diff --git a/README.md b/README.md
index 00bdf0e..b593cab 100644
--- a/README.md
+++ b/README.md
@@ -177,6 +177,20 @@ terminate_anyscale_service = PythonOperator(
 deploy_anyscale_service >> terminate_anyscale_service
 ```
 
+## Telemetry
+
+This provider collects telemetry data by default.
+
+### What data is collected?
+More specifically, it adds a header to every request made to the Anyscale API with the following metadata: `{"X-Anyscale-Source" = "airflow"}`. The telemetry does not and will not collecting any personal data or sensitive information.
+
+### How is this data used?
+This data will be used by the Anyscale engineering team to better understand how the provider is being used and help guide future development.
+
+### How to opt-out of telemetry collection?
+To disable usage stats collection, set the configuration `anyscale.telemetry_enabled` to False in your `airflow.cfg` file.
+
+
 ### Changelog
 _________
 
diff --git a/docs/index.rst b/docs/index.rst
index 1773372..4e0e60d 100644
--- a/docs/index.rst
+++ b/docs/index.rst
@@ -86,9 +86,29 @@ The below script uses the ``RolloutAnyscaleService`` operator to deploy a servic
 
 .. literalinclude:: ../example_dags/anyscale_service.py
 
+
+Telemetry
+-----------------------
+
+This provider collects telemetry data by default.
+
+What data is collected?
+~~~~~~~~~~~~~~~~~~~~~~~
+More specifically, it adds a header to every request made to the Anyscale API with the following metadata: ``{"X-Anyscale-Source" = "airflow"}``. The telemetry does not and will not collect any personal data or sensitive information.
+
+How is this data used?
+~~~~~~~~~~~~~~~~~~~~~~
+This data will be used by the Anyscale engineering team to better understand how the provider is being used and help guide future development.
+
+How to opt-out of telemetry collection?
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+To disable usage stats collection, set the configuration ``anyscale.telemetry_enabled`` to False in your ``airflow.cfg`` file.
+
+
 Changelog
 ---------
 
+
 We follow `Semantic Versioning <https://semver.org/>`_ for releases.
 Check `CHANGELOG.rst <https://github.com/astronomer/astro-provider-anyscale/blob/main/docs/CHANGELOG.rst>`_
 for the latest changes.