What the Claude Code VS Code extension is
The Claude Code VS Code extension is Anthropic's own graphical panel for Claude Code, built into VS Code. Instead of chatting in a separate window, you talk to Claude in a panel next to your code. It reads the file you have open, sees the lines you highlight, and shows every edit it wants to make as a side-by-side diff you can accept or reject. It is the same Claude Code underneath: the extension bundles its own copy of the CLI, and it shares your settings, MCP servers, plugins and conversation history with the rest of Claude Code.
My default advice to most people in the club is still to start in the Claude Code desktop app. But a lot of people already have VS Code open all day, and for them the extension is the better fit, because the code and the conversation sit in one window.
How to install and sign in
- Check your VS Code version. The official docs list VS Code 1.94.0 or later as the minimum.
- Open the Extensions view with Cmd+Shift+X (Mac) or Ctrl+Shift+X (Windows/Linux), search for "Claude Code", and click Install. Make sure the publisher is Anthropic.
- Open the panel. Click the Spark icon in the top-right of the editor (it only shows when a file is open), the Spark icon in the left Activity Bar, or "Claude Code" in the bottom-right status bar.
- Sign in. Click Sign in and finish in your browser. Any paid Claude plan (Pro, Max, Team or Enterprise) or a Claude Console account works, and you do not need an API key.
- Open a project folder, not a single file, so Claude can see the whole codebase. Then run "Claude Code: Open Walkthrough" from the Command Palette if you want the built-in tour.
If the extension does not appear after installing, restart VS Code or run "Developer: Reload Window" from the Command Palette. Not sure which plan to sign in with? Which Claude plan for Claude Code walks through the choice.
The features that make it worth using
The reason to use the extension instead of a separate window is context. You stop explaining where things are, because Claude already knows what you are looking at.
- Selection and open file: Claude sees the file you have open and any code you highlight. You can turn the open-file part off in the extension settings if you only want the selection sent.
- @-mentions: type @ and part of a file or folder name to pull it in. Fuzzy matching means @auth finds auth.js or AuthService.ts.
- @terminal: reference a terminal by its title, like @terminal:name, so Claude sees the error output without you copying it.
- Diffs you can edit: in Manual mode every proposed edit opens side by side. You can accept or reject it, accept or reject one change at a time, or edit the proposal before accepting, and Claude is told you changed it.
- Plan mode: Claude writes the plan as a full document you can comment on before it touches a file. Type /plan to switch into it. More on why that matters in Claude Code plan mode.
- Checkpoints: hover over any message to rewind the code, fork the conversation, or both. Checkpoints and rewind covers how far you can trust them.
- Several conversations: open extra tabs or windows for side tasks while your main session runs in the sidebar.
Shortcuts worth learning
Claude Code VS Code extension shortcuts from the official docs
| What it does | Mac | Windows / Linux |
|---|---|---|
| Jump between the editor and Claude | Cmd+Esc | Ctrl+Esc |
| Insert an @-mention of your selected lines | Option+K | Alt+K |
| New line in the prompt without sending | Shift+Enter | Shift+Enter |
| Reopen the last closed Claude tab | Cmd+Shift+T | Ctrl+Shift+T |
| Hide or show tool activity (Focus view) | Ctrl+Option+F | Ctrl+Alt+F |
| Expand or collapse all thinking blocks | Ctrl+O | Ctrl+O |
If you learn one, make it the selection shortcut. Highlighting the broken function and pressing Option+K gives Claude an exact reference like @app.ts#5-10, which beats describing the code in words every time.
What the extension cannot do
The extension covers most of what you need, but the official docs are clear that some features are CLI-only. Knowing them saves you a confused half hour.
- Commands and skills: the extension shows a subset. Type / to see which ones are available.
- The ! Bash shortcut and tab completion are CLI-only.
- Installing the extension does not put claude on your PATH. To run claude in VS Code's integrated terminal, install the standalone CLI as well. After that, terminal sessions connect to VS Code for diffs and diagnostics.
- The extension and the CLI share history, so you can start in the panel and pick the same conversation up in a terminal with claude --resume.
The settings file at ~/.claude/settings.json is shared between the extension and the CLI, so your allowed commands, hooks and MCP servers carry over. Claude Code settings.json explains what goes in it, and you can manage MCP servers from inside the panel with /mcp.
VS Code extension or desktop app: which I would use
Where to run Claude Code
| If you... | Use |
|---|---|
| Already write or read code in VS Code every day | The VS Code extension |
| Are new to code and mostly describe what you want | The desktop app |
| Want to review every edit line by line before it lands | The VS Code extension, in Manual mode |
| Run several projects and long sessions side by side | The desktop app |
| Need a CLI-only feature | claude in the integrated terminal, with the standalone CLI installed |
My take: the extension shines when you are reading the code with Claude, not just asking for it. If you open the files, check the diffs and nudge the work as it goes, the extension is the best seat in the house. If you mostly describe the outcome and test the result, an editor full of panels is more than you need, and the desktop app keeps it simpler. Neither is a downgrade. They share the same engine, the same settings and the same history, so you can move between them on the same project.
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Frequently asked questions
Is there an official Claude Code extension for VS Code?
Yes. Anthropic publishes the Claude Code extension for VS Code. Search "Claude Code" in the Extensions view and install the one from Anthropic. It also installs in VS Code forks such as Cursor.
Do I need an API key to use Claude Code in VS Code?
No. You sign in with any paid Claude plan (Pro, Max, Team or Enterprise) or a Claude Console account. An API key is only one option, not a requirement.
Why does claude say command not found in the VS Code terminal?
The extension bundles a private copy of Claude Code for its chat panel and does not add claude to your PATH. Install the standalone CLI once and the claude command works in the integrated terminal and any other terminal.
Can I switch between the VS Code extension and the terminal mid-project?
Yes. They share conversation history and the same settings file. Run claude --resume in a terminal to pick up a conversation you started in the extension.
Should I use the VS Code extension or the Claude Code desktop app?
Use the extension if you already work in VS Code and like to review code and diffs as Claude works. Use the desktop app if you are newer to code and mostly describe outcomes. Both run the same Claude Code underneath.
Last reviewed by David Iya on October 10, 2026
