# How to Use Claude Code in VS Code

> Install the Claude Code extension from the VS Code Marketplace for a native panel with inline diffs and rewind — it no longer auto-installs itself.

- Canonical: https://guides-ai.pages.dev/guides/claude-code-vscode-extension/
- Plate 01.04 · Topic: Install & set up (https://guides-ai.pages.dev/topics/setup/)
- Published: 13 Jun 2026 · Updated: 06 Sept 2026 · 3 min read
- Source site: guides-ai — https://guides-ai.pages.dev/

The VS Code extension is now a native graphical panel and the recommended way to use Claude
Code in VS Code. The old advice — run `claude` in the integrated terminal and it installs a
companion extension for you — is out of date: **install it from the Marketplace like any other
extension.**

## 1. Check the prerequisites

VS Code **1.94.0 or higher**, plus a paid Claude subscription or a Console account. No API key
needed.

## 2. Install it

Search **"Claude Code"** in the Extensions view, or install from the
[Open VSX registry](https://open-vsx.org/extension/Anthropic/claude-code) in editors that don't
use the Microsoft marketplace. The ID is `anthropic.claude-code`, and it installs in Cursor and
other forks too. If it doesn't appear, run **Developer: Reload Window** from the Command
Palette.

## 3. Sign in

Open the panel and follow the sign-in screen once. If you later see
`Not logged in · Please run /login`, the extension reopens it automatically.

## 4. Work with diffs and selections

Edits arrive as **inline diffs in the editor** to accept or reject, you can review and edit
Claude's plans before accepting them, and you can @-mention files with specific line ranges from
your selection. Conversations open in separate tabs.

```text
Cmd+Esc (Mac) / Ctrl+Esc (Windows, Linux)
```

What it does: toggles focus between the editor and Claude's prompt box — the one shortcut worth
learning on day one.

It also supports checkpoints: hover any message to reveal the rewind button and restore the
conversation, the code, or both.

## 5. Keep the CLI around

The extension bundles its own CLI for the panel, but **does not put `claude` on your PATH**.
Some features are CLI-only, so keep the standalone install too:

```bash
npm install -g @anthropic-ai/claude-code
```

What it does: installs the CLI so `claude` runs in the integrated terminal. Platform guides:
[macOS & Linux](/guides/install-claude-code-macos-linux/) ·
[Windows](/guides/install-claude-code-windows/).

## Verify it worked

Ask for a one-line edit. A working install shows the change as a diff in the editor with accept
and reject buttons, not as a code block in the chat. A code block means the panel isn't
connected to the workspace — reload the window.

One gotcha: conversations the extension starts **ignore project settings** for the starting
[permission mode](/guides/claude-code-permissions/). Set `claudeCode.initialPermissionMode` in
your VS Code user settings instead. It's the same [agent](/glossary/#agent) either way.

Source: [Use Claude Code in VS Code](https://code.claude.com/docs/en/vs-code).