diff --git a/README.md b/README.md
index 4703268..ce78574 100644
--- a/README.md
+++ b/README.md
@@ -40,7 +40,7 @@ Installation for v2 of MumbleDJ is much easier than it was before, due to the re
 **SETUP GUIDE**  
 **1)** Install and correctly configure [`Go`](https://golang.org/). Specifically, make sure to follow [this guide](https://golang.org/doc/code.html) and set the `GOPATH` environment variable properly.
 
-**2)** Install [`ffmpeg`](https://www.ffmpeg.org/) if it is not already installed on your system.
+**2)** Install [`ffmpeg`](https://www.ffmpeg.org/) and [`mercurial`](http://mercurial.selenic.com/) if they are not already installed on your system.
 
 **3)** Install [`youtube-dl`](https://github.com/rg3/youtube-dl#installation).