Cursor AI Code Editor — Complete Guide: Features, Tips, and How to Use It Effectively
Cursor is an AI-first code editor built on VS Code that gives you a deeply context-aware AI pair programmer. Unlike GitHub Copilot as a plugin, Cursor integrates AI at every level — inline edits, multi-file Composer mode, and full codebase chat. This guide covers every feature with practical examples, keyboard shortcuts, .cursorrules configuration, and real workflows.
VS Code fork
all VS Code extensions work in Cursor
Composer
multi-file AI agent mode — most powerful feature
200K+
token context with Claude 3.5 Sonnet backend
$20/mo
Pro plan with GPT-4o and Claude access
Why Cursor Is Different
Cursor's key advantage
Cursor's biggest advantage over Copilot is Composer mode — an autonomous agent that reads your codebase, creates new files, modifies existing files, and executes multi-step tasks. It doesn't just complete the current line — it can implement an entire feature across dozens of files with a single prompt. This is the feature that converts Copilot users to Cursor users.
| Item | GitHub Copilot | Cursor |
|---|---|---|
| Architecture | Plugin for VS Code/JetBrains | Standalone editor (VS Code fork) — all VS Code extensions work |
| Multi-file edits | Single file focus | Composer can create and edit unlimited files in one session |
| Codebase context | Open files + limited retrieval | Full codebase index, semantic search, @codebase queries |
| AI models | GPT-4o (Copilot model) | GPT-4o, Claude 3.5 Sonnet, Claude 3 Opus, cursor-small |
| Price | $10/mo individual, free for students | $20/mo Pro, free tier (2000 completions + 50 requests/mo) |
| Privacy mode | Copilot Business for no training | Privacy mode on all paid plans, local model support via Ollama |
| .cursorrules | No project-level AI instructions | .cursorrules file sets persistent AI behavior for the project |
Core Features and Shortcuts
Cmd+K — Inline Edit
Select code and press Cmd+K. Describe a change in natural language. "Add error handling to this function" or "Convert to async/await". Shows a diff preview before applying — accept, reject, or iterate.
Cmd+L — Chat Panel
Open chat with full codebase context. Ask questions, get explanations, request code. References the files you have open and the full indexed codebase as context.
Cmd+Shift+I — Composer
The most powerful mode. Describe a multi-file change or new feature. Composer plans and executes across your entire project, creating and modifying files autonomously.
@-mentions — Context Control
In chat or Composer, use @filename, @codebase, @docs, @web to explicitly control context. @docs fetches documentation from external URLs and uses it as context.
Tab — AI Autocomplete
Like Copilot, Cursor shows inline suggestions as you type. Press Tab to accept. The suggestions are context-aware — they understand your codebase patterns, not just the current file.
Cmd+Shift+L — Add to Chat
Select code and add it to the current chat conversation without opening a new session. Great for iterating on a specific function within a larger chat thread.
Composer Mode — Step by Step
Open Composer
Press Cmd+Shift+I (macOS) or Ctrl+Shift+I (Windows/Linux). The Composer panel opens on the right side of the editor. This is your autonomous coding agent.
Describe your task with specificity
Be specific: include the feature, technology stack, and any constraints. Vague: "Add auth." Specific: "Add user authentication using NextAuth.js v5 with Google OAuth. Create /app/api/auth/[...nextauth]/route.ts, update middleware.ts to protect /dashboard routes, and add sign-in/out buttons to the header component."
Review the plan
Composer shows which files it plans to create or modify before executing. Read the plan and check it makes sense. If not, refine the prompt before accepting.
Accept, edit, or reject
Accept all changes with one click, or review each file individually. Each file shows a diff — green for additions, red for deletions. Edit any file manually before finalizing.
Iterate in the same session
Continue the conversation: "Now add a sign-out button to the mobile nav" or "The middleware is blocking /api routes, fix it." Composer maintains full context of all changes made in the session.
Use checkpoints
Cursor creates checkpoints before each Composer action. If a change breaks something, you can restore to a previous checkpoint without losing other work.
.cursorrules — Project-Level AI Instructions
# .cursorrules — AI follows these for every conversation in this project
# Place this file in the root of your project
## Project
- Next.js 14 App Router project with TypeScript strict mode
- Tailwind CSS for styling — no inline styles, no CSS modules
- Prisma + PostgreSQL for database access
- NextAuth.js v5 for authentication
## Code Style
- Use functional components with hooks
- Prefer React Server Components — use 'use client' only for interactivity
- Async server components for data fetching, not useEffect
- Named exports for components, default export only for pages
## Patterns
- Error boundaries at layout level, not individual components
- Loading.tsx files for suspense boundaries
- Zod for all form and API input validation
- Server actions for mutations, API routes only for external integrations
## File Structure
- Components: /components/[feature]/ComponentName.tsx
- Server actions: /app/actions/[feature].ts
- Utilities: /lib/[feature].ts
- Types: /types/[feature].ts
## Never
- No any types — use unknown and type guards
- No useEffect for data fetching
- No var — use const/let
- No hardcoded strings that should be environment variablesCodebase Context — How to Use It
@codebase is your most powerful context command
// Architecture questions — understand before editing
"@codebase What's the pattern used for data fetching in this project?"
"@codebase Show me all places where user permissions are checked"
"@codebase How does the cart system work end-to-end?"
// Bug fixing with full context
"@filename.tsx This component crashes when the products array is empty.
Looking at the component, what's the bug and how do I fix it?"
// Code generation that follows existing patterns
"@codebase Add a new API endpoint for updating user preferences.
Follow the same pattern as the existing user endpoints in /app/api/users/"
// Refactoring with safety
"@codebase I want to rename UserCard to ProfileCard everywhere.
Show me all affected files first, then make the changes."
// Documentation generation
"@codebase Generate a CLAUDE.md for this project explaining the architecture,
setup steps, key patterns, and common gotchas"
// External docs
"@docs https://tanstack.com/query/latest Show me how to use
optimistic updates with the pattern we use in this project"Privacy and Security Settings
Privacy Mode (Pro)
On Pro plan, enable Privacy Mode in Settings → Privacy. This prevents your code from being stored or used for model training. Enabled per-project or globally.
Local Models via Ollama
Use Cursor with a local LLM via Ollama for maximum privacy. Settings → AI → Model → Add Ollama. Code never leaves your machine. Slower but completely private.
Custom API Keys
Configure your own OpenAI or Anthropic API keys in Settings → AI → Model Settings. Your billing, your data handling terms. Better for teams with data compliance requirements.
.cursorignore
Create a .cursorignore file (same syntax as .gitignore) to exclude sensitive files — .env, secrets/, credentials/ — from being indexed and included in AI context.
Advanced Techniques
// Multi-file refactoring with Composer
Cmd+Shift+I → "Migrate all class components in /components/ to
functional components with hooks. Preserve all existing props and behavior."
// Test generation
Select a function → Cmd+K → "Write comprehensive unit tests for
this function including edge cases and error scenarios. Use Vitest."
// Code review simulation
Cmd+L → "Review this PR diff for: security issues, performance problems,
missing error handling, and code style consistency. Be specific."
// Debugging with context
Add breakpoint → Cmd+L → "I'm getting a TypeError on line 45.
@file Here is the component. What could cause this and how do I debug it?"
// Documentation from code
Select entire module → Cmd+K → "Add JSDoc comments to all exported
functions. Include @param, @returns, and @example for each."
// Migration assistance
Cmd+Shift+I → "Migrate this Express.js app from CommonJS (require)
to ES Modules (import/export). Update package.json type field too."