diff --git a/docs/README.md b/docs/README.md
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+++ b/docs/README.md
@@ -12,6 +12,7 @@ please ask on [Discord](https://discord.gg/c84AZQhmpx) instead of opening an Iss
 - [Running headscale on Linux](running-headscale-linux.md)
 - [Control headscale remotely](remote-cli.md)
 - [Using a Windows client with headscale](windows-client.md)
+- [Configuring OIDC](oidc.md)
 
 ### References
 
diff --git a/docs/oidc.md b/docs/oidc.md
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+# Configuring Headscale to use OIDC authentication
+
+In order to authenticate users through a centralized solution one must enable the OIDC integration.
+
+Known limitations:
+
+- No dynamic ACL support
+- OIDC groups cannot be used in ACLs
+
+## Basic configuration
+
+In your `config.yaml`, customize this to your liking:
+
+```yaml
+oidc:
+  # Block further startup until the OIDC provider is healthy and available
+  only_start_if_oidc_is_available: true
+  # Specified by your OIDC provider
+  issuer: "https://your-oidc.issuer.com/path"
+  # Specified/generated by your OIDC provider
+  client_id: "your-oidc-client-id"
+  client_secret: "your-oidc-client-secret"
+
+  # Customize the scopes used in the OIDC flow, defaults to "openid", "profile" and "email" and add custom query
+  # parameters to the Authorize Endpoint request. Scopes default to "openid", "profile" and "email".
+  scope: ["openid", "profile", "email", "custom"]
+  # Optional: Passed on to the browser login request – used to tweak behaviour for the OIDC provider
+  extra_params:
+    domain_hint: example.com
+
+  # Optional: List allowed principal domains and/or users. If an authenticated user's domain is not in this list,
+  # the authentication request will be rejected.
+  allowed_domains:
+    - example.com
+  # Optional. Note that groups from Keycloak have a leading '/'.
+  allowed_groups:
+    - /headscale
+  # Optional.
+  allowed_users:
+    - alice@example.com
+
+  # If `strip_email_domain` is set to `true`, the domain part of the username email address will be removed.
+  # This will transform `first-name.last-name@example.com` to the namespace `first-name.last-name`
+  # If `strip_email_domain` is set to `false` the domain part will NOT be removed resulting to the following
+  # namespace: `first-name.last-name.example.com`
+  strip_email_domain: true
+```
+
+## Azure AD example
+
+In order to integrate Headscale with Azure Active Directory, we'll need to provision an App Registration with the correct scopes and redirect URI. Here with Terraform:
+
+```hcl
+resource "azuread_application" "headscale" {
+  display_name = "Headscale"
+
+  sign_in_audience = "AzureADMyOrg"
+  fallback_public_client_enabled = false
+
+  required_resource_access {
+    // Microsoft Graph
+    resource_app_id = "00000003-0000-0000-c000-000000000000"
+
+    resource_access {
+      // scope: profile
+      id   = "14dad69e-099b-42c9-810b-d002981feec1"
+      type = "Scope"
+    }
+    resource_access {
+      // scope: openid
+      id   = "37f7f235-527c-4136-accd-4a02d197296e"
+      type = "Scope"
+    }
+    resource_access {
+      // scope: email
+      id   = "64a6cdd6-aab1-4aaf-94b8-3cc8405e90d0"
+      type = "Scope"
+    }
+  }
+  web {
+    # Points at your running Headscale instance
+    redirect_uris = ["https://headscale.example.com/oidc/callback"]
+
+    implicit_grant {
+      access_token_issuance_enabled = false
+      id_token_issuance_enabled = true
+    }
+  }
+
+  group_membership_claims = ["SecurityGroup"]
+  optional_claims {
+    # Expose group memberships
+    id_token {
+      name = "groups"
+    }
+  }
+}
+
+resource "azuread_application_password" "headscale-application-secret" {
+  display_name          = "Headscale Server"
+  application_object_id = azuread_application.headscale.object_id
+}
+
+resource "azuread_service_principal" "headscale" {
+  application_id = azuread_application.headscale.application_id
+}
+
+resource "azuread_service_principal_password" "headscale" {
+  service_principal_id = azuread_service_principal.headscale.id
+  end_date_relative    = "44640h"
+}
+
+output "headscale_client_id" {
+  value = azuread_application.headscale.application_id
+}
+
+output "headscale_client_secret" {
+  value = azuread_application_password.headscale-application-secret.value
+}
+```
+
+And in your Headscale `config.yaml`:
+
+```yaml
+oidc:
+  issuer: "https://login.microsoftonline.com/<tenant-UUID>/v2.0"
+  client_id: "<client-id-from-terraform>"
+  client_secret: "<client-secret-from-terraform>"
+
+  # Optional: add "groups"
+  scope: ["openid", "profile", "email"]
+  extra_params:
+    # Use your own domain, associated with Azure AD
+    domain_hint: example.com
+    # Optional: Force the Azure AD account picker
+    prompt: select_account
+```