diff --git a/docs/guides.rst b/docs/guides.rst
index 975ec35eb..3cb5f587b 100644
--- a/docs/guides.rst
+++ b/docs/guides.rst
@@ -10,6 +10,7 @@ Guides
     tutorial_hist
     tutorial_macros
     tutorial_xontrib
+    tutorial_xonsh_projects
     tutorial_events
     tutorial_completers
     tutorial_history_backend
diff --git a/docs/tutorial_xonsh_projects.rst b/docs/tutorial_xonsh_projects.rst
new file mode 100644
index 000000000..ecd560f7d
--- /dev/null
+++ b/docs/tutorial_xonsh_projects.rst
@@ -0,0 +1,67 @@
+.. _tutorial_xonsh_projects:
+
+************************************
+Tutorial: Xonsh Projects
+************************************
+Bam! Suppose you want to get beyond scripting and write a whole
+library, utility, or other big project in xonsh. Here is how you do
+that. Spoiler alert: it is easy, powerful, and fun!
+
+Overview
+================================
+Xonsh is fully interoperable with Python. Writing a xonsh library is
+very similar to writing a Python library, using all of the same tooling
+and infrastructure for packaging pure Python code.
+
+Structure
+==========
+Xonsh modules are written in xonsh files (``*.xsh``), side-by-side with Python files
+(``*.py``). Suppose we have a package called ``mypkg`` which uses xonsh files.
+Here is a sample file system layout would be::
+
+    |- mypkg/
+       |- __init__.py    # a regular package with an init file
+       |- other.py       # not a xonsh file
+       |- show.py        # "mypkg.show", full module name
+       |- tell.xsh       # "mypkg.tell", full module name
+       |- subpkg/
+          |- __init__.py
+          |- a.py      # "mypkg.subpkg.a", full module name
+          |- b.xsh     # "mypkg.subpkg.b", full module name
+
+To ensure that these files are installed, you need to provide the
+appropriate information in ``setup.py`` file for your project.
+For the above structure, this looks like the following.
+
+**setup.py**::
+
+    setup(
+        packages=['mypkg', 'mypkg.subpkg'],
+        package_dir={'mypkg': 'mypkg', 'mypkg.subpkg': 'mypkg/subpkg'},
+        package_data={'mypkg': ['*.xsh'], 'mypkg.subpkg': ['*.xsh']},
+    )
+
+With this, the xonsh code will be installed and included in any source
+distribution you create!
+
+Setting up xonsh sessions
+=========================
+Xonsh code requires a ``XonshSession`` to exist as ``builtins.__xonsh__`` and for
+be that object to be setup correctly. This can be quite a bit of work and
+the exact setup depends on the execution context. To simplify the process
+of constructing the session properly, xonsh provides the ``xonsh.main.setup()``
+function specifically for use in 3rd party packages.
+
+While ``xonsh.main.setup()`` is safely re-entrant, it is a good idea to add the following
+snippet to the root-level ``__init__.py`` of your project. With the ``mypkg`` example
+above, the session setup is as follows:
+
+``mypkg/__init__.py``
+
+.. code-block:: python
+
+    from xonsh.main import setup
+    setup()
+    del setup
+
+Enjoy!
diff --git a/xonsh/main.py b/xonsh/main.py
index ae7c593d5..7f39c863e 100644
--- a/xonsh/main.py
+++ b/xonsh/main.py
@@ -487,10 +487,16 @@ def setup(
     threadable_predictors=(),
 ):
     """Starts up a new xonsh shell. Calling this in function in another
-    packages __init__.py will allow xonsh to be fully used in the
+    packages ``__init__.py`` will allow xonsh to be fully used in the
     package in headless or headed mode. This function is primarily indended to
     make starting up xonsh for 3rd party packages easier.
 
+    Here is example of using this at the top of an ``__init__.py``::
+
+        from xonsh.main import setup
+        setup()
+        del setup
+
     Parameters
     ----------
     ctx : dict-like or None, optional