diff --git a/README.md b/README.md
index d31d5a0..25e9960 100644
--- a/README.md
+++ b/README.md
@@ -160,6 +160,7 @@ ra-aid -m "Explain the authentication flow" --research-only
 - `--model`: Specify the model name (See Model Configuration section)
 - `--expert-provider`: Specify the provider for the expert tool (defaults to OpenAI)
 - `--expert-model`: Specify the model name for the expert tool (defaults to o1-preview for OpenAI)
+- `--chat`: Enable chat mode for interactive assistance
 
 ### Model Configuration
 
@@ -314,6 +315,9 @@ This mode is particularly useful for:
 - Validating critical changes
 - Providing domain-specific knowledge
 
+### Chat Mode
+Enable with `--chat` to transform ra-aid into an interactive assistant that guides you through research and implementation tasks. Have a natural conversation about what you want to build, explore options together, and dispatch work - all while maintaining context of your discussion. Perfect for when you want to think through problems collaboratively rather than just executing commands.
+
 ### Environment Variables
 
 See the [Model Configuration](#model-configuration) section for details on provider-specific environment variables.