diff --git a/packages/remote/README.md b/packages/remote/README.md
index cda0962619ac0..dd6bc8c2fef72 100644
--- a/packages/remote/README.md
+++ b/packages/remote/README.md
@@ -12,10 +12,57 @@
 
 ## Description
 
+This package implements functionality to connect to remote systems using Theia.
+This facilitates features similar to the features offered by Microsoft's popular `Remote-SSH`, `Dev Containers` or `WSL` extensions for VSCode.
+
+## Package Architecture
+
+The general architecture between different frontend and backends for all the extensions mentioned above can be generalized via this diagram:
+
+```mermaid
+flowchart TD
+    subgraph Local System
+        lf[Local Frontend] -- Socket.io connection --> lb[Local Backend]
+        lb -- Socket.io forwarding --> lp[Proxy Server]
+    end
+    lb -- Direct Connection --> rb
+    lp -- Message Forwarding --> rb[Remote Backend]
+```
+
+In Theia, we reuse this architecture for this `@theia/remote` extension.
+The following explains the basic flow of any remote connection. It will be exemplified using the remote SSH feature:
+
+1. When the user runs the `SSH: Connect to Host...` command, we send the host info to the local backend. 
+The corresponding `RemoteSSHConnectionProvider` is scoped to the current connection and can request additional information from the user, such as SSH key passphrases.
+2. Once the `RemoteSSHConnectionProvider` has every information it needs, it creates a SSH connection and registers this connection to the general `RemoteConnectionService`.
+Every `RemoteConnection` type implements an interface that is able to handle 3 kinds of messages to the remote system:
+    1. Executing commands in the shell of the remote system
+    2. Copying data to the remote
+    3. Forwarding HTTP messages to a port of the remote
+3. Once the connection has been established, a setup process takes place on the remote system:
+    1. Idenfying the remote platform (i.e. Windows, MacOS or Linux). This information is needed for all the following steps.
+    2. Setting up various directories for storing the application and its dependencies.
+    3. Download and install the correct Node.js version for the remote platform.
+    4. Packaging, copying, and unpackaging the local backend to the remote backend.
+        1. Every Theia extension can register `RemoteCopyContribution` binding to copy certain files from the current system.
+        This contribution point is used for files that are used in all operating systems.
+        2. They can also register `RemoteNativeDependencyContribution` bindings to download and copy native dependencies for the remote system.
+        The downloaded files are on a per-platform basis.
+    5. Using the node version that was installed in step 3, we now start the `main.js` of the backend application.
+    We start the backend with `--port=0`, so that it searches for any available port. It will print the port to the console.
+    The setup either returns with a setup error or the port of the remote server on the remote system.
+4. With the remote server/port in place, the backend sets up a local proxy server on a random port.
+It instructs the `RemoteConnection` object to forward any HTTP request to this proxy server to the remote server. This server is only used for direct HTTP requests, not the socket.io service connection.
+5. The backend will return from the initial request from (1) with an ID. The frontend sets this ID as the `remoteId` cookie and reloads itself.
+6. When a frontend connects using a `remoteId` cookie that belongs to a currently open SSH remote connection, a new proxy server is started and forwarded.
+Additionally, every message from the frontend connection socket will be forwarded to this proxy server. 
+Also, every message from the proxy server will be forwarded to the frontend connection proxy.
+7. The frontend now performs its normal messaging lifecycle, establishing connections to backend services.
+Although these backend services live on a different remote system, the frontend handles them as if they belong to the local backend.
 
 ## Additional Information
 
-- [API documentation for]
+- [API documentation for `@theia/remote`](https://eclipse-theia.github.io/theia/docs/next/modules/remote.html)
 - [Theia - GitHub](https://github.com/eclipse-theia/theia)
 - [Theia - Website](https://theia-ide.org/)