Lilly Tech Systems
Introduction to Cursor IDE Beginner
Cursor is an AI-native code editor built on top of VS Code. Unlike traditional editors with AI bolted on as an afterthought, Cursor was designed from the ground up to make AI a core part of the coding experience — from intelligent autocomplete to multi-file editing powered by large language models.
What is Cursor?
Cursor is a fork of VS Code that deeply integrates AI capabilities into the editing experience. It looks and feels like VS Code (and supports all VS Code extensions and themes), but adds powerful AI features that go far beyond simple autocomplete.
Key Insight: Cursor is not just "VS Code with Copilot." It is a fundamentally rethought editor where AI understands your entire codebase, can make coordinated changes across multiple files, and learns your coding style through custom rules.
Core AI Features
| Feature | Shortcut | Description |
|---|---|---|
| Tab Completion | Tab | Context-aware autocomplete that suggests multi-line completions based on your code and cursor position. |
| Cmd-K (Inline Edit) | Cmd/Ctrl + K | Select code and describe what to change. Cursor edits the selection inline with a diff view. |
| Chat | Cmd/Ctrl + L | Ask questions about your codebase, get explanations, and request code generation in a sidebar panel. |
| Composer | Cmd/Ctrl + I | Multi-file editing agent. Describe a feature or change and Composer edits across multiple files. |
| @-Mentions | @ in Chat/Composer | Reference specific files, folders, docs, or code symbols to give the AI precise context. |
Cursor vs. Other AI Coding Tools
| Feature | Cursor | GitHub Copilot | Claude Code |
|---|---|---|---|
| Interface | Full IDE (VS Code fork) | IDE plugin | Terminal CLI |
| Multi-file editing | Yes (Composer) | Limited (Copilot Edits) | Yes |
| Codebase context | Full codebase indexing | Limited | Full (reads files on demand) |
| Model choice | GPT-4, Claude, custom | GPT-4, Claude | Claude only |
| Custom rules | .cursorrules file | Limited | CLAUDE.md |
| Privacy mode | Yes (no data retention) | Business plan only | Local by default |
| VS Code extensions | Full compatibility | Yes (it is an extension) | N/A (terminal) |
Why Choose Cursor?
- Familiar environment — If you use VS Code, Cursor feels like home. All your extensions, themes, and keybindings work.
- Deep AI integration — AI is not an add-on; it is woven into every interaction with the editor.
- Codebase understanding — Cursor indexes your entire project, so AI responses are grounded in your actual code.
- Multi-file edits — Composer can make coordinated changes across many files, something autocomplete tools cannot do.
- Model flexibility — Choose between GPT-4, Claude, or other models depending on the task.
Pricing: Cursor offers a free tier (Hobby) with limited AI requests per month. The Pro plan ($20/month) includes 500 fast requests and unlimited slow requests. The Business plan adds team features and enhanced privacy.
Ready to Get Started?
In the next lesson, you will install Cursor, import your VS Code settings, and configure your AI model preferences.
Next: Setup →