How to Use Cursor AI: The AI Code Editor That Replaces VS Code (2026)

Cursor is an AI-first code editor built on VS Code that integrates large language models directly into your development workflow. Instead of switching between your editor and ChatGPT, Cursor puts AI assistance right where you write code — offering inline completions, natural language editing, and full codebase-aware conversations.

This guide covers everything from initial setup to advanced features that make Cursor one of the most productive coding environments available.

TL;DR — Quick Start

1. Download Cursor from cursor.com (free tier available)
2. Import your VS Code extensions and settings in one click
3. Use Cmd+K (Mac) or Ctrl+K (Windows) for inline AI editing
4. Use Cmd+L for AI chat with full codebase context
5. Tab to accept AI autocomplete suggestions

Why Cursor Over VS Code + Copilot?

Feature	Cursor	VS Code + Copilot
Codebase-aware chat	Built-in with @codebase	Requires Copilot Chat
Inline editing	Cmd+K with diff view	Limited
Multi-file edits	Composer mode	Not available
Model selection	GPT-4o, Claude, custom	GPT-4o only
Tab completion	Context-aware, multi-line	Line-by-line
Price	Free / $20/mo Pro	$10/mo Copilot
VS Code extensions	Full compatibility	Native

Installation and Setup

Step 1: Download Cursor

Visit cursor.com and download the installer for your operating system. Cursor is available for Windows, macOS, and Linux.

Step 2: Import VS Code Settings

On first launch, Cursor offers to import your VS Code configuration:

• Extensions
• Keybindings
• Settings
• Themes

Click “Import from VS Code” to bring everything over. Your workflow stays intact.

Step 3: Sign In and Choose a Plan

• Free (Hobby): 2,000 completions/month, 50 slow premium requests
• Pro ($20/month): Unlimited completions, 500 fast premium requests, unlimited slow requests
• Business ($40/user/month): Team features, admin controls, centralized billing

Step 4: Configure AI Model

Go to Settings > Models to choose your default AI model:

• GPT-4o: Fast, good general coding
• Claude 3.5 Sonnet: Excellent for complex reasoning
• Claude 3 Opus: Best for difficult problems (slower)
• cursor-small: Fast, lightweight completions

You can switch models per-conversation based on the task complexity.

Core Feature 1: Tab Completion

Cursor’s Tab completion is smarter than traditional autocomplete. It predicts multi-line code blocks based on your context.

How It Works

1. Start typing code normally
2. Ghost text appears showing the AI suggestion
3. Press Tab to accept the full suggestion
4. Press Esc to dismiss

Tips for Better Completions

• Write clear function names and comments before coding
• Keep related code in the same file for better context
• Tab completion learns your coding patterns over time
• Use descriptive variable names to guide suggestions

Example

Type a function signature:

def calculate_shipping_cost(weight, distance, express=False):

Tab completion will suggest the full function body based on the signature and surrounding code.

Core Feature 2: Cmd+K Inline Editing

Press Cmd+K (Mac) or Ctrl+K (Windows) to open the inline editing bar. This lets you edit code using natural language.

Basic Usage

1. Select code (or place cursor where you want changes)
2. Press Cmd+K
3. Type your instruction: “add error handling” or “convert to async”
4. Review the diff and press Enter to accept

Powerful Instructions

• “Refactor this function to use a dictionary instead of if-else”
• “Add TypeScript types to all parameters”
• “Optimize this SQL query for performance”
• “Add input validation with descriptive error messages”
• “Convert this class component to a functional component with hooks”

Working with Selections

• No selection: AI generates new code at cursor position
• Single line: AI modifies that specific line
• Multi-line selection: AI edits the selected block
• Entire function: Select all and give high-level instructions

Core Feature 3: AI Chat (Cmd+L)

The chat panel gives you a conversational AI assistant that understands your entire codebase.

Opening Chat

• Cmd+L (Mac) or Ctrl+L (Windows) opens the chat panel
• Highlighted code is automatically included as context

Context References

Use @ mentions to give the AI specific context:

Reference	What It Does
`@file`	References a specific file
`@folder`	Includes an entire folder
`@codebase`	Searches your whole project
`@web`	Searches the internet
`@docs`	References documentation
`@git`	Includes git diff or history

Example Conversations

• “Explain how authentication works in this project” + @codebase
• “Why is this test failing?” + select the test code
• “How should I implement pagination for this API?” + @file:api/routes.ts

Chat Tips

1. Be specific about what you want
2. Reference relevant files with @file
3. Use @codebase for project-wide questions
4. Ask follow-up questions to refine answers
5. Use “Apply” button to insert suggested code directly

Core Feature 4: Composer (Multi-File Editing)

Composer is Cursor’s most powerful feature — it edits multiple files simultaneously based on a single instruction.

How to Use Composer

1. Press Cmd+I (Mac) or Ctrl+I (Windows) to open Composer
2. Describe the change you want across your project
3. Composer creates a plan showing which files will be modified
4. Review changes file by file
5. Accept all or selectively apply changes

Best Use Cases

• “Add a dark mode toggle to the settings page and update the theme provider”
• “Create a new API endpoint for user preferences with model, route, and controller”
• “Refactor the authentication system from JWT to session-based”
• “Add unit tests for all functions in the utils/ directory”

Composer vs Chat

• Chat: Questions, explanations, single-file changes
• Composer: Multi-file edits, feature implementation, refactoring

Advanced Features

Custom Documentation

Add documentation sources for AI to reference:

1. Go to Settings > Features > Docs
2. Add URLs to documentation sites
3. Use @docs in chat to reference them

This is invaluable for frameworks with frequent updates.

Rules for AI

Create a .cursorrules file in your project root to set coding standards:

You are an expert TypeScript developer.
- Use functional components with hooks
- Prefer named exports over default exports
- Use Zod for runtime validation
- Write JSDoc comments for public functions
- Follow the repository's existing patterns

Privacy Mode

For sensitive codebases:

• Go to Settings > Privacy
• Enable “Privacy Mode” — your code won’t be stored on Cursor’s servers
• Enterprise plans offer additional compliance features

Terminal Integration

Cursor’s terminal also has AI features:

• Cmd+K in terminal: Generate shell commands from natural language
• “Find all Python files larger than 1MB” generates the correct find command
• “Show git log for the last week with stats” generates the right git log command

Practical Workflows

Workflow 1: Bug Fixing

1. Open the buggy file
2. Select the problematic code
3. Press Cmd+L and describe the bug
4. AI explains the issue and suggests a fix
5. Click “Apply” to implement the fix
6. Use Cmd+K to refine if needed

Workflow 2: Feature Development

1. Open Composer with Cmd+I
2. Describe the feature in detail
3. Reference relevant existing files with @file
4. Review the multi-file plan
5. Accept changes and test
6. Iterate with follow-up instructions

Workflow 3: Code Review

1. Use @git to reference recent changes
2. Ask: “Review the changes in the last commit for bugs and improvements”
3. AI analyzes the diff and provides feedback
4. Apply suggested improvements with one click

Workflow 4: Learning a New Codebase

1. Open the project in Cursor
2. Press Cmd+L and ask: “Give me an overview of this project architecture” + @codebase
3. Follow up with specific questions about modules
4. Use @file to deep-dive into specific components

Keyboard Shortcuts Reference

Shortcut	Action
Cmd+K	Inline AI edit
Cmd+L	Open AI chat
Cmd+I	Open Composer
Tab	Accept completion
Esc	Dismiss suggestion
Cmd+Shift+L	Add selection to chat
Cmd+Enter	Send message in chat

Troubleshooting

Slow Completions

• Check your internet connection
• Switch to cursor-small model for faster completions
• Reduce the number of open files
• Pro plan offers faster response times

AI Gives Wrong Context

• Use @file to explicitly reference the right files
• Add a .cursorrules file with project context
• Clear chat history and start fresh
• Be more specific in your instructions

Extensions Not Working

• Cursor supports most VS Code extensions
• Some extensions may need reinstallation
• Check the Extensions panel for compatibility issues
• File an issue on Cursor’s GitHub if an extension breaks

FAQ

Can I use Cursor for free?

Yes. The free Hobby plan includes 2,000 code completions per month and 50 slow premium model requests. This is enough for light personal projects. The Pro plan at $20/month is recommended for daily professional use.

Does Cursor replace VS Code?

Cursor is built on VS Code’s open-source core, so it supports all VS Code extensions, themes, and keybindings. Most developers can switch without losing any functionality. The main addition is deeply integrated AI features.

Is my code private in Cursor?

In Privacy Mode, your code is not stored on Cursor’s servers and is only used for the current request. Enterprise plans offer additional compliance certifications. Without Privacy Mode, code may be used to improve the service per Cursor’s terms.

Which AI model should I use?

GPT-4o is a good default for most tasks — fast and capable. Claude 3.5 Sonnet excels at complex code reasoning and longer context. Switch to Claude 3 Opus for the most challenging problems where quality matters more than speed.

Can I use my own API keys?

Yes. In Settings, you can add your own OpenAI or Anthropic API keys. This is useful if you want unlimited usage without the Pro plan or need access to specific models.

Conclusion

Cursor transforms the coding experience by making AI assistance a natural part of your editor rather than an external tool. The combination of smart Tab completions, inline Cmd+K editing, context-aware chat, and multi-file Composer gives you AI superpowers without disrupting your workflow.

Start with the free plan to test it out, import your VS Code settings, and begin with simple Cmd+K edits. As you get comfortable, explore Composer for larger changes and customize .cursorrules for your projects.