diff --git a/README.md b/README.md
index 4051bed..adf8190 100644
--- a/README.md
+++ b/README.md
@@ -113,3 +113,36 @@ The following sequence context transforms are available
 - index: Returns the index of the element within the sequence
 - odd: Returns if the index of the element is odd
 - even: Returns if the index of the element is even
+
+### Template inheritance
+
+Template inheritance is not part of the Mustache spec yet but it is a commonly implemented feature. Template inheritance allows you to override elements of an included partial. It allows you to create a base page template and override elements of it with your page content. A partial that includes overriding elements is indicated with a `{{<partial}}`. Note this is different from the normal partial reference which uses `>`. This is a section tag so needs a ending tag as well. Inside the section the tagged sections to override are added using the syntax `{{$tag}}contents{{/tag}}`. If your template and partial were as follows
+```
+{{! mypage.mustache }}
+{{<base}}
+{{$head}}<title>My page title</title>{{/head}}
+{{$body}}Hello world{{/body}}
+{{/base}}
+```
+```
+{{! base.mustache }}
+<html>
+<head>
+{{$head}}{{/head}}
+</head>
+<body>
+{{$body}}Default text{{/body}}
+</body>
+</html>
+```
+You would get the following output when rendering `mypage.mustache`.
+```
+<html>
+<head>
+<title>My page title</title>
+</head>
+<body>
+Hello world
+</body>
+```
+Note the `{{$head}}` section in `base.mustache` is replaced with the `{{$head}}` section included inside the `{{<base}}` partial reference from `mypage.mustache`. The same occurs with the `{{$body}}` section. In that case though a default value is supplied for the situation where a `{{$body}}` section is not supplied. 
