diff --git a/README.md b/README.md
index c42a0084..dc9683fb 100644
--- a/README.md
+++ b/README.md
@@ -11,6 +11,9 @@
     - [CoNLL 2003](#conll-2003)
     - [COCO](#coco)
     - [Pascal VOC XML](#pascal-voc-xml)
+- [YOLO to Label Studio Converter](#yolo-to-label-studio-converter)
+  - [Usage](#usage)
+  - [Tutorial: Importing YOLO Pre-Annotated Images to Label Studio using Local Storage](#tutorial-importing-yolo-pre-annotated-images-to-label-studio-using-local-storage)
 - [Contributing](#contributing)
 - [License](#license)
 
@@ -261,15 +264,50 @@ Corresponding annotations could be found in `tmp/voc-annotations/*.xml`:
 
 Use cases: image object detection
 
-### YOLO to Label Studio converter 
+--------
 
-Usage:
+# YOLO to Label Studio Converter 
+
+### YOLO directory structure
+
+Check the structure of YOLO folder first, keep in mind that the root is `/yolo/datasets/one`. 
 
 ```
-label-studio-converter import yolo -i /yolo/root/directory -o ls-tasks.json
+/yolo/datasets/one
+  images
+   - 1.jpg
+   - 2.jpg
+   - ...
+  labels
+   - 1.txt
+   - 2.txt
+
+  classes.txt
 ```
 
-Help:
+*classes.txt example*
+
+```
+Airplane
+Car
+```
+
+### Usage
+
+```
+label-studio-converter import yolo -i /yolo/datasets/one -o ls-tasks.json --image-root-url "/data/local-files/?d=one/images"
+```
+Where the URL path from `?d=` is relative to the path you set in `LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT`.
+
+**Note for Local Storages** 
+  * It's very important to set `LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT=/yolo/datasets` (**not** to `/yolo/datasets/one`, but **`/yolo/datasets`**) for Label Studio to run.
+  * [Add a new Local Storage](https://labelstud.io/guide/storage#Local-storage) in the project settings and set **Absolute local path** to `/yolo/datasets/one/images` (or `c:\yolo\datasets\one\images` for Windows). 
+
+**Note for Cloud Storages**
+  * Use `--image-root-url` to make correct prefixes for task URLs, e.g. `--image-root-url s3://my-bucket/yolo/datasets/one`.
+  * [Add a new Cloud Storage](https://labelstud.io/guide/storage) in the project settings with the corresponding bucket and prefix.
+
+**Help command**
 
 ```
 label-studio-converter import yolo -h
@@ -299,36 +337,99 @@ optional arguments:
                         image extension to search: .jpg, .png
 ```
 
-YOLO export folder example:
 
+## Tutorial: Importing YOLO Pre-Annotated Images to Label Studio using Local Storage
+
+This tutorial will guide you through the process of importing a folder with YOLO annotations into Label Studio for further annotation. 
+We'll cover setting up your environment, converting YOLO annotations to Label Studio's format, and importing them into your project.
+
+
+### Prerequisites
+- Label Studio installed locally
+- YOLO annotated images and corresponding .txt label files in the directory `/yolo/datasets/one`.
+- label-studio-converter installed (available via `pip install label-studio-converter`)
+
+### Step 1: Set Up Your Environment and Run Label Studio
+Before starting Label Studio, set the following environment variables to enable Local Storage file serving:
+
+Unix systems: 
+```
+export LABEL_STUDIO_LOCAL_FILES_SERVING_ENABLED=true
+export LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT=/yolo/datasets
+label-studio
 ```
-yolo-folder
-  images
-   - 1.jpg
-   - 2.jpg
-   - ...
-  labels
-   - 1.txt
-   - 2.txt
 
-  classes.txt
+Windows: 
+```
+set LABEL_STUDIO_LOCAL_FILES_SERVING_ENABLED=true
+set LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT=C:\\yolo\\datasets
+label-studio
 ```
 
-classes.txt example
+Replace `/yolo/datasets` with the actual path to your YOLO datasets directory.
+
+### Step 2: Setup Local Storage
+1. Create a new project.
+2. Go to the project settings and select **Cloud Storage**. 
+3. Click **Add Source Storage** and select **Local files** from the **Storage Type** options.  
+3. Set the **Absolute local path** to `/yolo/datasets/one/images` or `c:\yolo\datasets\one\images` on Windows.
+4. Click `Add storage`.
+
+Check more details about Local Storages [in the documentation](https://labelstud.io/guide/storage.html#Local-storage).
+
+### Step 3: Verify Image Access
+Before importing the converted annotations from YOLO, verify that you can access an image from your Local storage via Label Studio. Open a new browser tab and enter the following URL:
 
 ```
-Airplane
-Car
+http://localhost:8080/data/local-files/?d=one/images/<your_image>.jpg
 ```
 
-## Contributing
+Replace `one/images/<your_image>.jpg` with the path to one of your images. The image should display **in the new tab of the browser**.
+If you can't open an image, the Local Storage configuration is incorrect. The most likely reason is that you made a mistake when specifying your `Path` in Local Storage settings or in `LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT`. 
+
+**Note:** The URL path from `?d=` should be relative to `LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT=/yolo/datasets`, 
+it means that the real path will be `/yolo/datasets/one/images/<your_image>.jpg` and this image should exist on your hard drive.
+
+### Step 4: Convert YOLO Annotations
+Use the label-studio-converter to convert your YOLO annotations to a format that Label Studio can understand:
+
+```
+label-studio-converter import yolo -i /yolo/datasets/one -o output.json --image-root-url "/data/local-files/?d=one/images"
+```
+
+### Step 5: Import Converted Annotations
+Now import the `output.json` file into Label Studio:
+1. Go to your Label Studio project.
+2. From the Data Manager, click **Import**.
+3. Select the `output.json` file and import it.
+
+### Step 6: Verify Annotations
+After importing, you should see your images with the pre-annotated bounding boxes in Label Studio. Verify that the annotations are correct and make any necessary adjustments.
+
+### Troubleshooting
+If you encounter issues with paths or image access, ensure that:
+- The LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT is set correctly.
+- The `--image-root-url` in the conversion command matches the relative path:
+```
+`Absolute local path from Local Storage Settings` - `LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT` = `path for --image_root_url`
+```
+e.g.:
+```
+/yolo/datasets/one/images - /yolo/datasets/ = one/images
+```
+- The Local Storage in Label Studio is set up correctly with the Absolute local path to your images (`/yolo/datasets/one/images`)
+- For more details, refer to the documentation on [importing pre-annotated data](https://labelstud.io/guide/predictions.html) and [setting up Cloud Storages](https://labelstud.io/guide/storage).
+
+------------
+
+# Contributing
 
 We would love to get your help for creating converters to other models. Please feel free to create pull requests.
 
 - [Contributing Guideline](https://github.com/heartexlabs/label-studio/blob/develop/CONTRIBUTING.md)
 - [Code Of Conduct](https://github.com/heartexlabs/label-studio/blob/develop/CODE_OF_CONDUCT.md)
 
-## License
+# License
 
 This software is licensed under the [Apache 2.0 LICENSE](/LICENSE) © [Heartex](https://www.heartex.com/). 2020
 
diff --git a/label_studio_converter/imports/yolo.py b/label_studio_converter/imports/yolo.py
index 2889cf6f..66d3e06e 100644
--- a/label_studio_converter/imports/yolo.py
+++ b/label_studio_converter/imports/yolo.py
@@ -14,6 +14,7 @@
 from label_studio_converter.imports.label_config import generate_label_config
 
 logger = logging.getLogger('root')
+default_image_root_url = '/data/local-files/?d=images'
 
 
 def convert_yolo_to_ls(
@@ -22,7 +23,7 @@ def convert_yolo_to_ls(
     to_name='image',
     from_name='label',
     out_type="annotations",
-    image_root_url='/data/local-files/?d=',
+    image_root_url=default_image_root_url,
     image_ext='.jpg,.jpeg,.png',
     image_dims: Optional[Tuple[int, int]] = None,
 ):
@@ -143,12 +144,23 @@ def convert_yolo_to_ls(
         with open(out_file, 'w') as out:
             json.dump(tasks, out)
 
+        help_root_dir = ''
+        if image_root_url == default_image_root_url:
+            help_root_dir = (
+                f"Set environment variables LABEL_STUDIO_LOCAL_FILES_SERVING_ENABLED=true and "
+                f"LABEL_STUDIO_LOCAL_FILES_DOCUMENT_ROOT={input_dir} for Label Studio run,\n"
+                f"add Local Storage with Absolute local path = {input_dir}/images"
+            )
+
         print(
             '\n'
             f'  1. Create a new project in Label Studio\n'
             f'  2. Use Labeling Config from "{label_config_file}"\n'
-            f'  3. Setup serving for images [e.g. you can use Local Storage (or others):\n'
-            f'     https://labelstud.io/guide/storage.html#Local-storage]\n'
+            f'  3. Setup serving for images\n'
+            f'       E.g. you can use Local Storage (or others):\n'
+            f'       https://labelstud.io/guide/storage.html#Local-storage\n'
+            f'       See tutorial here:\nhttps://github.com/HumanSignal/label-studio-converter/tree/master?tab=readme-ov-file#yolo-to-label-studio-converter\n'
+            f'       {help_root_dir}\n'
             f'  4. Import "{out_file}" to the project\n'
         )
     else:
@@ -196,7 +208,7 @@ def add_parser(subparsers):
         '--image-root-url',
         dest='image_root_url',
         help='root URL path where images will be hosted, e.g.: http://example.com/images',
-        default='/data/local-files/?d=',
+        default=default_image_root_url,
     )
     yolo.add_argument(
         '--image-ext',