diff --git a/doc/bitbake-user-manual/bitbake-user-manual-ref-variables.rst b/doc/bitbake-user-manual/bitbake-user-manual-ref-variables.rst
index af4ff980..80005580 100644
--- a/doc/bitbake-user-manual/bitbake-user-manual-ref-variables.rst
+++ b/doc/bitbake-user-manual/bitbake-user-manual-ref-variables.rst
@@ -1483,6 +1483,22 @@ overview of their function and contents.
       consist mostly of task logs and scripts, when building a particular
       recipe.
 
+   :term:`TEMPLATECONF`
+      Specifies the directory used by the build system to find templates
+      from which to build the ``bblayers.conf`` and ``local.conf`` files.
+      Use this variable if you wish to customize such files, and the default
+      BitBake targets shown when sourcing the ``oe-init-build-env`` script.
+
+      For details, see the
+      :yocto_docs:`Creating a Custom Template Configuration Directory
+      </dev-manual/common-tasks.html#creating-a-custom-template-configuration-directory>`
+      section in the Yocto Project Development Tasks manual.
+
+      .. note::
+
+         You must set this variable in the external environment in order
+         for it to work.
+
    :term:`TOPDIR`
       Points to the build directory. BitBake automatically sets this
       variable.