VS Code vs Cursor: Which Editor Should You Use in 2025?
An honest comparison of VS Code and Cursor—covering AI features, real workflows, privacy concerns, and which editor actually fits your work.
Every developer I know has an opinion on Cursor. Half have switched and won’t shut up about it. The other half tried it and went back to VS Code within a week.
This isn’t a “Feature A vs Feature B” comparison. I’ll cover the stuff that actually matters: what each editor is like to use daily, where the AI helps (and where it gets in the way), and who should genuinely consider switching.
Quick Verdict
Stay with VS Code if your workflow already works, you’re on a team with established tooling, or you work with sensitive codebases.
Switch to Cursor if you’re a solo developer or on a small team, you’re tired of copy-pasting code into ChatGPT, and you’re comfortable with your code being processed by AI.
The Real Difference
Let’s be clear: Cursor is VS Code. It’s a fork. Same interface, same extension system, same settings. If you put them side by side, you’d struggle to tell them apart.
The difference is what happens when you ask for help.
In VS Code with Copilot, AI lives in a sidebar. You type, it suggests completions. You can open a chat panel. But the AI doesn’t really know your project—it sees the current file and maybe a few related ones.
In Cursor, AI is woven into everything. It indexes your entire codebase. When you ask “how does authentication work in this project?”, it actually knows. When you say “refactor this to use the same pattern as UserService”, it can find UserService and match the pattern.
That’s the core difference. Not features—context.
Comparison at a Glance
| VS Code + Copilot | Cursor | |
|---|---|---|
| Base Price | Free + $10/mo for Copilot | Free tier available |
| Full AI Price | $10/mo (individual) | $20/mo (Pro) |
| Codebase Indexing | Limited | Full project |
| Multi-file Edits | Manual | Built-in (Composer) |
| Privacy Mode | N/A | Available |
| Extension Support | 100% | ~95% compatible |
| Corporate Approval | Usually easy | Often harder |
What Cursor Actually Does Better
I’ll skip the marketing language and show you what’s genuinely useful.
1. Codebase-Aware Chat
In VS Code, when you ask Copilot a question, it mostly sees your current file. In Cursor, try this:
“Where is the Stripe webhook handler and what events does it process?”
Cursor will search your codebase, find the file, and explain it. Copilot would struggle unless you had that file open.
This matters most in unfamiliar codebases. Joining a new project? Cursor’s chat becomes a knowledgeable coworker who’s read every file.
2. Cmd+K Inline Editing
Highlight code, press Cmd+K (Ctrl+K on Windows), describe what you want:
“Add error handling and retry logic”
Cursor rewrites the selection and shows you a diff. Accept or reject. It’s faster than typing a chat message and copying the response.
This is my most-used feature. Not for writing new code—for improving existing code.
3. Composer Mode (Multi-File Edits)
This is where Cursor pulls ahead significantly.
“Add a /api/users/export endpoint that generates a CSV of all users. Update the routes file, create a new controller method, and add the CSV utility function.”
Cursor will draft changes across multiple files, show you each one, and let you accept or reject individually.
In VS Code, you’d ask Copilot, copy each suggestion, find each file, paste, and repeat. Composer makes multi-file changes feel like a single operation.
4. The @ Mentions
Cursor lets you reference specific context:
@codebase— search the entire project@file— reference a specific file@folder— reference a directory@docs— pull in documentation (you can add custom docs)@web— search the internet
Example prompt:
“@user-service.ts @auth-middleware.ts — Why might a user be getting 403 errors after a successful login?”
You’re giving the AI exactly the context it needs. Less guessing, better answers.
5. .cursorrules File
Drop a .cursorrules file in your project root:
This is a Next.js 14 project using the App Router.
We use Tailwind CSS for styling—never inline styles.
All API routes should validate input with Zod.
Prefer server components unless client interactivity is needed.
Always use TypeScript strict mode patterns.Every AI response in that project respects these rules. Your team can share the file via git. No more “stop suggesting CSS-in-JS, we use Tailwind.”
VS Code has no equivalent.
What VS Code Still Does Better
Cursor isn’t a pure upgrade. Here’s where VS Code wins.
1. Extension Compatibility
Cursor supports most VS Code extensions, but not all. A few pain points:
- Some remote development extensions are flaky
- Certain language servers occasionally conflict
- Live Share doesn’t work the same way
If your workflow depends on specific extensions, test them in Cursor before committing.
2. Stability
VS Code is rock solid. Monthly updates are smooth. Extensions rarely conflict.
Cursor moves faster, which means occasional rough edges. Nothing catastrophic, but you might hit bugs that wouldn’t exist in VS Code.
3. Corporate Environments
Getting VS Code approved is easy—it’s a Microsoft product. Getting Cursor approved requires explaining what it does with code, who Anysphere (the company) is, and where data goes.
If you’re at a company with strict security policies, you might not have a choice.
4. Resource Usage
On my M2 MacBook Air:
| VS Code | Cursor | |
|---|---|---|
| Startup | ~1.5s | ~2.5s |
| Idle RAM | ~400MB | ~650MB |
| With AI active | ~500MB | ~900MB |
Cursor is heavier. If you’re on an older machine or keeping many apps open, you’ll notice.
The Privacy Question
This is the elephant in the room.
Cursor sends code to AI providers. When you use chat, inline editing, or Composer, your code goes to Claude or GPT servers. Cursor says they don’t train on your code, and they offer a Privacy Mode for enterprise that keeps code off their servers—but you’re still trusting them.
VS Code + Copilot also sends code, but to Microsoft/GitHub. Some developers trust Microsoft more than a startup. Others feel the opposite.
If you can’t send code externally—government work, strict NDAs, security-sensitive projects—neither tool’s AI features work for you. Use VS Code without Copilot.
For everyone else: decide what you’re comfortable with. Both companies have incentives to protect your code (their business depends on trust), but neither offers on-device AI yet.
Pricing Reality
VS Code + Copilot
- VS Code: Free
- Copilot Individual: $10/mo
- Copilot Business: $19/user/mo
Cursor
- Free tier: 2000 completions + 50 slow premium requests/month
- Pro: $20/mo (unlimited completions, 500 fast + unlimited slow requests)
- Business: $40/user/mo (admin controls, privacy mode)
The free tier reality: Cursor’s free tier runs out fast if you use AI features regularly. Expect to hit limits within 1-2 weeks of active use. It’s enough to evaluate, not enough to rely on.
The actual comparison: Cursor Pro ($20) vs VS Code + Copilot ($10). Cursor costs twice as much. The question is whether codebase awareness and Composer are worth $10/mo to you.
For me, yes. For a junior developer learning, maybe not.
Who Should Switch to Cursor
You’ll probably like Cursor if:
- You work on complex, unfamiliar codebases. The codebase-aware chat pays for itself in onboarding time.
- You do lots of refactoring. Composer’s multi-file edits are a genuine time-saver.
- You’re a solo developer or freelancer. No corporate approval needed, and the productivity boost is yours to keep.
- You frequently context-switch. Having everything in the editor beats copy-pasting to ChatGPT.
Who Should Stay with VS Code
Stick with VS Code if:
- Your team is standardized on VS Code. Don’t be the one person with a different setup.
- You work with sensitive code. If privacy is non-negotiable, skip both AI tools.
- You rely on specific extensions. Test compatibility before switching.
- You’re cost-conscious. Copilot at $10/mo is solid. The extra $10 for Cursor isn’t essential.
- Your workflow already works. If you’re productive and happy, don’t fix what isn’t broken.
The Switching Cost
Good news: it’s nearly zero.
Moving to Cursor
- Download Cursor
- It detects VS Code and asks to import settings
- Click yes
- Done
Your extensions, themes, keybindings—everything transfers. You can be productive in Cursor within 10 minutes.
Moving Back
Just open VS Code. Your settings are still there. Cursor doesn’t modify your VS Code installation.
This makes it worth trying even if you’re skeptical. The downside is ~30 minutes of your time.
My Take
I’ve used both extensively. Here’s my honest take:
Cursor is better for coding with AI. The codebase awareness isn’t a gimmick—it fundamentally changes what AI can help with. Composer feels like a glimpse of where all editors are heading.
VS Code is better as a pure editor. If you’re not using AI features heavily, VS Code is faster, more stable, and has better extension support.
The industry is shifting. GitHub is adding more codebase features to Copilot. Cursor is improving stability. In a year, the gap might close. But right now, if AI-assisted coding is central to your workflow, Cursor is ahead.
Final Recommendation
| Your Situation | Our Pick |
|---|---|
| Solo developer, AI-heavy workflow | Cursor Pro |
| Team with established VS Code setup | VS Code + Copilot |
| Budget-conscious, still want AI | VS Code + Copilot |
| Complex codebases, lots of refactoring | Cursor Pro |
| Sensitive code, privacy required | VS Code (no AI) |
| Not sure yet | Try Cursor free tier for a week |
Both are excellent. The best editor is the one that gets out of your way and lets you ship code.