
Cursor Setup: How to Set Up Cursor AI
Install Cursor, sign in, pick your AI model, add project rules, and ship your first feature with the Agent. Every step below was verified against the official Cursor docs in August 2026, so nothing here is stale.
Quick Answer: Cursor setup
Download Cursor from cursor.com (macOS 12+, Windows 10+, or Linux), sign in, and import your VS Code settings in one click. Press Cmd+I to open the Agent and describe what you want built. Install to first working prompt takes about 10 minutes. The free Hobby plan is enough to evaluate it; Pro is $20 a month as of August 20, 2026.
Prerequisites
- A computer running macOS 12+, Windows 10+, or Linux
- Internet connection (the AI features run server-side)
- A Cursor account (free Hobby plan, no credit card needed)
- Optional: an existing project you want to work on
Download Cursor
Head to cursor.com and click the download button. Cursor detects your OS and hands you the right installer: a .dmg for macOS (Apple Silicon and Intel), a .exe for Windows.
On Linux you have a choice. Cursor ships apt packages for Debian and Ubuntu and dnf packages for RHEL and Fedora, and the official docs recommend those over the portable AppImage because they add desktop icons, automatic updates, and the CLI tool.
Coming from VS Code?
Install and First Launch
Mac: Open the .dmg and drag Cursor to Applications. Requires macOS 12 (Monterey) or later.
Windows: Run the .exe installer. Defaults are fine. Requires Windows 10 or later.
Linux (Debian/Ubuntu): install via apt following the repo instructions on the download page. For the portable route:
chmod +x Cursor-*.AppImage
./Cursor-*.AppImageOn first launch Cursor walks you through a short setup: keyboard layout, theme, and the VS Code import. Say yes to the import if you have VS Code. Also let it install the cursor shell command so you can open any folder from the terminal.
Sign In and Pick a Plan
Cursor needs an account for the AI features. Sign up with Google, GitHub, or email. Sign-in bounces through your browser and back to the app.
What the plans actually get you, per the live pricing data we track (verified August 20, 2026):
- Hobby (free): Tab completions and a limited number of Agent requests. No credit card. Enough to evaluate Cursor on a real project.
- Pro ($20/mo): extended Agent limits and access to frontier models. The plan most individual developers land on.
- Pro+ and Ultra: higher multiples of the Pro limits for heavy agent users. Cursor does not list their prices on the public pricing page.
- Teams ($40/user/mo): centralized billing, shared rules, SSO.
Full breakdown on our Cursor pricing page, which pulls from the same tracker.
Free tier strategy
Meet the Agent
Press Cmd+I (Mac) or Ctrl+I (Windows/Linux) to open the Agent sidepanel. This is the main AI surface in current Cursor. The old "Composer" and separate chat panel from earlier versions have been folded into it, so if a tutorial tells you Cmd+L opens something different, it is out of date. Both shortcuts now toggle the same panel.
The Agent has modes, and switching them is the skill worth learning first:
- Agent mode: reads your codebase, plans, edits multiple files, runs terminal commands, and shows you every change as a diff.
- Plan mode: press Shift+Tab in the input to rotate modes. Plan mode makes Cursor lay out its approach before writing code. Use it for anything bigger than a one-file change.
- Inline edit: select code and press Cmd+K for a quick targeted change without opening the panel.
And always: Tab accepts autocomplete suggestions as you type. Cursor Tab predicts whole edits, not just the next token.
Choose Your AI Model
The model picker sits in the Agent input, and Cmd+/ cycles between models without touching the mouse. Cursor routes to multiple providers:
- Claude (Anthropic): best for complex reasoning, refactoring, and understanding large codebases. The default recommendation for real development work.
- GPT (OpenAI): fast and capable. Good for quick edits and general-purpose tasks.
- Gemini (Google): strong long-context handling when you need many files in scope at once.
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Open a Project and Prompt
Open a folder with File > Open Folder, or from the terminal:
mkdir my-first-cursor-project
cd my-first-cursor-project
cursor .Cursor indexes the project in the background so the Agent can search it. Small projects index in seconds. On big monorepos, add a .cursorignore file to keep generated folders out of the index.
Then open the Agent (Cmd+I) and try a real prompt. In an empty project:
Create a simple Express.js server with a health check
endpoint at /api/health that returns { status: "ok" }.
Include a package.json with the right dependencies.In an existing project, start by asking instead of editing:
@codebase How is authentication handled in this project?
Which files are involved?Cursor shows every change as a diff. Review, adjust if needed, then accept.
Good prompts are specific
Add Project Rules
Rules tell Cursor about your stack and conventions so every prompt starts from the right assumptions. Current Cursor gives you two ways to do it:
- AGENTS.md: a plain markdown file at your repo root. The simple option, and the one to start with. Nested AGENTS.md files in subdirectories work too.
- .cursor/rules: a directory of .mdc files with frontmatter that controls when each rule applies (always, per file glob, when the Agent judges it relevant, or only when @-mentioned). Use this once you want different rules for different parts of the codebase.
A practical starter AGENTS.md:
# AGENTS.md
## Tech Stack
- Framework: Next.js 15 (App Router)
- Styling: Tailwind CSS
- Database: Supabase (Postgres)
- Language: TypeScript (strict mode)
## Conventions
- Functional components with hooks
- Prefer server components; add 'use client' only when needed
- Absolute imports from the @/ prefix
- Wrap async operations in try/catch
- Files in kebab-case, components in PascalCase
## Do Not
- Use CSS-in-JS libraries
- Create files over 300 lines; split into smaller modules
- Use default exports for non-page componentsBuild Something Real
Now put the Agent to work on a feature that spans files. Open it with Cmd+I, switch to Plan mode with Shift+Tab if the change is non-trivial, and describe the outcome:
Add a user profile page at /profile that:
- Shows the user's name, email, and avatar
- Has an "Edit Profile" button that opens an inline form
- Saves changes via a PATCH /api/users/me endpoint
- Shows a success toast after saving
- Handles loading and error statesThe Agent plans the change, creates or edits the files, and presents a complete diff. Review each file before accepting. Then ask it to verify its own work: run the type checker, the tests, the build. Cursor can run those commands itself and fix what breaks.
Iterate, don't restart
The 3 Settings That Actually Matter
1. Privacy Mode
In Cursor Settings under Privacy. With Privacy Mode on, your code is not retained for training. If you work on anything commercial or client-owned, turn this on before your first prompt, not after.
2. Codebase indexing and .cursorignore
The index is what makes @codebase and Agent search useful. Check Settings for indexing status on big repos, and use .cursorignore to exclude generated code, fixtures, and vendored dependencies. A clean index means the Agent quotes your real code instead of build artifacts.
3. Rules (AGENTS.md or .cursor/rules)
Not technically a settings toggle, but it changes output quality more than any switch in the settings panel. Ten lines about your stack and conventions save you from correcting the same mistakes in every conversation.
Troubleshooting: Where Setups Get Stuck
Stuck at the sign-in screen after clicking "Log in"
AppImage will not launch on Linux
VS Code extensions or settings did not come across
Indexing hangs on a large repository
Hit the free plan limit mid-task
The Agent edits the wrong files
What to Build First
Personal Portfolio Site
A responsive portfolio with a hero section, project cards, and a contact form. Start with "Create a modern portfolio site with Next.js and Tailwind CSS."
REST API with Auth
Build an Express.js API with JWT authentication, CRUD routes, and input validation. Ask the Agent to scaffold the whole thing at once.
Real-Time Chat App
A WebSocket-powered chat application with rooms, typing indicators, and message persistence. Great for testing multi-file editing.
Cursor Tips from Power Users
Use @-mentions for context
Type @filename, @folder, or @codebase in the Agent panel to give Cursor precise context. @codebase searches your entire indexed repo, which is the right tool for architecture questions.
Tab is your best friend
Cursor Tab predicts your next edit, not just your next line. Start typing and it suggests multi-line completions based on intent. Tab accepts the whole thing, Cmd+Right Arrow accepts one word at a time.
Plan before big changes
Press Shift+Tab in the Agent input to rotate modes, including Plan mode. Plan mode makes Cursor write out its approach before touching files, which catches wrong turns while they are still cheap.
Keep rules files short
Whether you use AGENTS.md or .cursor/rules, long rules dilute the AI's attention. Cover your tech stack, conventions, and file structure. Skip filler like "write clean code."
Switch models per task
Use Claude for complex reasoning and refactoring, a faster model for quick edits. Cmd+/ cycles between models without leaving the input, and you can switch mid-conversation.
Review diffs, then undo freely
Every Agent edit lands as a reviewable diff, and accepted edits behave like normal edits. If something goes wrong, Cmd+Z reverses it, and chat checkpoints let you roll a whole conversation back.
Essential Keyboard Shortcuts
Current defaults, checked against the official Cursor keyboard reference in August 2026. On Windows and Linux, swap Cmd for Ctrl.
| Action | Mac | Windows / Linux |
|---|---|---|
| Open the Agent sidepanel | Cmd+I | Ctrl+I |
| Inline edit selected code | Cmd+K | Ctrl+K |
| Accept Tab suggestion | Tab | Tab |
| Accept next word only | Cmd+Right Arrow | Ctrl+Right Arrow |
| Reject suggestion | Esc | Esc |
| Rotate Agent modes (incl. Plan) | Shift+Tab | Shift+Tab |
| Cycle AI models | Cmd+/ | Ctrl+/ |
| New chat | Cmd+N | Ctrl+N |
| Command Palette | Cmd+Shift+P | Ctrl+Shift+P |
| Add file to context | Type @filename | Type @filename |
You are set up. Now explore.
Read our full Cursor review for the verdict after months of daily use, or watch it go head to head with Windsurf in the live duel.
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Learn More About Cursor
Cursor Setup FAQ
Is Cursor free to use?
Do I need VS Code installed before setting up Cursor?
How do I install Cursor on Linux?
What happened to the .cursorrules file?
Which AI model should I choose in Cursor?
How long does Cursor setup actually take?
What are the system requirements for Cursor?
Does Cursor work offline?
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