Skip to main content

Cursor Guide

What is this about?

Cursor is an AI-first code editor built on the VS Code codebase. Beyond inline autocomplete, it offers an in-editor agent, cloud and terminal agents, automated PR review, and its own coding models — under usage-based pricing with enterprise controls. This guide maps the surfaces, the current (and recently renamed) feature names, the model and pricing picture, and the quickstart.

Source scope as of June 23, 2026

Based on official Cursor sources (cursor.com, cursor.com/docs, cursor.com/pricing, the changelog and blog). Current major version is Cursor 3.x. Naming changed across the 2.0 → 3.0 cycle, so two points up front: the in-editor agentic panel is now "Agent" (Cmd/Ctrl+I), while "Composer" now names Cursor's own model family; and the former "Background Agents" are now "Cloud Agents." A few items below (exact data-retention periods, .cursorrules legacy support, CLI GA status) could not be confirmed on a current official page and are flagged rather than asserted.

1. The mental model​

SurfaceWhat it is forPrimary user
Cursor (the editor)VS Code-based AI code editor; imports your VS Code extensions, themes, settings, and keybindingsAll developers
TabAutocomplete that predicts your next edit, not just the next tokenEveryone, every keystroke
Agent (Cmd/Ctrl+I)Autonomous in-editor assistant: multi-step tasks, runs commands, edits and verifies codeDevelopers delegating work
Inline edit (Cmd/Ctrl+K)Prompt bar to transform a selection or write a terminal commandQuick local edits
Ask modeRead-only conversational mode that searches the codebase but does not editQ&A / exploration
Cloud AgentsAsync agents that run on Cursor's infrastructure, with local↔cloud handoff (formerly "Background Agents")Long-running / parallel work
Cursor CLITerminal agent — code from the terminal, automate in CI/CDTerminal-first / CI users
BugbotAutomated PR review on GitHub, GitLab, and BitbucketTeams reviewing PRs

Cursor is built on the VS Code codebase (a fork), so a one-click VS Code Import brings over your extensions, themes, settings, and keybindings. It uses the Open VSX extension registry rather than the proprietary Microsoft Marketplace, so a few extensions differ or are unavailable. Agents can also be launched from the web (cursor.com/agents), mobile, Slack, GitHub, and Linear, and Cursor 3 is multi-repo / multi-workspace by design.

2. Models​

  • Cursor's own models — the Composer family (Composer 1, 1.5, and 2.5): Cursor's agentic coding models, trained for fast in-editor work. ("Composer" today is a model name; the panel it runs in is "Agent.")
  • Third-party frontier models are available inside Cursor — the current families include Anthropic Claude (4.x), OpenAI GPT-5 (incl. GPT-5-Codex), Google Gemini 3, xAI Grok 4.x, and Moonshot Kimi K2.5. Point-version suffixes change often, so treat these as families and check the live list before pinning one.
  • Auto mode lets Cursor pick a model balancing intelligence, cost, and reliability — positioned as the everyday default. Composer is positioned for fast agentic coding.

3. Rules & context​

  • .cursor/rules — a directory of .mdc files (markdown + frontmatter). Four application methods: Always Apply (alwaysApply: true), Apply Intelligently (the agent decides from a description), Apply to Specific Files (globs), and Apply Manually (@-mention).
  • AGENTS.md is supported as a simpler root-level alternative, with nested files (a more specific subdirectory file takes precedence).
  • @-symbol context references files, docs, and symbols in Agent/Chat and the Cmd-K bar; the local codebase is indexed for semantic search; MCP is supported with one-click install.

(Legacy .cursorrules support was not confirmed on a current docs page — prefer .mdc rules or AGENTS.md.)

4. Pricing & plans​

Cursor's pricing is now usage-based: each plan includes an allowance of model usage, and on-demand usage beyond it is billed in arrears. Cursor's own models (Composer / Auto) and third-party API usage draw on separate pools. (The older per-request model is gone.)

Individual (USD/month): Hobby — free · Pro — 20⋅∗∗Pro+∗∗—20 · **Pro+** — 60 · Ultra — $200 (positioned at ~20× Pro usage).

Teams (USD/seat/month): Standard — 32annual/32 annual / 40 monthly · Premium — 96annual/96 annual / 120 monthly (~5× the Standard allowance). New pricing applies to renewing customers from July 1, 2026.

Enterprise — custom pricing; adds pooled usage, invoice/PO billing, SCIM seat management, repository/model access control, audit logs, and priority support.

5. Privacy & enterprise​

Relevant if you are evaluating Cursor under DSGVO/BDSG:

  • Privacy Mode — when enabled, your data is not trained on, backed by technical controls and contractual requirements with model providers.
  • SOC 2 Type II attestation (report at trust.cursor.com), plus a commitment to annual third-party penetration testing.
  • Enterprise/admin controls — SAML/OIDC SSO, SCIM provisioning, audit logs, repository/model access control, MDM deployment, and team-wide Privacy Mode.
Confirm retention terms before a compliance sign-off

The security page did not state specific data-retention periods; it points to a separate Privacy / Data Use Policy. For a regulated deployment, confirm the exact retention terms via trust.cursor.com and that policy before making compliance claims.

6. Quickstart​

  1. Download and install Cursor from cursor.com; sign in.
  2. On first run, click VS Code Import to bring over your extensions, themes, settings, and keybindings.
  3. Open a project folder.
  4. Press Cmd/Ctrl+I to open Agent; ask it to explain the codebase or make a small change, then review the diff and run your tests before accepting.
  5. Use Tab for next-edit suggestions and Cmd/Ctrl+K for inline edits as you type.

The CLI installs with curl https://cursor.com/install -fsS | bash for terminal and CI use.

7. Decision guide​

You want…Consider…
an all-in-one IDE with agentic coding, Tab, PR review, and admin/compliance controlsCursor
to stay on stock VS Code and add AI assistance via an extensionVS Code + an assistant extension
headless, scriptable, CI/CD-driven workflows with no GUI editora terminal/CLI agent (Cursor ships its own CLI, so this is not strictly either/or)

Pick based on whether you want an integrated editor, a lightweight add-on to your current editor, or a headless automation workflow.

Product & pricing

Docs

Related guides