = agent("Use any tools you find in the tools directory")
+```
+
 ### MCP Support
 
 Seamlessly integrate Model Context Protocol (MCP) servers: