diff --git a/setup-magento/README.md b/setup-magento/README.md
index 4f49f1a..1c20c2c 100644
--- a/setup-magento/README.md
+++ b/setup-magento/README.md
@@ -1,79 +1,110 @@
-# Magento 2 Package Installation Test Action
+# Setup Magento
 
-A Github Action that sets Magento up to the point of composer install.
+A GitHub Action that prepares a Magento 2 environment for testing. It handles PHP setup and Magento project creation, stopping just before `composer install` so you can add custom repositories or packages.
+
+## Modes
+
+The action operates in two modes:
+
+- **`extension`** (default): Creates a fresh Magento project in `../magento2` for testing your extension against. Use this when your repository contains a Magento module/extension.
+- **`store`**: Uses your existing Magento project in the working directory. Use this when your repository is a full Magento store.
 
 ## Inputs
 
-See the [action.yml](./action.yml)
+| Input | Required | Default | Description |
+|-------|----------|---------|-------------|
+| `php-version` | Yes | `8.4` | PHP version to install |
+| `mode` | Yes | `extension` | Either `extension` or `store` |
+| `magento_version` | No | `magento/project-community-edition:2.4.8-p3` | Magento version to install (extension mode only) |
+| `magento_repository` | No | `https://mirror.mage-os.org/` | Composer repository URL for Magento packages |
+| `tools` | No | - | PHP tools to install globally (e.g., `composer:v2`) |
+| `extensions` | No | - | Additional PHP extensions to install |
+| `coverage` | No | - | Code coverage driver (e.g., `xdebug`, `pcov`) |
+| `working-directory` | No | `.` | Working directory for the action |
+| `apply_fixes` | No | `false` | Apply Magento installation fixes (always applied in extension mode) |
+| `composer_auth` | No | - | Composer authentication credentials JSON |
+
+## Outputs
+
+| Output | Description |
+|--------|-------------|
+| `path` | Absolute path to the Magento installation directory |
 
 ## Usage
 
-### Stores
+### Testing an Extension
+
+Use `mode: extension` when your repository contains a Magento module. The action creates a fresh Magento instance and you can then require your extension into it.
 
 ```yml
-name: Setup Magento Store
+name: Test Extension
 
 on:
   push:
-    branches:
-      - main
+    branches: [main]
   pull_request:
-    branches:
-      - main
+    branches: [main]
 
 jobs:
-  setup-magento-store:
+  test:
     runs-on: ubuntu-latest
     steps:
-      - uses: actions/checkout@v3
-      - uses: ./setup-magento
-        with:
-          php-version: 8.1
-          tools: composer:v2
-          mode: store
-          working-directory: $GITHUB_WORKSPACE
+      - uses: actions/checkout@v4
 
-      - run: composer install
-        name: Composer install
-        shell: bash
+      - uses: graycoreio/github-actions-magento/setup-magento@main
+        id: setup-magento
+        with:
+          php-version: "8.3"
+          tools: composer:v2
+          mode: extension
+          magento_version: "magento/project-community-edition:2.4.8-p3"
+
+      - name: Add local repository
         working-directory: ${{ steps.setup-magento.outputs.path }}
+        run: composer config repositories.local path $GITHUB_WORKSPACE
+
+      - name: Require extension
+        working-directory: ${{ steps.setup-magento.outputs.path }}
+        run: composer require vendor/my-extension "@dev"
+        env:
+          COMPOSER_AUTH: ${{ secrets.COMPOSER_AUTH }}
 ```
 
-### Extensions
+### Testing a Magento Store
+
+Use `mode: store` when your repository is a complete Magento project.
 
 ```yml
-name: Setup Magento Store
+name: Test Store
 
 on:
   push:
-    branches:
-    - main
+    branches: [main]
   pull_request:
-    branches:
-    - main
+    branches: [main]
 
 jobs:
-    setup-magento-extension:
-        runs-on: ubuntu-latest
-        steps:
-        - uses: actions/checkout@v3
+  test:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
 
-        - uses: ./setup-magento
-          with:
-            php-version: 8.1
-            tools: composer:v2
-            mode: extension
-            magento_version: 2.4.5-p1
+      - uses: graycoreio/github-actions-magento/setup-magento@main
+        id: setup-magento
+        with:
+          php-version: "8.3"
+          tools: composer:v2
+          mode: store
 
-        - run: composer config repositories.local path $GITHUB_WORKSPACE
-          name: Add Github Repo for Testing
-          working-directory: ${{ steps.setup-magento.outputs.path }}
-          shell: bash
-
-        - run: composer require my/package "@dev"
-          name: Attempt install
-          working-directory: ${{ steps.setup-magento.outputs.path }}
-          shell: bash
-          env:
-            COMPOSER_AUTH: ${{ secrets.composer_auth }}
+      - name: Install dependencies
+        working-directory: ${{ steps.setup-magento.outputs.path }}
+        run: composer install
+        env:
+          COMPOSER_AUTH: ${{ secrets.COMPOSER_AUTH }}
 ```
+
+## Notes
+
+- The action uses [shivammathur/setup-php](https://github.com/shivammathur/setup-php) for PHP installation
+- By default, Magento packages are fetched from the [Mage-OS mirror](https://mirror.mage-os.org/) which doesn't require authentication
+- For Adobe Commerce or private packages, provide `composer_auth` with your credentials
\ No newline at end of file