diff --git a/docs/schema-history.md b/docs/schema-history.md
index e57b550dd98a7b..be65d7737f2c27 100644
--- a/docs/schema-history.md
+++ b/docs/schema-history.md
@@ -58,6 +58,12 @@ version. Some fields were even modified and had a type change at the latest vers
 * [getSchemaBlame](../graphql/queries.md#getSchemaBlame)
 * [getSchemaVersionList](../graphql/queries.md#getSchemaVersionList)
 
+## Dataset Versioning
+
+- **Automatic Versioning**: DataHub automatically manages the versioning of datasets. Each time a dataset's metadata or schema is updated, DataHub increments the version internally to track changes over time.
+- **Manual Versioning**: Users cannot manually set or alter the version of a dataset within DataHub's internal versioning system.
+- **Custom Version Tracking**: Users can track custom versions or external versioning schemes using custom metadata fields or tags. For example, you can annotate datasets with custom version information by adding a metadata field like `customVersion` and setting it to your desired version string.
+
 ## FAQ and Troubleshooting
 
 **What updates are planned for the Schema History feature?**