diff --git a/docs/Dataset.md b/docs/Dataset.md
index 100dd3abbc1ffdeb44d9837ae2b18a35b5b5a8cc..034b00a5700394a073e11ac76d8e96d40de1f83f 100644
--- a/docs/Dataset.md
+++ b/docs/Dataset.md
@@ -7,6 +7,18 @@ The provided fine tuning script allows you to select between three datasets by p
 * [samsum_dataset](https://huggingface.co/datasets/samsum) contains about 16k messenger-like conversations with summaries.
 * [OpenAssistant/oasst1](https://huggingface.co/datasets/OpenAssistant/oasst1/) contains about 88k messages from assistant-style conversations.
 
+## Batching Strategies
+Llama-recipes support two strategies to batch requests together.
+The default setting is `packing` which concatenates the tokenized samples into long sequences filling up the context length of the model.
+This is the most compute efficient variant as it avoids any padding and all sequences have the same langth.
+Samples at the boundary of the context length are truncated and the remainder of the cut sequence it used as the start of the next long sequence.
+
+If the amount of training data is small this proceedure might introduce a lot of noise into the training data which can hurt the prediction performance of the fine-tune model.
+Therefore, we also support a `padding` strategy which does not introduce the addition noise due to truncated sequences.
+The strategy tries to minimize the efficiency loss by batching samples of similar length together so only minimal padding is necessary.
+
+The batching strategy can be selected though the command line parameter `--batching_strategy [packing]/[padding]`.
+
 ## Using custom datasets
 
 The list of available datasets in llama-recipes is supposed to give users a quick start on training their Llama model.
@@ -25,7 +37,7 @@ The `dataset_config` in the above signature will be an instance of llama_recipes
 The split signals wether to return the training or validation dataset.
 The default function name is `get_custom_dataset` but this can be changes as described below.
 
-In order to start a training with the custom dataset we need to set the `--dataset` as well as the `--custom_dataset.file` parameter. 
+In order to start a training with the custom dataset we need to set the `--dataset` as well as the `--custom_dataset.file` parameter.
 ```
 python -m llama_recipes.finetuning --dataset "custom_dataset" --custom_dataset.file "examples/custom_dataset.py" [TRAINING PARAMETERS]
 ```
@@ -35,7 +47,7 @@ python -m llama_recipes.finetuning --dataset "custom_dataset" --custom_dataset.f
 ```
 This will call the function `get_foo` instead of `get_custom_dataset` when retrieving the dataset.
 
-### Adding new dataset 
+### Adding new dataset
 Each dataset has a corresponding configuration (dataclass) in [configs/datasets.py](../src/llama_recipes/configs/datasets.py) which contains the dataset name, training/validation split names, as well as optional parameters like datafiles etc.
 
 Additionally, there is a preprocessing function for each dataset in the [datasets](../src/llama_recipes/datasets) folder.