Cursor vs VS Code: What Changes and What Stays

If you have been using Visual Studio Code, learning Cursor does not mean starting over. Almost everything you know transfers directly. The file structure, the extensions, the keyboard shortcuts, the terminal — it all works the same way. What Cursor adds is a set of AI-powered features built into the editor in a way that VS Code does not provide out of the box.

This lesson draws a clear line between what stays the same and what changes, introduces each of Cursor's core AI features, and helps you decide when to reach for Cursor versus when VS Code might still be the right tool.

What You'll Learn

• Why Cursor and VS Code feel so similar (the fork relationship explained)
• Everything that carries over from VS Code without any changes
• The AI features Cursor adds: Chat, Cmd+K, Tab, Agent, and @-mentions
• What is different in Cursor's settings and UI compared to VS Code
• The model picker and how Cursor lets you choose your AI
• When to use Cursor and when to stick with VS Code
• Whether you can run both side by side on the same machine

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Why Cursor Feels Like VS Code

Cursor is a fork of VS Code. In software terms, a fork means that the Cursor team took the complete VS Code source code as a starting point and built their product on top of it. They have continued to merge updates from VS Code into Cursor over time, so Cursor stays current with VS Code's improvements.

The practical result is that Cursor and VS Code share the same foundational architecture — the same editor engine, the same extension API, the same settings format, and the same keyboard shortcut system. If you can do something in VS Code, you can almost certainly do it the same way in Cursor.

This is what makes Cursor's one-click settings import so effective: there is no translation layer. Your VS Code settings file works directly in Cursor without modification.

Extensions

VS Code extensions work in Cursor because Cursor uses the same extension API. Most extensions install and run without any modification. There are occasional exceptions — typically extensions that integrate deeply with VS Code's AI features (like Copilot) — but the vast majority of the ecosystem just works.

You can install extensions in Cursor the same way you would in VS Code: through the Extensions panel, with the Command Palette, or by clicking an .vsix file. The Extensions marketplace Cursor uses is the same one that VS Code draws from.

Keybindings

Every keyboard shortcut you know from VS Code works in Cursor. Ctrl+P to open files, Ctrl+Shift+P for the Command Palette, Ctrl+` for the terminal, F12 for Go to Definition — all of it is identical.

Cursor adds new shortcuts for its AI features (covered below), but it does not remove or change any existing ones.

Themes

Your color theme, file icon theme, and product icon theme all carry over. If you have been using a popular theme like One Dark Pro, Dracula, or Nord in VS Code, it will look exactly the same in Cursor.

Settings

The settings system is identical. settings.json works the same way, and the Settings UI has the same layout and options for all VS Code-originating settings. The only additions are Cursor-specific sections for AI configuration (discussed below).

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What Cursor Adds: The AI Feature Set

Here is where the two editors diverge. Cursor has built four major AI features that VS Code does not have without third-party extensions.

Cursor Tab (Inline AI Completion)

Cursor Tab is Cursor's inline code completion system. As you type, Cursor analyzes the surrounding code and generates a multi-line suggestion that appears in grey text. Press Tab to accept the suggestion, Escape to dismiss it, or just keep typing to let it update.

This goes significantly further than VS Code's built-in IntelliSense. IntelliSense completes individual tokens based on what it knows about your types and APIs. Cursor Tab predicts entire blocks of code based on the context of what you are doing — it can fill in the body of a function, complete a repetitive pattern, or predict the next logical step in a series of similar lines.

For example, if you write three similar test cases in a row, Cursor Tab will notice the pattern and offer to complete the fourth following the same structure. If you have just defined a TypeScript interface and start writing a function that takes it as a parameter, Cursor Tab will anticipate the implementation and fill it in.

You can toggle Cursor Tab on and off from Cursor Settings > Features > Cursor Tab.

Cmd+K (Inline AI Edit)

Press Cmd+K on Mac or Ctrl+K on Windows/Linux while your cursor is in the editor, and a small inline prompt bar appears. Type a natural language instruction and press Enter. Cursor will generate a change directly in the file, showing you a diff of what it proposes to add, remove, or modify.

This is useful for targeted edits where you do not need a full conversation. Some examples:

• Select a function and press Cmd+K, then type "add error handling for null inputs"
• Place the cursor on an empty line and press Cmd+K, then type "write a function to debounce an event handler"
• Select a block of CSS and press Cmd+K, then type "convert this to use CSS variables"

After Cursor generates the change, you review it as a diff. Press Enter or click Accept to apply it, or press Escape to discard. If you want a different version, you can type a follow-up instruction directly in the same prompt bar.

AI Chat (Cmd+L)

The Chat panel is a full conversational interface with the AI. Open it with Cmd+L (Mac) or Ctrl+L (Windows/Linux). It appears as a sidebar panel on the right.

The Chat is more powerful than a simple question-and-answer interface because it is code-aware. It knows which files you have open, can read files you reference, and can make changes to your code when you ask it to. You can have long, multi-turn conversations where the AI builds up context about your problem.

Common Chat interactions include:

• Asking the AI to explain a complex piece of code: "What does this reducer do?"
• Requesting a feature implementation: "Add pagination to this list component"
• Getting help with debugging: "This function returns undefined when the array is empty. Why?"
• Reviewing code: "What are the potential bugs in this authentication flow?"

When the AI suggests a code change in the Chat, it shows a diff that you can apply with a single click. You do not need to copy and paste.

@-Mentions: Bringing Context Into the Conversation

One of Cursor's most practical features is the @ symbol in the Chat panel. Typing @ opens a picker that lets you bring specific things into the conversation:

• @Files — attach a specific file so the AI can read it
• @Code — reference a specific function, class, or symbol in any file
• @Docs — reference documentation for a library (Cursor indexes docs for popular packages)
• @Web — let the AI search the web for current information
• @Git — bring in git history, diffs, or commit messages
• @Codebase — tell the AI to search the entire project for relevant context

For example, you might type: "Looking at @Files/src/api/users.ts and @Files/src/types/user.ts, why might the createUser function be failing when email is undefined?"

This gives the AI exactly the context it needs without you having to paste large blocks of code manually.

Agent Mode

Agent mode is Cursor's most autonomous feature. In Agent mode, the AI does not just respond to single requests — it plans and executes a sequence of steps to accomplish a larger goal.

You describe what you want at a high level ("Add a dark mode toggle to this app") and Agent mode will:

1. Explore your codebase to understand its current structure
2. Plan the steps needed to implement the feature
3. Make changes to multiple files
4. Run tests or build commands to verify the result
5. Iterate if something fails

Agent mode requires Cursor Pro for full access on higher-powered models. It is the feature that most resembles tools like Claude Code — an AI that does work rather than just answering questions.

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What Is Different in Cursor's Settings

If you open Cursor Settings (different from VS Code's settings — accessible from the Cursor menu or via Cmd+Shift+J), you will find a dedicated settings panel for AI features. This is separate from the standard VS Code settings and covers:

• Models — which AI model to use by default for Chat, Cmd+K, and Tab
• Privacy — whether to use privacy mode (your code is not used to train models)
• Features — toggle individual AI features on or off
• Context — configure how much of your codebase Cursor indexes for search

The standard VS Code settings are still accessible through Cmd+Shift+P > Open Settings, and they look identical to what you know from VS Code.

The Model Picker

In the Chat panel and in Agent mode, Cursor provides a model picker — a dropdown or menu that lets you choose which AI model to use for a given conversation. Options typically include Claude (from Anthropic), GPT-4o (from OpenAI), and others depending on current Cursor partnerships.

Different models have different strengths. Some are faster but less thorough; others are more careful but take longer to respond. As you build experience with Cursor, you will develop preferences for which model works best for different kinds of tasks.

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Side-by-Side Comparison

Feature	VS Code	Cursor
Extensions	Full marketplace	Same marketplace, same extensions
Keybindings	All standard shortcuts	Same, plus new AI shortcuts
Themes	All available	Same
Settings format	settings.json	Same settings.json + Cursor AI settings
Inline completion	IntelliSense (token-based)	Cursor Tab (multi-line AI)
Inline AI edit	Copilot Chat (extension)	Cmd+K (built-in)
AI Chat	Copilot Chat (extension)	Built-in Chat panel
@-mentions	Not available	@Files, @Code, @Docs, @Web, @Git
Agent mode	Not available	Built-in (Pro tier)
Model picker	Not available	Built-in
Price	Free	Free tier + Pro subscription

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When to Use Cursor vs VS Code

Given that Cursor adds features rather than removing them, you might wonder: is there ever a reason to use VS Code instead?

Reach for Cursor when:

• You are writing new code and want AI completion and generation
• You are debugging a problem and want to have a conversation about it
• You are implementing a feature and want Agent mode to handle multi-step changes
• You want to explore an unfamiliar codebase quickly
• You are writing tests and want the AI to generate test cases

You might stick with VS Code when:

• You are working with proprietary code and your organization has not approved AI tools that send code to external servers
• You prefer a completely offline environment
• You are using specialized VS Code features that depend on VS Code's exact version and your Cursor version is slightly behind on a recent update
• A specific extension behaves differently in Cursor due to the fork's minor differences from upstream VS Code

In practice, most developers who switch to Cursor use it as their primary editor for all work. The VS Code compatibility is close enough that the vast majority of workflows transfer without any friction.

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Can You Run Cursor and VS Code Side by Side?

Yes, completely. Cursor and VS Code are separate applications that install to different directories and run independently. You can have both open at the same time with the same project, or use different editors for different projects.

There are a few things to be aware of:

• Extensions are separate — extensions installed in VS Code are not automatically installed in Cursor and vice versa, even though they share the same marketplace. The settings import on first launch handles this, but subsequent extension installs happen in whichever editor you are using.
• Settings are stored separately — changes to settings in one editor do not automatically propagate to the other. If you make a settings change you want in both, you need to make it in both.
• Git and files are shared — since both editors are just reading and writing files, there is no conflict at the filesystem level. You can freely switch between them for the same project.

Some developers keep VS Code installed as a fallback or for specific tasks (like a VS Code extension that does not yet work correctly in Cursor), while using Cursor as their primary editor for day-to-day work.

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Key Takeaways

• Cursor is a fork of VS Code, so your extensions, keybindings, themes, and settings all carry over without modification
• Cursor adds four major AI features that VS Code does not have built-in: Cursor Tab (inline AI completion), Cmd+K (inline AI edit), Chat panel, and Agent mode
• The @ symbol in the Chat panel lets you bring specific files, code symbols, documentation, web search results, and git history into the conversation
• Cursor has its own Settings panel for AI configuration (models, privacy, features) in addition to the standard VS Code settings
• The model picker lets you choose which AI model to use, with options including Claude and GPT-4o
• You can run Cursor and VS Code side by side without any conflicts — they are independent applications
• Most developers who switch to Cursor use it as their primary editor; VS Code remains a reasonable fallback for situations requiring a fully offline or organizationally approved environment