diff --git a/README.md b/README.md
index ac1be25..db5e196 100644
--- a/README.md
+++ b/README.md
@@ -1,3 +1,11 @@
 # Replugged plugin template
 
-See the [plugin development guide](https://guide.replugged.dev/docs/plugins/getting-started) for more information on using this template.
+See the [plugin development guide](https://guide.replugged.dev/docs/plugins/getting-started) for
+more information on using this template.
+
+# License
+
+The [plugin template](https://github.com/replugged-org/plugin-template) is licensed under the
+[MIT](https://opensource.org/license/mit/) license. However, addons using this template are not
+necessarily licensed under MIT. Developers are encouraged to add a license file to their repository,
+but if none exists, the repository should be considered as unlicensed.