How to Use Claude Code in VS Code: Complete Setup Guide (2026)

Claude Code runs in VS Code's integrated terminal. Here is how to set it up, configure workspace settings, and install skills for better output.

Quick Answer: Install Claude Code globally with npm install -g @anthropic-ai/claude-code. Open VS Code, press Ctrl+to open the integrated terminal, typeclaude`, and start coding. Claude Code reads your open workspace, understands your project structure, and has full access to the VS Code terminal. No extension needed.

How does Claude Code work in VS Code?

Claude Code is a terminal application, not a VS Code extension. You run it in VS Code's integrated terminal. This means it has access to everything the terminal has: your filesystem, git, environment variables, and any CLI tools you have installed.

The advantage of running in VS Code's terminal versus a standalone terminal: you see Claude's output alongside your code. When Claude edits a file, VS Code's file watcher picks up the change immediately. You can review diffs in VS Code's built-in git tools.

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How do I install Claude Code for VS Code?

If you have not installed Claude Code yet:

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

This installs the claude command globally. You need Node.js 18+ and a claude.ai Pro or Max subscription.

How do I open Claude Code in VS Code?

Open your project in VS Code. Press Ctrl+` (backtick) to open the integrated terminal. Type:

claude

Claude Code starts, reads your workspace, and is ready for instructions. It automatically detects your project structure, language, framework, and existing tests.

How do I configure workspace-specific settings?

Create a .claude/settings.json in your project root to configure Claude Code for this specific workspace. Settings include: permitted tools, auto-approve patterns, and default permission mode.

Create a CLAUDE.md file in your project root to give Claude context about your codebase: architecture decisions, coding conventions, and team standards. Claude reads this at session startup.

How do I install skills for better output?

Skills customize Claude Code's behavior. Without skills, you get generic output. With skills, Claude follows specific conventions for code review, commits, testing, and documentation.

Install skills in your global skills directory:

~/.claude/skills/
├── code-reviewer/
│   └── SKILL.md
├── git-commit-writer/
│   └── SKILL.md

Or in your project's local skills directory for project-specific skills.

The most installed skills:

code-reviewer (764 installs) reviews code for bugs, security, and style. Free.

git-commit-writer (232 installs) writes conventional commit messages. Free.

readme-generator (117 installs) generates README files. Free.

Browse all Claude Code skills on Agensi.

What are the best tips for the VS Code integration?

Use VS Code's split terminal to run Claude Code in one pane and your regular terminal in another.

Use Plan Mode (Shift+Tab twice) for complex refactors so you can review the plan in your terminal before Claude starts editing files.

Use VS Code's source control panel to review all changes Claude made before committing.