diff --git a/README.md b/README.md
index bc62287..b03c45e 100644
--- a/README.md
+++ b/README.md
@@ -134,7 +134,7 @@ First clone this repository and then inside the repository initialize the submod
 
 ### Dependencies
 
-Build the Bluespec Compiler `bsc` from [this repository](https://github.com/B-Lang-org/bsc)
+Build the Bluespec Compiler `bsc` from [this repository](https://github.com/B-Lang-org/bsc). You will also need set the `$BLUESPECDIR` to the `lib` folder of your `bsc` install. By default this is located in `inst/lib` directory inside your bsc repo. Also, make sure to add the `inst/bin` directory to your `$PATH` environment variable.
 
 You need Verilator with version 3.922 or later. You can build any version of Verilator from [this repository](https://github.com/verilator/verilator/releases) and follow the build instructions [on the official website](https://www.veripool.org/projects/verilator/wiki/Installing).