diff --git a/packages/grafana-toolkit/src/config/webpack.plugin.config.ts b/packages/grafana-toolkit/src/config/webpack.plugin.config.ts
index 9d8602dd948..cb88145aa43 100644
--- a/packages/grafana-toolkit/src/config/webpack.plugin.config.ts
+++ b/packages/grafana-toolkit/src/config/webpack.plugin.config.ts
@@ -82,6 +82,7 @@ const getEntries = async () => {
 };
 
 const getCommonPlugins = (options: WebpackConfigurationOptions) => {
+  const hasREADME = fs.existsSync(path.resolve(process.cwd(), 'src', 'README.md'));
   const packageJson = require(path.resolve(process.cwd(), 'package.json'));
   return [
     new MiniCssExtractPlugin({
@@ -91,8 +92,9 @@ const getCommonPlugins = (options: WebpackConfigurationOptions) => {
     new webpack.optimize.OccurrenceOrderPlugin(true),
     new CopyWebpackPlugin(
       [
+        // If src/README.md exists use it; otherwise the root README
+        { from: hasREADME ? 'README.md' : '../README.md', to: '.', force: true },
         { from: 'plugin.json', to: '.' },
-        { from: '../README.md', to: '.' },
         { from: '../LICENSE', to: '.' },
         { from: '**/*.json', to: '.' },
         { from: '**/*.svg', to: '.' },