diff --git a/README.md b/README.md
index 6ffda9de..a4a5e7a0 100644
--- a/README.md
+++ b/README.md
@@ -468,14 +468,25 @@ binaries are also available: look for archives with `musl` in the file name.
 If you want to build `bat` from source, you need Rust 1.74.0 or
 higher. You can then use `cargo` to build everything:
 
+#### From local source
+```bash
+cargo install --path . --locked
+```
+> [!NOTE]
+> The `--path .` above specifies the directory of the source code and NOT where `bat` will be installed.
+> For more information see the docs for [`cargo install`](https://doc.rust-lang.org/cargo/commands/cargo-install.html).
+
+#### From `crates.io`
 ```bash
 cargo install --locked bat
 ```
 
 Note that additional files like the man page or shell completion
-files can not be installed in this way. They will be generated by `cargo` and should be available in the cargo target folder (under `build`).
+files can not be installed automatically in both these ways.
+If installing from a local source, they will be generated by `cargo`
+and should be available in the cargo target folder under `build`.
 
-Shell completions are also available by running:
+Furthermore, shell completions are also available by running:
 ```bash
 bat --completion <shell>
 # see --help for supported shells