diff --git a/FEATURES.md b/FEATURES.md
new file mode 100644
index 00000000..5d79deb8
--- /dev/null
+++ b/FEATURES.md
@@ -0,0 +1,115 @@
+# Feature Overview
+
+Features that are in ***bold italics*** are planned and not yet implemented.
+
+## Create New Quest
+
+- *Support for episodes I, II and IV*
+
+## Load Quest
+
+- Open file button
+- Support for .qst (BB, ***GC***, ***PC***, ***DC***)
+- ***Notify user when and why quest loading fails***
+  - ***Deal with missing DAT or BIN file in QST container file***
+
+## Save Quest
+
+- Save as button
+  - Save as dialog to choose name
+- Support for .qst (BB, ***GC***, ***PC***, ***DC***)
+- ***Notify user when and why quest saving fails***
+
+## Undo/Redo
+
+- Undo/redo stack
+- Undo/redo buttons
+- Undo/redo keybindings
+
+## Area Selection
+
+- Dropdown to switch area
+
+## Simple Quest Properties
+
+- Episode
+- Editable ID, name, short and long description
+  - ***Undo/redo***
+- NPC counts
+
+## 3D View
+
+- Area geometry
+  - Collision geometry (c.rel)
+  - ***Rendering geometry (n.rel)***
+    - ***Textures***
+- NPC/object geometry
+  - Textures
+- ***Transparency***
+  - ***Order independent transparency***
+- ***Minimap***
+- ***Top-down view (orthogonal view might suffice?)***
+- ***Add "shadow" to entities to more easily see where floating entities are positioned***
+  - ***MVP: a single line***
+
+## NPC/object manipulation
+
+- ***Creation***
+- ***Deletion***
+- Translation
+  - Via 3D view
+  - Via entity view
+- ***Rotation***
+- ***Multi select and translate/rotate/edit***
+
+## Script Object Code
+
+- Disassembler
+- Assembler
+- Instructions
+- Simplified stack management (push* instructions are inserted transparently)
+- Data
+  - Binary data
+  - ***Strings***
+- Labels
+
+## Script Assembly Editor
+
+- Instructions
+- Data
+  - Binary data
+  - ***Strings***
+- Labels
+  - ***Show in outline***
+- Autocompletion
+  - Segment type (.code, .data)
+  - Instructions
+- ***Go to label***
+- ***Warnings***
+  - ***Missing 0 label***
+  - ***Missing floor handlers***
+  - ***Missing map designations***
+  - ***Threads (thread, thread_stg) that don't start with a sync***
+  - ***Unreachable/unused instructions/data***
+    - ***Instructions after "ret" instruction***
+    - ***Unused labels***
+- Errors
+  - Invalid syntax
+  - Invalid instruction
+  - Invalid instruction arguments
+  - ***Invalid label references***
+  - ***Mark all duplicate labels (the first one is not marked at the moment)***
+- ***Show instruction parameters on hover over***
+- ***Show reserved register usage on hover over***
+- ***When saving, ask user whether to really save when asm contains errors***
+
+## Enemy Waves
+
+- ***Figure out how they work***
+
+## Bugs
+
+- [Script Object Code](#script-object-code): Make sure data segments are referenced by an instruction with an offset before the segment's offset
+- [Script Object Code](#script-object-code): Detect code that is both unused and incorrect and reinterpret it as data (this avoids loading and then saving the quest incorrectly)
+- [Area Selection](#area-selection): Lost heart breaker/phantasmal world 4 overwrite area 16 to have both towers
+- [Area Selection](#area-selection): Show areas that are referenced from .dat but not from script (test with Point of Disaster (709))
diff --git a/README.md b/README.md
index c624b4d1..7becc584 100644
--- a/README.md
+++ b/README.md
@@ -1,23 +1,23 @@
 # Phantasmal World
 
-Phantasmal World is a suite of tools for Phantasy Star Online. This project is in a very early stage of development.
+Phantasmal World is a suite of tools for Phantasy Star Online.
 
 ## For Developers
 
-React is used for the frontend, MobX is used for state management and THREE.js for 3D graphics.
+React is used for the frontend, MobX is used for state management and THREE.js for 3D graphics. See [features](./FEATURES.md) for a list of features, planned features and bugs.
 
 ### Getting Started
 
 1. Install Yarn ([https://yarnpkg.com/](https://yarnpkg.com/))
 2. cd to the project directory
-3. Launch server on [http://localhost:1623/](http://localhost:1623/) with `yarn start`
-4. src/index.tsx is the application's entry point
+3. Install dependencies with `yarn`
+4. Launch server on [http://localhost:1623/](http://localhost:1623/) with `yarn start`
+5. src/index.tsx is the application's entry point
 
 ### Tests
 
-Run tests with `yarn test`.
+Run tests with `yarn test`. The testing framework used is Jest.
 
 ### Production Build
 
-1. Change the homepage field in package.json if you don't want to deploy to /
-3. Build with `yarn build`
+Create an optimized production build with `yarn build`.