Cursor AI: The Code Editor That Actually Understands Your Codebase

A comprehensive review of Cursor, the AI-first code editor. Discover how it compares to VS Code with Copilot, its killer features, and whether it's worth switching your entire workflow.

After 20 years of using various code editors, Cursor is the first one that's made me seriously consider switching from VS Code. Here's why it might make you switch too.

What is Cursor?

Cursor is a fork of VS Code with AI superpowers baked in. Think VS Code + ChatGPT + GitHub Copilot, but smarter about your specific codebase.

Key Differentiators:

  • Codebase awareness - Understands your entire project
  • Natural language edits - Describe changes, Cursor makes them
  • Multi-file editing - Edit multiple files simultaneously
  • Privacy modes - SOC 2 compliant with privacy options
  • VS Code compatibility - All your extensions work

The Killer Features

1. Cmd+K: Inline AI Editing

Press Cmd+K anywhere in your code and type what you want.

# Select this function, press Cmd+K, type:
# "Add error handling and logging"

# Before:
def upload_to_s3(file_path, bucket):
    s3.upload_file(file_path, bucket, file_path)

# After (Cursor generates):
def upload_to_s3(file_path, bucket):
    """Upload file to S3 with error handling"""
    import logging
    logger = logging.getLogger(__name__)
    
    try:
        logger.info(f"Uploading {file_path} to {bucket}")
        s3.upload_file(file_path, bucket, file_path)
        logger.info("Upload successful")
        return True
    except ClientError as e:
        logger.error(f"Upload failed: {e}")
        raise
    except FileNotFoundError:
        logger.error(f"File not found: {file_path}")
        raise

2. Cmd+L: AI Chat with Context

Open AI chat that knows your codebase.

You: How does authentication work in this project?

Cursor: Based on your codebase, authentication uses:
1. AWS Cognito for user management (auth.py, line 45)
2. JWT tokens stored in localStorage (frontend/auth.js)
3. API Gateway with Lambda authorizer (infrastructure/api-stack.py)

Would you like me to show you how to add a new protected route?

The magic: Cursor automatically includes relevant files as context.

3. Cmd+I: Composer Mode

Edit multiple files at once with natural language.

You: Add a new API endpoint for user preferences. 
     Include Lambda function, API Gateway route, 
     DynamoDB table, and update the CDK stack.

Cursor: [Creates/modifies 4 files simultaneously]
- handlers/preferences.py (new)
- infrastructure/api-stack.py (modified)
- infrastructure/database-stack.py (modified)
- tests/test_preferences.py (new)

4. Codebase Indexing

Cursor indexes your entire codebase, so it can:

  • Answer questions about your architecture
  • Find related code across files
  • Suggest consistent patterns
  • Reference your existing code

Real-World Usage

Example 1: Refactoring

You: Select UserService class
     Cmd+K: "Extract database operations to a separate repository class"

Cursor: 
1. Creates UserRepository class
2. Moves database logic
3. Updates UserService to use repository
4. Updates imports
5. Maintains all method signatures

Example 2: Adding Tests

You: Cmd+L: "Write comprehensive tests for the upload_to_s3 function"

Cursor: 
- Generates test file
- Mocks AWS S3
- Tests success case
- Tests error cases
- Tests edge cases
- Uses pytest fixtures

Example 3: Documentation

You: Select entire file
     Cmd+K: "Add comprehensive docstrings to all functions"

Cursor:
- Adds Google-style docstrings
- Documents parameters
- Documents return values
- Documents exceptions
- Adds usage examples

Cursor vs VS Code + Copilot

Feature Cursor VS Code + Copilot
Code Completion ⭐⭐⭐⭐⭐ ⭐⭐⭐⭐⭐
Codebase Understanding ⭐⭐⭐⭐⭐ ⭐⭐
Multi-file Editing ⭐⭐⭐⭐⭐ ⭐⭐
Natural Language Edits ⭐⭐⭐⭐⭐ ⭐⭐⭐
Privacy Options ⭐⭐⭐⭐⭐ ⭐⭐⭐
Extension Ecosystem ⭐⭐⭐⭐⭐ ⭐⭐⭐⭐⭐
Price $20/month $10/month

Pricing

Free Tier:

  • 2,000 completions/month
  • 50 premium requests/month
  • Limited AI model access

Pro ($20/month):

  • Unlimited completions
  • Unlimited premium requests
  • Claude 3.5 Sonnet
  • GPT-4
  • Privacy mode
  • Priority support

Business ($40/user/month):

  • Everything in Pro
  • Admin dashboard
  • SSO
  • SOC 2 compliance
  • Audit logs

Privacy and Security

Cursor takes privacy seriously:

// Settings → Cursor Settings → Privacy Mode

Privacy Mode Options:
1. **Disabled** - Full AI features, data used for training
2. **Enabled** - Full AI features, no training data
3. **Strict** - No code sent to external servers (local models only)

For Enterprise:

  • SOC 2 Type II certified
  • GDPR compliant
  • Data encryption at rest and in transit
  • Option to use your own API keys

Best Practices

1. Use Specific Prompts

❌ "Fix this function"
✅ "Add input validation, handle edge cases for empty lists, and improve error messages"

2. Review AI Changes

Don't blindly accept! Check:

  • Logic correctness
  • Edge cases
  • Performance implications
  • Security considerations

3. Leverage @-mentions

@filename - Include specific file
@folder - Include entire folder
@code - Reference selected code
@docs - Include documentation
@web - Search the web

Example:

You: @auth.py @database.py 
     How should I modify these to add 2FA?

4. Use Composer for Large Changes

For changes across multiple files, use Composer mode (Cmd+I) instead of Chat.

5. Customize AI Rules

Create .cursorrules file in your project:

# .cursorrules
- Use Python type hints for all functions
- Follow PEP 8 style guide
- Add docstrings in Google format
- Use pytest for all tests
- Prefer composition over inheritance
- AWS SDK error handling with retry logic

Cursor will follow these rules in all generations!

Limitations

1. Context Window Limits

Even with codebase indexing, there are limits. For very large codebases (100k+ lines), Cursor might miss some connections.

2. Occasional Hallucinations

AI can suggest non-existent APIs or libraries. Always verify.

3. Cost for Heavy Use

At $20/month, it's pricier than Copilot ($10/month). But the features justify it.

4. Internet Required

Unlike VS Code which works offline, Cursor's AI features need internet.

Migration from VS Code

Good news: It's painless!

# 1. Download Cursor from cursor.sh

# 2. First launch automatically:
- Imports VS Code settings
- Imports extensions
- Imports keybindings

# 3. Start coding immediately!

Your VS Code extensions work in Cursor. It's literally VS Code with AI superpowers.

Tips and Tricks

1. Keyboard Shortcuts

Cmd+K - Inline edit
Cmd+L - Open chat
Cmd+I - Composer mode
Cmd+Shift+L - New chat
Cmd+. - Quick fix
Tab - Accept suggestion

2. Use Chat History

Cursor remembers chat context. Reference previous conversations:

You: Earlier you suggested using Cognito. 
     Show me how to implement that.

3. Debug with AI

You: @error-log.txt 
     Analyze this error and suggest a fix

4. Code Review

You: @pull-request.diff 
     Review this code for security issues, 
     bugs, and style problems

5. Learning New Codebases

You: I'm new to this project. 
     Explain the architecture and 
     where authentication is handled.

Is It Worth Switching?

Switch if you:

  • Work on large codebases (10k+ lines)
  • Frequently refactor code
  • Want AI that understands project context
  • Need multi-file editing capabilities
  • Value privacy and security
  • Don't mind paying $20/month

Stick with VS Code if you:

  • Mostly write simple scripts
  • Already happy with Copilot
  • Want to save $10/month
  • Work primarily offline
  • Have a very customized VS Code setup

My Take After 3 Months

Productivity gain: 30-40% faster development

Favorite features:

  1. Codebase-aware chat
  2. Multi-file editing
  3. Natural language refactoring

Would I recommend it? Absolutely. For professional developers working on real projects, Cursor is a game-changer.

Will I keep using it? Yes. I've switched completely from VS Code.

Getting Started Checklist

  • Download Cursor from cursor.sh
  • Import VS Code settings
  • Try Cmd+K on a simple function
  • Test Cmd+L with codebase questions
  • Create .cursorrules for your project
  • Try Composer mode for multi-file edit
  • Configure privacy settings
  • Explore AI model options

Conclusion

Cursor isn't just another AI code assistant—it's a paradigm shift in how we write code. By understanding your entire codebase, it can make intelligent suggestions that generic AI tools can't match.

Is it perfect? No. But it's the closest thing to pair programming with a senior developer who has perfect memory of your codebase.

Try it for a month. If you're a professional developer, you'll probably never go back.

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