diff --git a/CHANGELOG.md b/CHANGELOG.md
index 23e5049cfa91..31626c2f238b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,14 +3,12 @@
 ### Fixes
 
 - `[jest-cli]` Fix incorrect `testEnvironmentOptions` warning ([#6852](https://github.com/facebook/jest/pull/6852))
+- `[jest-each`] Prevent done callback being supplied to describe ([#6843](https://github.com/facebook/jest/pull/6843))
 
 ### Chore & Maintenance
 
 - `[docs]` Add custom toMatchSnapshot matcher docs ([#6837](https://github.com/facebook/jest/pull/6837))
-
-### Fixes
-
-- `[jest-each`] Prevent done callback being supplied to describe ([#6843](https://github.com/facebook/jest/pull/6843))
+- `[docs]` Improve the documentation regarding preset configuration ([#6864](https://github.com/facebook/jest/issues/6864))
 
 ## 23.5.0
 
diff --git a/docs/Configuration.md b/docs/Configuration.md
index 9513d3cc9422..07adbcb4a016 100644
--- a/docs/Configuration.md
+++ b/docs/Configuration.md
@@ -410,7 +410,15 @@ Specifies notification mode. Requires `notify: true`.
 
 Default: `undefined`
 
-A preset that is used as a base for Jest's configuration. A preset should point to an npm module that exports a `jest-preset.json` or `jest-preset.js` module at its top level.
+A preset that is used as a base for Jest's configuration. A preset should point to an npm module that has a `jest-preset.json` or `jest-preset.js` file at the root.
+
+For example, this preset `foo-bar/jest-preset.js` will be configured as follows:
+
+```json
+{
+  "preset": "foo-bar"
+}
+```
 
 Presets may also be relative filesystem paths.