diff --git a/README.md b/README.md
index e00e26a..2a4892c 100644
--- a/README.md
+++ b/README.md
@@ -184,6 +184,16 @@ true   | _Default_. Status symbols (`≡` `↑` `↓` `↕`) will be shown.
 false  | No status symbol will be shown, saving some prompt length.
 
 
+Known issues
+------------
+
+### Terminal.app
+
+When using Terminal.app, when the prompt is longer than the terminal window
+width, the prompt line may not wrap correctly to the next line. This is
+suspected to be caused by incorrect handling of ANSI color codes by
+Terminal.app. See [issue #18](lyze/posh-git-sh/issues#18).
+
 Background
 ----------