How do I install Claude Code in VS Code?

Open the Extensions view, search for Claude Code, and install the extension published by Anthropic. Then open the Command Palette, type Claude Code, and choose Open in New Tab. Sign in when asked.

Which VS Code version do I need?

VS Code 1.94.0 or later. Update VS Code first if the extension does not appear or fails to load.

Do I need an API key?

No. A paid Claude plan or a Claude Console account is enough, and you sign in from the extension. You can also use third-party providers such as Amazon Bedrock, with extra setup.

Does it work in Cursor?

Yes. The same extension can be installed in Cursor, which is built on VS Code.

Is the extension better than the terminal?

It depends on your taste. The extension gives you inline diffs, file mentions and history in a panel. The terminal has the full command set. Both use the same engine, so your CLAUDE.md and settings work in both.

Can I undo what Claude changed?

Yes. The extension supports checkpoints. Hover over a message and choose to rewind the code to that point. Using git as well is still a good habit.

Claude Code in VS Code: Install and First Run

On this page

1In short
2What is the Claude Code extension?
3What you need first
4How to install it
5Your first run
6Key features
7Shortcuts worth learning
8Tips that save time
9If something does not work
10Extension or terminal?
11Turn it into a service with GoHighLevel

In short

Install the extension, open it with the Spark icon, sign in.
You get a chat panel, inline diffs, file mentions and checkpoints.
The extension and the terminal use the same engine.

What is the Claude Code extension?

We are RocketLauncher, a software company, and we build with Claude Code every day. The VS Code extension is a graphical way to use it. Instead of typing in a terminal, you talk to Claude in a panel next to your code. Claude can read your project, edit files and run commands, and you review each change before it is kept.

What you need first

VS Code 1.94.0 or later.
A paid Claude plan (Pro, Max, Team or Enterprise) or a Claude Console account. The Free Claude plan does not include Claude Code. See how to use Claude Code for free for the options.
A project folder to work in.

How to install it

Open VS Code.
Open the Extensions view with Ctrl+Shift+X (Windows and Linux) or Cmd+Shift+X (Mac).
Search for Claude Code and install the extension from Anthropic.
Open the Command Palette with Ctrl+Shift+P or Cmd+Shift+P.
Type Claude Code and choose Open in New Tab.
Sign in with your Claude or Console account when asked.

Using Cursor? The same extension installs there too.

Your first run

Open a project folder with File, Open Folder.
Open a file. The Spark icon then appears in the editor toolbar at the top right. Click it to open Claude.
Type a small, clear task, for example: "Explain what this project does and list the main files."
Read the answer. Then ask for a change, for example: "Add a short README section on how to run it."
Claude proposes edits as a diff. Accept or reject each one.

Start with a read-only question. It shows you how Claude sees the project before it changes anything.

Key features

Inline diffs and plan review

Claude shows changes as diffs in the editor. You can also ask it to plan first. Read the plan, edit it, then let Claude carry it out.

@-mentions

Type @ to point Claude at a file. If you select lines of code, Claude sees the selection automatically. Press Alt+K (Windows and Linux) or Option+K (Mac) to insert a reference to the file and line range.

Terminal output

Refer to terminal output with @terminal:name, where name is the terminal's title. Claude reads the error without you pasting it.

Checkpoints

Claude tracks its file edits. Hover over a message to find the rewind button, and roll your code back to that point.

Tabs and history

Open more than one conversation in separate tabs or windows. Each keeps its own history. A coloured dot on the Spark icon tells you when a tab needs permission or has finished.

Shortcuts worth learning

Action	Windows and Linux	Mac
Switch focus between editor and Claude	`Ctrl+Esc`	`Cmd+Esc`
Open a new conversation in a tab	`Ctrl+Shift+Esc`	`Cmd+Shift+Esc`
Insert an @-mention of the selection	`Alt+K`	`Option+K`

On recent macOS versions, Cmd+Esc can be taken by a system shortcut. If it does nothing, change the system setting.

Tips that save time

Add a CLAUDE.md file to your project root with your rules and commands. Claude reads it at the start of each session.
Use git. Commit before a big task so you can always go back.
Give one task per conversation. Open a new tab for the next one.
Ask Claude to run your tests or build after a change.
Add skills for tasks you repeat.
Connect tools with MCP when you want Claude to reach real apps. Start with our MCP guide for non-developers.

If something does not work

The Spark icon is missing. It only shows when a file is open in the editor. Open any file and look at the top right.
The extension does not load. Check that VS Code is version 1.94.0 or later and restart it.
Sign-in fails. Confirm your plan includes Claude Code. The Free Claude plan does not.
Claude edits the wrong folder. Open the exact project folder in VS Code, not a parent folder.

Extension or terminal?

Both run the same Claude Code engine. Your CLAUDE.md, settings and MCP servers work in both. Pick the extension if you like panels, diffs and clicking. Pick the terminal if you like speed and scripts. Many people use both.

Turn it into a service with GoHighLevel

Once you are comfortable in VS Code, you can build real things for local businesses. A typical project is a landing page, a lead form, or a set of automations, with Claude Code writing the files and GoHighLevel running the CRM, messages and booking behind it. You can also connect Claude to your GoHighLevel account, see how to connect Claude to GoHighLevel. Our Claude Code + GoHighLevel kit walks through a full project, and the other kits cover receptionists, websites and lead generation. We make no income promises. Results depend on your work and your clients.