diff --git a/README.md b/README.md
index 20440a4..fa92571 100644
--- a/README.md
+++ b/README.md
@@ -123,6 +123,22 @@ The `go-version` input supports the following syntax:
 
 For more information about semantic versioning, please refer to [semver](https://github.com/npm/node-semver) documentation.
 
+## Getting go version from the go.mod file
+
+The `go-version-file` input accepts a path to a `go.mod` file containing the version of Go to be used by a project. As the `go.mod` file contains only major and minor (e.g. 1.18) tags, the action will search for the latest available patch version sequentially in the runner's directory with the cached tools, in the [version-manifest.json](https://github.com/actions/go-versions/blob/main/versions-manifest.json) file or at the go servers.
+
+If both the `go-version` and the `go-version-file` inputs are provided then the `go-version` input is used.
+> The action will search for the `go.mod` file relative to the repository root
+
+```yaml
+steps:
+- uses: actions/checkout@v3
+- uses: actions/setup-go@v3
+  with:
+    go-version-file: '**/go.mod'
+- run: go version
+```
+
 # License
 
 The scripts and documentation in this project are released under the [MIT License](LICENSE)