diff --git a/README.md b/README.md
index 2f0a6e777..72166087a 100644
--- a/README.md
+++ b/README.md
@@ -81,6 +81,10 @@ To initialize your project, simply write:
 cargo shuttle init --axum hello-world
 ```
 
+> Note: if you use [sparse registries](https://blog.rust-lang.org/inside-rust/2023/01/30/cargo-sparse-protocol.html) (which
+> is enabled by default on `nightly`), you may encounter [this bug](https://github.com/shuttle-hq/shuttle/issues/821) when 
+> running the `init` command. To resolve this, see [this comment](https://github.com/shuttle-hq/shuttle/issues/821#issuecomment-1525317860).
+
 And to deploy it, write:
 
 ```bash