diff --git a/src/LiveComponent/README.md b/src/LiveComponent/README.md
index 3668d771348..32dfe340461 100644
--- a/src/LiveComponent/README.md
+++ b/src/LiveComponent/README.md
@@ -361,6 +361,9 @@ code works identically to the previous example:
```
+If an element has _both_ `data-model` and `name` attributes, the
+`data-model` attribute takes precedence.
+
## Loading States
Often, you'll want to show (or hide) an element while a component is
@@ -1135,3 +1138,226 @@ You can also trigger a specific "action" instead of a normal re-render:
#}
>
```
+
+## Embedded Components
+
+Need to embed one live component inside another one? No problem! As a rule
+of thumb, **each component exists in its own, isolated universe**. This
+means that embedding one component inside another could be really simple
+or a bit more complex, depending on how inter-connected you want your components
+to be.
+
+Here are a few helpful things to know:
+
+### Each component re-renders independent of one another
+
+If a parent component re-renders, the child component will _not_ (most
+of the time) be updated, even though it lives inside the parent. Each
+component is its own, isolated universe.
+
+But this is not always what you want. For example, suppose you have a
+parent component that renders a form and a child component that renders
+one field in that form. When you click a "Save" button on the parent
+component, that validates the form and re-renders with errors - including
+a new `error` value that it passes into the child:
+
+```twig
+{# templates/components/post_form.html.twig #}
+
+{{ component('textarea_field', {
+ value: this.content,
+ error: this.getError('content')
+}) }}
+```
+
+In this situation, when the parent component re-renders after clicking
+"Save", you _do_ want the updated child component (with the validation
+error) to be rendered. And this _will_ happen automatically. Why? because
+the live component system detects that the **parent component has
+_changed_ how it's rendering the child**.
+
+This may not always be perfect, and if your child component has its own
+`LiveProp` that has changed since it was first rendered, that value will
+be lost when the parent component causes the child to re-render. If you
+have this situation, use `data-model-map` to map that child `LiveProp` to
+a `LiveProp` in the parent component, and pass it into the child when
+rendering.
+
+### Actions, methods and model updates in a child do not affect the parent
+
+Again, each component is its own, isolated universe! For example, suppose
+your child component has:
+
+```html
+
+```
+
+When the user clicks that button, it will attempt to call the `save` action
+in the _child_ component only, even if the `save` action actually only
+exists in the parent. The same is true for `data-model`, though there is
+some special handling for this case (see next point).
+
+### If a child model updates, it will attempt to update the parent model
+
+Suppose a child component has a:
+
+```html
+