diff --git a/invokeai/app/invocations/__init__.py b/invokeai/app/invocations/__init__.py
index 91a2edc680..32cf73d215 100644
--- a/invokeai/app/invocations/__init__.py
+++ b/invokeai/app/invocations/__init__.py
@@ -7,10 +7,13 @@ from invokeai.app.services.config.config_default import InvokeAIAppConfig
 
 custom_nodes_path = Path(InvokeAIAppConfig.get_config().custom_nodes_path.absolute())
 custom_nodes_path.mkdir(parents=True, exist_ok=True)
+
 custom_nodes_init_path = str(custom_nodes_path / "__init__.py")
+custom_nodes_readme_path = str(custom_nodes_path / "README.md")
 
 # copy our custom nodes __init__.py to the custom nodes directory
-shutil.copy(Path(__file__).parent / "_custom_nodes_init.py", custom_nodes_init_path)
+shutil.copy(Path(__file__).parent / "custom_nodes/init.py", custom_nodes_init_path)
+shutil.copy(Path(__file__).parent / "custom_nodes/README.md", custom_nodes_readme_path)
 
 # Import custom nodes, see https://docs.python.org/3/library/importlib.html#importing-programmatically
 spec = spec_from_file_location("custom_nodes", custom_nodes_init_path)
@@ -21,5 +24,5 @@ sys.modules[spec.name] = module
 spec.loader.exec_module(module)
 
 # add core nodes to __all__
-python_files = filter(lambda f: not f.name.startswith("_"), Path(__file__).parent.rglob("*.py"))
+python_files = filter(lambda f: not f.name.startswith("_"), Path(__file__).parent.glob("*.py"))
 __all__ = list(f.stem for f in python_files)  # type: ignore
diff --git a/invokeai/app/invocations/_custom_nodes_init.py b/invokeai/app/invocations/_custom_nodes_init.py
deleted file mode 100644
index 561f6de382..0000000000
--- a/invokeai/app/invocations/_custom_nodes_init.py
+++ /dev/null
@@ -1,37 +0,0 @@
-"""
-InvokeAI custom nodes initialization
-
-This file is responsible for loading all custom nodes from this directory.
-
-All python files are loaded on app startup. Custom nodes will be initialized and available for use
-in workflows.
-
-The app must be restarted for changes to be picked up.
-
-This file is overwritten on launch. Do not edit this file directly.
-"""
-import sys
-from importlib import import_module
-from importlib.util import module_from_spec, spec_from_file_location
-from pathlib import Path
-
-from invokeai.backend.util.logging import InvokeAILogger
-
-logger = InvokeAILogger.get_logger()
-count = 0
-for f in Path(__file__).parent.rglob("*.py"):
-    module_name = f.stem
-    if (not module_name.startswith("_")) and (module_name not in globals()):
-        spec = spec_from_file_location(module_name, f.absolute())
-        if spec is None or spec.loader is None:
-            logger.warn(f"Could not load {f}")
-            continue
-        module = module_from_spec(spec)
-        sys.modules[spec.name] = module
-        spec.loader.exec_module(module)
-        count += 1
-    del f, module_name
-
-logger.info(f"Loaded {count} modules from {Path(__file__).parent}")
-
-del import_module, Path
diff --git a/invokeai/app/invocations/custom_nodes/README.md b/invokeai/app/invocations/custom_nodes/README.md
new file mode 100644
index 0000000000..d93bb65539
--- /dev/null
+++ b/invokeai/app/invocations/custom_nodes/README.md
@@ -0,0 +1,51 @@
+# Custom Nodes / Node Packs
+
+Copy your node packs to this directory.
+
+When nodes are added or changed, you must restart the app to see the changes.
+
+## Directory Structure
+
+For a node pack to be loaded, it must be placed in a directory alongside this
+file. Here's an example structure:
+
+```py
+.
+├── __init__.py # Invoke-managed custom node loader
+│
+├── cool_node
+│   ├── __init__.py # see example below
+│   └── cool_node.py
+│
+└── my_node_pack
+    ├── __init__.py # see example below
+    ├── tasty_node.py
+    ├── bodacious_node.py
+    ├── utils.py
+    └── extra_nodes
+        └── fancy_node.py
+```
+
+## Node Pack `__init__.py`
+
+Each node pack must have an `__init__.py` file that imports its nodes.
+
+The structure of each node or node pack is otherwise not important.
+
+Here are examples, based on the example directory structure.
+
+### `cool_node/__init__.py`
+
+```py
+from .cool_node import CoolInvocation
+```
+
+### `my_node_pack/__init__.py`
+
+```py
+from .tasty_node import TastyInvocation
+from .bodacious_node import BodaciousInvocation
+from .extra_nodes.fancy_node import FancyInvocation
+```
+
+Only nodes imported in the `__init__.py` file are loaded.
diff --git a/invokeai/app/invocations/custom_nodes/init.py b/invokeai/app/invocations/custom_nodes/init.py
new file mode 100644
index 0000000000..c6708e95a7
--- /dev/null
+++ b/invokeai/app/invocations/custom_nodes/init.py
@@ -0,0 +1,51 @@
+"""
+Invoke-managed custom node loader. See README.md for more information.
+"""
+
+import sys
+from importlib.util import module_from_spec, spec_from_file_location
+from pathlib import Path
+
+from invokeai.backend.util.logging import InvokeAILogger
+
+logger = InvokeAILogger.get_logger()
+loaded_count = 0
+
+
+for d in Path(__file__).parent.iterdir():
+    # skip files
+    if not d.is_dir():
+        continue
+
+    # skip hidden directories
+    if d.name.startswith("_") or d.name.startswith("."):
+        continue
+
+    # skip directories without an `__init__.py`
+    init = d / "__init__.py"
+    if not init.exists():
+        continue
+
+    module_name = init.parent.stem
+
+    # skip if already imported
+    if module_name in globals():
+        continue
+
+    # we have a legit module to import
+    spec = spec_from_file_location(module_name, init.absolute())
+
+    if spec is None or spec.loader is None:
+        logger.warn(f"Could not load {init}")
+        continue
+
+    module = module_from_spec(spec)
+    sys.modules[spec.name] = module
+    spec.loader.exec_module(module)
+
+    loaded_count += 1
+
+    del init, module_name
+
+
+logger.info(f"Loaded {loaded_count} modules from {Path(__file__).parent}")