diff --git a/packages/node-resolve/README.md b/packages/node-resolve/README.md
index 40425d2d7..6866a6853 100755
--- a/packages/node-resolve/README.md
+++ b/packages/node-resolve/README.md
@@ -133,11 +133,19 @@ Specifies the properties to scan within a `package.json`, used to determine the
 
 ### `preferBuiltins`
 
-Type: `Boolean`<br>
+Type: `Boolean | (module: string) => boolean`<br>
 Default: `true` (with warnings if a builtin module is used over a local version. Set to `true` to disable warning.)
 
 If `true`, the plugin will prefer built-in modules (e.g. `fs`, `path`). If `false`, the plugin will look for locally installed modules of the same name.
 
+Alternatively, you may pass in a function that returns a boolean to confirm whether the plugin should prefer built-in modules. e.g.
+
+```js
+preferBuiltins: (module) => module !== 'punycode';
+```
+
+will not treat `punycode` as a built-in module
+
 ### `modulesOnly`
 
 Type: `Boolean`<br>