diff --git a/README.md b/README.md
index 1c4cb093e..71e0ba547 100644
--- a/README.md
+++ b/README.md
@@ -316,6 +316,12 @@ As a result, there are currently certain limitations from which we try to docume
 - While workload policies are functional in general, but [not covering all edge cases](https://github.com/microsoft/kata-containers/releases/tag/genpolicy-0.6.2-5)
 - Port-forwarding isn't supported by Kata Containers yet
 - CLI is only available for Linux (mostly because upstream dependencies aren't available for other platforms)
+- Known bugs and limitations on AKS CoCo
+  * The total amount of container image layers per pod is restricted to 32.
+  * Container memory limits are wrongly applied. Workaround: only use memory requests.
+  * Directories with a large number of files may cause applications to hang. Workarounds:
+    - During image build, try to keep directories under 4096 bytes (~200 files).
+    - At runtime, `touch` a file in the affected directory to force it into the overlayfs workdir.
 
 ## Upcoming Contrast features