diff --git a/base/essentials.jl b/base/essentials.jl
index b837b556ed910..50971f85e38bc 100644
--- a/base/essentials.jl
+++ b/base/essentials.jl
@@ -54,12 +54,12 @@ end
     @nospecialize
 
 Applied to a function argument name, hints to the compiler that the method
-should not be specialized for different types of that argument,
-but instead to use precisely the declared type for each argument.
-This is only a hint for avoiding excess code generation.
-Can be applied to an argument within a formal argument list,
+implementation should not be specialized for different types of that argument,
+but instead use the declared type for that argument.
+It can be applied to an argument within a formal argument list,
 or in the function body.
-When applied to an argument, the macro must wrap the entire argument expression.
+When applied to an argument, the macro must wrap the entire argument expression, e.g.,
+`@nospecialize(x::Real)` or `@nospecialize(i::Integer...)` rather than wrapping just the argument name.
 When used in a function body, the macro must occur in statement position and
 before any code.
 
@@ -87,6 +87,38 @@ end
 f(y) = [x for x in y]
 @specialize
 ```
+
+!!! note
+    `@nospecialize` affects code generation but not inference: it limits the diversity
+    of the resulting native code, but it does not impose any limitations (beyond the
+    standard ones) on type-inference.
+
+# Example
+
+```julia
+julia> f(A::AbstractArray) = g(A)
+f (generic function with 1 method)
+
+julia> @noinline g(@nospecialize(A::AbstractArray)) = A[1]
+g (generic function with 1 method)
+
+julia> @code_typed f([1.0])
+CodeInfo(
+1 ─ %1 = invoke Main.g(_2::AbstractArray)::Float64
+└──      return %1
+) => Float64
+```
+
+Here, the `@nospecialize` annotation results in the equivalent of
+
+```julia
+f(A::AbstractArray) = invoke(g, Tuple{AbstractArray}, A)
+```
+
+ensuring that only one version of native code will be generated for `g`,
+one that is generic for any `AbstractArray`.
+However, the specific return type is still inferred for both `g` and `f`,
+and this is still used in optimizing the callers of `f` and `g`.
 """
 macro nospecialize(vars...)
     if nfields(vars) === 1