diff --git a/documentation/migration-guides/migration-4.0.rst b/documentation/migration-guides/migration-4.0.rst
index a8e6b4c331..79e53f89ac 100644
--- a/documentation/migration-guides/migration-4.0.rst
+++ b/documentation/migration-guides/migration-4.0.rst
@@ -45,7 +45,7 @@ The following variables have changed their names:
 - ``SSTATE_DUPWHITELIST`` became ``SSTATE_ALLOW_OVERLAP_FILES``
 - ``SYSROOT_DIRS_BLACKLIST`` became :term:`SYSROOT_DIRS_IGNORE`
 - ``UNKNOWN_CONFIGURE_WHITELIST`` became :term:`UNKNOWN_CONFIGURE_OPT_IGNORE`
-- ``WHITELIST_<license>`` became ``INCOMPATIBLE_LICENSE_EXCEPTIONS``
+- ``WHITELIST_<license>`` became :term:`INCOMPATIBLE_LICENSE_EXCEPTIONS`
 
 In addition, ``BB_STAMP_WHITELIST``, ``BB_STAMP_POLICY``, ``INHERIT_BLACKLIST``,
 ``TUNEABI``, ``TUNEABI_WHITELIST``, and ``TUNEABI_OVERRIDE`` have been removed.
diff --git a/documentation/ref-manual/variables.rst b/documentation/ref-manual/variables.rst
index 28267101d8..e471d4fe12 100644
--- a/documentation/ref-manual/variables.rst
+++ b/documentation/ref-manual/variables.rst
@@ -3544,6 +3544,14 @@ system and gives an overview of their function and contents.
          remove dependencies on or provide alternatives to components that
          are required to produce a functional system image.
 
+   :term:`INCOMPATIBLE_LICENSE_EXCEPTIONS`
+      Specifies a space-separated list of package and license pairs that
+      are allowed to be used even if the license is specified in
+      :term:`INCOMPATIBLE_LICENSE`. The package and license pairs are
+      separated using a colon. Example::
+
+         INCOMPATIBLE_LICENSE_EXCEPTIONS = "gdbserver:GPL-3.0-only gdbserver:LGPL-3.0-only"
+
    :term:`INHERIT`
       Causes the named class or classes to be inherited globally. Anonymous
       functions in the class or classes are not executed for the base