diff --git a/doc/configuration.rst b/doc/configuration.rst
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+++ b/doc/configuration.rst
@@ -0,0 +1,114 @@
+Configuration
+-------------
+
+At debugging session ``Ctrl-P`` shortcut opens configuration dialog.
+Additionally all PuDB information is stored in a location specified by the
+`XDG Base Directory Specification
+<http://standards.freedesktop.org/basedir-spec/basedir-spec-latest.html>`_.
+Usually, it is ``~/.config/pudb``. The PuDB configuration is stored at
+``pudb.cfg`` file inside that directory. Therefore the whole path is usually
+``~/.config/pudb/pudb.cfg``.
+
+Following options are available to customise PuDB behaviour:
+
+Line Numbers
+************
+
+``line_numbers``
+
+Show or hide the line numbers in the source code pane.
+
+Prompt on quit
+**************
+
+``prompt_on_quit``
+
+Prompt or not before quitting.
+
+Shell
+*****
+
+``shell``
+
+This is the shell that will be used when you hit ``!``. Available choices:
+
+* internal
+* classic
+* ipython
+* bpython
+* ptpython
+
+``custom_shell``
+
+Your own custom shell. See example-shell.py in the pudb distribution. Enter
+the full path to a file like it in the box above. ``~`` will be expanded to your
+home directory. The file should contain a function called
+``pudb_shell(_globals, _locals)`` at the module level.
+
+Theme
+*****
+
+``theme``
+
+PuDB UI theme. Available choices:
+
+* classic
+* vim
+* dark vim
+* midnight
+* solarized
+* agr-256
+* monokai
+* monokai-256
+
+``custom_theme``
+
+Your own custom theme, see example-theme.py in the pudb distribution. Enter
+the full path to a file like it in the box above. ``~`` will be expanded to
+your home directory.
+
+Stack Order
+*******************
+
+``current_stack_frame``
+
+Show the current stack frame at the top or at the bottom.
+
+Variable Stringifier
+********************
+
+``stringifier``
+
+This is the default function that will be called on variables in the variables
+list.  Note that you can change this on a per-variable basis by selecting a
+variable and hitting Enter or by typing ``t``/``s``/``r``.  Note that str and
+repr will be slower than type and have the potential to crash PuDB.
+
+``custom_stringifier``
+
+To use a custom stringifier, see example-stringifier.py in the pudb
+distribution. Enter the full path to a file like it in the box above. ``~``
+will be expanded to your home directory. The file should contain a function
+called ``pudb_stringifier()`` at the module level, which should take a single
+argument and return the desired string form of the object passed to it.
+
+Wrap variables
+**************
+
+``wrap_variables``
+
+Note that you can change this option on a per-variable basis by selecting the
+variable and pressing ``w``.
+
+Display drive
+*************
+
+``display``
+
+What driver is used to talk to your terminal. ``raw`` has the most features
+(colors and highlighting), but is only correct for XTerm and terminals like it.
+``curses`` has fewer features, but it will work with just about any terminal.
+``auto`` will attempt to pick between the two based on availability and
+the ``$TERM`` environment variable.
+
+Changing this setting requires a restart of PuDB.
diff --git a/doc/index.rst b/doc/index.rst
index 7cc66bf9..e9b7754b 100644
--- a/doc/index.rst
+++ b/doc/index.rst
@@ -13,6 +13,7 @@ Table of Contents
     starting
     usage
     shells
+    configuration
     misc