diff --git a/packages/storybook/README.md b/packages/storybook/README.md
index 2e716a5466..66768c0fe5 100644
--- a/packages/storybook/README.md
+++ b/packages/storybook/README.md
@@ -1,3 +1,7 @@
 # storybook
 
 This package provides a storybook build for Backstage. See [storybook.backstage.io](http://storybook.backstage.io)
+
+## Why is this not part of `@backstage/core`?
+
+This separate storybook package exists because of dependency conflicts with `@backstage/cli`. It uses nohoist to avoid the conflicts, and since you can only use that in private packages it has to be separated out of `@backstage/core`.