diff --git a/changelog.d/17776.doc b/changelog.d/17776.doc
new file mode 100644
index 00000000000..86754a34646
--- /dev/null
+++ b/changelog.d/17776.doc
@@ -0,0 +1 @@
+Explain how load balancing works for `federation_sender_instances`.
diff --git a/docs/usage/configuration/config_documentation.md b/docs/usage/configuration/config_documentation.md
index f51924f0646..08eedc03b71 100644
--- a/docs/usage/configuration/config_documentation.md
+++ b/docs/usage/configuration/config_documentation.md
@@ -4368,7 +4368,13 @@ It is possible to scale the processes that handle sending outbound federation re
 by running a [`generic_worker`](../../workers.md#synapseappgeneric_worker) and adding it's [`worker_name`](#worker_name) to
 a `federation_sender_instances` map. Doing so will remove handling of this function from
 the main process. Multiple workers can be added to this map, in which case the work is
-balanced across them.
+balanced across them. 
+
+The way that the load balancing works is any outbound federation request will be assigned 
+to a federation sender worker based on the hash of the destination server name. This
+means that all requests being sent to the same destination will be processed by the same
+worker instance. Multiple `federation_sender_instances` are useful if there is a federation
+with multiple servers.
 
 This configuration setting must be shared between all workers handling federation
 sending, and if changed all federation sender workers must be stopped at the same time