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Claude Code VS Code Extension: Setup & Integration Guide

Connect Claude Code to VS Code for the best of both worlds. Terminal power meets IDE convenience with this complete integration guide.

Problem: Want Claude Code's terminal power inside VS Code?

Here's your 2-minute quick win:

code --install-extension anthropic.claude-code

Open the command palette (Ctrl+Shift+P), type "Claude Code", and you're running AI coding sessions inside your IDE. No terminal switching. No context loss.

Why Connect Claude Code to VS Code

Claude Code runs in your terminal. VS Code is your IDE. The official VS Code extension (launched September 2025) brings them together:

  • Real-time diffs: See Claude's changes as inline diffs with accept/reject buttons
  • File management: @-mention files using VS Code's native file picker instead of typing paths
  • Multiple sessions: Run parallel Claude sessions in different workspace folders for microservices work
  • MCP support: Use MCP servers configured through CLI for browser automation and search
  • Extended thinking: Toggle Claude's reasoning visibility to debug complex logic

This eliminates copying code between terminal and IDE. Your first project becomes faster when Claude edits files directly in your workspace.

Installing the VS Code Extension

Method 1: VS Code Marketplace

  1. Open VS Code
  2. Click Extensions (Ctrl+Shift+X)
  3. Search "Claude Code"
  4. Install the official Anthropic extension

Method 2: Command Line

code --install-extension anthropic.claude-code

Requirements: VS Code 1.98.0+ and a Claude Pro, Max, Team, or Enterprise subscription. Check your setup with our installation guide.

Setting Up Your First Session

Open command palette (Ctrl+Shift+P or Cmd+Shift+P on Mac):

Claude Code: New Session

You'll see a dedicated sidebar panel appear. This is your Claude workspace. Ask Claude to do something practical:

Create a React component with useState hook for a counter

Watch the real-time diff appear in your editor. You'll see:

  1. Highlighted changes showing what Claude wants to add or modify
  2. Accept/Reject buttons at the diff level
  3. File preview before committing changes

Accept the changes. The code appears in your workspace immediately. No copying, no pasting, no manual file creation. This beats ChatGPT copy-paste workflows by miles.

Want to modify something? Just ask Claude to refine it:

Add a reset button to the counter

Claude updates the same file with another diff. You maintain full control while Claude handles the implementation details. Learn more about effective prompting in our configuration basics guide.

Configuration Options

Extended Thinking Mode

Toggle Claude's reasoning visibility with the Extended Thinking button. See Claude's internal thought process before it makes changes - invaluable for debugging complex logic and learning best practices.

File Attachments and Context

Drag files directly into the chat panel or use @-mentions to reference specific files:

@readme.md explain this project structure
@src/components/Header.tsx refactor this to use TypeScript generics

The extension uses VS Code's workspace context, so Claude already knows your project structure. No need to manually describe your setup like you would with ChatGPT.

Multiple Sessions for Complex Projects

Open multiple workspace folders and run separate Claude sessions per project - perfect for microservices or parallel feature development. Each session maintains its own context. Your backend changes don't pollute your frontend session. Learn about advanced agent workflows for more powerful patterns.

When Things Go Wrong

Error: "Extension not loading"

Fix: Update VS Code to 1.98.0+:

code --version

Error: "Claude Code not responding"

Fix: Restart VS Code's extension host:

Ctrl+Shift+P → "Developer: Reload Window"

Error: "Authentication failed"

Fix: Check your Claude subscription status. The extension requires Pro, Max, Team, or Enterprise. See our troubleshooting guide for more auth issues.

You Can Now Code with Claude Inside VS Code

  • You just connected terminal AI power to your IDE
  • Try this next: MCP extensions for browser automation
  • Go deeper: Learn about agent workflows for multi-step tasks

The extension is in beta (as of September 2025), so expect regular updates. But it already beats switching between terminal and IDE constantly.

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