diff --git a/README.md b/README.md
index ea70127..2400fed 100644
--- a/README.md
+++ b/README.md
@@ -10,6 +10,7 @@ Stacks to run a node for laconic testnet
 
 - [Update deployments after code changes](./ops/update-deployments.md)
 - [Halt stage0 and start stage1](./ops/stage0-to-stage1.md)
+- [Halt stage1 and start stage2](./ops/stage1-to-stage2.md)
 - [Create deployments from scratch (for reference only)](./ops/deployments-from-scratch.md)
 - [Deploy and transfer new tokens for nitro operations](./ops/nitro-token-ops.md)
 
diff --git a/ops/stage1-to-stage2.md b/ops/stage1-to-stage2.md
new file mode 100644
index 0000000..0f64ce5
--- /dev/null
+++ b/ops/stage1-to-stage2.md
@@ -0,0 +1,116 @@
+# Halt stage1 and start stage2
+
+## Login
+
+* Log in as `dev` user on the deployments VM
+
+* All the deployments are placed in the `/srv` directory:
+
+  ```bash
+  cd /srv
+  ```
+
+## Halt stage1
+
+* Confirm the the currently running node is for stage1 chain:
+
+  ```bash
+  # On stage1 deployment machine
+  cd /srv/laconicd
+
+  laconic-so deployment --dir stage1-deployment logs laconicd -f --tail 30
+  ```
+
+* Stop the stage1 deployment:
+
+  ```bash
+  laconic-so deployment --dir stage1-deployment stop
+
+  # Stopping this deployment marks the end of testnet stage1
+  ```
+
+## Initialize stage2
+
+* Copy over the `stage1-deployment` dir to stage2 deployment machine
+
+* Copy over the stage1 node data to stage2 deployment dir:
+
+  ```bash
+  # On stage2 deployment machine
+  cd /srv/laconicd
+
+  STAGE1_DEPLOYMENT=
+  cp -r $STAGE1_DEPLOYMENT/data/laconicd-data stage2-deployment/data
+  ```
+
+* Initialize stage2 chain:
+
+  ```bash
+  DEPLOYMENT_DIR=$pwd
+
+  cd ~/cerc/fixturenet-laconicd-stack/stack-orchestrator/stacks/fixturenet-laconicd
+
+  STAGE2_CHAIN_ID=laconic_9000-2
+  ./scripts/initialize-stage2.sh $DEPLOYMENT_DIR/stage2-deployment $STAGE2_CHAIN_ID 1000000000000000
+
+  cd $DEPLOYMENT_DIR
+  ```
+
+  * Exports the data from stage1
+
+  * Generates the genesis file for stage2
+
+  * Initializes the `stage2-deployment` node
+
+## Start stage2
+
+* Start the stage2 deployment:
+
+  ```bash
+  laconic-so deployment --dir stage2-deployment start
+  ```
+
+* Check status of stage2 laconicd:
+
+  ```bash
+  # List down the container and check health status
+  docker ps -a | grep laconicd
+
+  # Follow logs for laconicd container, check that new blocks are getting created
+  laconic-so deployment --dir stage2-deployment logs laconicd -f
+  ```
+
+* Get the node's peer adddress and stage2 genesis file to share with the participants:
+
+  * Get the node id:
+
+    ```bash
+    echo $(laconic-so deployment --dir stage1-deployment exec laconicd "laconicd cometbft show-node-id")@laconicd.laconic.com:26656
+    ```
+
+  * Get the genesis file:
+
+    ```bash
+    scp dev@<deployments-server-hostname>:/srv/laconicd/stage2-deployment/data/laconicd-data/config/genesis.json </path/to/local/directory>
+    ```
+
+* Now users can follow the steps to [Upgrade to testnet stage2](https://git.vdb.to/cerc-io/testnet-laconicd-stack/src/branch/main/testnet-onboarding-validator.md#upgrade-to-testnet-stage2)
+
+## Bank Transfer
+
+* Transfer tokens to an address:
+
+  ```bash
+  cd /srv/laconicd
+
+  RECEIVER_ADDRESS=
+  AMOUNT=
+
+  laconic-so deployment --dir stage2-deployment exec laconicd "laconicd tx bank send alice ${RECEIVER_ADDRESS} ${AMOUNT}alnt --from alice --fees 1000000alnt"
+  ```
+
+* Check balance:
+
+  ```bash
+  laconic-so deployment --dir stage2-deployment exec laconicd "laconicd query bank balances ${RECEIVER_ADDRESS}"
+  ```