Claude Code in Cursor: set up the extension or the terminal

You can run Claude Code in Cursor two ways: install Anthropic's Claude Code extension from Cursor's Extensions view, or install the standalone CLI and type claude in Cursor's integrated terminal. Either way the work bills your Claude plan, not Cursor's usage pool, so you get Cursor's editor and Tab completions alongside Anthropic's agent.

This guide covers both routes, which account pays for what, one setting that can turn a flat plan into an API bill, and how to watch two meters at once. It follows Anthropic's and Cursor's docs as of November 2026.

What you need first

• A Claude account that includes Claude Code. Pro, Max, Ultra, Team, Enterprise or a Console account. The free Claude plan does not include Claude Code. Pro starts at $20 a month.
• Cursor installed. What Claude Code does inside it counts against your Claude plan, so your Cursor plan only matters for models you run through Cursor's own agent.

Route 1: the extension

Anthropic's VS Code extension installs in Cursor, and its docs give a direct Install for Cursor link.

1. Open the Extensions view in Cursor.
2. Search for Claude Code and install the one published by Anthropic.
3. Open the Claude Code panel and sign in with your Claude account.

The panel gives you inline diffs, @-mentions of files with line ranges, plan review before Claude edits, and conversation tabs. If the panel does not show up, reload the window from the Command Palette.

Anthropic notes that extension marketplaces are run by third parties and that it publishes the extension to the Visual Studio Marketplace and Open VSX Registry. Check the publisher before you install.

Route 2: the terminal

The extension bundles a private copy of the CLI for its panel, but it does not put claude on your PATH. To use the terminal, install the CLI once:

• macOS, Linux or WSL: curl -fsSL https://claude.ai/install.sh | bash
• Windows PowerShell: irm https://claude.ai/install.ps1 | iex
• Or brew install --cask claude-code, or winget install Anthropic.ClaudeCode

Then open Cursor's integrated terminal and run claude. The CLI connects to the editor for diff viewing and diagnostics. From an external terminal, run /ide to connect. Some features exist only in the CLI, such as the full command and skill set and the ! Bash shortcut.

The two routes share conversation history, so claude --resume in the terminal picks up a chat you started in the panel.

Who pays for what

Check for an API key

Anthropic warns that if the ANTHROPIC_API_KEY environment variable is set, Claude Code uses that key instead of your subscription. You then pay API charges rather than drawing on the plan you already pay for. Check whether that variable is set in your shell and, unless you want per-token billing, remove it from your profile before you sign in.

Watch both meters

With two tools in one window, you have two allowances to keep an eye on. Claude Code's /usage command shows your Claude limits, and Cursor shows its pool in the editor settings. For one view of both, UsageAtlas for Cursor and Claude Code reads the signed-in Cursor session and your Claude limits, then shows usage, reset times and estimated cost together, with a desktop alert at a threshold you pick. It is free, open source and runs on Windows, macOS and Linux.

When to skip it

If you rarely use Claude models and Cursor's own models cover your work, adding Claude Code means paying for a second plan you will not use much. Start with Cursor alone and add Claude Code when you notice you keep choosing Claude.