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Cursor - The AI-First Code Editor

Updated: October 10, 2025

Cursor combines the power of VS Code with advanced AI capabilities. Features both autonomous Agent mode and conversational Chat mode for every workflow.

Cursor - The AI-First Code Editor

Cursor is the most popular AI-powered code editor, built on VS Code with deep AI integration. It offers two distinct modes: Agent (powered by Claude 3.7 Sonnet) for autonomous coding and Chat (powered by GPT-4o) for conversational assistance.

What is Cursor?

Cursor is a fork of VS Code that's been redesigned from the ground up to integrate AI into every aspect of coding. Unlike plugins that bolt AI onto existing editors, Cursor is built AI-first.

Two Modes, Two Workflows

Agent Mode (Claude 3.7 Sonnet):

  • Autonomous coding assistant
  • Makes file edits directly
  • Runs terminal commands
  • Searches codebase independently

Chat Mode (GPT-4o):

  • Conversational Q&A
  • Code explanations
  • Lightweight suggestions
  • Reduced diff format

Key Capabilities

Rich Context Awareness

Cursor provides AI with comprehensive context:

  • All open files
  • Cursor location
  • Edit history
  • Linter errors
  • Terminal output
  • Git status

Powerful Tool Access

Both modes can:

  • Search code semantically
  • Read any file
  • Edit multiple files
  • Run terminal commands
  • Access web search
  • Check for errors

Smart Code Editing

  • Groups related changes
  • Fixes introduced errors
  • Minimal, focused edits
  • Explains reasoning

How Cursor Works

Agent Mode Workflow

  1. You Describe the Task

    "Add authentication to this API"

  2. Agent Plans and Explores

    • Searches for relevant files
    • Reads authentication docs
    • Checks existing patterns

  3. Agent Implements

    • Creates auth middleware
    • Updates routes
    • Adds tests
    • Runs validation

  4. Agent Verifies

    • Checks for errors
    • Fixes any issues
    • Confirms working state

Chat Mode Workflow

  1. You Ask a Question

    "How does this authentication work?"

  2. Chat Analyzes

    • Reads relevant files
    • Understands the flow
    • Identifies key components

  3. Chat Explains

    • Provides clear explanation
    • Shows code snippets
    • Suggests improvements

  4. Optional: Apply Changes

    • If you want edits, Chat suggests them
    • You approve
    • Changes applied

System Prompt Insights

Agent Mode Instructions

From Cursor's actual system prompt:

Identity:

"You are a powerful agentic AI coding assistant, powered by Claude 3.7 Sonnet, operating exclusively within the Cursor IDE."

Tool Usage Rules:

  • Always follow exact schema
  • Never mention tool names to user
  • Only use tools when necessary
  • Explain reasoning before tool use

Best Practices:

  • Never output raw code if edit tool should be used
  • Fix introduced errors immediately
  • Group file edits logically
  • Don't loop excessively on errors

Chat Mode Instructions

Identity:

"You are an AI coding assistant, powered by GPT-4o, operating in Cursor."

Key Differences:

  • More conversational
  • Suggests rather than implements
  • Uses reduced diff format
  • Asks before making changes

Output Format:

// ... existing code ...
{{ changes here }}
// ... existing code ...

Real-World Use Cases

Feature Development (Agent Mode)

Scenario: Add dark mode to React app

Agent Process:

  1. Searches for theme-related code
  2. Creates theme context
  3. Updates components
  4. Adds toggle button
  5. Tests functionality

Time: 5-10 minutes vs. 1-2 hours manually

Code Review (Chat Mode)

Scenario: Understand complex algorithm

Chat Process:

  1. Reads the code
  2. Explains step-by-step
  3. Identifies potential issues
  4. Suggests optimizations

Value: Instant expert review

Debugging (Agent Mode)

Scenario: Fix production bug

Agent Process:

  1. Reproduces the issue
  2. Searches for root cause
  3. Implements fix
  4. Adds test to prevent regression

Result: Faster resolution with tests

Learning (Chat Mode)

Scenario: Learn new framework

Chat Process:

  1. Explains concepts
  2. Shows examples
  3. Answers questions
  4. Suggests resources

Benefit: Personal tutor

Strengths

✅ Dual-Mode Flexibility

Choose between autonomous and conversational based on task.

✅ Rich Context

AI sees everything you see, plus more.

✅ VS Code Compatible

All your extensions and settings work.

✅ Powerful Models

Claude 3.7 and GPT-4o are top-tier.

✅ Smart Edits

Minimal changes, grouped logically.

✅ Error Handling

Automatically fixes issues it introduces.

Weaknesses

❌ Subscription Required

Free tier is limited, full features need Pro.

❌ Learning Curve

Two modes can be confusing initially.

❌ Token Costs

Heavy usage can be expensive.

❌ Occasional Hallucinations

AI can make mistakes, review changes.

Comparison with Competitors

vs. Windsurf

  • Cursor: Dual-mode, established
  • Windsurf: More autonomous, newer

vs. GitHub Copilot

  • Cursor: Full agentic capabilities
  • Copilot: Focused on completion

vs. Standard VS Code

  • Cursor: AI-first experience
  • VS Code: Traditional with plugins

Pricing

Free Tier

  • Limited AI requests
  • Basic features
  • Good for trying out

Pro ($20/month)

  • Unlimited requests
  • Both Agent and Chat modes
  • Priority support
  • Advanced features

Business

  • Team features
  • Admin controls
  • Custom models
  • Enterprise support

Check cursor.com/pricing for current details.

Best Practices

1. Choose the Right Mode

Use Agent Mode When:

  • Implementing features
  • Refactoring code
  • Fixing bugs
  • Making multiple file changes

Use Chat Mode When:

  • Learning concepts
  • Reviewing code
  • Getting explanations
  • Quick questions

2. Provide Good Context

Poor:

"Fix the bug"

Better:

"The login form isn't submitting on mobile. 
Error in console: 'Cannot read property submit'. 
File: src/components/LoginForm.tsx"

3. Review Changes

Always review what Agent mode does:

  • Understand the approach
  • Verify correctness
  • Learn from the implementation

4. Iterate

Don't expect perfection first try:

  1. Agent makes changes
  2. You test
  3. Provide feedback
  4. Agent refines
  5. Repeat until perfect

5. Use Both Modes

Combine them for best results:

  • Chat to understand
  • Agent to implement
  • Chat to review
  • Agent to refine

Example Workflows

Adding a Feature

Agent Mode:

You: "Add user profile page with avatar upload"

Agent: *Searches for user-related code*
Agent: *Creates ProfilePage component*
Agent: *Adds avatar upload logic*
Agent: *Updates routing*
Agent: *Adds API endpoint*
Agent: "Done! Profile page added at /profile"

Understanding Code

Chat Mode:

You: "Explain how this authentication flow works"

Chat: *Reads auth files*
Chat: "This uses JWT tokens. Here's the flow:
1. User logs in → POST /api/auth/login
2. Server validates → generates JWT
3. Client stores token → localStorage
4. Subsequent requests → include token in header
5. Server verifies → grants access"

Debugging

Agent Mode:

You: "API calls failing with CORS error"

Agent: *Checks API configuration*
Agent: *Finds missing CORS headers*
Agent: *Updates server config*
Agent: *Tests the fix*
Agent: "Fixed! Added CORS headers to Express config"

Tips for Success

1. Start Small

Begin with simple tasks to learn how each mode works.

2. Be Specific

The more context you provide, the better the results.

3. Trust but Verify

Agent mode is powerful, but always review changes.

4. Use Keyboard Shortcuts

Learn Cursor's shortcuts for faster workflow.

5. Leverage Context

Keep relevant files open for better AI understanding.

Who Should Use Cursor?

Perfect For:

  • Professional developers
  • Teams building complex apps
  • Anyone tired of repetitive coding
  • Developers learning new frameworks
  • Solo developers wanting a pair programmer

Maybe Not For:

  • Complete beginners (learn fundamentals first)
  • Developers who prefer full manual control
  • Teams with strict code review requirements
  • Projects with unusual tech stacks

The Cursor Advantage

Speed

Code 2-3x faster with AI assistance.

Quality

AI follows best practices and catches errors.

Learning

Learn by seeing how AI solves problems.

Focus

Spend time on architecture, not boilerplate.

Common Questions

Is it better than Copilot?

Different focus. Copilot excels at completion, Cursor at full features.

Can I use my own API keys?

Yes, Pro plan allows custom API keys.

Does it work offline?

No, requires internet for AI features.

Is my code private?

Yes, code isn't used for training (check privacy policy).

Conclusion

Cursor represents the future of coding: AI-assisted development that amplifies your capabilities without replacing your judgment.

The Dual-Mode Approach:

  • Agent for doing
  • Chat for understanding

The Result:

  • Faster development
  • Better code quality
  • Continuous learning
  • More time for creativity

Bottom Line: If you're serious about AI-assisted development, Cursor is the gold standard. The dual-mode approach gives you flexibility, the VS Code foundation gives you familiarity, and the powerful AI models give you capabilities that feel like magic.

Try it if: You want the most popular, well-supported AI code editor with proven results.

Skip it if: You prefer simpler tools or don't want to learn new workflows.

Official Site: cursor.com
Best For: Professional developers wanting AI pair programming
Pricing: Free tier available, Pro $20/month
Models: Claude 3.7 Sonnet (Agent), GPT-4o (Chat)
Updated: October 2025
Our Take: The most complete AI coding experience available

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