diff --git a/src/Documentation/sidebar.json b/src/Documentation/sidebar.json
index 640d3bdbdb..184a8f476b 100644
--- a/src/Documentation/sidebar.json
+++ b/src/Documentation/sidebar.json
@@ -58,7 +58,8 @@
       "update-tracked-file.md",
       "autocomplete.md",
       "plugins.md",
-      "analytics.md"
+      "analytics.md",
+      "dvcignore.md"
     ],
     "labels": {
       "dvc-files-and-directories.md": "Files and Directories",
diff --git a/static/docs/user-guide/dvcignore.md b/static/docs/user-guide/dvcignore.md
new file mode 100644
index 0000000000..1b422c85ce
--- /dev/null
+++ b/static/docs/user-guide/dvcignore.md
@@ -0,0 +1,86 @@
+# dvcignore
+
+Mark which files and/or direcotries should be ignored when traversing
+repository.
+
+Sometimes you might want DVC to ignore files while traversing the project
+directory. For example, when working on project with many files in its data
+directory, you might encounter extended execution time for operations
+that are as simple as `dvc status`. To prevent this, we are implementing
+`.dvcignore` files handling. When fully implemented, their implementation is
+intended to provide similar funcionality as `.gitignore` files provide for
+`git`.
+
+## How does it work
+
+* You need to create `.dvcignore` file. 
+* Populate it with patterns that you would like to ignore.
+* Each line should contain only one pattern.
+* During execution of commands that traverse directories, DVC will ignore
+matching paths.
+* Not every operation supports `.dvcignore`. To see current limitations, 
+read following paragraph.
+
+## Current limitations
+
+During development, we noticed that there are few potential uses cases that
+might be tricky to handle (e.g. what to do when we are `dvc add`-ing
+directory containing `.dvcignore` file). Therefore, we decided to enable
+this feature gradually in different parts of the project.
+
+Currently .dvcignore files will be read and applied in any operation that
+collects stage files(e.g. `checkout`, `metrics`, `status`, `run`,
+`repro`), so it is advised to use it in case described in first paragraph,
+when amount of files in tree of repository directory causes performance issues.
+
+## Syntax
+
+The same as for [`.gitignore`](https://git-scm.com/docs/gitignore).
+
+## Example
+
+Lets analyse example project:
+
+```dvc
+    $ mkdir dir1 dir2
+    $ echo data1 >> dir1/data1
+    $ echo data2 >> dir2/data2
+    $ dvc add dir1/data1 dir2/data2
+    $ tree .
+    .
+    ├── dir1
+    │   ├── data1
+    │   └── data1.dvc
+    └── dir2
+        ├── data2
+        └── data2.dvc
+```
+Modify data files
+```dvc
+    $ echo mod > dir1/data1
+    $ echo mod > dir2/data2
+```
+Check status
+```dvc
+    $ dvc status
+    dir1/data1.dvc:
+	changed outs:
+		modified:           dir1/data1
+    dir2/data2.dvc:
+	changed outs:
+		modified:           dir2/data2
+```
+Note, that both data files are displayed as modified
+Create `.dvcignore` file and insert pattern matching one of the files:
+```dvc
+    $ echo dir1/* >> .dvcignore
+```
+Check status again
+```dvc
+    $ dvc status
+    dir2/data2.dvc:
+	changed outs:
+		modified:           dir2/data2
+```
+Only second file is displayed because DVC ignores `data1.dvc` and `data1`
+when collecting stage files.
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