Cursor — AI-Powered IDE

Complete guide to Cursor, the AI-powered code editor. Covers prompt engineering, .cursorrules, agent mode, composer, and best practices for AI-assisted development.

June 17, 2026
cursorai-idecode-editoragent-modecursorrules

Cursor — AI-Powered IDE

Cursor is an AI-powered code editor built on top of VS Code. It keeps the editor you already know — extensions, keybindings, themes, and settings — and layers AI directly into the editing flow: tab completions, inline edits, a chat panel, and an agent that can read your codebase and execute multi-file changes on its own.

If you're coming from plain VS Code, you can install Cursor, import your existing configuration, and keep working immediately. The AI features layer in on top rather than forcing you to change how you write code.

How Cursor Works

Cursor combines three capabilities that most AI coding tools ship separately:

  • A fork of VS Code — full access to the extension marketplace, your settings sync, and a familiar UI. Anything that runs in VS Code runs in Cursor.
  • Codebase-aware context — Cursor indexes your project so it can answer questions like "where is the payment validation handled?" by actually reading your files, not just the file you have open.
  • Multiple AI interaction modes — from instant tab completions to a long-running agent that plans and executes across many files.

This means Cursor works whether you want lightweight inline help or a hands-off agent tackling a whole feature.

Core Features

  • Tab completions — AI-powered code suggestions as you type. Accept with Tab, reject with Esc. The model learns your code style from the surrounding file and project.
  • Inline editing — Select a block of code, describe the change you want, and Cursor rewrites it in place. No need to leave the file or copy code into a chat.
  • Agent mode — An autonomous mode that reads your codebase, plans multi-file changes, and executes them with terminal access. You review the diff before it applies. Best for features that touch several files.
  • Composer — Generate a full feature across multiple files in one session. Compose first, then open individual files for fine-tuning.
  • Chat panel — Ask questions about your codebase with @file, @folder, @codebase, or @docs mentions to scope the context.
  • .cursorrules — Project-level instruction files that tell the AI your conventions: framework patterns, style preferences, things to always avoid.

Quick Start

Download Cursor from cursor.com. On first launch it imports your VS Code settings, extensions, and keybindings automatically.

# After installing, add the CLI so you can open projects from the terminal
cursor .            # open the current project
cursor file.ts      # open a specific file

Then run through the basics:

  1. Open a real project (the model is far more useful with actual code as context).
  2. Press Cmd+I (or Ctrl+I) to try an inline edit.
  3. Add a .cursorrules file in your project root with your top 5 conventions.
  4. Open the Composer (Cmd+Shift+I) and ask for a small, well-scoped feature to feel out agent mode.

Working with AI in Cursor

Writing good prompts matters more than the tool. Three habits that make the biggest difference:

  • Scope your context — Don't ask the AI to guess. Mention the file, function, or error message. Use @ mentions in chat so the model reads the right files.
  • State constraints upfront — "Use the existing error-handling pattern," "keep it in the current style," "don't change the public API." The model follows explicit constraints far better than implied ones.
  • Review every diff — Agent and Composer changes are suggestions. Treat them like a PR from a junior engineer: read the diff, check for edge cases, and keep what's good.

For a full workflow guide, see Prompt Engineering in Cursor. For project setup and rules, see Configuration & Rules.

Cursor vs Copilot vs Windsurf

FeatureCursorGitHub CopilotWindsurf
EditorVS Code forkVS Code / JetBrains extensionVS Code fork
Tab completion
Inline edits
Autonomous agent✓ (2025)
Project-wide contextPartial
Custom rules files.cursorrulescopilot-instructions.md.windsurfrules
Extension marketplace

Cursor and Windsurf are both full editor forks with strong agent modes; Copilot is the most broadly adopted extension and integrates deepest with GitHub (PRs, issues, Actions).

Pricing

  • Hobby — Free, includes core completions and limited agent/Composer usage.
  • Pro — $20/month for unlimited agent usage and higher request limits.
  • Teams / Enterprise — Per-seat plans with admin controls, SSO, and privacy modes.

Frequently Asked Questions