diff --git a/README.md b/README.md
index aecdc6d3..118ffc5a 100644
--- a/README.md
+++ b/README.md
@@ -110,6 +110,7 @@ Are you new to Owl? This is the place to start!
 - [Comparison with React/Vue](doc/miscellaneous/comparison.md)
 - [Why did Odoo build Owl?](doc/miscellaneous/why_owl.md)
 - [Changelog (from owl 1.x to 2.x)](CHANGELOG.md)
+- [Notes on compiled templates](doc/miscellaneous/compiled_template.md)
 
 ## Installing Owl
 
diff --git a/doc/miscellaneous/compiled_template.md b/doc/miscellaneous/compiled_template.md
new file mode 100644
index 00000000..f6b246ca
--- /dev/null
+++ b/doc/miscellaneous/compiled_template.md
@@ -0,0 +1,98 @@
+# 🦉 Notes On Owl Compiled Templates 🦉
+
+This page will explain what an Owl compiled template look like. This is a
+technical document intended for developers interested in understanding how Owl
+works internally.
+
+Broadly speaking, Owl compiles templates into a javascript function (a closure)
+that returns a function (the "render" function). The point of the closure is to
+have a place to store all values specific to the template (in particular, "blocks").
+Once a template is compiled, its closure function is called once to get the
+render function, and from then on, only the render function is used.
+
+The render function takes some context (and some additional information) and
+return a virtual dom representation of the rendered template, as a block tree.
+A block tree is a very light weight representation that only contains the dynamic
+part of the template, and its structure. It is actually independant of the
+static part of the templates (which are contained in the blocks captured by the
+closure). This means that the work performed at render time is only to collect
+dynamic data, and to describe the block structure of the result.
+
+It looks like this, in pseudo code:
+
+```js
+function closure(bdom, helpers) {
+    // here is some place to put stuff specific to the template, such as
+    // blocks
+    ...
+
+    return function render(context, node, key) {
+        // only build here all dynamic parts of the template
+        // build a block tree
+        return tree;
+    }
+}
+```
+
+Now, let us see an example. Consider the following template:
+
+```xml
+<div class="some-class">
+    <div class="blabla">
+        <span><t t-esc="state.value"/></span>
+    </div>
+    <t t-if="state.info">
+        <p class="info" t-att-class="someAttribute">
+            <t t-esc="state.info"/>
+        </p>
+    </t>
+    <SomeComponent value="value"/>
+</div>
+```
+
+If you look carefully, there are 5 dynamic things:
+
+- a text value (the first `t-esc`),
+- a sub block (the `t-if`),
+- a dynamic attribute (the `t-att-class` attribute),
+- another text value (the second `t-esc`),
+- and finally, a sub component
+
+Here is the compiled code for this template:
+
+```js
+function closure(bdom, helpers) {
+  let { text, createBlock, list, multi, html, toggler, component, comment } = bdom;
+
+  let block1 = createBlock(
+    `<div class="some-class"><div class="blabla"><span><block-text-0/></span></div><block-child-0/><block-child-1/></div>`
+  );
+  let block2 = createBlock(`<p class="info" block-attribute-0="class"><block-text-1/></p>`);
+
+  return function render(ctx, node, key = "") {
+    let b2, b3;
+    let txt1 = ctx["state"].value;
+    if (ctx["state"].info) {
+      let attr1 = ctx["someAttribute"];
+      let txt2 = ctx["state"].info;
+      b2 = block2([attr1, txt2]);
+    }
+    b3 = component(`SomeComponent`, { value: ctx["value"] }, key + `__1`, node, ctx);
+    return block1([txt1], [b2, b3]);
+  };
+}
+```
+
+The values captured in the closure capture the static part of the template: we
+define here two blocks (which contains a template node, that can be deep cloned
+whenever a block is mounted). Then the render function only describes the block
+tree structure of the result, depending on the context. This means that we
+minimize the amount of work done at render time.
+
+Then, when we want to patch the dom, Owl will uses the `patch` function from
+blockdom, which then will diff the block tree, and deep clone new blocks whenever
+a new block is inserted, keep track of dynamic parts of each block, and update
+them accordingly.
+
+With this design, the cost of rendering a template is proportional to the number
+of dynamic values, and not to the size of the template.