VS Code Extension Setup

The Claude Code VS Code extension embeds Claude directly into your editor. Instead of switching between a terminal and your editor, you interact with Claude in a panel that sits alongside your code. The extension inherits your project's CLAUDE.md, reads files from the workspace, and can edit files directly — the same capabilities as the terminal version, integrated into the editor UI.

Installation is a single command: install the extension from the VS Code marketplace, authenticate with your Anthropic account, and Claude appears in a sidebar panel. The extension automatically detects your project's CLAUDE.md and loads it. The key configuration step after installation: set your preferred keybinding for opening Claude. The default is Ctrl+Shift+P → "Claude: Open Panel," but a direct keybinding (e.g., Ctrl+L) reduces the friction from a command palette search to a single keystroke.

1. 1. Install and Authenticate Install "Claude Code" from the VS Code marketplace. Open the extension, sign in with your Anthropic account. The extension loads your project's CLAUDE.md automatically.
2. 2. Configure Keybindings Set a direct keybinding for opening the Claude panel — Ctrl+L or Cmd+L is common. Set a keybinding for inline editing (Ctrl+I or Cmd+K). Muscle memory reduces the cost of invoking Claude from a decision to a reflex.
3. 3. Configure Display Choose panel location: sidebar (persistent, narrow) or bottom panel (wide, shares space with terminal). Sidebar is better for conversation. Bottom panel is better for code review. Experiment during the first week and settle on what matches your workflow.