diff --git a/MANIFEST.in b/MANIFEST.in
index 321ef58cd7636e4a8f64e1b85c0d6e19e77b5c8a..f984a3d027502c1a2a293f0031c48fc18e5bdf50 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -1,4 +1,4 @@
 include image_creator/help/*.rst
-include README COPYRIGHT AUTHORS ChangeLog
+include README.md COPYRIGHT AUTHORS ChangeLog
 recursive-include docs *
 prune docs/_build
diff --git a/setup.py b/setup.py
index 3a6dd27063970093d3d8818ee078ae5882e551dc..0ff631a0d3f37e9d62c2bc3bbee5821db2cd82dc 100755
--- a/setup.py
+++ b/setup.py
@@ -42,7 +42,7 @@ setup(
     name='snf_image_creator',
     version=image_creator.__version__,
     description='Command line tool for creating images',
-    long_description=open('README').read(),
+    long_description=open('README.md').read(),
     url='https://code.grnet.gr/projects/snf-image-creator',
     author="Synnefo development team",
     author_email="synnefo-devel@googlegroups.com",