diff --git a/docs/paramTypes.md b/docs/paramTypes.md
index b615cd3486..184e027bec 100644
--- a/docs/paramTypes.md
+++ b/docs/paramTypes.md
@@ -70,6 +70,8 @@ An object with the following following optional fields:
   For example in MySQL using `paramTypes: {quoted: [':']}` would allow you to use `` :`name` `` syntax,
   while in Transact-SQL `:"name"` and `:[name]` would work instead.
   See [identifier syntax wiki page][] for information about differences in support quoted identifiers.
+- **`custom`**: `Array<{ regex: string, key?: (text: string) => string }>`.
+  An option to implement custom syntax for parameter placeholders. See below for details.
 
 Note that using this config will override the by default supported placeholders types.
 For example PL/SQL supports numbered (`:1`) and named (`:name`) placeholders by default.
@@ -89,5 +91,53 @@ The result will be:
 
 This config option can be used together with [params][] to substitute the placeholders with actual values.
 
+## Custom parameter syntax
+
+Say, you'd like to support the `{name}` parameter placeholders in this SQL:
+
+```sql
+SELECT id, fname, age FROM person WHERE lname = {lname} AND age > {age};
+```
+
+You can define a regex pattern to match the custom parameters:
+
+```js
+paramTypes: {
+  custom: [{ regex: '\\{[a-zA-Z0-9_]+\\}' }];
+}
+```
+
+Note the double backslashes. You can get around the double-escaping problem by using `String.raw`:
+
+```js
+paramTypes: {
+  custom: [{ regex: String.raw`\{[a-zA-Z0-9_]+\}` }];
+}
+```
+
+You can also use the [params][] option to substitute values of these parameters.
+However by default the parameter names contain the whole string that is matched by the regex:
+
+```js
+params: { '{lname}': 'Doe', '{age}': '25' },
+```
+
+To get around this, you can also specify the `key` function to extract the name of the parameter:
+
+```js
+paramTypes: {
+  custom: [{
+    regex: String.raw`\{[a-zA-Z0-9_]+\}`
+    key: (text) => text.slice(1, -1), // discard first and last char
+  }]
+}
+```
+
+Now you can refer to the parameters by their actual name:
+
+```js
+params: { 'lname': 'Doe', 'age': '25' },
+```
+
 [params]: ./params.md
 [identifier syntax wiki page]: https://github.com/sql-formatter-org/sql-formatter/wiki/identifiers