diff --git a/README.md b/README.md
index a875426..b5e00da 100644
--- a/README.md
+++ b/README.md
@@ -137,6 +137,11 @@ This allows directly using it in later steps:
 - run: uv pip install pip
 ```
 
+> [!WARNING]
+>
+> If you have a dependency which requires uv, e.g., `hatch`, activating the environment will shadow
+> the `uv` binary installed by this action and may result in a different uv version being used.
+
 ### Working directory
 
 You can set the working directory with the `working-directory` input.