diff --git a/README.md b/README.md
index 31d7a188df..d5d4c9715a 100644
--- a/README.md
+++ b/README.md
@@ -125,6 +125,11 @@ You can cite the Unsloth repo as follows:
 ```
 If you trained a model with 🦥Unsloth, you can use this cool sticker!   <img src="https://raw.githubusercontent.com/unslothai/unsloth/main/images/made with unsloth.png" width="200" align="center" />
 
+### License
+Unsloth uses a dual-licensing model of Apache 2.0 and AGPL-3.0. The core Unsloth package remains licensed under **[Apache 2.0](https://github.com/unslothai/unsloth?tab=Apache-2.0-1-ov-file)**, while certain optional components, such as the Unsloth Studio UI are licensed under **[AGPL-3.0](https://github.com/unslothai/unsloth?tab=AGPL-3.0-2-ov-file)**.
+
+This structure helps support ongoing Unsloth development while keeping the project open source and enabling the broader ecosystem to continue growing.
+
 ### Thank You to
 - The [llama.cpp library](https://github.com/ggml-org/llama.cpp) that lets users run and save models with Unsloth
 - The Hugging Face team and their libraries: [transformers](https://github.com/huggingface/transformers) and [TRL](https://github.com/huggingface/trl)