diff --git a/crates/bevy_ecs/src/component.rs b/crates/bevy_ecs/src/component.rs
index 3e4d97c832a7d..74b0bf342c4b3 100644
--- a/crates/bevy_ecs/src/component.rs
+++ b/crates/bevy_ecs/src/component.rs
@@ -221,7 +221,8 @@ pub struct ComponentHooks {
 
 impl ComponentHooks {
     /// Register a [`ComponentHook`] that will be run when this component is added to an entity.
-    /// An `on_add` hook will always be followed by `on_insert`.
+    /// An `on_add` hook will always run before `on_insert` hooks. Spawning an entity counts as
+    /// adding all of it's components.
     ///
     /// Will panic if the component already has an `on_add` hook
     pub fn on_add(&mut self, hook: ComponentHook) -> &mut Self {
@@ -229,9 +230,9 @@ impl ComponentHooks {
             .expect("Component id: {:?}, already has an on_add hook")
     }
 
-    /// Register a [`ComponentHook`] that will be run when this component is added or set by `.insert`
-    /// An `on_insert` hook will run even if the entity already has the component unlike `on_add`,
-    /// `on_insert` also always runs after any `on_add` hooks.
+    /// Register a [`ComponentHook`] that will be run when this component is added (with `.insert`)
+    /// or replaced. The hook won't run if the component is already present and is only mutated.
+    /// An `on_insert` hook always runs after any `on_add` hooks (if the entity didn't already have the component).
     ///
     /// Will panic if the component already has an `on_insert` hook
     pub fn on_insert(&mut self, hook: ComponentHook) -> &mut Self {
diff --git a/examples/ecs/component_hooks.rs b/examples/ecs/component_hooks.rs
index 79fc96b79c634..c98891bf02f3c 100644
--- a/examples/ecs/component_hooks.rs
+++ b/examples/ecs/component_hooks.rs
@@ -1,4 +1,17 @@
-//! This examples illustrates the different ways you can employ component lifecycle hooks
+//! This example illustrates the different ways you can employ component lifecycle hooks.
+//!
+//! Whenever possible, prefer using Bevy's change detection or Events for reacting to component changes.
+//! Events generally offer better performance and more flexible integration into Bevy's systems.
+//! Hooks are useful to enforce correctness but have limitations (only one hook per component,
+//! less ergonomic than events).
+//!
+//! Here are some cases where components hooks might be necessary:
+//!
+//! - Maintaining indexes: If you need to keep custom data structures (like a spatial index) in
+//! sync with the addition/removal of components.
+//!
+//! - Enforcing structural rules: When you have systems that depend on specific relationships
+//! between components (like hierarchies or parent-child links) and need to maintain correctness.
 
 use bevy::ecs::component::{ComponentHooks, TableStorage};
 use bevy::prelude::*;
@@ -35,7 +48,7 @@ fn main() {
 
 fn setup(world: &mut World) {
     // In order to register component hooks the component must:
-    // - not belong to any created archetypes
+    // - not be currently in use by any entities in the world
     // - not already have a hook of that kind registered
     // This is to prevent overriding hooks defined in plugins and other crates as well as keeping things fast
     world