diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -57,7 +57,7 @@ The Yii2 Web Application Basic template provides a complete foundation for build
 3. **Security features** including CSRF protection and input validation.
 4. **Development tools** for debugging, logging, and testing.
 
-#### Why use this template?
+#### Why use this template
 
 - **Rapid development**: Start building features immediately without setup overhead.
 - **Best practices**: Follow Yii2 conventions and modern web development standards.
diff --git a/docs/installation.md b/docs/installation.md
new file mode 100644
index 0000000..57481cb
--- /dev/null
+++ b/docs/installation.md
@@ -0,0 +1,265 @@
+# Installation guide
+
+## System requirements
+
+- [`PHP`](https://www.php.net/downloads) 8.1 or higher.
+- [`Composer`](https://getcomposer.org/download/) for dependency management.
+- [`Yii2`](https://github.com/yiisoft/yii2) 2.0.53+ or 22.x.
+- Web server (Apache, Nginx, or built-in PHP server).
+
+### Optional requirements
+
+- **Node.js**: For advanced asset compilation (optional)
+- **Docker**: For containerized development
+
+## Installation methods
+
+### Method 1: Using composer (recommended)
+
+Create a new project using the Yii App Basic template.
+
+```bash
+composer create-project --prefer-dist --stability=dev yii2-extensions/app-basic myapp
+cd myapp
+```
+
+### Method 2: Manual installation
+
+1. **Download the template**:
+```bash
+git clone https://github.com/yii2-extensions/app-basic.git myapp
+cd myapp
+```
+
+2. **Install dependencies**
+```bash
+composer install
+```
+
+### Method 3: Using git
+
+Clone the repository and set up your project.
+
+```bash
+git clone https://github.com/yii2-extensions/app-basic.git myapp
+cd myapp
+rm -rf .git
+git init
+composer install
+```
+
+## Post-installation setup
+
+### Directory permissions
+
+Ensure the following directories are writable by the web server.
+
+```bash
+chmod 775 public/assets runtime tests/_output
+```
+
+### Environment configuration
+
+1. **Create environment file** (optional)
+```bash
+cp .env.example .env
+```
+
+2. **Configure database connection** in `config/web/components.php`
+```php
+<?php
+
+return [
+    'db' => [
+        'class' => 'yii\db\Connection',
+        'dsn' => 'mysql:host=localhost;dbname=myapp',
+        'username' => 'root',
+        'password' => '',
+        'charset' => 'utf8',
+    ],
+];
+```
+
+### Web server configuration
+
+#### Apache
+
+Create `public/.htaccess`.
+
+```apache
+RewriteEngine on
+RewriteCond %{REQUEST_FILENAME} !-f
+RewriteCond %{REQUEST_FILENAME} !-d
+RewriteRule . index.php
+```
+
+#### Nginx
+
+Add to your Nginx configuration.
+
+```nginx
+server {
+    listen 80;
+    server_name myapp.local;
+    root /path/to/myapp/public;
+    index index.php;
+
+    location / {
+        try_files $uri $uri/ /index.php?$query_string;
+    }
+
+    location ~ \.php$ {
+        fastcgi_pass unix:/var/run/php/php8.1-fpm.sock;
+        fastcgi_index index.php;
+        fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
+        include fastcgi_params;
+    }
+
+    location ~ /\.(ht|svn|git) {
+        deny all;
+    }
+}
+```
+
+#### Built-in PHP server
+
+For development purposes.
+
+```bash
+# Method 1: Using PHP built-in server
+php -S localhost:8080 -t public
+
+# Method 2: Using Yii console command
+./yii serve
+
+# Method 3: Custom host and port
+./yii serve --host=0.0.0.0 --port=8080
+```
+
+## Development setup
+
+### Database setup
+
+1. **Create database**
+```sql
+CREATE DATABASE myapp CHARACTER SET utf8mb4 COLLATE utf8mb4_unicode_ci;
+```
+
+2. **Run migrations** (if available)
+```bash
+./yii migrate
+```
+
+3. **Seed test data** (optional)
+```bash
+./yii fixture/load
+```
+
+### Asset compilation
+
+For advanced asset management.
+
+```bash
+# Install Node.js dependencies
+npm install
+
+# Compile assets
+npm run build
+
+# Watch for changes during development
+npm run watch
+```
+
+## Docker setup
+
+### Using docker compose
+
+Create `docker-compose.yml`.
+
+```yaml
+version: '3.8'
+
+services:
+  web:
+    image: yiisoftware/yii2-php:8.1-apache
+    ports:
+      - "8080:80"
+    volumes:
+      - .:/app
+    depends_on:
+      - db
+    environment:
+      - DB_HOST=db
+      - DB_NAME=myapp
+      - DB_USER=root
+      - DB_PASSWORD=secret
+
+  db:
+    image: mysql:8.0
+    environment:
+      - MYSQL_ROOT_PASSWORD=secret
+      - MYSQL_DATABASE=myapp
+    volumes:
+      - mysql_data:/var/lib/mysql
+
+volumes:
+  mysql_data:
+```
+
+Run the application.
+
+```bash
+docker-compose up -d
+```
+
+### Using Docker directly
+
+```bash
+# Build custom image
+docker build -t myapp .
+
+# Run container
+docker run -p 8080:80 myapp
+```
+
+### Performance optimization
+
+#### Enable OPcache
+
+Add to your `php.ini`.
+
+```ini
+opcache.enable=1
+opcache.enable_cli=1
+opcache.memory_consumption=128
+opcache.interned_strings_buffer=8
+opcache.max_accelerated_files=4000
+opcache.revalidate_freq=60
+opcache.fast_shutdown=1
+```
+
+#### Configure caching
+
+Enable cache components in `config/web/components.php`.
+
+```php
+'cache' => [
+    'class' => 'yii\caching\FileCache',
+],
+'urlManager' => [
+    'enablePrettyUrl' => true,
+    'showScriptName' => false,
+    'enableStrictParsing' => false,
+    'rules' => [
+        // Your URL rules
+    ],
+],
+```
+
+## Next steps
+
+Once the installation is complete.
+
+- ⚙️ [Configuration Reference](configuration.md)
+- 💡 [Usage Examples](examples.md)
+- 🧪 [Testing Guide](testing.md)