diff --git a/README.md b/README.md
index 25bcbd33c..5a25068de 100644
--- a/README.md
+++ b/README.md
@@ -18,13 +18,14 @@ Access the `xmtp-react-native` client SDK [reference documentation](https://xmtp
 
 ## Example app
 
-Use the [XMTP React Native example app](example) as a tool to start building an app with XMTP. This basic messaging app has an intentionally unopinionated UI to help make it easier for you to build with.
+Use the [XMTP React Native example app](example) as a tool to start building an app with XMTP. This basic messaging app has an intentionally unopinionated UI to help make it easier for you to build with. [See example/README.md](example/README.md) for more instructions.
 
-Follow the [React Native guide](https://reactnative.dev/docs/environment-setup) to set up a CLI environment.
+### Quickstart to use the example app:
 
-To use the example app, run:
+Follow the [React Native guide](https://reactnative.dev/docs/environment-setup) to set up a CLI environment.
 
 ```bash
+npm install
 cd example
 npm install --force
 npm run [ios or android]
diff --git a/example/README.md b/example/README.md
new file mode 100644
index 000000000..c3877854b
--- /dev/null
+++ b/example/README.md
@@ -0,0 +1,37 @@
+# XMTP React Native Example App
+
+This basic messaging app has an intentionally unopinionated UI to help make it easier for you to build with.
+
+## Running the Example App
+Follow the [React Native guide](https://reactnative.dev/docs/environment-setup) to set up a CLI environment.
+
+To use the example app, run:
+
+```bash
+npm install
+cd example
+npm install --force
+npm run [ios or android]
+```
+
+## Running Example App Unit tests on local emulators
+Running tests locally is useful when updating GitHub actions, or locally testing between changes.
+
+1. [Install docker](https://docs.docker.com/get-docker/)
+
+2. Start a local XMTP server (from example directory)
+    ```bash
+    docker-compose -p xmtp -f dev/local/docker-compose.yml up -d
+    ```
+3. Verify XMTP server is running
+    ```bash
+    docker-compose ls
+
+    NAME                STATUS              CONFIG FILES
+    xmtp                running(3)          <REPO_DIRECTORY>/xmtp-react-native/example/dev/local/docker-compose.yml
+    ```
+4. You can now run Unit tests on your local emulators
+5. You can stop the local xmtp server with the following command
+    ```bash
+    docker-compose -p xmtp -f dev/local/docker-compose.yml down
+    ```
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