diff --git a/.changes/unreleased/INTERNAL-20240614-105429.yaml b/.changes/unreleased/INTERNAL-20240614-105429.yaml
new file mode 100644
index 000000000..966e70ab5
--- /dev/null
+++ b/.changes/unreleased/INTERNAL-20240614-105429.yaml
@@ -0,0 +1,6 @@
+kind: INTERNAL
+body: Document schema bundling in CONTRIBUTING.md
+time: 2024-06-14T10:54:29.627322+02:00
+custom:
+    Issue: "1736"
+    Repository: terraform-ls
diff --git a/.github/CONTRIBUTING.md b/.github/CONTRIBUTING.md
index 5d685f81e..01b75ce7d 100644
--- a/.github/CONTRIBUTING.md
+++ b/.github/CONTRIBUTING.md
@@ -85,6 +85,18 @@ go test ./internal/terraform/exec/...
 go test ./langserver
 ```
 
+### Bundled schemas
+
+The language server ships with bundled provider schemas of all official HashiCorp and partner providers to allow completions for common providers without the need to initialize a Terraform project first.
+These schemas are not checked into version control and are automatically fetched and bundled when the language server is built in CI.
+
+To generate these locally, run
+```bash
+go generate ./internal/schemas
+```
+
+The generated schemas can then be found in `internal/schemas/data`.
+
 ## External Dependencies
 
 Terraform uses [Go Modules]((https://blog.golang.org/using-go-modules))