diff --git a/README.md b/README.md
index 23c91c7..61de064 100644
--- a/README.md
+++ b/README.md
@@ -53,7 +53,9 @@ The dongle ships with factory firmware that **must be replaced** with the BLZ co
      --pt Image/Coordinator/blz/v1.00.12/R3_706_dongle_v1.00.12/partition_cfg_1M.toml
    ```
 
-4. Power cycle: unplug and replug the dongle. The **red LED** should illuminate, confirming the firmware is running.
+4. Power cycle: unplug and replug the dongle. The **blue LED** should illuminate, confirming the firmware is running and the dongle is healthy.
+
+   LED states: **blue = healthy and fully functional**, **red = bootable but not fully functional** (degraded — check power/contact), **no LED = not booted**.
 
 ### Firmware Version Compatibility
 
@@ -165,7 +167,7 @@ The `zigpy-blz` Python library (from `bouffalolab/zigpy-blz`) can be used for di
 | Symptom | Cause | Fix |
 |---|---|---|
 | Dongle USB disconnects/reconnects repeatedly | Unpowered USB hub or weak port | Use a **powered** USB hub |
-| Red LED not lit | Wrong firmware or bad flash | Re-flash with correct firmware |
+| Red LED (not blue) | Dongle bootable but degraded — weak power or marginal USB contact | Reseat on a powered hub; re-plug. Re-flash only if a blue LED never appears |
 | `zh:blz:uart: frameId:21 after 1000ms` | Baudrate mismatch | Set `baudrate: 2000000` in zigbee2mqtt config |
 | `Chip type is not correct` (flashing) | Wrong `--chipname` | Use `BL702` for this dongle |
 | Bootloader won't respond | Firmware corruption | Use bootloader button + reflash |