diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1748bcc7..d5e962f8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -57,6 +57,7 @@
 
 ## Breaking Changes
 
+- [#499](https://github.com/pybop-team/PyBOP/pull/499) - BPX is added as an optional dependency.
 - [#483](https://github.com/pybop-team/PyBOP/pull/483) - Replaces `pybop.MAP` with `pybop.LogPosterior` with an updated call args and bugfixes.
 - [#436](https://github.com/pybop-team/PyBOP/pull/436) - **API Change:** The functionality from `BaseCost.evaluate/S1` & `BaseCost._evaluate/S1` is represented in `BaseCost.__call__` & `BaseCost.compute`. `BaseCost.compute` directly acts on the predictions, while `BaseCost.__call__` calls `BaseProblem.evaluate/S1` before `BaseCost.compute`. `compute` has optional args for gradient cost calculations.
 - [#424](https://github.com/pybop-team/PyBOP/issues/424) - Replaces the `init_soc` input to `FittingProblem` with the option to pass an initial OCV value, updates `BaseModel` and fixes `multi_model_identification.ipynb` and `spm_electrode_design.ipynb`.
diff --git a/docs/installation.rst b/docs/installation.rst
index 6bc3169c..50138d81 100644
--- a/docs/installation.rst
+++ b/docs/installation.rst
@@ -42,6 +42,28 @@ For those who prefer to install PyBOP from a local clone of the repository or wi
 
 In editable mode, changes you make to the source code will immediately affect the PyBOP installation without the need for reinstallation.
 
+Optional Dependencies
+-----------------
+``plotly`` - For plotting, PyBOP uses plotly. It can be installed with:
+
+.. code-block:: console
+
+    pip install pybop[plot]
+
+``scikit-fem`` - This is a dependency for the multi-dimensional pybamm models, and can be installed using:
+
+.. code-block:: console
+
+    pip install pybop[scifem]
+
+``bpx`` - To use the Faraday Institution's Battery Parameter eXchange (BPX) package install the optional requirement:
+
+.. code-block:: console
+
+    pip install pybop[bpx]
+
+To install all the optional dependencies, the command ``pip install pybop[all]`` is available. For more information on the optional packages, users are directed towards the `pyproject.toml <https://github.com/pybop-team/PyBOP/blob/develop/pyproject.toml>`_.
+
 Verifying Installation
 ----------------------
 
diff --git a/pyproject.toml b/pyproject.toml
index 5861aab7..5e1c7444 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -30,7 +30,6 @@ dependencies = [
   "numpy>=1.16, <2.0",
   "scipy>=1.3",
   "pints>=0.5",
-  "bpx>=0.4",
 ]
 
 [project.optional-dependencies]
@@ -58,7 +57,10 @@ dev = [
 scifem = [
   "scikit-fem>=8.1.0" # scikit-fem is a dependency for the multi-dimensional pybamm models
 ]
-all = ["pybop[plot]", "pybop[scifem]"]
+bpx = [
+    "bpx>=0.4",
+]
+all = ["pybop[plot,scifem,bpx]"]
 
 [tool.setuptools.packages.find]
 include = ["pybop", "pybop.*"]