How do you use Claude Code in VS Code in 2026?
Quick Answer: As of April 2026, Claude Code runs in VS Code via the official Claude Code extension, which embeds the Claude Code agent in a side panel and adds inline diff review. The extension requires an Anthropic API key or a Claude Pro/Team plan and supports the same slash commands as the CLI.
Using Claude Code in VS Code
Claude Code is Anthropic's agentic coding tool. As of April 2026, it ships with first-party integrations for VS Code and JetBrains IDEs in addition to the terminal CLI.
Step 1 — Install the Extension
Open the Extensions view in VS Code and search for "Claude Code". Install the publisher-verified Anthropic extension. The extension auto-detects the Claude Code CLI if it is already installed; otherwise it bundles its own runtime.
Step 2 — Authenticate
On first run, the extension opens a browser window for OAuth login with Claude. Two billing modes are supported as of April 2026:
- Claude Pro/Max plan — Authenticate with claude.ai credentials, usage counts against the plan
- Anthropic API key — Pay per token, set via environment variable or extension settings
Step 3 — Daily Use
The Claude Code panel sits in the activity bar. Common patterns:
- Type a request in the panel; Claude proposes a multi-file edit
- Inline diffs appear in the editor for review before applying
- Slash commands (/clear, /init, /compact, /review) work as in the CLI
- File context can be attached via @ mentions
Step 4 — Project Setup
Create a CLAUDE.md in the repo root with project conventions, build commands, and forbidden patterns. The extension reads this file automatically on each session and treats it as authoritative context.
Settings live in .claude/settings.json for project-level config and ~/.claude/settings.json for user-level preferences.