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Cursor: Setting Up the AI Code Editor from Scratch in 2026

Cursor is a VS Code–based editor with built-in AI. Here's installation, the key modes and how to tune it to your workflow.

Updated: July 2026

TL;DR. Cursor is a fork of VS Code with AI inside: it completes code, answers across your whole codebase and edits files on request. Importing VS Code settings takes a minute. Key modes are autocomplete, chat and agent. There are Pro and Teams plans.

What Cursor Is

Cursor is a code editor with built-in AI, built on VS Code. Three things set it apart from a plain editor: it completes code with multi-line predictions, answers questions across the whole codebase, and edits files from a text request.

Since VS Code is under the hood, everything familiar works the same: extensions, themes, keybindings, terminal.

Install and Import Settings

  1. Download Cursor from the official site and install it like any app.
  2. On first launch, accept the import from VS Code — extensions, themes and keybindings carry over automatically.
  3. Sign in and connect your subscription.
  4. Open your project — Cursor indexes it for the AI.

Import takes a minute and you land in a familiar environment.

Key Modes

  • Autocomplete (Tab). The AI predicts the next lines; accept with Tab. Saves time on routine code.
  • Chat (Cmd/Ctrl+L). Ask a question about the code — the assistant answers with whole-project context.
  • Agent (Composer). State a task — Cursor finds the files and makes edits, showing the diff before applying.

Plans

PlanFor whomWhat it gives
Freetrying it outbasic limits
Proindividual workadvanced models, high limits
Teamsteamsshared billing, member management

Teams is for when several people work on a project: it gives one bill and centralised access management.

First Workflows

  1. Start with autocomplete — just write code and accept good suggestions.
  2. For “why is there an error here” or “what does this function do,” use chat.
  3. Hand large tasks (“add a route and handler”) to the agent and review the diff.
  4. Keep the project under git — edits apply to files directly.

Payment

Officially Cursor is paid by card. Access to Pro and Teams can also be arranged with payment in USDT — no card or VPN.

Frequently asked questions

What is Cursor?

Cursor is a code editor based on VS Code with built-in AI. It completes code on the fly, answers questions about the whole project, and edits files from a text request. It's essentially VS Code with a deeply integrated assistant.

Can I import my VS Code settings?

Yes. On first launch Cursor offers to import extensions, themes and keybindings from VS Code with one click. Since Cursor is a VS Code fork, compatibility is nearly complete.

How does the Teams plan differ from Pro?

Pro is an individual subscription with advanced models and limits. Teams adds team features: shared billing, member management and centralised settings. Teams is aimed at development teams.

Do I need a subscription for Cursor?

Basic features are available free with limits. For full work with advanced models and high limits you need a Pro or Teams subscription.