diff --git a/README.md b/README.md
index 24f3313..9029747 100644
--- a/README.md
+++ b/README.md
@@ -2,51 +2,142 @@
 
 Build interactive React UIs for MCP tools.
 
+## Why?
+
+The [Model Context Protocol (MCP)](https://modelcontextprotocol.io/) enables AI assistants to interact with external tools and data. The [mcp-ui](https://github.com/anthropics/mcp-ui) project extends this with rich, interactive UI components that can be rendered directly in the AI chat.
+
+**mcp-ui-kit** simplifies building these UI components by:
+
+- **Bundling on-demand** — Write React components, they're bundled automatically when the tool is called
+- **Zero config** — No webpack/vite setup needed, just `createUI()` and point to your `.tsx` file
+- **Props from server** — Pass data from your MCP tool directly to React via `useProps()`
+- **Two-way communication** — Components can `sendPrompt()` to the AI or `callTool()` to invoke other MCP tools
+
+Built on top of [@mcp-ui/server](https://www.npmjs.com/package/@mcp-ui/server).
+
 ## Installation
 
 ```bash
-npm install mcp-ui-kit
+npm install mcp-ui-kit @modelcontextprotocol/sdk
 ```
 
 ## Server Usage
 
-Create UI components that bundle on-demand:
+Create UI components that bundle on-demand within your MCP server:
 
 ```typescript
-import { createUI } from 'mcp-ui-kit/server';
+import { McpServer } from '@modelcontextprotocol/sdk/server/mcp.js';
+import { StdioServerTransport } from '@modelcontextprotocol/sdk/server/stdio.js';
+import { createUI } from 'mcp-ui-kit/server';  // 👈 mcp-ui-kit
 
-const dashboardUI = createUI('my-dashboard', import.meta.resolve('./MyComponent.tsx'));
+// Create the MCP server
+const server = new McpServer({
+  name: 'my-server',
+  version: '1.0.0'
+});
 
-server.registerTool('dashboard', {
-  description: 'Interactive dashboard',
-  _meta: dashboardUI.meta
-}, async () => ({
-  content: [
-    { type: 'text', text: 'Dashboard loaded' },
-    await dashboardUI.component({ props: { title: 'Hello' } })
-  ]
-}));
+// Create a UI component                        // 👈 mcp-ui-kit
+const dashboardUI = createUI(                   // 👈 mcp-ui-kit
+  'my-dashboard',                               // 👈 mcp-ui-kit
+  import.meta.resolve('./MyComponent.tsx')      // 👈 mcp-ui-kit
+);                                              // 👈 mcp-ui-kit
+
+// Register a tool with the UI
+server.registerTool(
+  'dashboard',
+  {
+    description: 'Interactive dashboard',
+    _meta: dashboardUI.meta                     // 👈 mcp-ui-kit
+  },
+  async () => ({
+    content: [
+      { type: 'text', text: 'Dashboard loaded' },
+      await dashboardUI.component({             // 👈 mcp-ui-kit
+        props: { title: 'Hello' },              // 👈 mcp-ui-kit
+        frameSize: ['700px', '500px']           // 👈 mcp-ui-kit
+      })                                        // 👈 mcp-ui-kit
+    ]
+  })
+);
+
+// Start the server
+const transport = new StdioServerTransport();
+await server.connect(transport);
+```
+
+### With Input Schema
+
+Tools can accept parameters via `inputSchema` and pass them to your UI component:
+
+```typescript
+import { z } from 'zod';
+import { createUI } from 'mcp-ui-kit/server';  // 👈 mcp-ui-kit
+
+const stockUI = createUI('stocks', import.meta.resolve('./StockDashboard.tsx'));  // 👈 mcp-ui-kit
+
+server.registerTool(
+  'stock_portfolio',
+  {
+    description: 'View stock portfolio with charts',
+    _meta: stockUI.meta,                                             // 👈 mcp-ui-kit
+    inputSchema: {
+      symbols: z.array(z.string()).default(['AAPL', 'GOOGL']),
+      timeframe: z.enum(['1D', '1W', '1M', '1Y']).default('1M'),
+    },
+  },
+  async ({ symbols, timeframe }) => ({
+    content: [
+      { type: 'text', text: `Showing ${symbols.join(', ')} for ${timeframe}` },
+      await stockUI.component({                                      // 👈 mcp-ui-kit
+        props: { symbols, timeframe },                               // 👈 mcp-ui-kit (params → props)
+      })
+    ]
+  })
+);
 ```
 
 ## Client Usage
 
-Helper functions for your React components:
+Helper functions for your React components (the ones you pass to `createUI`):
 
-```typescript
-import { sendPrompt, callTool, useProps } from 'mcp-ui-kit/ui';
+```tsx
+// StockDashboard.tsx
+import { useState } from 'react';
+import { sendPrompt, callTool, useProps } from 'mcp-ui-kit/ui';  // 👈 mcp-ui-kit
 
-function MyComponent() {
-  const { title } = useProps({ title: 'Default' });
+function StockDashboard() {
+  const [analysis, setAnalysis] = useState<string | null>(null);
   
+  // Get props passed from server (matches inputSchema params)        // 👈 mcp-ui-kit
+  const { symbols, timeframe } = useProps({                           // 👈 mcp-ui-kit
+    symbols: ['AAPL'],                                                // 👈 mcp-ui-kit
+    timeframe: '1M'                                                   // 👈 mcp-ui-kit
+  });                                                                 // 👈 mcp-ui-kit
+
+  const handleAnalyze = (symbol: string) => {
+    // Send a message to the AI chat                                  // 👈 mcp-ui-kit
+    sendPrompt(`Analyze ${symbol} stock performance over ${timeframe}`);  // 👈 mcp-ui-kit
+  };
+
+  const handleRefresh = async (symbol: string) => {
+    // Call another MCP tool                                          // 👈 mcp-ui-kit
+    callTool('get_stock_price', { symbol });                          // 👈 mcp-ui-kit
+  };
+
   return (
     <div>
-      <h1>{title}</h1>
-      <button onClick={() => sendPrompt('Analyze this data')}>
-        Ask AI
-      </button>
-      <button onClick={() => callTool('get_data', { id: 123 })}>
-        Fetch Data
-      </button>
+      <h1>Stock Portfolio ({timeframe})</h1>
+      {symbols.map(symbol => (
+        <div key={symbol}>
+          <span>{symbol}</span>
+          <button onClick={() => handleAnalyze(symbol)}>
+            Ask AI to Analyze
+          </button>
+          <button onClick={() => handleRefresh(symbol)}>
+            Refresh Price
+          </button>
+        </div>
+      ))}
     </div>
   );
 }
@@ -57,15 +148,18 @@ function MyComponent() {
 ### Server (`mcp-ui-kit/server`)
 
 **`createUI(name, entryUrl)`** - Creates a UI component
-- `name`: Component identifier
+- `name`: Component identifier (used in the `ui://` URI)
 - `entryUrl`: Path to the component entry file
-- Returns: `{ component(opts?) }` where opts: `{ props?, frameSize? }`
+- Returns: `{ meta, component(opts?) }`
+  - `meta`: Object to spread into tool's `_meta` for UI resource linking
+  - `component(opts?)`: Async function returning the UI resource
+    - `opts.props`: Data to pass to your React component
+    - `opts.frameSize`: `[width, height]` e.g. `['700px', '500px']`
 
 The `entryUrl` parameter accepts both formats:
 
 ```typescript
 // ESM (recommended) - using import.meta.resolve()
-// Requires "type": "module" in package.json
 createUI('dashboard', import.meta.resolve('./MyComponent.tsx'));
 
 // CommonJS - using require.resolve() or absolute paths
@@ -75,7 +169,7 @@ createUI('dashboard', path.join(__dirname, './MyComponent.tsx'));
 
 ### UI (`mcp-ui-kit/ui`)
 
-- **`useProps(defaults)`** - Get props passed from the server
+- **`useProps(defaults)`** - Get props passed from the server via `component({ props })`
 - **`sendPrompt(message)`** - Send a message to the AI chat
 - **`callTool(name, params)`** - Invoke an MCP tool
 
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