diff --git a/README b/README
index 5a1bd3f7..37fe3183 100644
--- a/README
+++ b/README
@@ -425,10 +425,12 @@ included template.
 PLUGINS
 =======
 
-Smarty 3 plugins are now objects that extend Smarty_Internal_PluginBase. All
-plugins have the property $this->smarty available as a reference to the Smarty
-object instance. The Smarty 2 function-style plugins are still compatible, you
-can drop them right into the Smarty 3 plugin directory.
+Smarty3 are following the same coding rules as in Smarty2. 
+The only difference is that the template object is passed as additional third parameter.
+
+smarty_plugintype_name (array $params, object $smarty, object $template)
+
+The Smarty 2 plugins are still compatible as long as they do not make use of specific Smarty2 internals.
 
 
 TEMPLATE INHERITANCE: