Complete Guide to Cursor IDE 2026: Setup, Features, and Workflows

What Is Cursor IDE?

Cursor is an AI-native code editor built on the VS Code foundation. Launched in 2023, Cursor has become the fastest-growing AI coding tool in 2026, with over 2 million developers using it daily. Unlike traditional code editors with AI plugins bolted on, Cursor was designed from the ground up to integrate AI into every aspect of the coding workflow.

Cursor uses Claude, GPT-4, and its own fine-tuned models to provide intelligent code completion, multi-file editing, codebase-aware chat, and automated debugging. It understands your entire project context, not just the file you are working on, making its suggestions significantly more accurate than generic AI assistants.

Cursor IDE Key Features

Tab Autocomplete

Cursor’s Tab completion goes far beyond traditional autocomplete. It predicts your next edit based on the context of what you are building, not just the current line. After accepting a suggestion, pressing Tab again continues with the next logical edit. The model understands your coding patterns, project structure, and the task you are working on, often completing entire functions or refactoring sequences with minimal input.

Tab predictions appear as ghost text in your editor. Press Tab to accept, Escape to dismiss, or keep typing to refine the suggestion. Cursor learns from your accept/reject patterns to improve future suggestions.

Cmd+K Inline Editing

Select code and press Cmd+K (Ctrl+K on Windows/Linux) to open the inline editing prompt. Describe what you want changed in natural language: “add error handling,” “convert to async/await,” “optimize this loop,” or “add TypeScript types.” Cursor rewrites the selected code according to your instructions while maintaining the surrounding context.

You can also use Cmd+K on an empty line to generate new code. Describe what you need, and Cursor writes it considering your project’s existing patterns, imports, and conventions. The diff view lets you review changes before accepting.

Composer (Multi-File Editing)

Composer is Cursor’s most powerful feature for larger changes. Press Cmd+I to open Composer and describe a task that spans multiple files: “add user authentication with JWT tokens,” “create a REST API for the product model,” or “refactor the payment module to use the strategy pattern.” Composer analyzes your codebase, plans the changes across all affected files, and presents a unified diff for review.

Composer can create new files, modify existing ones, update imports, and adjust configurations in a single operation. You review all proposed changes before applying them, maintaining full control over what gets modified.

Codebase-Aware Chat

Cursor’s chat (Cmd+L) understands your entire codebase. Ask questions about how a feature works, where a function is called, or why a particular pattern was used. Cursor searches through your project files to provide accurate, context-aware answers with direct references to relevant code.

Use @-mentions to focus the chat on specific files, folders, documentation, or web URLs. This context control helps Cursor provide more targeted and accurate responses.

Cursor Rules

Cursor Rules let you define project-specific instructions that guide AI behavior. Create a .cursorrules file in your project root to specify coding conventions, preferred libraries, architectural patterns, and project-specific context. Rules ensure consistent AI output across your team.

Example rules: “Always use TypeScript strict mode,” “Follow the repository pattern for database access,” “Use Tailwind CSS for styling, never inline styles,” or “Include JSDoc comments for all public functions.”

Installing and Setting Up Cursor

Step 1: Download and Install

Download Cursor from cursor.com for your platform (macOS, Windows, or Linux). The installer automatically detects your OS. On macOS, drag the app to Applications. On Windows, run the installer and follow the prompts. Cursor runs as a standalone application, though it can coexist with VS Code.

Step 2: Import VS Code Settings

On first launch, Cursor offers to import your VS Code extensions, themes, keybindings, and settings. Accept this to maintain your existing workflow. Most VS Code extensions work seamlessly in Cursor, including language-specific extensions, debuggers, and formatters.

Step 3: Configure AI Settings

Open Settings (Cmd+,) and navigate to the Cursor section. Choose your preferred AI model for different features: Claude for chat and Composer, GPT-4 for specific tasks, or Cursor’s fast model for Tab completion. Configure privacy settings to control whether your code is used for model training (you can opt out entirely).

Step 4: Set Up Your Project

Open your project folder and let Cursor index your codebase. Indexing enables accurate codebase-wide search and context awareness. For large projects, indexing may take a few minutes on first open. Create a .cursorrules file to define project-specific conventions.

Essential Cursor Keyboard Shortcuts

Shortcut	Action	Description
Tab	Accept suggestion	Accept the current AI autocomplete suggestion
Cmd+K	Inline edit	Edit selected code with natural language instructions
Cmd+L	Open chat	Open AI chat panel with codebase context
Cmd+I	Composer	Open multi-file editing with Composer
Cmd+Shift+L	Add to chat	Add selected code to the chat context
Cmd+.	Toggle AI	Toggle AI features on/off

Cursor Workflows for Different Tasks

Building a New Feature

Start with Composer (Cmd+I) to scaffold the feature across multiple files. Describe the feature, its requirements, and where it fits in your architecture. Review and apply the generated code. Then use Tab completion to fill in implementation details, and Cmd+K for quick refinements to individual functions.

Debugging

Copy the error message into Chat (Cmd+L) with the relevant code context. Cursor identifies the root cause by analyzing your codebase, not just the error message. It suggests fixes that account for your project’s specific patterns and dependencies. Apply fixes directly from the chat response.

Code Review

Use Chat to ask “review this file for potential bugs, performance issues, and code quality.” Cursor analyzes the code against best practices and your project’s conventions (from .cursorrules). It flags issues with explanations and suggested fixes that you can apply with one click.

Refactoring

Select the code to refactor and use Cmd+K with instructions like “extract this into a custom hook,” “split into smaller functions,” or “apply the builder pattern.” For larger refactors spanning multiple files, use Composer to handle all the cascading changes at once.

Cursor Pricing

Plan	Price	Includes
Free (Hobby)	$0	2000 completions, 50 slow premium requests/month
Pro	$20/month	Unlimited completions, 500 fast premium requests/month
Business	$40/user/month	Everything in Pro + admin dashboard, SSO, enforce privacy mode

Cursor vs Other AI Coding Tools

Cursor differentiates itself through deep codebase understanding and multi-file editing capabilities. GitHub Copilot offers strong inline completion but lacks Composer-style multi-file editing. Windsurf provides a similar experience but with a different approach to agent-style coding. VS Code with Copilot is familiar but less deeply integrated than Cursor’s native AI features.

Who Should Use Cursor?

Cursor is ideal for professional developers who want AI deeply integrated into their editor, teams that need consistent AI-assisted coding with shared rules, and anyone building features that span multiple files. If you spend most of your day writing and editing code, Cursor’s productivity gains are substantial.