diff --git a/.changeset/update-azure-scaffolder-docs.md b/.changeset/update-azure-scaffolder-docs.md
new file mode 100644
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@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend-module-azure': patch
+---
+
+Improved README with clearer setup and usage guidance.
diff --git a/plugins/scaffolder-backend-module-azure/README.md b/plugins/scaffolder-backend-module-azure/README.md
index 505ef36db1..dcfb1d63ab 100644
--- a/plugins/scaffolder-backend-module-azure/README.md
+++ b/plugins/scaffolder-backend-module-azure/README.md
@@ -1,5 +1,133 @@
 # @backstage/plugin-scaffolder-backend-module-azure
 
-The azure module for [@backstage/plugin-scaffolder-backend](https://www.npmjs.com/package/@backstage/plugin-scaffolder-backend).
+The Azure DevOps module for [@backstage/plugin-scaffolder-backend](https://www.npmjs.com/package/@backstage/plugin-scaffolder-backend).
 
-_This plugin was created through the Backstage CLI_
+This module provides scaffolder actions for Azure DevOps integration.
+
+## Installation
+
+```bash
+# From your Backstage root directory
+yarn --cwd packages/backend add @backstage/plugin-scaffolder-backend-module-azure
+```
+
+Then add it to your backend:
+
+```ts title="packages/backend/src/index.ts"
+import { createBackend } from '@backstage/backend-defaults';
+
+const backend = createBackend();
+
+// ... other plugins
+
+backend.add(import('@backstage/plugin-scaffolder-backend'));
+backend.add(import('@backstage/plugin-scaffolder-backend-module-azure'));
+
+backend.start();
+```
+
+## Actions
+
+### `publish:azure`
+
+Initializes a git repository with the content in the workspace and publishes it to Azure DevOps.
+
+#### Input Parameters
+
+| Parameter          | Type      | Required | Description                                                                                             |
+| ------------------ | --------- | -------- | ------------------------------------------------------------------------------------------------------- |
+| `repoUrl`          | `string`  | Yes      | Repository URL in the format: `dev.azure.com?organization=<org>&project=<project>&repo=<repo>`          |
+| `description`      | `string`  | No       | Repository description                                                                                  |
+| `defaultBranch`    | `string`  | No       | Default branch for the repository. Default: `master`                                                    |
+| `sourcePath`       | `string`  | No       | Path within the workspace to use as repository root. If omitted, the entire workspace will be published |
+| `token`            | `string`  | No       | Personal Access Token for Azure DevOps authentication                                                   |
+| `gitCommitMessage` | `string`  | No       | Initial commit message. Default: `initial commit`                                                       |
+| `gitAuthorName`    | `string`  | No       | Author name for the commit. Default: `Scaffolder`                                                       |
+| `gitAuthorEmail`   | `string`  | No       | Author email for the commit                                                                             |
+| `signCommit`       | `boolean` | No       | Sign the commit with the configured PGP private key                                                     |
+
+#### Output Parameters
+
+| Parameter         | Type     | Description                             |
+| ----------------- | -------- | --------------------------------------- |
+| `remoteUrl`       | `string` | URL to the repository                   |
+| `repoContentsUrl` | `string` | URL to the root of the repository (web) |
+| `repositoryId`    | `string` | ID of the created repository            |
+| `commitHash`      | `string` | Git commit hash of the initial commit   |
+
+#### Examples
+
+**Basic usage:**
+
+```yaml
+steps:
+  - id: publish
+    action: publish:azure
+    name: Publish to Azure DevOps
+    input:
+      repoUrl: 'dev.azure.com?organization=myorg&project=myproject&repo=myrepo'
+```
+
+**With custom branch and commit message:**
+
+```yaml
+steps:
+  - id: publish
+    action: publish:azure
+    name: Publish to Azure DevOps
+    input:
+      repoUrl: 'dev.azure.com?organization=myorg&project=myproject&repo=myrepo'
+      defaultBranch: main
+      gitCommitMessage: 'Initial project setup'
+```
+
+**With author information:**
+
+```yaml
+steps:
+  - id: publish
+    action: publish:azure
+    name: Publish to Azure DevOps
+    input:
+      repoUrl: 'dev.azure.com?organization=myorg&project=myproject&repo=myrepo'
+      gitAuthorName: 'John Doe'
+      gitAuthorEmail: 'john.doe@example.com'
+```
+
+**Using a specific source path:**
+
+```yaml
+steps:
+  - id: publish
+    action: publish:azure
+    name: Publish to Azure DevOps
+    input:
+      repoUrl: 'dev.azure.com?organization=myorg&project=myproject&repo=myrepo'
+      sourcePath: 'packages/my-app'
+```
+
+**With authentication token:**
+
+```yaml
+steps:
+  - id: publish
+    action: publish:azure
+    name: Publish to Azure DevOps
+    input:
+      repoUrl: 'dev.azure.com?organization=myorg&project=myproject&repo=myrepo'
+      token: ${{ secrets.AZURE_TOKEN }}
+```
+
+## Configuration
+
+To use this module, you need to configure Azure DevOps integration in your `app-config.yaml`:
+
+```yaml
+integrations:
+  azure:
+    - host: dev.azure.com
+      credentials:
+        - personalAccessToken: ${AZURE_TOKEN}
+```
+
+For more information on Azure DevOps integration, see the [Azure DevOps integration documentation](https://backstage.io/docs/integrations/azure/locations).