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How to Use Claude Code in Cursor (Extension or Terminal)

You can run Claude Code inside Cursor — either with Anthropic's extension, which installs in Cursor and other VS Code forks, or by running the claude CLI in Cursor's terminal. How to set up each, how they differ, and whether paying for both Cursor and Claude makes sense.

Plenty of people like Cursor's editor — its tab completion, its layout — and Claude Code's agent. Good news: you don't have to choose. Claude Code runs inside Cursor in two ways.

Details as of October 2026.

Option 1: the Claude Code extension

Anthropic's Claude Code extension is built for VS Code, and Cursor is a VS Code fork. Anthropic's docs list an Install for Cursor link, and the extension is also on the Open VSX registry that Cursor and other forks use.

  1. Open Cursor's Extensions view.
  2. Search for Claude Code (publisher: Anthropic) and install it.
  3. Open the Claude Code panel and sign in with your Claude account (Pro, Max, Team, Enterprise or a Console account).

You get the same graphical panel as in VS Code: plan review, inline diffs you accept or reject, @-mentions of files and line ranges, and multiple conversations in tabs. (Claude Code in VS Code)

Option 2: the CLI in Cursor's terminal

If the extension won't install, or you prefer the terminal interface:

  1. Install Claude Code.
  2. Open Cursor's integrated terminal (Ctrl+`).
  3. Run claude in your project folder.

The CLI works in any terminal and has every feature, including some that appear in the terminal first. Edits show up in Cursor's editor as files change on disk.

Extension vs terminal

Extension panel CLI in the terminal
Look and feel Graphical chat panel Terminal interface
Reviewing changes Inline diffs with accept/reject Diffs in the terminal
Features Most of them All of them
Best for People who want a GUI Power users, scripting

Will Cursor's AI and Claude Code clash?

Not really — they're separate. Cursor's own agent and autocomplete keep working; Claude Code works through its own panel or terminal. The practical issues are:

  • Two agents editing the same files at once will confuse each other. Use one at a time for a given task.
  • Two sets of rules. Cursor reads .cursor/rules; Claude Code reads CLAUDE.md. If you rely on both, keep the important conventions in both, or point one at the other. (Cursor Rules Explained, AGENTS.md vs CLAUDE.md)

Is paying for both worth it?

That's the real question. Cursor's paid plans and a Claude plan are separate subscriptions. Some people keep Cursor for fast tab completion and quick inline edits, and use Claude Code for bigger agent tasks. Others find the free Cursor tier (or plain VS Code) plus a Claude plan covers everything. Try a month of your real work before committing to both. (Claude Code vs Cursor)

The summary

  • Install the Claude Code extension in Cursor from the Extensions view or Open VSX, or run claude in Cursor's terminal.
  • Both work; the CLI has every feature, the extension has the nicer review UI.
  • Don't let two agents edit the same files at the same time.

EasySpawn runs Claude Code on a persistent server, so you can drive it from Cursor over SSH, from a browser, or from your phone — and it keeps working while your laptop sleeps. See how it works or join the waitlist.

Related: What Is Cursor? · Cursor vs GitHub Copilot · Best AI Coding Tools · VS Code Remote SSH

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