diff --git a/docs/user-guide/resource_tracking.md b/docs/user-guide/resource_tracking.md
index cdc23552c3b37..79eda63ce5d5a 100644
--- a/docs/user-guide/resource_tracking.md
+++ b/docs/user-guide/resource_tracking.md
@@ -24,6 +24,22 @@ There are however several limitations:
 * Other external tools might write/append to this label and create conflicts with Argo CD. For example several Helm charts and operators also use this label for generated manifests confusing Argo CD about the owner of the application
 * You might want to deploy more than one Argo CD instance on the same cluster (with cluster wide privileges) and have an easy way to identify which resource is managed by which instance of Argo CD
 
+### Use custom label
+
+Instead of using the default `app.kubernetes.io/instance` label for resource tracking, Argo CD can be configured to use a custom label. Below example sets the resource tracking label to `argocd.argoproj.io/instance`.
+
+```yaml
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: argocd-cm
+  labels:
+    app.kubernetes.io/name: argocd-cm
+    app.kubernetes.io/part-of: argocd
+data:
+  application.instanceLabelKey: argocd.argoproj.io/instance
+```
+
 ## Additional tracking methods via an annotation
 
 >v2.2