Installing the Claude Code VS Code extension and the five settings to review first

Claude Code Published:

How to install the Claude Code extension for VS Code, sign in, understand its relationship with the CLI, and the five settings worth adjusting right after installation.

Verified on Sep 7, 2026 These tools change quickly. Please also check the latest official documentation.
Contents
  1. Requirements
  2. Installation
  3. Install the CLI as well
  4. Five settings to review
    1. 1. Pick a permission mode
    2. 2. Create a CLAUDE.md
    3. 3. Check the model
    4. 4. Decide how you review diffs
    5. 5. Block reads of secrets
  5. Common problems
  6. Summary

Claude Code is Anthropic's coding agent. You can use it from the terminal or from a side panel in VS Code. This article covers installing the extension, running the first task, and the settings that make the biggest difference if you adjust them right away.

The short version: install the extension, sign in, and you are running within minutes. Whether you also set up a permission mode and a CLAUDE.md decides how pleasant the experience is afterwards.

KEY POINT

What you will learn

  • Installing the extension and signing in
  • How the extension relates to the CLI, and why you want both
  • Five settings to review right after installation

Requirements

ItemDetail
VS CodeA recent stable release (forks such as Cursor and Windsurf work too)
AccountClaude Pro / Max / Team / Enterprise, or an Anthropic Console API key
OSmacOS, Linux, Windows (native)
GitRequired if you want Claude to work with the repository

The free Claude plan does not include Claude Code. Pro is the usual starting point for individuals; Max for heavy daily use.

Installation

  1. Open the Extensions view (Ctrl+Shift+X / Cmd+Shift+X).
  2. Search for "Claude Code" and install the extension published by Anthropic.
  3. A Claude icon appears in the activity bar; click it to open the side panel.
  4. Press "Sign in". A browser window opens for your Claude account. To use an API key instead, enter it in the extension settings.
  5. With a workspace open, type your first request, for example "Explain how this repository is organized".

Check which account you are signed in with

If you meant to use a Pro/Max plan but signed in with an API key, you are billed per token. The account indicator in the side panel shows which authentication is active.

Install the CLI as well

The extension works on its own, but the claude command is worth having for three reasons:

  • Some configuration commands (claude mcp add, claude config) exist only in the CLI
  • Non-interactive mode (claude -p) is what you use in CI and scripts; see Running Claude Code non-interactively
  • If the extension misbehaves, you can continue with the same settings from the terminal

The native installer is recommended:

# macOS / Linux
curl -fsSL https://claude.ai/install.sh | bash

# Windows (PowerShell)
irm https://claude.ai/install.ps1 | iex

npm install -g @anthropic-ai/claude-code also works, but the native installer updates itself.

用語解説

Side panel versus integrated terminal: The side panel shows diffs and file references graphically; running claude in VS Code's integrated terminal gives you the CLI's keyboard-driven workflow. Both read the same settings, so switch freely.

Five settings to review

1. Pick a permission mode

Claude Code asks before every edit and command by default. Most people start with acceptEdits (edits run, commands are confirmed). See Claude Code permissions in settings.json.

2. Create a CLAUDE.md

A CLAUDE.md with your project's rules saves you from repeating the same context. Run /init to generate a draft; see How to write CLAUDE.md.

3. Check the model

/model shows the current model. A Sonnet-class model for routine edits and an Opus-class model for design and hard debugging is a sensible split.

4. Decide how you review diffs

The extension shows Claude's changes as diffs in the editor. Even with automatic edits enabled, a git diff before committing catches surprises.

5. Block reads of secrets

Add deny rules for .env and credential files before the first real session; see Stop AI coding tools from reading your API keys and secrets.

Common problems

SymptomCheck
No icon in the activity barRestart VS Code; on forks, check extension compatibility
"plan not supported" after sign-inYou signed in with a free account; a Pro-or-higher plan or an API key is needed
Cannot connect behind a proxySet HTTPS_PROXY in the shell that starts VS Code

Summary

  • Install the "Claude Code" extension published by Anthropic
  • A Pro-or-higher plan or an API key is required; the free plan does not include it
  • Install the CLI too for configuration commands and non-interactive mode
  • Right after installation: permission mode, CLAUDE.md, and deny rules for secrets

FAQ

Is the VS Code extension free?
The extension itself is free, but using it requires a paid plan such as Claude Pro or Max, or an API key from the Anthropic Console (pay as you go).
Is the extension different from the claude command in the terminal?
It is the same Claude Code. The extension drives it from a side panel; the CLI drives it from the terminal. Settings files such as settings.json and CLAUDE.md are shared.
Does it work in Cursor or Windsurf?
VS Code forks can install the extension too. If it is missing from the marketplace, install the VSIX manually.

Primary sources

This article was drafted by AI from official documentation and reviewed by the site operator before publishing. Found a mistake? Let us know via the contact page.