diff --git a/changelog.d/17348.doc b/changelog.d/17348.doc
new file mode 100644
index 000000000..4ce42bbad
--- /dev/null
+++ b/changelog.d/17348.doc
@@ -0,0 +1 @@
+Fix an error in the docs for `search_all_users` parameter under `user_directory`.
diff --git a/docs/usage/configuration/config_documentation.md b/docs/usage/configuration/config_documentation.md
index b3db07870..ba9f21cde 100644
--- a/docs/usage/configuration/config_documentation.md
+++ b/docs/usage/configuration/config_documentation.md
@@ -3807,7 +3807,8 @@ This setting defines options related to the user directory.
 This option has the following sub-options:
 * `enabled`:  Defines whether users can search the user directory. If false then
    empty responses are returned to all queries. Defaults to true.
-* `search_all_users`: Defines whether to search all users visible to your HS at the time the search is performed. If set to true, will return all users who share a room with the user from the homeserver.
+* `search_all_users`: Defines whether to search all users visible to your homeserver at the time the search is performed.
+   If set to true, will return all users known to the homeserver matching the search query.
    If false, search results will only contain users
     visible in public rooms and users sharing a room with the requester.
     Defaults to false.