diff --git a/README.md b/README.md
index 410a05e..595a4c4 100644
--- a/README.md
+++ b/README.md
@@ -277,6 +277,47 @@ spec:
 
 For more information, see the example in [recursive](example/recursive).
 
+## Setting Conditions on the Claim and Composite
+
+Starting with Crossplane 1.17, Composition authors can set custom Conditions on the
+Composite and the Claim.
+
+Add a `ClaimConditions` to your template to set Conditions:
+
+```yaml
+apiVersion: meta.gotemplating.fn.crossplane.io/v1alpha1
+kind: ClaimConditions
+conditions:
+# Guide to ClaimConditions fields:
+# Type of the condition, e.g. DatabaseReady.
+# 'Healthy', 'Ready' and 'Synced' are reserved for use by Crossplane and this function will raise an error if used
+# - type:  
+# Status of the condition. String of "True"/"False"/"Unknown"
+#   status:
+# Machine-readable PascalCase reason, for example "ErrorProvisioning"
+#   reason:
+# Optional Target. Publish Condition only to the Composite, or the Composite and the Claim (CompositeAndClaim). 
+# Defaults to Composite
+#   target: 
+# Optional message:
+#   message: 
+- type: TestCondition
+  status: "False"
+  reason: InstallFail
+  message: "failed to install"
+  target: CompositeAndClaim
+- type: ConditionTrue
+  status: "True"
+  reason: TrueCondition 
+  message: we are true
+  target: Composite
+- type: DatabaseReady
+  status: "True"
+  reason: Ready
+  message: Database is ready
+  target: CompositeAndClaim
+```
+
 ## Additional functions
 
 | Name                                                             | Description                                                  |
diff --git a/example/conditions/composition.yaml b/example/conditions/composition.yaml
index 7c23e6c..d034db6 100644
--- a/example/conditions/composition.yaml
+++ b/example/conditions/composition.yaml
@@ -27,7 +27,7 @@ spec:
           # - type:  
           # Status of the condition. String of "True"/"False"/"Unknown"
           #   status:
-          # Machine-readable PascalCase reason, for example "DatabaseReady"
+          # Machine-readable PascalCase reason, for example "ErrorProvisioning"
           #   reason:
           # Optional Target. Publish Condition only to the Composite, or the Composite and the Claim (CompositeAndClaim). 
           # Defaults to Composite
@@ -41,13 +41,14 @@ spec:
             target: CompositeAndClaim
           - type: ConditionTrue
             status: "True"
-            reason: this condition is true 
+            reason: TrueCondition 
             message: we are true
             target: Composite
           - type: DatabaseReady
             status: "True"
             reason: Ready
             message: Database is ready
+            target: CompositeAndClaim
   - step: automatically-detect-ready-composed-resources
     functionRef:
       name: crossplane-contrib-function-auto-ready