8.1 — Claude Code in VS Code
The VS Code extension is the most accessible surface for using Claude Code without leaving your editor. It installs from the marketplace (Cmd+Shift+X, search for "Claude Code") and opens an integrated panel directly inside the interface. You get inline diffs, @-mentions of files, plan review and conversation history, all without switching to a terminal.
The daily workflow relies on the side panel. You select code, launch the command palette (Cmd+Shift+P > "Claude Code"), and send an instruction. The diff appears inline in the editor, you accept or reject each modification. For targeted tasks (fix, explanation, small refactoring), it's the shortest path between the problem and the solution.
# The extension can also be installed via the CLI
# If you launch claude in the VS Code integrated terminal,
# the extension installs automatically (autoInstallIdeExtension: true)
claude --ide
# Disable auto-install if needed
export CLAUDE_CODE_IDE_SKIP_AUTO_INSTALL=1
One important point: the extension and the CLI share the same CLAUDE.md, the same settings, the same hooks. Modifying your configuration in one context updates it in the other. For heavy operations (multi-file migration, complex orchestration), the VS Code integrated terminal remains superior — you access it with claude directly and benefit from all the slash commands.
Key takeaways
• VS Code extension: inline diffs, @-mentions, plan review, conversation history
• Automatic installation when you launch claude in the VS Code terminal
• Same CLAUDE.md configuration shared between extension and CLI
• Extension for quick and contextual, terminal for structured operations