Cursor AI Editor — The AI Code Assistant Built on VS Code
Guide

Cursor AI Editor — The AI Code Assistant Built on VS Code

Sep 24, 2024 · The Local Lab

What if your code editor could understand your entire project — not just the file you have open — and help you build features, fix bugs, and refactor code just by describing what you want in plain English? That's the core promise of Cursor AI, and it's one of the most genuinely useful AI tools to land in the developer ecosystem in years.

Cursor is built directly on top of Visual Studio Code, so if you're already a VS Code user, the transition is nearly frictionless. All your extensions, themes, and keybindings carry over. The difference is everything that's been added on top.

What Is Cursor AI?

Cursor is a fork of VS Code developed by Anysphere that integrates large language models (Claude, GPT-4, and others) deeply into the editing experience. Rather than bolting AI on as a sidebar plugin the way GitHub Copilot does, Cursor treats AI as a first-class part of the editor itself.

The result is a coding environment where you can:

Free tier available: Cursor has a generous free plan that includes a limited number of fast model requests per month. Paid plans unlock unlimited usage and access to frontier models like Claude 3.5 Sonnet and GPT-4o.

Key Features Breakdown

Tab Completion

Context-aware autocomplete that goes far beyond single-line suggestions — Cursor can predict and complete entire multi-line blocks based on what you're building.

Codebase Chat (Cmd+L)

Open a chat panel and ask questions about your project. "Where is the authentication logic?" or "Why is this function returning undefined?" — it searches and reasons across your whole repo.

Inline Edit (Cmd+K)

Highlight any block of code, press Cmd+K, describe what you want, and Cursor rewrites it in place. Accepts or rejects changes with a diff view — similar to a pull request review, but instant.

Composer (Multi-file edits)

The Composer mode lets you describe a feature or change at a high level and Cursor plans and applies edits across multiple files simultaneously — genuinely impressive for larger refactors.

@ References

In any chat, type @filename, @function, or @docs to pull specific context into the conversation. Cursor fetches live documentation from the web if you reference a library.

Bug Detection

Cursor can proactively flag potential issues as you write — not just syntax errors but logic problems, missing error handling, and inconsistent patterns across your codebase.

Cursor vs GitHub Copilot — What's the Difference?

GitHub Copilot is a plugin. It lives inside VS Code (or JetBrains, Neovim, etc.) and primarily accelerates code completion. It's excellent at what it does, but it operates mostly at the line and function level.

Cursor is an editor. The AI isn't a plugin sitting on top — it's integrated into how you navigate, edit, and think about your project. The key practical differences:

Which should you use? If you're doing light-touch completion work, Copilot is great. If you're building projects from scratch, doing large refactors, or working across a complex codebase, Cursor's deeper integration makes a meaningful difference.

Getting Started with Cursor

  1. Download Cursor from cursor.sh — it installs like any other desktop app on Windows, Mac, or Linux.
  2. Import your VS Code settings — on first launch Cursor offers to import your extensions, keybindings, and themes from VS Code automatically.
  3. Open your project folder — Cursor will index it in the background. The larger the codebase, the longer this takes on first run.
  4. Try Cmd+K on a function — highlight any code block, press Cmd+K (or Ctrl+K on Windows), type "add error handling to this function" and watch it rewrite in place.
  5. Open the chat with Cmd+L — ask a question about your project. Start simple: "What does this codebase do?" or "Where are API calls made?"

Is Cursor Worth It in 2025?

When this post was first written in late 2024, Cursor was already impressive. Since then it's only gotten better — with faster models, improved codebase indexing, and the addition of agent-style workflows where Cursor can autonomously make a series of edits to complete a task end-to-end.

For solo developers and small teams especially, the productivity gains are real. Tasks that used to require careful searching through a codebase, writing boilerplate by hand, or context-switching to ChatGPT are now handled inline in seconds. It's worth the 10 minutes to install and try — the free tier is generous enough to get a genuine feel for it.

Note for local AI builders: Cursor works with your own API keys, meaning you can point it at local model servers (like LM Studio's OpenAI-compatible API) for offline or privacy-focused coding workflows. Setup is straightforward under Settings → Models → Add Model.

Building with local AI?

Check out our one-click installers for ComfyUI, LM Studio workflows, and more — no command line needed.

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