diff --git a/yellow-paper/docs/public-vm/avm-circuit.md b/yellow-paper/docs/public-vm/avm-circuit.md
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@@ -149,7 +149,24 @@ Any lookup into calldata from a request's initial contract call must retrieve a
 **TODO**
 
 ## Chiplets
-**TODO**
+
+A chiplet is essentially a sub-circuit for performing specialized sub-operations. A chiplet is defined as a dedicated table (a set of columns and relations) in the AVM circuit that is activated when the relevant sub-operation is used. The main rationale behind the use of chiplets is to offload specialized computations to a region of the circuit _outside the main operations trace and instruction controller_ where the computations might require many rows and/or additional dedicated columns. In addition, this approach offers strong modularity for the operations implemented as chiplets.
+
+The interaction between a chiplet and the instruction controller follows the following pattern:
+
+1. The **inputs** of a chiplet sub-operation are loaded to the respective intermediate registers (usually $I_a$, $I_b$).
+2. The dedicated chiplet fetches/copies the content of the intermediate registers from the **operations trace** in its own table and executes the operation.
+3. The output of the operation is copied back to the **operations trace** in a specific register (usually $I_c$). This register is usually involved in a write memory sub-operation.
+
+In addition to the mentioned inputs and output, some other relevant information such as the instruction tag might be copied as well to the chiplet.
+
+In the circuit, the transmission of the input/output between the **chiplet trace** and the **operations trace** are performed through lookup or permutation constraints, i.e., they ensure that all relevant intermediate registers have the same values between both traces. The unique key of this mapping is `CLK` which is basically used as a "DB foreign key" from the **chiplet trace** pointing to corresponding entry in the **operations trace**.
+
+The planned chiplets for the AVM are:
+
+- **ALU**: Arithmetic and bitwise operations such as addition, multiplication, XOR, etc...
+- **Type Converter**: Dedicated to casting words between different types and/or type constraints.
+- **Gadgets:** Relevant cryptographic operations or other computationally intensive operations. There will likely be multiple chiplets of this category, including `Poseidon2Permutation`, `Keccakf1600`, and `ECADD`.
 
 ## Circuit I/O
 ### How do "Public Inputs" work in the AVM circuit?