Claude Code runs in any terminal, but inside VS Code it shows edits as inline diffs and can see the files you have open. Here’s the one-minute setup.
1. Install Claude Code
If you haven’t already:
npm install -g @anthropic-ai/claude-code
(Platform-specific guides: Windows · macOS & Linux.)
2. Open the integrated terminal
Open your project folder in VS Code, then open the integrated terminal: View → Terminal.
3. Run claude
claude
The first time you run it inside VS Code, Claude Code detects the editor and installs its companion extension automatically. No marketplace hunting needed.
4. Work with diffs and selections
Now when Claude edits a file, the change appears as a diff in the editor to accept or reject. Select code before you ask a question and Claude uses that selection as context.
Tips
- Dock the terminal beside your code so you can watch diffs land.
- The same steps work in Cursor and other VS Code forks.
- Use
/clearbetween unrelated tasks — see Manage context in Claude Code.