diff --git a/docs/_pages/performance.md b/docs/_pages/performance.md
index b59a07bf..d4dc0e8e 100644
--- a/docs/_pages/performance.md
+++ b/docs/_pages/performance.md
@@ -31,6 +31,8 @@ Unlike Lua and LuaJIT, Luau uses a multi-pass compiler with a frontend that pars
 
 While bytecode optimizations are limited due to the flexibility of Luau code (e.g. `a * 1` may not be equivalent to `a` if `*` is overloaded through metatables), even in absence of type information Luau compiler can perform some optimizations such as "deep" constant folding across functions and local variables, perform upvalue optimizations for upvalues that aren't mutated, do analysis of builtin function usage, optimize the instruction sequences for multiple variable assignments, and some peephole optimizations on the resulting bytecode. The compiler can also be instructed to use more aggressive optimizations by enabling optimization level 2 (`-O2` in CLI tools), some of which are documented further on this page.
 
+Most bytecode optimizations are performed on individual statements or functions, however the compiler also does a limited amount of interprocedural optimizations; notably, calls to local functions can be optimized with the knowledge of the argument count or number of return values involved. Interprocedural optimizations are limited to a single module due to the compilation model.
+
 Luau compiler currently doesn't use type information to do further optimizations, however early experiments suggest that we can extract further wins. Because we control the entire stack (unlike e.g. TypeScript where the type information is discarded completely before reaching the VM), we have more flexibility there and can make some tradeoffs during codegen even if the type system isn't completely sound. For example, it might be reasonable to assume that in presence of known types, we can infer absence of side effects for arithmetic operations and builtins - if the runtime types mismatch due to intentional violation of the type safety through global injection, the code will still be safely sandboxed; this may unlock optimizations such as common subexpression elimination and allocation hoisting without a JIT. This is speculative pending further research.
 
 ## Epsilon-overhead debugger