diff --git a/packages/coding-agent/docs/extensions.md b/packages/coding-agent/docs/extensions.md
index 53de0117..0f43101c 100644
--- a/packages/coding-agent/docs/extensions.md
+++ b/packages/coding-agent/docs/extensions.md
@@ -4,6 +4,8 @@
 
 Extensions are TypeScript modules that extend pi's behavior. They can subscribe to lifecycle events, register custom tools callable by the LLM, add commands, and more.
 
+> **Placement for /reload:** Put extensions in `~/.pi/agent/extensions/` (global) or `.pi/extensions/` (project-local) for auto-discovery. Use `pi -e ./path.ts` only for quick tests. Extensions in auto-discovered locations can be hot-reloaded with `/reload`.
+
 **Key capabilities:**
 - **Custom tools** - Register tools the LLM can call via `pi.registerTool()`
 - **Event interception** - Block or modify tool calls, inject context, customize compaction