VS Code Setup Guide

Configure a top editor for AI development

Last updated: May 22, 2026

Why VS Code for AI Development?

Visual Studio Code is one of the most popular editors for AI development. With extensions like Continue.dev, Copilot, and Cursor integration, it becomes a powerful AI pair programming environment.

Step 1: Install VS Code

  1. 1. Visit code.visualstudio.com
  2. 2. Download the macOS version (Universal for M-series and Intel)
  3. 3. Drag to Applications folder
  4. 4. Open VS Code and install command line tools: code --install-extension ms-vscode-remote.remote-ssh

Step 2: Essential Extensions for AI

Open Extensions (Cmd+Shift+X) and install:

πŸ€– Continue.dev

Open-source AI pair programming with any model

continue.continue

🐍 Python

Microsoft's official Python extension

ms-python.python

πŸ“ Pylance

Fast Python language server

ms-python.vscode-pylance

πŸ”§ GitLens

Git supercharged with AI insights

eamodio.gitlens

🎨 GitHub Copilot

AI autocomplete (requires subscription)

GitHub.copilot

Step 3: Configure Continue.dev

After installing Continue, configure it to use your preferred models:

// config.json in ~/.continue/config.json
{
  "models": [
    {
      "title": "Ollama",
      "provider": "ollama",
      "model": "llama3.2"
    },
    {
      "title": "Claude",
      "provider": "anthropic",
      "model": "claude-3-5-sonnet",
      "apiKey": "your-api-key"
    }
  ],
  "tabAutocompleteModel": {
    "title": "Ollama",
    "provider": "ollama",
    "model": "starcoder2:3b"
  }
}

Essential Keyboard Shortcuts

Cmd+P

Quick open files

Cmd+Shift+P

Command palette

Cmd+`

Toggle terminal

Cmd+L

Continue.dev chat

Cmd+I

Continue.dev inline edit

Tab

Accept Copilot suggestion

πŸ”§ Troubleshooting

Continue.dev not showing

Press Cmd+L to open the sidebar. Make sure the extension is enabled.

Python not detected

Install Python extension and select interpreter: Cmd+Shift+P β†’ "Python: Select Interpreter"

Slow performance

Disable unused extensions. Use "Developer: Show Running Extensions" to see what's active.

πŸŽ‰ VS Code is Ready!

Your editor is configured for AI development. Next, set up Git/GitHub for version control, or jump into Continue.dev and start coding with AI assistance.