diff --git a/PREREQUISITES.md b/PREREQUISITES.md
new file mode 100644
index 0000000..1a92404
--- /dev/null
+++ b/PREREQUISITES.md
@@ -0,0 +1,202 @@
+# Prerequisites Installation Guide
+
+This guide provides detailed installation instructions for all prerequisites needed to run the OpenSearch SQL CLI.
+
+## Git Installation
+
+**Linux:**
+```bash
+# Ubuntu/Debian
+sudo apt update
+sudo apt install git
+
+# CentOS/RHEL
+sudo yum install git
+
+# Fedora
+sudo dnf install git
+
+# Arch Linux
+sudo pacman -S git
+```
+
+**macOS:**
+```bash
+# Using Homebrew (recommended)
+brew install git
+
+# Using Xcode Command Line Tools
+xcode-select --install
+```
+
+**Verify Installation:**
+```bash
+git --version
+```
+
+## Python 3.12 Installation
+
+> **Note**: The SQL CLI only works with Python 3, as Python 2 is no longer maintained since 01/01/2020.
+
+**Linux (Ubuntu/Debian):**
+```bash
+sudo apt update
+sudo add-apt-repository ppa:deadsnakes/ppa
+sudo apt install python3.12 python3.12-pip
+```
+
+**Linux (Amazon Linux 2023):**
+```bash
+sudo dnf install python3.12 python3.12-pip
+
+# Set up alias to use python3.12 as default python3
+alias python3=python3.12
+# Make alias permanent
+echo "alias python3=python3.12" >> ~/.bashrc
+source ~/.bashrc
+```
+
+**Linux (Amazon Linux 2):**
+```bash
+# Using pyenv (recommended)
+curl https://pyenv.run | bash
+echo 'export PATH="$HOME/.pyenv/bin:$PATH"' >> ~/.bashrc
+echo 'eval "$(pyenv init --path)"' >> ~/.bashrc
+source ~/.bashrc
+pyenv install 3.12.7
+pyenv global 3.12.7
+```
+
+**macOS:**
+```bash
+# Using Homebrew (recommended)
+brew install python@3.12
+
+# Using pyenv
+curl https://pyenv.run | bash
+pyenv install 3.12.0
+pyenv global 3.12.0
+```
+
+
+
+**Verify Installation:**
+```bash
+python3 --version  # Should show Python 3.12.x
+python --version   # Should show Python 3.12.x
+```
+
+## pip Installation
+
+**Linux:**
+```bash
+# Ubuntu/Debian
+sudo apt update
+sudo apt install python3-pip
+
+# CentOS/RHEL
+sudo yum install python3-pip
+
+# Fedora
+sudo dnf install python3-pip
+
+# Arch Linux
+sudo pacman -S python-pip
+```
+
+**macOS:**
+```bash
+# Using Homebrew (recommended)
+brew install python
+# pip comes bundled with Python from Homebrew
+
+# Using get-pip.py (if Python is already installed)
+curl https://bootstrap.pypa.io/get-pip.py -o get-pip.py
+python3 get-pip.py
+```
+
+**Verify pip Installation:**
+```bash
+pip3 --version
+# or
+python3 -m pip --version
+```
+
+## Java Installation
+
+> **Important**: Java version 21 or higher is required. Java 21 is recommended (especially for Amazon Linux), Java 24 is also supported.
+
+**Linux:**
+```bash
+# Using SDKMAN (recommended)
+curl -s "https://get.sdkman.io" | bash
+source "$HOME/.sdkman/bin/sdkman-init.sh"
+sdk install java 24-open
+
+# Using package manager
+# Ubuntu/Debian
+sudo apt update
+sudo apt install openjdk-24-jdk
+
+# CentOS/RHEL/Fedora
+sudo dnf install java-24-openjdk-devel
+
+# Amazon Linux 2023
+sudo dnf update
+sudo dnf install java-24-amazon-corretto-devel
+
+# Amazon Linux 2 (manual installation)
+wget https://corretto.aws/downloads/latest/amazon-corretto-24-x64-linux-jdk.tar.gz
+tar -xzf amazon-corretto-24-x64-linux-jdk.tar.gz
+sudo mv amazon-corretto-24.* /opt/corretto-24
+sudo ln -sf /opt/corretto-24/bin/java /usr/bin/java
+sudo ln -sf /opt/corretto-24/bin/javac /usr/bin/javac
+```
+
+**macOS:**
+```bash
+# Using Homebrew
+brew install openjdk@24
+
+# Using SDKMAN
+curl -s "https://get.sdkman.io" | bash
+source "$HOME/.sdkman/bin/sdkman-init.sh"
+sdk install java 24-open
+```
+
+**Verify Installation:**
+```bash
+java -version
+javac -version
+```
+
+**Set Java Environment Variables:**
+
+**macOS:**
+```bash
+export JAVA_HOME=$(/usr/libexec/java_home -v 21)
+export PATH=$JAVA_HOME/bin:$PATH
+
+# Make permanent
+echo 'export JAVA_HOME=$(/usr/libexec/java_home -v 21)' >> ~/.bashrc
+echo 'export PATH=$JAVA_HOME/bin:$PATH' >> ~/.bashrc
+source ~/.bashrc
+```
+
+**Linux:**
+```bash
+# Find your Java installation path
+sudo find /usr -name "java" -type f 2>/dev/null | grep bin
+
+# Set JAVA_HOME (replace with your actual Java path)
+export JAVA_HOME=/usr/lib/jvm/java-21-openjdk  # or java-21-amazon-corretto.x86_64
+export PATH=$JAVA_HOME/bin:$PATH
+
+# Make permanent
+echo 'export JAVA_HOME=/usr/lib/jvm/java-21-openjdk' >> ~/.bashrc
+echo 'export PATH=$JAVA_HOME/bin:$PATH' >> ~/.bashrc
+source ~/.bashrc
+```
+
+
+
diff --git a/README.md b/README.md
index 273f58b..337da1c 100644
--- a/README.md
+++ b/README.md
@@ -56,11 +56,6 @@ This CLI acts as a safe testing environment, allowing smooth transitions between
 [sql-cli-build-badge]: https://github.com/opensearch-project/sql-cli/actions/workflows/sql-cli-test-and-build-workflow.yml/badge.svg
 [sql-cli-build-link]: https://github.com/opensearch-project/sql-cli/actions/workflows/sql-cli-test-and-build-workflow.yml
 
-## Requirements
-
-- **Python** version 3.12+
-- **Java** version 21
-
 ## Features
 
 - **Multi-line input**
@@ -104,39 +99,91 @@ release branch: sql-cli-1.0
 release tag: sql-cli-v1.0.0 
 ```
 
-## Install
-
-Launch your local OpenSearch instance and make sure you have the OpenSearch SQL plugin installed.
-
-To install the SQL CLI:
-
-
-1. We suggest you install and activate a python3 virtual environment to avoid changing your local environment:
-
-```
-  pip install virtualenv
-  virtualenv venv
-  cd venv
-  source ./bin/activate
-```
-
-
-2. Install the CLI:
-
-> TODO: Right now, user can install `pip install -e .` at the root directory until the current version package being published.
-
-  ```
-    pip install opensearchsql
-  ```
-
-  The SQL CLI only works with Python 3, since Python 2 is no longer maintained since 01/01/2020. See https://pythonclock.org/
-
+## Prerequisites
+
+### Essential Requirements:
+- **Git** - Required for cloning the repository
+- **Python 3.12+** - Required runtime environment
+- **pip** - Required for installing Python dependencies
+- **Java 21** - Required Java runtime (Java 21 recommended, Java 24 supported, Java 21 preferred for Amazon Linux)
+- **OpenSearch cluster** with SQL plugin installed
+
+> **Note for Windows Users**: The SQL CLI does not work natively on Microsoft Windows. Windows users can use WSL (Windows Subsystem for Linux) to run the CLI.
+
+📋 **For detailed installation instructions for all prerequisites, see [PREREQUISITES.md](PREREQUISITES.md)**
+
+> ⚠️ **Important**: Before proceeding with the installation, ensure all prerequisites are installed. If you need help installing any of the required tools (Git, Python 3.12+, pip, Java 21), please follow the detailed instructions in [PREREQUISITES.md](PREREQUISITES.md).
+
+## Installation Steps
+
+1. **Clone the repository**
+   ```bash
+   git clone https://github.com/opensearch-project/sql-cli
+   cd sql-cli
+   ```
+
+2. **Set up Python virtual environment**
+   ```bash
+   python3 -m venv venv
+   source ./venv/bin/activate
+   ```
+
+3. **Install dependencies**
+   ```bash
+   pip install -e .
+   ```
+
+4. **Verify Java installation**
+   ```bash
+   java --version
+   ```
+   Expected output (Java 21 or higher):
+   ```
+   openjdk 21.0.2 2024-01-16
+   OpenJDK Runtime Environment Temurin-21.0.2+13 (build 21.0.2+13)
+   OpenJDK 64-Bit Server VM Temurin-21.0.2+13 (build 21.0.2+13, mixed mode, sharing)
+   ```
+
+
+5. **Set Java environment variables** (adjust version number based on your installed Java version)
+   
+   **macOS:**
+   ```bash
+   export JAVA_HOME=$(/usr/libexec/java_home -v 21)  # Use -v 24 for Java 24
+   export PATH=$JAVA_HOME/bin:$PATH
+   ```
+   
+   **Linux:**
+   ```bash
+   # Find Java installation
+   sudo find /usr -name "java" -type f 2>/dev/null | grep bin
+   
+   # Set JAVA_HOME (replace with your Java installation path)
+   export JAVA_HOME=/usr/lib/jvm/java-21-amazon-corretto.x86_64
+   export PATH=$JAVA_HOME/bin:$PATH
+   
+   # Make permanent
+   echo 'export JAVA_HOME=/usr/lib/jvm/java-21-amazon-corretto.x86_64' >> ~/.bashrc
+   echo 'export PATH=$JAVA_HOME/bin:$PATH' >> ~/.bashrc
+   source ~/.bashrc
+   
+   # Switch Java versions (if multiple versions installed)
+   sudo alternatives --config java
+   ```
+
+6. **Launch the CLI**
+   
+   > **Connection Note**: By default, the CLI connects to `http://localhost:9200`. If you have OpenSearch running locally, you can launch directly. To connect to a remote cluster, use the `-e` flag with your cluster endpoint.
+   
+   ```bash
+   # Connect to local OpenSearch cluster (default)
+   opensearchsql
+   
+   # Connect to remote cluster
+   opensearchsql -e https://your-cluster-endpoint
+   ```
 
-3. To launch the CLI, run:
 
-  ``` 
-    opensearchsql
-  ```
 
 ## Startup Commands
 
diff --git a/development_guide.md b/development_guide.md
index 1109340..e78cd0c 100644
--- a/development_guide.md
+++ b/development_guide.md
@@ -9,14 +9,13 @@ This guide provides comprehensive information for developers who want to contrib
 - [Style](#style)
 - [Release Guide](#release-guide)
 
-### Development Environment Set Up
-- `pip install virtualenv`
-- `virtualenv venv` to create virtual environment for **Python 3**
-- `source ./venv/bin/activate` activate virtual env.
-- `cd` into project root folder.
-- `pip install --editable .` will install all dependencies from `setup.py`.
-
-### Code Architecture Details
+## Development Environment Setup
+
+For complete setup instructions including prerequisites and installation steps, see the main [README.md](README.md#prerequisites) file.
+
+Once you have the environment set up, you can proceed with the development-specific information below.
+
+## Code Architecture Details
 
 #### Layered Architecture