diff --git a/AGENTS.md b/AGENTS.md
index d330961793a..c8636302551 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -246,6 +246,8 @@ poetry run litellm --config dev_config.yaml --port 4000
 
 The proxy takes ~15-20 seconds to fully start (it runs Prisma migrations on boot). Wait for `/health` to return before sending requests. Without a PostgreSQL `DATABASE_URL`, the proxy connects to a default Neon dev database embedded in the `litellm-proxy-extras` package.
 
+**Important**: Before starting the proxy, you must generate the Prisma client: `poetry run prisma generate --schema=./litellm/proxy/schema.prisma`. Without this, the proxy will crash with "Unable to find Prisma binaries". The update script handles this automatically.
+
 ### Running tests
 
 See `CLAUDE.md` and the `Makefile` for standard commands. Key notes: