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Claude Code in VS Code: install the extension, features and shortcuts

Claude Code VS Code extension guide: install it in VS Code or Cursor, review diffs, @-mention files, key shortcuts and settings, and when to use the CLI.

By the Kipt team · Updated 24 October 2026

The Claude Code VS Code extension is Anthropic's official graphical interface for Claude Code inside VS Code, and it also installs in Cursor. Search for "Claude Code" in the Extensions view, install it, click the Spark icon and sign in with a paid Claude plan or Claude Console account. You then chat with Claude in a side panel, review its edits as diffs, and @-mention files and line ranges from your editor.

Anthropic's docs call it "the recommended way to use Claude Code in VS Code." This guide covers install, the main features, shortcuts, settings, and when the terminal CLI is the better fit. Everything comes from the VS Code docs page, read on 24 October 2026.

What do you need before installing?

  • VS Code 1.94.0 or later. Check under Help > About.
  • An Anthropic account: any paid Claude subscription (Pro, Max, Team or Enterprise) or a Claude Console account. No API key is required; you sign in from the extension.
  • Optional: the standalone CLI. The extension bundles its own copy of the CLI for the chat panel, but it doesn't put claude on your PATH. Install the CLI separately if you also want to run claude in the integrated terminal. See the Claude Code setup guide.

If your company reaches Claude through Amazon Bedrock, Google Cloud's Agent Platform or Microsoft Foundry, turn on the extension's Disable Login Prompt setting and configure the provider in ~/.claude/settings.json.

How do you install the Claude Code extension?

  1. Press Cmd+Shift+X (Mac) or Ctrl+Shift+X (Windows and Linux) to open the Extensions view.
  2. Search for "Claude Code" and click Install. You can also install it from the VS Code Marketplace.
  3. If it doesn't appear, run Developer: Reload Window from the Command Palette.

The extension's version number matches the Claude Code version it bundles, so a feature that needs Claude Code v2.1.286 needs extension version 2.1.286 or later.

Cursor and other forks. The docs include a direct install link for Cursor. Forks like Kiro can install from the Open VSX registry. For a full comparison of the two tools, see Claude Code vs Cursor.

How do you start using it?

  1. Open the panel. Click the Spark icon in the Editor Toolbar at the top right (it shows only when a file is open). You can also click ✻ Claude Code in the Status Bar, the Spark icon in the Activity Bar for the sessions list, or search "Claude Code" in the Command Palette.
  2. Sign in. Click Sign in and finish in your browser.
  3. Send a prompt. Claude sees your selected text automatically. Press Option+K (Mac) or Alt+K (Windows and Linux) to insert a reference such as @app.ts#5-10.
  4. Review changes. In Manual mode, Claude shows a side-by-side diff and asks before editing. You can accept, reject, or tell Claude what to do instead, and with v2.1.275 or later you can accept or reject each change in the diff one at a time.

Run Claude Code: Open Walkthrough from the Command Palette for a guided tour.

What can the VS Code extension do?

Permission modes. Click the mode indicator under the prompt box to switch between Auto (a classifier reviews most actions), Manual (Claude asks before edits and most commands), Plan, and Edit automatically.

Plan review. In Plan mode, Claude describes what it will do and waits. The docs say VS Code "automatically opens the plan as a full Markdown document where you can add inline comments" before Claude starts.

@-mentions. Type @ plus a file or folder name, with fuzzy matching. Use @terminal:name to include a terminal's output. Paste images into the prompt box, or hold Shift while dragging files in.

Checkpoints. Hover over a message to rewind: fork the conversation, rewind code, or both.

Multiple conversations. Open extra tabs or windows from the Command Palette. Each has its own history. A dot on the Spark icon shows status: blue for a pending permission request, orange when Claude finished while the tab was hidden.

Session history. Search past conversations from the Session history button and resume any of them.

Git. Ask Claude to commit, write commit messages or create pull requests.

MCP servers. Type /mcp in the chat panel to add, remove, enable or reconnect servers. It shares configuration with claude mcp add in the terminal. See the Claude Code MCP guide.

Model and commands. Type / for the command menu, which covers switching models and extended thinking, plus a Customize section for MCP servers, hooks, memory, instructions, permissions and plugins.

What are the keyboard shortcuts?

Action Mac Windows and Linux
Toggle focus between editor and Claude Cmd+Esc Ctrl+Esc
Open a new conversation in a tab Cmd+Shift+Esc Ctrl+Shift+Esc
Insert @-mention for file and selection Option+K Alt+K
Reopen closed Claude session tab Cmd+Shift+T Ctrl+Shift+T
Toggle Focus view (hide tool activity) Ctrl+Option+F Ctrl+Alt+F
New conversation (opt-in setting) Cmd+N Ctrl+N
New line without sending Shift+Enter Shift+Enter

On macOS Tahoe and later, Cmd+Esc may do nothing because the system Game Overlay shortcut grabs it. Clear Game Overlay under System Settings > Keyboard > Keyboard Shortcuts > Game Controllers, or rebind Claude Code: Focus input in VS Code. For the full CLI command list, see the Claude Code cheat sheet.

Which settings matter most?

There are two places to configure Claude Code in VS Code:

  • Extension settings: Cmd+, or Ctrl+,, then Extensions > Claude Code. These control how the extension behaves in the editor.
  • ~/.claude/settings.json: shared with the CLI, for allowed commands, environment variables, hooks and MCP servers.

Extension settings worth knowing:

Setting Default What it does
useTerminal false Launch Claude in terminal mode instead of the graphical panel
initialPermissionMode unset Starting mode for new conversations: default, plan, acceptEdits or bypassPermissions
preferredLocation panel Open Claude in the sidebar or as a new tab (panel)
autosave true Save files before Claude reads or writes them
useCtrlEnterToSend false Send with Ctrl/Cmd+Enter instead of Enter
respectGitIgnore true Exclude .gitignore patterns from file search and selection context
enableNewConversationShortcut false Turn on Cmd/Ctrl+N for a new conversation

Tip from the docs: add "$schema": "https://json.schemastore.org/claude-code-settings.json" to your settings.json for autocomplete and validation in VS Code.

Should you use the extension or the terminal CLI?

Feature CLI VS Code extension
Commands and skills All A subset (type / to see them)
MCP server config Yes Yes, with /mcp
Checkpoints Yes Yes
! Bash shortcut Yes No
Tab completion Yes No

You don't have to choose. Open the integrated terminal with Ctrl+` (or Cmd+` on Mac) and run claude; the CLI connects to VS Code for diffs and diagnostics. From an external terminal, run /ide to connect. Both share conversation history, so claude --resume picks up an extension conversation in the terminal. If you like the CLI look but want it in the editor, turn on the Use Terminal setting.

How do you fix common problems?

  • Spark icon missing: open a file (a folder alone isn't enough), check VS Code is 1.94.0 or later, reload the window, temporarily disable other AI extensions, and make sure the workspace isn't in Restricted Mode.
  • Still asked to sign in with ANTHROPIC_API_KEY set: VS Code may not have your shell environment. Launch it from a terminal with code ., or sign in with your Claude account.
  • claude not found in the integrated terminal: install the standalone CLI; on Windows see the Claude Code Windows guide for PATH fixes.
  • No response: start a new conversation, then run claude in a terminal to see fuller error messages.

What about JetBrains IDEs?

Anthropic also publishes a Claude Code plugin for JetBrains IDEs, including IntelliJ IDEA, PyCharm, Android Studio, WebStorm, PhpStorm and GoLand. It opens Claude's changes in the IDE diff viewer, shares your selection, and launches with Cmd+Esc or Ctrl+Esc. It runs claude in the IDE's terminal and doesn't bundle the CLI, so install the CLI first.

Do your skills work in the extension?

Yes, with one limit: the extension offers a subset of the CLI's commands and skills, so type / to see what's available. With Claude Code v2.1.280 or later, typing /skills in the panel opens a dialog that lists each skill with its visibility, such as On or Name only, which you can change there. Personal skills live in ~/.claude/skills/, per the skills docs. If you keep prompts and Agent Skills in Kipt, they sit as Markdown in a private GitHub repo you own, and npx skills add https://github.com/<you>/<repo>.git --all -g installs every skill into Claude Code in one command.

Questions

How do I install Claude Code in VS Code?

Open the Extensions view with Cmd+Shift+X on Mac or Ctrl+Shift+X on Windows and Linux, search for Claude Code and click Install. You need VS Code 1.94.0 or later and a paid Claude plan or Claude Console account. Then click the Spark icon and sign in.

Does the Claude Code extension work in Cursor?

Yes. Anthropic's docs give a direct install link for Cursor, and the extension also installs in other VS Code forks from the Open VSX registry. In editors that can't install it, run the claude CLI in the integrated terminal instead.

Do I need the CLI installed to use the VS Code extension?

No. The extension bundles its own copy of the CLI for its chat panel. That copy isn't added to your PATH, so to type claude in VS Code's integrated terminal you also need the standalone CLI install.

What is the difference between the VS Code extension and Claude Code in the terminal?

The extension gives you a graphical panel with inline diffs, plan review and @-mentions from your selection. The CLI has every command and skill, the ! Bash shortcut and tab completion. Both share settings and conversation history, so you can resume an extension conversation in the terminal with claude --resume.

Is there a Claude Code plugin for JetBrains IDEs?

Yes. Anthropic publishes a Claude Code plugin for IntelliJ IDEA, PyCharm, WebStorm, GoLand and other JetBrains IDEs. Unlike the VS Code extension, it doesn't bundle the CLI, so install the claude CLI first.

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Kipt is an independent product, not affiliated with or endorsed by Anthropic, OpenAI, Cursor or GitHub. Claude, ChatGPT, Codex, Cursor and GitHub are trademarks of their owners.