diff --git a/README.md b/README.md
index bf9dfd5ff27e..a26125fa35fe 100644
--- a/README.md
+++ b/README.md
@@ -20,6 +20,35 @@ DPNP_QUEUE_GPU=1 python examples/example1.py
 ```
 
 ## Build from source:
+ Ensure you have the following prerequisite packages installed:
+
+- `mkl-devel-dpcpp`
+- `dpcpp_linux-64` or `dpcpp_win-64` (depending on your OS)
+- `tbb-devel`
+- `dpctl`
+
+In addition, you need oneDPL installed on your system. There are two ways to do
+so:
+
+1. Install oneAPI and run the oneDPL activation script. E.g., on linux:
+
+   ```bash
+   source /opt/intel/oneapi/dpl/latest/env/vars.sh
+   ```
+
+2. Clone dpl from https://github.com/oneapi-src/oneDPL and set the `DPL_ROOT`
+   environment variable to point to the `include` directory in the repository.
+
+   E.g., on linux
+
+   ```bash
+   git clone https://github.com/oneapi-src/oneDPL
+   export DPL_ROOT=$(pwd)/oneDPL/include
+   ```
+
+After these steps, `dpnp` can be built in debug mode as follows:
+
+
 ```bash
 git clone https://github.com/IntelPython/dpnp
 cd dpnp
diff --git a/dpnp/__init__.py b/dpnp/__init__.py
index 843c3c111a6b..5fbe1f05864d 100644
--- a/dpnp/__init__.py
+++ b/dpnp/__init__.py
@@ -1,6 +1,6 @@
 # -*- coding: utf-8 -*-
 # *****************************************************************************
-# Copyright (c) 2016-2020, Intel Corporation
+# Copyright (c) 2016-2022, Intel Corporation
 # All rights reserved.
 #
 # Redistribution and use in source and binary forms, with or without
@@ -30,7 +30,16 @@
 import dpctl
 dpctlpath = os.path.dirname(dpctl.__file__)
 
-os.environ["PATH"] += os.pathsep + mypath + os.pathsep + dpctlpath
+# For Windows OS with Python >= 3.7, it is required to explicitly define a path
+# where to search for DLLs towards both DPNP backend and DPCTL Sycl interface,
+# otherwise DPNP import will be failing. This is because the libraries
+# are not installed under any of default paths where Python is searching.
+from platform import system
+if system() == 'Windows':
+    if hasattr(os, "add_dll_directory"):
+        os.add_dll_directory(mypath)
+        os.add_dll_directory(dpctlpath)
+    os.environ["PATH"] = os.pathsep.join([os.getenv("PATH", ""), mypath, dpctlpath])
 
 
 from dpnp.dpnp_array import dpnp_array as ndarray