AI & Development

Cursor IDE: AI-Powered Development Setup Guide

Tech Setup3 min read
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Tech Setup

Published August 2, 2026 · Editorial policy

Cursor IDE: AI-Powered Development Setup Guide

What is Cursor?

Cursor is a fork of VS Code with built-in AI coding assistance. It uses Claude, GPT-4, and other models to help you write, debug, and understand code — all within a familiar editor.

Installation

Download

  1. Go to cursor.sh
  2. Download for Windows/macOS/Linux
  3. Install and open

Import VS Code Settings

Cursor auto-detects VS Code on first launch:

  1. "Import VS Code Settings" → Yes
  2. Extensions migrate automatically
  3. Keybindings transfer

Core Features

Chat (Ctrl+L)

Open the AI chat panel:

  • Ask questions about your code
  • Get explanations for complex functions
  • Generate code snippets
  • Refactor suggestions

Cmd+K (Inline Edit)

Select code → press Ctrl+K:

  • Type instructions: "add error handling"
  • AI modifies the selected code in place
  • Accept/reject changes

Tab Completion

Cursor suggests code as you type:

  • Press Tab to accept
  • Press Esc to dismiss
  • Press Ctrl+→ to accept word-by-word

Composer (Ctrl+I)

Multi-file edits:

  1. Ctrl+I opens Composer
  2. Describe changes: "Add a login page with email validation"
  3. AI creates/modifies multiple files
  4. Review and apply changes

Configuration

Settings (Ctrl+,)

AI Settings

{
  "cursor.ai.enabled": true,
  "cursor.chat.model": "claude-3.5-sonnet",
  "cursor.tab.enabled": true,
  "cursor.tab.maxTokens": 1000
}

Editor Settings

{
  "editor.fontSize": 14,
  "editor.fontFamily": "JetBrains Mono, Consolas, monospace",
  "editor.lineHeight": 1.6,
  "editor.bracketPairColorization.enabled": true,
  "editor.guides.bracketPairs": true,
  "editor.minimap.enabled": false,
  "editor.formatOnSave": true,
  "editor.defaultFormatter": "esbenp.prettier-vscode",
  "editor.suggestSelection": "first",
  "editor.wordWrap": "on"
}

Terminal Settings

{
  "terminal.integrated.fontFamily": "JetBrainsMono Nerd Font",
  "terminal.integrated.fontSize": 13,
  "terminal.integrated.defaultProfile.windows": "PowerShell"
}

Keybindings (keybindings.json)

[
  { "key": "ctrl+shift+/", "command": "editor.action.toggleBlockComment" },
  { "key": "ctrl+d", "command": "editor.action.addSelectionToNextFindMatch" },
  { "key": "alt+up", "command": "editor.action.moveLinesUpAction" },
  { "key": "alt+down", "command": "editor.action.moveLinesDownAction" },
  { "key": "ctrl+shift+k", "command": "editor.action.deleteLines" },
  { "key": "ctrl+enter", "command": "editor.action.insertLineAfter" },
  { "key": "ctrl+shift+enter", "command": "editor.action.insertLineBefore" },
  { "key": "alt+shift+up", "command": "editor.action.copyLinesUpAction" },
  { "key": "f12", "command": "editor.action.revealDefinition" },
  { "key": "alt+f12", "command": "editor.action.peekDefinition" },
  { "key": "ctrl+k ctrl+f", "command": "editor.action.formatDocument" }
]

Essential Extensions

Must-Have

ExtensionPurpose
PrettierCode formatting
ESLintJavaScript linting
GitLensGit blame, history
Error LensInline error display
Better CommentsColor-coded comments
Import CostShow package sizes
DotENV.env file syntax

Productivity

ExtensionPurpose
Todo TreeFind TODO/FIXME
Bracket Pair ColorizerNested bracket colors
Path IntellisenseAuto-complete file paths
Auto Rename TagHTML tag sync
Thunder ClientAPI testing
REST ClientHTTP requests in editor

Git

ExtensionPurpose
GitLensSee who changed what
GitHub ActionsWorkflow support
Conventional CommitsCommit message helper

AI Workflows

Code Review

  1. Open a file with changes
  2. Ctrl+L → "Review this code for bugs and improvements"
  3. AI suggests fixes
  4. Apply changes with Cmd+K

Generate Tests

  1. Select a function
  2. Ctrl+I → "Write unit tests for this function using Jest"
  3. Review generated tests
  4. Accept and adjust

Explain Code

  1. Select unfamiliar code
  2. Ctrl+L → "Explain what this code does step by step"
  3. Get detailed explanation

Refactor

  1. Select messy code
  2. Ctrl+K → "Refactor this to use the Strategy pattern"
  3. AI restructures code

Debug

  1. Ctrl+L → "I'm getting this error: [paste error]"
  2. AI suggests fix with explanation
  3. Apply and test

.cursorrules

Create .cursorrules in project root for context:

# Project: Tech Setup Blog
- Framework: Next.js 16, React 19
- Language: TypeScript strict
- Styling: Tailwind CSS 4
- Database: Supabase (PostgreSQL)
- Package manager: npm
- Code style:
  - Use const over let
  - Prefer early returns
  - Use TypeScript interfaces over types
  - No semicolons
  - Single quotes
  - Trailing commas

Performance Tips

  1. Disable extensions you don't use
  2. Close unused tabs — each tab uses memory
  3. Use workspace settings instead of user settings
  4. Exclude folders in settings:
{
  "files.exclude": {
    "**/node_modules": true,
    "**/.next": true,
    "**/dist": true
  }
}
  1. Restart extensions host periodically: Ctrl+Shift+P → "Restart Extension Host"

Keyboard Shortcuts Cheat Sheet

ActionShortcut
Quick OpenCtrl+P
Command PaletteCtrl+Shift+P
AI ChatCtrl+L
Inline EditCtrl+K
ComposerCtrl+I
Toggle TerminalCtrl+grave
Split EditorCtrl+Shift+backslash
Go to DefinitionF12
Rename SymbolF2
Find in FilesCtrl+Shift+F
Replace in FilesCtrl+Shift+H
Toggle CommentCtrl+/
Duplicate LineShift+Alt+Down
Move Line Up/DownAlt+Up/Down
Select Next OccurrenceCtrl+D
Multi-CursorAlt+Click

Syncing Settings

Export Settings

  1. Ctrl+Shift+P → "Export Settings"
  2. Save to cloud drive or dotfiles repo

Import on New Machine

  1. Ctrl+Shift+P → "Import Settings"
  2. Select exported file

Git Dotfiles

# Backup settings
cp ~/AppData/Roaming/Cursor/User/settings.json ~/dotfiles/cursor-settings.json