diff --git a/tools/README.md b/tools/README.md
index b9788eed..b495f777 100644
--- a/tools/README.md
+++ b/tools/README.md
@@ -4,46 +4,8 @@ This folder contains tools for creating and merging call graphs using the MetaCG
 
 ## CaGe
 
-CaGe is MetaCG's link-time call graph generator.
-To use it, the target application needs to be built with (full) LTO using the LLD linker.
-
-### Basic Usage
-Let's consider a project that consists of two source files, `example_a.cpp` and `example_b.cpp`.
-A standard build process consists of a compile and a link step:
-```
-# Compile step
-clang++ example_a.cpp -o example_a.o
-clang++ example_b.cpp -o example_b.o
-
-# Link step
-clang++ example_a.o example_b.o -o example
-```
-
-Modifying this build process to generate a call graph with CaGe is straightforward.
-All necessary compile flags can be generated with `metacg-config`:
-
-```
-# Compile step
-clang++ $(metacg-config --cage-cxxflags) example_a.cpp -o example_a.o
-clang++ $(metacg-config --cage-cxxflags) example_b.cpp -o example_b.o
-
-# Link step
-clang++ $(metacg-config --cage-ldflags --cage-pass-option -cg-file=example.mcg) example_a.o example_b.o -o example
-```
-
-### Build system integration
-Integrating CaGe into build systems, e.g. Make and CMake, is simple.
-Many Make projects already define `CXXFLAGS` and `LDFLAGS` variables, which can be extended with the respective 
-`metacg-config` output.
-For CMake projects, the relevant options are `CMAKE_CXX_FLAGS`, `CMAKE_EXE_LINKER_FLAGS` and `CMAKE_SHARED_LINKER_FLAGS`.
-
-### Pass options
-Pass options can be set by passing `--cage-pass-option <option>(=<val>)`  to `metacg-config`.
-Available options:
-- `-cg-file=<filename>`: The output file for the generated call graph.
-- `-pta=no/signature`: Controls the behavior of the points-to analysis for resolving indirect calls. Available options are:
-  - `no`: Indirect calls are ignored.
-  - `signature`: Adds all functions with matching signature as potential call targets.
+CaGe is MetaCG's call graph generator from LLVM-IR.
+Please refere to the separate [Readme](cage/README.md) for additional information.
 
 ## CGMerge2
 
diff --git a/tools/cage/README.md b/tools/cage/README.md
new file mode 100644
index 00000000..2a7c7124
--- /dev/null
+++ b/tools/cage/README.md
@@ -0,0 +1,87 @@
+# CaGe - Call Graph Generator
+
+CaGe is MetaCG's call graph generator for LLVM IR, implemented as an LLVM pass plugin.\
+It is intended to extract a whole-program call graph from compiled LLVM IR at linktime and writes the result to a MetaCG JSON file (`.mcg`).\
+It handles all calls found by LLVM's call graph analysis and augments it with indirect calls via function pointers and C++ virtual calls using different analysis backends.\
+CaGe itself can be extended with CaGe-Plugins to modify the graph or add custom MetaCG metadata. 
+
+CaGe can be invoked in two modes depending on how it is loaded into the LLVM pipeline:
+
+- **LTO mode** (recommended): the pass runs at the end of the full LTO pipeline during linking, where all translation units are visible simultaneously.
+- **opt mode**: the pass is loaded into the standard per-TU optimizer pipeline via the `opt` tool. For a whole program call graph, these then need to be merged with a tool like `cgmerge`.
+
+## LTO mode
+
+Compile each translation unit with `-flto`, then link with LLD and the CaGe plugin.
+The `metacg-config` helper generates all required flags:
+
+```sh
+# Compile step
+clang++ $(metacg-config --cage-cxxflags) example_a.cpp -c -o example_a.o
+clang++ $(metacg-config --cage-cxxflags) example_b.cpp -c -o example_b.o
+
+# Link step — CaGe runs at the end of the LTO pipeline
+clang++ $(metacg-config --cage-ldflags --cage-pass-option -cg-file=example.mcg) \
+    example_a.o example_b.o -o example
+```
+
+The call graph is written to `example.mcg` after the link step completes.
+
+## Opt mode
+
+In opt mode, a partial call graph is generated for each translation unit.
+For CaGe to run, an optimization level has to be enabled, or CaGe needs to be invoked explicitly:
+
+```sh
+#Invoke via optlevel
+clang++ -fpass-plugin=$(metacg-config --prefix)/lib/CaGe.so -O2 example.cpp
+
+#Or via explicit pass control
+# Compile to IR
+clang++ -emit-llvm -S example.cpp 
+
+# Run the CaGe pass
+opt --load-pass-plugin=$(metacg-config --prefix)/lib/CaGe.so --passes=CaGe \
+    -cg-file=example.mcg 
+```
+There is no way to have pass-granular control from the clang-driver invocation, making this two-step approach necessary.
+
+## Pass options
+
+Pass options are forwarded to CaGe depending on the invocation type.
+
+### LTO mode
+For LTO mode pass `-Wl,-mllvm="<option>"` or use the more expressive `$(metacg-config --cage-pass-option <option>)` 
+
+### Opt mode
+If you invoke opt via the `clang` compiler driver use `-fplugin-arg-CaGe-<option>`.\
+If you invoke opt directly, you should be able to use the options directly.
+
+
+### List of options
+| Option                 | Description                                  | Default              |
+|------------------------|----------------------------------------------|----------------------|
+| `-cg-file=<path>`      | Output file for the generated call graph     | `cage_callgraph.mcg` |
+| `-pta=no/signature`    | Indirect-call resolution strategy            | `no`                 |
+| `-cage-verbose`        | Print debug output                           | off                  |
+| `-plugin-paths=<path>` | List of paths to load CaGe plugins from      | empty                |
+
+The `-pta=signature` option approximates indirect calls by adding all functions whose signature matches the call site as potential targets.
+There is an additional metavirt backend implemented for indirect call resolving, for which there currently is no runtime control.
+It is currently enabled or disabled at the time of CaGe's compilation.
+
+The output file can also be set via the `CAGE_CG` environment variable; an explicit `-cg-file` takes precedence.
+
+## Plugin system
+
+CaGe supports dynamically loaded plugins that implement the `cage::Plugin` interface.
+A plugin can augment the call graph (add nodes, edges, or metadata from the LLVM module) or consume it (convert to another format, trigger downstream analysis).
+See `CaGeDemoPlugin/` for a minimal example.
+
+Plugins are loaded by passing `-plugin-paths=<path>` as a pass option.
+
+### Build system integration
+Integrating CaGe into build systems, e.g. Make and CMake, is simple.
+Many Make projects already define `CXXFLAGS` and `LDFLAGS` variables, which can be extended with the respective
+`metacg-config` output.
+For CMake projects, the relevant options are `CMAKE_CXX_FLAGS`, `CMAKE_EXE_LINKER_FLAGS` and `CMAKE_SHARED_LINKER_FLAGS`.