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diff --git a/README.md b/README.md
index 91ccfc0..c15f03c 100644
--- a/README.md
+++ b/README.md
@@ -116,3 +116,20 @@ const webpackConfig = {
   // ...
 }
 ```
+
+#### Error `spawn ENOENT`
+
+This is caused when the loader tries to spawn a binary that does not exists
+(`file or directory not found`). If you call webpack like `webpack` or
+`webpack --watch`, then ensure that all required binaries that the
+loader depends on are available in your `$PATH`. 
+
+If you run webpack through an npm script (e.g., npm run or npm start) on NixOS, 
+then it will first attempt to find binaries in `node_packages/.bin`. 
+If you have the compiler installed through `npm` and it finds it there, this will 
+cause `ENOENT`on Nix, because [the binary needs to be patched first, but npm will 
+install the binary that is linked with /lib64/ld-linux-x86-64.so.2 - a file that 
+will not exist at that path in NixOS](https://github.com/ethul/purescript-webpack-example/issues/5#issuecomment-282492131).
+The solution is to simply use the compiler from `haskellPackages.purescript` and
+make sure that it's available in `$PATH`. For more information about how to make 
+it work on Nix, see [Purescript Webpack Example](https://github.com/ethul/purescript-webpack-example#using-globally-installed-binaries)