diff --git a/cli/parameter.go b/cli/parameter.go
index 2c09e9bbef..e674348fa1 100644
--- a/cli/parameter.go
+++ b/cli/parameter.go
@@ -58,7 +58,7 @@ func (wpf *workspaceParameterFlags) cliParameters() []serpent.Option {
 		serpent.Option{
 			Flag:        "rich-parameter-file",
 			Env:         "CODER_RICH_PARAMETER_FILE",
-			Description: "Specify a file path with values for rich parameters defined in the template.",
+			Description: "Specify a file path with values for rich parameters defined in the template. The file should be in YAML format, containing key-value pairs for the parameters.",
 			Value:       serpent.StringOf(&wpf.richParameterFile),
 		},
 	}
diff --git a/cli/testdata/coder_create_--help.golden b/cli/testdata/coder_create_--help.golden
index 7101eec667..e4949750f2 100644
--- a/cli/testdata/coder_create_--help.golden
+++ b/cli/testdata/coder_create_--help.golden
@@ -28,7 +28,8 @@ OPTIONS:
 
       --rich-parameter-file string, $CODER_RICH_PARAMETER_FILE
           Specify a file path with values for rich parameters defined in the
-          template.
+          template. The file should be in YAML format, containing key-value
+          pairs for the parameters.
 
       --start-at string, $CODER_WORKSPACE_START_AT
           Specify the workspace autostart schedule. Check coder schedule start
diff --git a/cli/testdata/coder_restart_--help.golden b/cli/testdata/coder_restart_--help.golden
index b0b036929c..84d3e0f149 100644
--- a/cli/testdata/coder_restart_--help.golden
+++ b/cli/testdata/coder_restart_--help.golden
@@ -24,7 +24,8 @@ OPTIONS:
 
       --rich-parameter-file string, $CODER_RICH_PARAMETER_FILE
           Specify a file path with values for rich parameters defined in the
-          template.
+          template. The file should be in YAML format, containing key-value
+          pairs for the parameters.
 
   -y, --yes bool
           Bypass prompts.
diff --git a/cli/testdata/coder_start_--help.golden b/cli/testdata/coder_start_--help.golden
index 4985930b62..a4c77e4fa9 100644
--- a/cli/testdata/coder_start_--help.golden
+++ b/cli/testdata/coder_start_--help.golden
@@ -24,7 +24,8 @@ OPTIONS:
 
       --rich-parameter-file string, $CODER_RICH_PARAMETER_FILE
           Specify a file path with values for rich parameters defined in the
-          template.
+          template. The file should be in YAML format, containing key-value
+          pairs for the parameters.
 
   -y, --yes bool
           Bypass prompts.
diff --git a/cli/testdata/coder_update_--help.golden b/cli/testdata/coder_update_--help.golden
index bff9086846..98537fade9 100644
--- a/cli/testdata/coder_update_--help.golden
+++ b/cli/testdata/coder_update_--help.golden
@@ -26,7 +26,8 @@ OPTIONS:
 
       --rich-parameter-file string, $CODER_RICH_PARAMETER_FILE
           Specify a file path with values for rich parameters defined in the
-          template.
+          template. The file should be in YAML format, containing key-value
+          pairs for the parameters.
 
 ———
 Run `coder --help` for a list of global options.
diff --git a/docs/reference/cli/create.md b/docs/reference/cli/create.md
index aefaf4d316..d4003e2f9e 100644
--- a/docs/reference/cli/create.md
+++ b/docs/reference/cli/create.md
@@ -90,7 +90,7 @@ Rich parameter value in the format "name=value".
 | Type        | <code>string</code>                     |
 | Environment | <code>$CODER_RICH_PARAMETER_FILE</code> |
 
-Specify a file path with values for rich parameters defined in the template.
+Specify a file path with values for rich parameters defined in the template. The file should be in YAML format, containing key-value pairs for the parameters.
 
 ### --parameter-default
 
diff --git a/docs/reference/cli/restart.md b/docs/reference/cli/restart.md
index 215917a8e0..33c8f94f27 100644
--- a/docs/reference/cli/restart.md
+++ b/docs/reference/cli/restart.md
@@ -53,7 +53,7 @@ Rich parameter value in the format "name=value".
 | Type        | <code>string</code>                     |
 | Environment | <code>$CODER_RICH_PARAMETER_FILE</code> |
 
-Specify a file path with values for rich parameters defined in the template.
+Specify a file path with values for rich parameters defined in the template. The file should be in YAML format, containing key-value pairs for the parameters.
 
 ### --parameter-default
 
diff --git a/docs/reference/cli/start.md b/docs/reference/cli/start.md
index 0852ec5b57..7fa2f24684 100644
--- a/docs/reference/cli/start.md
+++ b/docs/reference/cli/start.md
@@ -53,7 +53,7 @@ Rich parameter value in the format "name=value".
 | Type        | <code>string</code>                     |
 | Environment | <code>$CODER_RICH_PARAMETER_FILE</code> |
 
-Specify a file path with values for rich parameters defined in the template.
+Specify a file path with values for rich parameters defined in the template. The file should be in YAML format, containing key-value pairs for the parameters.
 
 ### --parameter-default
 
diff --git a/docs/reference/cli/update.md b/docs/reference/cli/update.md
index 562d32f8fd..87665c79cd 100644
--- a/docs/reference/cli/update.md
+++ b/docs/reference/cli/update.md
@@ -51,7 +51,7 @@ Rich parameter value in the format "name=value".
 | Type        | <code>string</code>                     |
 | Environment | <code>$CODER_RICH_PARAMETER_FILE</code> |
 
-Specify a file path with values for rich parameters defined in the template.
+Specify a file path with values for rich parameters defined in the template. The file should be in YAML format, containing key-value pairs for the parameters.
 
 ### --parameter-default