Cursor or VS Code: what differs, from both vendors' docs

Cursor or VS Code? Cursor’s docs say it “is based upon the VS Code codebase,” so the editor, shortcuts and settings feel the same and a one-click import brings over your VS Code extensions, themes, settings and keybindings (VS Code Migration). The difference is the AI layer: Cursor ships its own agent, models and plans, while VS Code builds agents in and runs them on GitHub Copilot or your own models (Build with agents in VS Code).

Applies to: Cursor docs and pricing page as of October 2, 2026; Visual Studio Code 1.136 (released September 2, 2026) and the VS Code docs dated September 2, 2026. Last checked: October 2, 2026.

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How Cursor relates to VS Code

Microsoft develops VS Code in the open-source Code - OSS repository under the MIT license; the README says Visual Studio Code itself “is a distribution of the Code - OSS repository with Microsoft-specific customizations released under a traditional Microsoft product license” and is updated monthly (microsoft/vscode).

Cursor is a separate product from Anysphere built on that codebase. Its VS Code Migration page says: “We regularly rebase Cursor onto the latest VS Code version to stay current with features and fixes. To ensure stability, Cursor often uses slightly older VS Code versions.” So a VS Code feature can reach Cursor later than it reaches VS Code.

Sources: Migrate from VS Code, Extensions, Cursor pricing, Set up GitHub Copilot in VS Code.

Moving settings and extensions from VS Code to Cursor

Cursor documents two ways to bring a VS Code setup across (VS Code Migration).

One-click import:

1. Open Cursor Settings (⌘/Ctrl + Shift + J).
2. Go to General > Account.
3. Under “VS Code Import”, click Import.

This transfers extensions, themes, settings and keybindings.

Manual profile migration, for moving between machines or choosing what comes over:

1. In VS Code, open the Command Palette (⌘/Ctrl + Shift + P) and run “Preferences: Open Profiles (UI)”.
2. Pick the profile, open the 3-dot menu and select “Export Profile”, to a local file or a GitHub Gist.
3. In Cursor, run “Preferences: Open Profiles (UI)”, click the dropdown next to “New Profile” and choose “Import Profile”.
4. Paste the Gist URL or select the file, click Import, then select the new profile and click the tick icon to activate it.

Cursor’s help page adds that it “shares the same default shortcuts as VS Code” and that custom keybindings transfer with the import (Migrate from VS Code).

One layout change is documented: Cursor makes the activity bar horizontal to leave room for the AI panel. To switch it back, open “Preferences: Open Settings (UI)”, search for workbench.activityBar.orientation, set it to vertical and restart Cursor.

Extensions: Open VSX in Cursor, the Marketplace in VS Code

This is the difference most likely to matter for an existing setup. Cursor “uses the Open VSX extension registry, not the VS Code Marketplace. Many popular extensions are available, but not all VS Code extensions may be listed or work exactly the same way” (Migrate from VS Code).

Cursor’s Extensions page says:

• Search and downloads go through Cursor’s proxy, marketplace.cursorapi.com, which runs malware and supply-chain analysis before an extension is offered.
• Some Microsoft Marketplace-only extensions are replaced by “audited Anysphere builds.”
• The same publisher.extension ID can point to a different publisher or different code on Open VSX than on the Microsoft Marketplace, so check who publishes what you install.

Before you switch, check that the extensions you rely on are listed in Cursor’s Extensions panel (Cmd/Ctrl + Shift + X).

AI in Cursor: its own agent and plans

Cursor describes itself as “a coding agent for building ambitious software” (Cursor docs). The Cursor Agent opens in the side pane with Cmd+I and can search the codebase and the web, edit files, run shell commands, drive a browser and save checkpoints you can restore. Cursor tunes its instructions and tools per model and offers models from Anthropic, OpenAI, Google and others plus its own Composer models (Cursor docs).

The pricing page lists Hobby (free, limited Agent requests and Tab completions), Individual ($20/month), Teams ($40/user/month) and Enterprise (custom). Details per plan are in the Cursor Hobby, Cursor Pro and Cursor Teams Standard seat listings.

AI in VS Code: built-in agents with Copilot or your own models

VS Code’s docs say “AI features are built into VS Code”: you sign in with GitHub to use a Copilot subscription or bring your own models, including local ones (Build with agents in VS Code). Agents run in the Chat view or the Agents window (Preview), with a built-in Local harness and provider harnesses for Copilot, Claude and Codex, on your machine, in the cloud or on a remote host. The docs note that agents must be enabled with the chat.agent.enabled setting.

If you have no Copilot subscription, signing in enrolls you in Copilot Free with “a monthly allowance of inline suggestions and AI credits” (Set up GitHub Copilot in VS Code). GitHub’s plans page lists Free ($0, 2,000 completions per month), Pro ($10/month), Pro+ ($39/month) and Max ($100/month). See the GitHub Copilot Free and GitHub Copilot Pro listings.

If you want the editor without AI, VS Code has a documented switch: the chat.disableAIFeatures setting hides chat and inline suggestions and disables the Copilot extensions, at user or workspace level (Set up GitHub Copilot in VS Code). The Copilot Chat extension is open source under the MIT license; the Copilot backend services stay closed source (VS Code FAQ).

Privacy and agent safety settings differ

Each product documents its own controls:

Warning

Both vendors offer modes that skip approvals: Cursor’s Run Everything and VS Code’s Bypass Approvals. Cursor’s docs say auto-approved agents “might run destructive commands without your knowledge” (LLM Safety and Controls); VS Code shows warning banners and asks for explicit consent before such modes (AI security in VS Code). The documented safer defaults are Cursor’s Auto-review with sandboxing and VS Code’s Default Approvals with agent sandboxing.

For Cursor’s full security and data-use picture, see Is Cursor AI safe?. For a feature-by-feature look at Copilot against Cursor, see GitHub Copilot vs Cursor.