diff --git a/README.md b/README.md
index b9395ce4..1edf1072 100644
--- a/README.md
+++ b/README.md
@@ -25,7 +25,7 @@ CodiumAI `PR-Agent` is an open-source tool aiming to help developers review pull
\
‣ **Code Suggestions ([`/improve`](./docs/IMPROVE.md))**: Committable code suggestions for improving the PR.
\
-‣ **Update Changelog (`/update_changelog`)**: Automatically updating the CHANGELOG.md file with the [PR changes](https://github.com/Codium-ai/pr-agent/pull/168#discussion_r1282077645).
+‣ **Update Changelog ([`/update_changelog`](./docs/UPDATE_CHANGELOG.md))**: Automatically updating the CHANGELOG.md file with the PR changes.
\
‣ **Find similar issue ([`/similar_issue`](./docs/SIMILAR_ISSUE.md))**: Automatically retrieves and presents similar issues
diff --git a/docs/TOOLS_GUIDE.md b/docs/TOOLS_GUIDE.md
index 5b3179c8..758188a5 100644
--- a/docs/TOOLS_GUIDE.md
+++ b/docs/TOOLS_GUIDE.md
@@ -3,4 +3,5 @@
- [REVIEW](./REVIEW.md)
- [IMPROVE](./IMPROVE.md)
- [ASK](./ASK.md)
-- [SIMILAR_ISSUE](./SIMILAR_ISSUE.md)
\ No newline at end of file
+- [SIMILAR_ISSUE](./SIMILAR_ISSUE.md)
+- [UPDATE CHANGELOG](./UPDATE_CHANGELOG.md)
\ No newline at end of file
diff --git a/docs/UPDATE_CHANGELOG.md b/docs/UPDATE_CHANGELOG.md
new file mode 100644
index 00000000..30091be6
--- /dev/null
+++ b/docs/UPDATE_CHANGELOG.md
@@ -0,0 +1,19 @@
+# Update Changelog Tool
+
+The `update_changelog` tool automatically updates the CHANGELOG.md file with the PR changes.
+It can be invoked manually by commenting on any PR:
+```
+/update_changelog
+```
+For example:
+
+
+
+
+
+### Configuration options
+
+Under the section 'pr_update_changelog', the [configuration file](./../pr_agent/settings/configuration.toml#L50) contains options to customize the 'update changelog' tool:
+
+- `push_changelog_changes`: whether to push the changes to changelog changes, or just print them. Default is false (print only).
+- `extra_instructions`: Optional extra instructions to the tool. For example: "focus on the changes in the file X. Ignore change in ...
\ No newline at end of file
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