Will I lose my VS Code settings if I switch to Cursor?

No, Cursor automatically imports all your VS Code settings on first launch. This includes themes, keyboard shortcuts, extensions, workspace configurations, and editor preferences. Your Git configuration and terminal settings are also preserved. You can return to VS Code at any time without losing data, since both editors use the same configuration files. The switch is reversible and risk-free.

How often is Cursor updated compared to VS Code?

VS Code receives monthly updates from Microsoft with new features and bug fixes. Cursor follows these VS Code updates with a delay of days to a few weeks and adds its own weekly AI updates on top. This means Cursor sometimes lags behind on the latest VS Code features but introduces new AI capabilities faster. In practice, the delay is rarely problematic for daily use.

Cursor vs VS Code: Is Built-In AI Worth Switching Editors?

Is an AI-native IDE worth the upgrade? Cursor builds on VS Code but puts AI at the center. The implications for extensions, speed, and pricing.

Cursor and VS Code share the same foundation but offer fundamentally different experiences tailored to different needs. Cursor is the better choice for developers who want to fully integrate AI into their workflow. Built-in features like Composer, background agents, and automatic codebase indexing surpass what extensions in VS Code can achieve. VS Code remains unbeatable as a free, stable editor with the largest extension ecosystem in the world. If you are already satisfied with Copilot in VS Code and do not need deeper AI integration, there is little reason to switch. But if you find yourself hitting the limits of AI extensions, regularly perform multi-file refactoring, or want more control over which AI model you use, Cursor offers clear added value. The choice comes down to whether you are willing to invest $20 per month for a deeper AI experience, or whether the free combination of VS Code plus Copilot is sufficient for your workflow.

Background

Cursor is built on the VS Code core and shares the same extension marketplace and configuration system. The fundamental difference lies in deeply integrated AI capabilities that go beyond what any extension can provide. Cursor offers an agent mode that works across multiple files, automatic codebase indexing that understands your entire project, and background agents that autonomously execute tasks. VS Code with extensions like Copilot works more modularly: the AI extension has more limited access to editor internals and cannot integrate as deeply. This architectural choice explains why Cursor performs more consistently on complex, project-wide tasks, while VS Code is more flexible in combining tools to personal preference. The question is not which editor is better, but which approach fits your way of working and your priorities as a developer.

Cursor

An AI-native IDE based on the VS Code codebase, designed to make AI central to the development workflow. Cursor offers all familiar VS Code functionality plus built-in AI chat, Composer agent for multi-file editing, and automatic codebase indexing. It supports most VS Code extensions and adds capabilities that no extension can replicate, such as background agents that autonomously execute tasks in separate branches. Cursor has an active community of professional developers and receives monthly updates with new AI capabilities and model support from providers like Anthropic, OpenAI, and Google.

VS Code

The most popular code editor in the world with over 70% market share among developers. VS Code is free, open-source, and maintained by Microsoft with monthly updates. It offers an unmatched extension ecosystem with over 50,000 extensions for virtually every programming language and workflow. AI functionality is available through extensions like GitHub Copilot, Codeium, and Continue. VS Code has become the standard for web development and is supported by an enormous community with extensive documentation, tutorials, and Stack Overflow answers for every conceivable problem.

What are the key differences between Cursor and VS Code?

Feature	Cursor	VS Code
Pricing	Free tier with limited AI requests, Pro $20 per month for full AI features and model access	Completely free and open-source, AI extensions cost separately (Copilot $10 per month)
AI integration	Built into every layer: chat, autocomplete, Composer agent, codebase indexing, and background agents	Via extensions: install Copilot, Codeium, or other AI extensions separately and configure individually
Extension ecosystem	Supports most VS Code extensions, but not every extension is 100% compatible with Cursor	Full ecosystem with 50,000+ extensions and complete compatibility, the industry standard
Performance	Slightly heavier due to AI indexing and background processes, noticeable on larger projects	Lighter and faster for pure code editing without AI features, lower memory usage overall
Updates	Follows VS Code releases with a delay of days to weeks, plus own weekly AI updates	Monthly updates directly from Microsoft with new features and security patches
Codebase indexing	Automatic indexing of your full project for contextual AI suggestions across files and modules	No built-in indexing, relies on AI extensions for limited context analysis within workspaces
Multi-file editing	Composer agent modifies multiple files simultaneously with preview and per-file rollback support	Limited to select extensions offering basic multi-file suggestions via Copilot Edits
Remote development	Supports SSH and dev containers, comparable to VS Code but with AI features available remotely	Excellent remote development via SSH, WSL, dev containers, and GitHub Codespaces

When to choose which?

Choose Cursor when...

Choose Cursor when AI-assisted development is your highest priority and you are willing to invest $20 per month for the best AI integration available. Cursor is ideal when you perform daily multi-file refactoring, when you regularly switch between AI models for different tasks, or when you want to use background agents for autonomous work. It is the strongest choice for TypeScript and Next.js developers working on medium to large projects where codebase context makes a significant difference in the quality of AI suggestions.

Choose VS Code when...

Choose VS Code when you want a free, reliable editor without monthly costs and full control over your toolchain. VS Code is the right choice when you use specific extensions not compatible with Cursor, when you work in languages outside the web ecosystem like Rust, Go, or Java, or when your organization has strict policies about approved software. For teams that intensively use remote development via SSH, WSL, or GitHub Codespaces, VS Code also offers a more mature and broadly supported experience with fewer unexpected incompatibilities.

What is the verdict on Cursor vs VS Code?

Which option does MG Software recommend?

At MG Software, we switched from VS Code to Cursor for our daily development and have not regretted that choice for a moment. The seamless AI integration, particularly the Composer agent, has noticeably increased our productivity on Next.js and React projects. The ability to work across multiple files simultaneously with full codebase context is a game changer for complex refactoring tasks. We recommend Cursor for professional development teams who work daily with TypeScript and modern frameworks and who prioritize productivity gains over cost. For clients simply looking for a reliable editor without extra costs, or who depend on specific extensions that do not work in Cursor, VS Code with Copilot remains an excellent combination that fully satisfies most developers.

Migrating: what to consider?

Switching from VS Code to Cursor is seamless: Cursor automatically imports all your VS Code extensions, settings, themes, and keyboard shortcuts on first launch. Your workspace configuration, Git settings, and terminal setup remain fully intact. The only adjustment is learning the Cursor-specific AI shortcuts and the Composer interface for multi-file editing. We recommend using both editors in parallel for the first week so you can verify that all your essential extensions function correctly. Most developers become fully productive in Cursor within two to three days. Note that some Microsoft-specific extensions like Live Share may have limited functionality.

Frequently asked questions

Most VS Code extensions work in Cursor because it is based on the same codebase and uses the same extension marketplace. However, some extensions are not fully compatible, especially those with deep integrations into VS Code-specific APIs or Microsoft services. Extensions like ESLint, Prettier, GitLens, and language support typically work without issues. It is advisable to test your essential extensions for a week in Cursor before fully switching from VS Code.

VS Code is generally slightly faster for pure code editing because Cursor uses additional resources for AI indexing and background processes. However, the difference is minimal on modern hardware with sufficient RAM. For projects with more than a thousand files, the initial indexing in Cursor can be noticeable, but afterward the experience is comparable. The productivity gains from AI features like Composer and background agents more than compensate for the marginally higher resource usage for most developers.

Yes, Cursor offers a free tier with limited AI functionality. You get a number of free AI requests per month for both chat and autocomplete. For unlimited usage and access to premium models like Claude Opus and GPT-5.4, you need a Pro subscription at $20 per month. The free tier is sufficient to evaluate Cursor for a week, but for daily professional use the Pro subscription is essentially necessary.

VS Code with Copilot offers strong AI assistance but lacks the deeper integration that Cursor provides. Copilot in VS Code is primarily an extension offering inline suggestions and chat, while Cursor has AI built into the core of the editor. The difference is noticeable in multi-file editing, codebase indexing, and agent tasks. For basic autocomplete and chat, both are comparable, but for complex refactoring and project-wide AI tasks, Cursor has an advantage.

Yes, you can have both editors installed simultaneously and use them for different projects. They share the same extension marketplace and much of the configuration but function as independent applications. This is useful during an evaluation period or when you use Cursor for AI-intensive work and VS Code for projects where specific extension compatibility is required. There are no conflicts between both installations.

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