Claude Code in Cursor: How to Set It Up and When It Makes Sense

David IyaDavid Iya October 13, 2026 7 min read

Can you use Claude Code in Cursor?

Yes. Cursor is built on VS Code, and Anthropic's Claude Code extension installs in it. Anthropic's own VS Code docs list two install links side by side: Install for VS Code and Install for Cursor. Once it is in, you get the same Claude Code panel you would get in VS Code: Claude sees the file you have open and the code you select, shows proposed edits as diffs, and shares settings and conversation history with the rest of Claude Code.

This is the fourth entry in my editor series, after the Claude Code VS Code extension, the Claude Code JetBrains plugin and Claude Code in Zed. Cursor gets its own post because it raises a question the others do not: Cursor already has AI built in, so why add Claude Code on top?

How to install Claude Code in Cursor

  1. Open the Claude Code VS Code page in Anthropic's docs and click Install for Cursor. It opens Cursor and goes straight to the extension. Or open Cursor's Extensions view, search "Claude Code", and install the one published by Anthropic.
  2. If the extension does not show up after installing, run "Developer: Reload Window" from the Command Palette.
  3. Open a file and click the Spark icon in the top-right of the editor, or click Claude Code in the status bar at the bottom right.
  4. Sign in. Any paid Claude plan (Pro, Max, Team or Enterprise) or a Claude Console account works, and no API key is needed.

Anthropic's docs also point to the Open VSX registry for VS Code forks, so if the in-editor search ever does not find it, that is where the extension lives. Check the publisher is Anthropic before you install anything with Claude in the name.

The extension panel vs the claude command in Cursor's terminal

There are two ways to run Claude Code inside Cursor, and it helps to know which is which. The extension gives you the graphical chat panel. It bundles its own private copy of Claude Code for that panel, but per Anthropic's docs it does not put the claude command on your PATH. To type claude in Cursor's integrated terminal, you also need the standalone Claude Code install.

Two ways to run Claude Code in Cursor, based on Anthropic's VS Code documentation

Extension panelclaude in the integrated terminal
What you seeA chat panel with diffs, plan review and checkpointsThe full Claude Code terminal interface
NeedsThe extension onlyThe standalone CLI install
CommandsA subset (type / to see them)All commands, plus the ! Bash shortcut and tab completion
Best forMost day-to-day work in the editorPower features and anything the panel does not have yet

The two share conversation history, so you can start in the panel and pick the same conversation up in the terminal with claude --resume. If you run claude in a terminal outside Cursor, run /ide inside Claude Code to connect it to the editor. And if you prefer the terminal look but want it in the panel's spot, the extension has a Use Terminal setting that opens Claude in terminal mode instead of the chat view.

Cursor's AI and Claude Code: who does what

Here is how I would split the work. Cursor's strength is AI while you type: finishing your line, rewriting a block you selected, small edits where you stay in the driver's seat. Claude Code's strength is handing over a whole task: read the project, plan, make changes across many files, run the commands, and report back. Those are different jobs, so running both is not wasteful as long as each does its own.

  • Small, in-line edits while you are writing code: Cursor.
  • "Add login to this app" or "find why the checkout breaks and fix it": Claude Code, ideally starting in plan mode so you approve the approach first.
  • Anything that should use your CLAUDE.md, skills, hooks or MCP servers: Claude Code, because those come with your Claude Code setup, not with Cursor.

The billing side is simple once you see it. Claude Code in Cursor runs on your Claude login, so it uses your Claude plan's limits. Cursor's own AI runs on your Cursor plan. One does not pay for the other. If you are watching Claude usage closely, Claude Code usage limits covers what to do when you hit them.

Should you use Claude Code in Cursor?

Where to run Claude Code

If you...Use
Already pay for and like CursorThe Claude Code extension in Cursor
Already work in VS CodeThe VS Code extension
Already work in IntelliJ, PyCharm or WebStormThe JetBrains plugin
Already work in ZedA Zed Terminal Thread running claude
Are new to code and mostly describe what you wantThe desktop app

My take: if Cursor is your editor, add the extension. It costs you nothing extra on the Cursor side, and it gives you an agent for bigger jobs without leaving the window. What I would not do is start paying for Cursor only to run Claude Code in it. The extension behaves the same in plain VS Code, and the Claude Code desktop app is where I tell most people in the club to start. Your CLAUDE.md file, settings and MCP servers travel with you whichever you pick, and Claude Code day one setup covers the first hour.

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Frequently asked questions

Does Claude Code work in Cursor?

Yes. Cursor is a fork of VS Code, and Anthropic's Claude Code extension installs in it. Anthropic's docs include an Install for Cursor link, or you can search "Claude Code" in Cursor's Extensions view and install the one from Anthropic.

Do I need a Cursor subscription to use Claude Code in Cursor?

Claude Code itself runs on your Claude login, either a paid Claude plan or a Claude Console account. Cursor's own AI features are billed by Cursor separately. If you only want Claude Code in an editor, plain VS Code runs the same extension.

Why does the claude command not work in Cursor's terminal after installing the extension?

The extension bundles a private copy of Claude Code for its chat panel and does not add claude to your PATH. Install the standalone Claude Code CLI once, and claude will work in Cursor's integrated terminal and any other terminal.

Can Cursor's AI and Claude Code work at the same time?

They can both be installed and open, but do not let them edit the same files at once. Give a task to one, review its diff, then move on. I use Cursor for in-line edits and Claude Code for whole tasks.

Does Claude Code in Cursor use my CLAUDE.md and MCP servers?

Yes. The extension shares settings and conversation history with the rest of Claude Code, so your CLAUDE.md, MCP servers and other Claude Code settings apply in Cursor too.

Last reviewed by David Iya on October 13, 2026

David Iya

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David Iya

Forbes 30 Under 30 · Y Combinator

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