diff --git a/docs/changelog/3116.doc.rst b/docs/changelog/3116.doc.rst
new file mode 100644
index 0000000000..c98f0845ee
--- /dev/null
+++ b/docs/changelog/3116.doc.rst
@@ -0,0 +1 @@
+Explain how plugins are registered and discovered - by :user:`hashar`.
diff --git a/src/tox/plugin/__init__.py b/src/tox/plugin/__init__.py
index 6565ea588f..5cb5593199 100644
--- a/src/tox/plugin/__init__.py
+++ b/src/tox/plugin/__init__.py
@@ -1,6 +1,22 @@
 """
-tox uses `pluggy <https://pluggy.readthedocs.io/en/stable/>`_ to customize the default behaviour. For example the
-following code snippet would define a new ``--magic`` command line interface flag the user can specify:
+tox uses `pluggy <https://pluggy.readthedocs.io/en/stable/>`_ to customize the
+default behaviour. It provides an extension mechanism for plugin management an
+calling hooks.
+
+Pluggy discovers a plugin by looking up for entry-points named ``tox``, for example in a pyproject.toml:
+
+.. code-block:: toml
+
+    [project.entry-points.tox]
+    your_plugin = "your_plugin.hooks"
+
+Therefore, to start using a plugin, you solely need to install it in the same
+environment tox is running in and it will be discovered via the defined
+entry-point (in the example above, tox will load ``your_plugin.hooks``).
+
+A plugin is created by implementing extension points in the form of hooks. For
+example the following code snippet would define a new ``--magic`` command line
+interface flag the user can specify:
 
 .. code-block:: python
 
@@ -12,8 +28,9 @@
     def tox_add_option(parser: ToxParser) -> None:
         parser.add_argument("--magic", action="store_true", help="magical flag")
 
-You can define such hooks either in a package installed alongside tox or within a ``toxfile.py`` found alongside your
-tox configuration file (root of your project).
+You can define such hooks either in a package installed alongside tox or within
+a ``toxfile.py`` found alongside your tox configuration file (root of your
+project).
 """
 from __future__ import annotations