Claude Code in VS Code - Installation & Usage Guide (2026)

Claude Code in VS Code is powerful out of the box — but without one setup step, it answers every question like it's never seen your project before. This video shows you that step, plus how to debug a real bug, add a feature, and undo anything Claude gets wrong. Claude Code is an AI coding assistant built by Anthropic. The VS Code extension puts it directly inside your editor — no terminal required. This video covers the full setup: installing the extension, logging in with a Claude Pro account, understanding the three permission modes (Ask before edits, Edit automatically, Plan mode), and creating a CLAUDE.md file so Claude understands your specific project instead of giving generic answers. We then run two live demos on a real Kanban board app: fixing a drag-and-drop bug and adding a localStorage feature. You'll also see how to refactor across multiple files, how to reference specific files with the @ symbol, and how to drop line references into chat instantly. The video closes with Claude's built-in safety nets — the Rewind feature that rolls back code without losing your chat history, and Git integration for full version control. If you're new to Git, the setup guide is linked below. #ClaudeCode #VSCode --- CHAPTERS 0:00 — Intro: Why Claude gives generic answers by default 0:35 — Install the Claude Code extension & log in 1:48 — The three permission modes explained (most tutorials skip this) 3:22 — CLAUDE.md: give Claude permanent context about your project 4:48 — Demo: fix a drag-and-drop bug with one plain-English prompt 6:10 — Demo: add localStorage persistence + refactor across files 8:30 — Your safety net: Rewind and Git 10:48 — How to check usage limits from inside the extension 11:37 — Outro & next steps --- LINKS - Claude Code VS Code Extension: https://marketplace.visualstudio.com/items?itemName=anthropic.claude-code - Claude Pro (subscription used in this video): https://claude.ai - Git setup guide: https://www.youtube.com/watch?v=-88EOZpelEo ---