diff --git a/addons/xterm-addon-webgl/README.md b/addons/xterm-addon-webgl/README.md
index 756999db..7927a513 100644
--- a/addons/xterm-addon-webgl/README.md
+++ b/addons/xterm-addon-webgl/README.md
@@ -19,3 +19,18 @@ terminal.loadAddon(new WebglAddon());
 ```
 
 See the full [API](https://github.com/xtermjs/xterm.js/blob/master/addons/xterm-addon-webgl/typings/xterm-addon-webgl.d.ts) for more advanced usage.
+
+### Handling Context Loss
+
+The browser may drop WebGL contexts for various reasons like OOM or after the system has been suspended. There is an API exposed that fires the `webglcontextlost` event fires on the canvas so embedders can handle it however they wish. An easy way but suboptimal way to handle this is by disposing of WebglAddon when the event fires:
+
+```ts
+const terminal = new Terminal();
+const addon = new WebglAddon();
+addon.onContextLoss(e => {
+  addon.dispose();
+});
+terminal.loadAddon(addon);
+```
+
+Read more about handling WebGL context losses on the [Khronos wiki](https://www.khronos.org/webgl/wiki/HandlingContextLost).