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--- a/README.md
+++ b/README.md
@@ -2,14 +2,155 @@
 
 This project was created as a part of the final assignment for AP7PD, alongside the frontend that is tracked in a separate repository.
 
+This project is also a dependency for the frontend project, which is re-used as the final project for AP7MP as well.
+
 ## Description
 
 This backend facilitates an Event Mangement System application, which is essentially a calendar-like application, where people can track various events.
 
 ## Technology
 
-The backend uses the [FastAPI](https://fastapi.tiangolo.com/) framework with [Python](https://www.python.org/) 3.12 or higher. To facilitate MongoDB connection, I will be using the [motor](https://pypi.org/project/motor/) library with [Beanie](https://beanie-odm.dev/) object-document mapper (ODM). The project will also contain a Dockerfile and a docker-compose file, which will make starting it very easy and reproducible.
+The backend uses the [FastAPI](https://fastapi.tiangolo.com/) framework with [Python](https://www.python.org/) 3.12 or
+higher. To facilitate MongoDB connection, I will be using the [motor](https://pypi.org/project/motor/) library with
+[Beanie](https://beanie-odm.dev/) object-document mapper (ODM). The project will also contain a Dockerfile and a
+docker-compose file, which will make starting it very easy and reproducible.
 
 ## Installation
 
-...
+> [!TIP]
+> Instead of manually installing the project, you can also use the provided `Dockerfile` and `docker-compose.yml` file.
+> See the [Docker](#docker) section for more information. This will very likely be the easiest and quickest way to get
+> the project up and running. If you're not interested in the docker install, keep reading.
+
+If you only wish to run the project and you're not interested in doing some further development on it, you can simply
+use `pip` and `venv` to install all the necessary dependencies:
+
+> [!NOTE]
+> Make sure you're in the root directory of the project (the same folder that this README file is in).
+
+```bash
+# Create & activate python virtual environment
+python -m venv .venv
+. .venv/bin/activate
+
+# Install the dependencies
+python -m pip install -e .
+```
+
+This will only install the runtime dependencies, necessary to actually run the code. (The development dependencies will
+not be installed.) The dependencies will be installed into their own isolated virtual environment, which won't interfere
+with the system-wide python dependencies.
+
+### For development
+
+This project uses [`rye`](https://rye.astral.sh/), which is a dependency management tool for python. You will need to
+install it. (On Arch Linux, you can run `pacman -S rye`.)
+
+Once you get `rye` installed, go to the project's root directory and run:
+
+```bash
+rye sync
+```
+
+This will install all of the necessary dependencies you'll need to run this project, including the development
+dependencies in a virtual environment. To then activate this environment, you can run:
+
+```bash
+. .venv/bin/activate
+```
+
+## Running
+
+To run the project, make sure you've activated your virtual environment first, then simply execute:
+
+```bash
+poe run
+```
+
+Note that by default, this will start listening on `localhost:8000`, if you wish to change this, you can use the `--host`
+and `--port` flags, like so:
+
+```bash
+poe run --host 0.0.0.0 --port 8080
+```
+
+(Changing the host from `localhost` to `0.0.0.0` is necessary to make the server accessible from other devices on the
+network)
+
+If you wish to run the project in development mode (with auto-reload on change), you can instead use:
+
+```bash
+poe run-dev
+```
+
+> [!IMPORTANT]
+> You will also need to have configured the project first, most notably, you'll need to set a MongoDB connection string.
+> Which also obviously means you'll need to have a MongoDB instance running. You can read more about how to configure the
+> project in the [Configuration](#configuration) section.
+
+## Docker
+
+As an alternative process to manually installing & running the project, you can also use the docker-compose file, which
+will pull all the necessary dependencies and start the backend, as well as the MongoDB instance.
+
+First, you will need to have [Docker](https://docs.docker.com/engine/install/) and [Docker
+compose](https://docs.docker.com/compose/install/) installed. Once you have that, you can run:
+
+```bash
+sudo docker-compose up
+```
+
+This will build the docker image from the attached `Dockerfile` and pull another image for the MongoDB instance. Once
+done, it will start the backend server and the MongoDB instance. By default, the backend will be available at port 8000
+with host 0.0.0.0. Feel free to edit the `docker-compose.yml` file and change it.
+
+Note that if you change the code, it is necessary to also rebuild the docker image. You can do that by adding the
+`--build` flag to the command:
+
+```bash
+sudo docker up --build
+```
+
+If you wish to run the containers in the background, you can add the `-d` flag:
+
+```bash
+sudo docker-compose up -d
+```
+
+> [!IMPORTANT]
+> You will also need to have configured the project first. For docker install though, you don't need to set the MongoDB
+> connection string yourself, as the MongoDB instance is running through docker as well, and the connection string is
+> set from there. That said, there are still some other required values that you will need to set. You can read more
+> about how to configure the project in the [Configuration](#configuration) section.
+
+## Configuration
+
+To configure the project, you can either set the environment variables manually or create a `.env` file in the root directory of
+the project(the same folder that this README file is in).
+
+Currently, you will need to set 2 environment variables:
+
+- `JWT_SECRET_TOKEN`: This is the secret token that will be used to sign the JWT tokens. This should be a long, random
+  string. I'd recommend generating it with `openssl rand -hex 32` command (if you're on windows, you can use `openssl`
+  from WSL or generate it through some other means, or use the one in the example later though, although I wouldn't
+  recommend that for production use).
+- `MONGODB_URI`: This is the connection string for the MongoDB instance. This should be in the format
+  `mongodb://username:password@host:port/database`. If you're using the admin authsource, you can also add
+  `?authSource=admin` suffix to this string. Note that if you're using the docker-compose, you don't need to set this
+  value, as it's already set in the `docker-compose.yml` file.
+
+There are also some optional environment variables that you can set:
+
+- `DEBUG`: This is a boolean value that will enable the debug mode in the FastAPI application. This is useful for
+  development, but you should never enable this in production. If you don't set this value, it will default to `0`
+  (false). To enable it, set this to `1` (true).
+
+### Example `.env` file
+
+The `.env` file should look something like this:
+
+```dotenv
+DEBUG=0
+JWT_SECRET_TOKEN=e51ca69e8d42422c7d2f94bc14e9aaaf294bb55a881354633f5e44f2dc9fde71
+MONGODB_URI=mongodb://root:test@localhost:27017/my-cool-database?authSource=admin
+```