diff --git a/README.md b/README.md
index 22db714408b58..d70e6a5550ab5 100644
--- a/README.md
+++ b/README.md
@@ -1,4 +1,56 @@
 AliceO2
 =======
 
-Proto type for the O2 project for the ALICE experiment at CERN
+Alice O2 project software. Simulation and reconstraction software for Alice experiment at CERN base on ALFA and FairRoot software. 
+
+### Step by Step installation
+
+
+1. Install [FairSoft/AlFa](https://github.com/FairRootGroup/FairSoft/tree/dev)
+
+    we use here "alfa_src" as a directory name, you can change it to what ever you like 
+    ```bash
+  
+    git clone  https://github.com/FairRootGroup/FairSoft.git  alfa_src
+    cd  alfa_src
+    ./alfaconfig.sh
+    # 1) gcc (on Linux) 5) Clang (on OSX)
+    # 1) No Debug Info
+    # 2) Internet (install G4 files from internet)
+    # path: ~/AlFa
+    ```
+    
+    To run the tests do:
+
+    ```bash
+    cd alfa_src/FairRoot/build_for_alfa/
+    make test
+    ```
+    
+   
+2. Set several required shell variables, needed during the installation and running of the
+   different software packages. Put these in your shell's rc file (~/.bashrc or ~/.cshrc).
+   For bash:
+
+    ```bash
+    export SIMPATH=~/AlFa
+    export FAIRROOTPATH=$SIMPATH/FairRoot
+    ```
+
+    or for the csh:
+
+    ```bash
+    setenv SIMPATH ~/AlFa
+    setenv FAIRROOTPATH $SIMPATH/FairRoot
+    ```
+
+3. Install the [AliceO2] (https://github.com/AliceO2Group/AliceO2) software
+
+   ```bash
+   git clone  https://github.com/AliceO2Group/AliceO2.git
+   mkdir build_o2
+   cd build_o2
+   cmake ../
+   make 
+   . config.sh    [or source config.csh]
+    ```