Setup & Configuration: Tips 1-15

Getting your Cursor environment properly configured is the foundation for everything that follows. These 15 tips cover installation best practices, essential settings, and configuration optimizations that even experienced developers often overlook.

Installation Fundamentals

Tip 1: Platform-Specific Installation Best Practices

Choose the right installation method for your operating system to ensure smooth updates and system integration.

macOS

# Preferred: Install via Homebrew for easy updates
brew install --cask cursor

# Alternative: Download .dmg from cursor.com
# After installation, add to PATH:
# Command Palette → "Install 'cursor' command in PATH"

Windows

# Option 1: Windows Package Manager
winget install Anysphere.Cursor

# Option 2: Download installer from cursor.com
# Cursor installs to AppData by default

Linux

# Download AppImage from cursor.com
chmod +x Cursor-*.AppImage

# For Ubuntu/Debian, install FUSE if needed:
sudo apt install libfuse2

# Create desktop entry for application launcher
./Cursor-*.AppImage --appimage-desktop-integration

Tip 2: Import VS Code Settings Seamlessly

If you’re migrating from VS Code, import your settings to maintain your workflow:

1. Open Cursor Command Palette (Ctrl+Shift+P)
2. Search for “Import VS Code Settings”
3. Select which settings to import:
   • Extensions
   • Keybindings
   • Settings
   • Snippets
4. Restart Cursor to apply changes

Tip 3: Install Shell Commands for Terminal Integration

Enable the cursor and code commands for seamless terminal workflow:

# From Command Palette (Ctrl+Shift+P):
# 1. "Install 'cursor' command in PATH"
# 2. "Install 'code' command in PATH"

# Now you can:
cursor .                    # Open current directory
cursor myfile.js           # Open specific file
cursor -n                  # Force new window
cursor -r folder/          # Reuse existing window
cursor -w file.txt         # Wait for file to close
cursor -g file.js:42       # Go to line 42
cursor --diff file1 file2  # Compare files
cursor -a folder           # Add folder to workspace

Essential Configuration

Tip 4: Enable Privacy Mode for Sensitive Projects

Configure privacy settings before working on proprietary code:

// In Cursor Settings (Ctrl+Shift+J)
{
  "cursor.privacy.mode": "enabled",
  "cursor.privacy.shareCodeWithAnthropicCheck": false,
  "cursor.privacy.shareLogsCheck": false
}

When Privacy Mode is enabled:

• No code is stored or used for training
• All processing happens in real-time
• Logs are not retained

Tip 5: Configure YOLO Mode for Automated Testing

YOLO mode enables Cursor to run commands automatically, essential for test-driven development:

1. Open Settings (Ctrl+Shift+J)
2. Navigate to Features → YOLO Mode
3. Enable YOLO Mode
4. Configure allowed commands:

   Prompt: "any kind of tests are always allowed like vitest, npm test, nr test, etc. also basic build commands like build, tsc, etc. creating files and making directories (like touch, mkdir, etc) is always ok too"
   
   Allow list: npm, pnpm, yarn, bun, deno, node, tsc, vitest, jest, pytest
   Deny list: rm -rf, sudo, ssh, curl, wget

Tip 6: Set Up Multi-Root Workspaces

For microservices or monorepos, configure multi-root workspaces:

# Method 1: Add folders incrementally
cursor /path/to/frontend
# Then: File → Add Folder to Workspace → Select backend folder

# Method 2: Create workspace file
# Save as: myproject.code-workspace
{
  "folders": [
    { "path": "frontend" },
    { "path": "backend" },
    { "path": "shared" }
  ],
  "settings": {
    "cursor.workspace.searchExclude": {
      "**/node_modules": true,
      "**/dist": true
    }
  }
}

Model Configuration

Tip 7: Strategic Model Selection

Configure models based on task complexity:

// Cursor Settings → Models
{
  "cursor.models.default": "claude-3.5-sonnet",
  "cursor.models.codeCompletion": "cursor-small",
  "cursor.models.chat": {
    "simple": "claude-3.5-sonnet",
    "complex": "claude-3-opus",
    "reasoning": "o3-mini"
  }
}

Model Selection Strategy:

• Sonnet 4: Default workhorse for most coding tasks
• Opus 4: Complex architectural decisions (5x cost)
• o3: Intricate debugging and problem-solving
• Gemini 2.5 Pro: Large context windows (2M tokens)

Tip 8: Enable Max Mode Strategically

Max Mode provides extended context windows but increases costs:

{
  "cursor.maxMode.enabled": true,
  "cursor.maxMode.trigger": "manual", // Don't auto-enable
  "cursor.maxMode.warningThreshold": 500000 // Warn at 500k tokens
}

Use Max Mode for:

• Analyzing files over 10,000 lines
• Cross-repository refactoring
• Understanding complex architectural relationships

Performance Optimization

Tip 9: Configure Memory and Performance Limits

Optimize Cursor for large codebases:

{
  "cursor.performance.memoryLimit": "8GB",
  "cursor.performance.cacheSize": "2GB",
  "cursor.performance.garbageCollection": "aggressive",
  "cursor.performance.maxFiles": 50000,
  "cursor.performance.fileWatcher.pollInterval": "auto"
}

Tip 10: Set Up Intelligent File Exclusions

Improve indexing performance by excluding unnecessary files:

{
  "cursor.workspace.searchExclude": {
    "**/node_modules/**": true,
    "**/dist/**": true,
    "**/build/**": true,
    "**/.git/**": true,
    "**/coverage/**": true,
    "**/*.log": true
  },
  "cursor.workspace.indexExclude": {
    "**/vendor/**": true,
    "**/public/assets/**": true,
    "**/tmp/**": true
  }
}

Project Rules Setup

Tip 11: Create Comprehensive Project Rules

Set up .cursor/rules/ directory for consistent AI behavior:

# Create rules structure
mkdir -p .cursor/rules
touch .cursor/rules/style-guide.md
touch .cursor/rules/architecture.md
touch .cursor/rules/testing.md

Example style-guide.md:

# Project Style Guide

## Code Standards
- Use TypeScript with strict mode enabled
- Prefer functional components with hooks
- Use named exports over default exports
- Maximum line length: 100 characters
- Use camelCase for variables, PascalCase for components

## Error Handling
- Always use try-catch for async operations
- Log errors with context
- Return meaningful error messages to users

## Comments
- Write JSDoc for all public functions
- Use inline comments sparingly
- Prefer self-documenting code

Tip 12: Configure Auto-Attach Rules

Set rules to automatically apply based on file patterns:

{
  "cursor.rules.autoAttach": [
    {
      "pattern": "**/*.test.{js,ts}",
      "rules": ["testing"]
    },
    {
      "pattern": "**/components/**",
      "rules": ["style-guide", "react-patterns"]
    },
    {
      "pattern": "**/api/**",
      "rules": ["api-conventions", "error-handling"]
    }
  ]
}

Codebase Indexing

Tip 13: Optimize Codebase Indexing

Configure indexing for optimal performance:

{
  "cursor.indexing.enabled": true,
  "cursor.indexing.type": "incremental",
  "cursor.indexing.updateInterval": "5m",
  "cursor.indexing.priorityPatterns": [
    "src/core/**/*",
    "src/api/**/*",
    "src/components/**/*"
  ],
  "cursor.indexing.includeProjectStructure": true
}

Monitor indexing progress:

• Check status in Settings → Indexing & Docs
• View progress in status bar
• Typical times: 1-15 minutes depending on size

Tip 14: Configure Search Cache

Enable search cache for faster repeated searches:

{
  "cursor.search.cache.enabled": true,
  "cursor.search.cache.maxSize": "1GB",
  "cursor.search.cache.ttl": "24h",
  "cursor.search.semanticSearch": true
}

Environment Setup

Tip 15: Set Up Development Environment Variables

Configure environment for consistent AI assistance:

.cursor/environment.json

{
  "env": {
    "NODE_ENV": "development",
    "CURSOR_PROJECT_TYPE": "react-typescript",
    "CURSOR_TEST_RUNNER": "vitest"
  },
  "runtime": {
    "node": "20.x",
    "packageManager": "pnpm"
  }
}

Create .env.cursor for sensitive configurations:

# API Keys (never commit this file)
ANTHROPIC_API_KEY=your_key_here
OPENAI_API_KEY=your_key_here

# Project-specific
DATABASE_URL=postgresql://localhost:5432/mydb
API_ENDPOINT=http://localhost:3000

Verification Checklist

After setup, verify your configuration:

• Shell commands (cursor and code) work in terminal
• Privacy mode is configured appropriately
• YOLO mode is enabled with safe command list
• Models are selected based on your needs
• File exclusions are configured
• Project rules are created
• Indexing is complete
• Memory limits are appropriate for your machine

Common Setup Issues

Shell command not found:

# macOS/Linux: Add to ~/.bashrc or ~/.zshrc
export PATH="$PATH:/Applications/Cursor.app/Contents/Resources/app/bin"

# Windows: Run as administrator
setx PATH "%PATH%;C:\Users\%USERNAME%\AppData\Local\Programs\cursor\bin"

Indexing stuck:

1. Check excluded patterns aren’t too broad
2. Restart Cursor
3. Clear cache: Settings → Advanced → Clear Index Cache

High memory usage:

• Reduce memoryLimit in performance settings
• Increase file exclusions
• Disable unused extensions

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Next Steps

With your environment properly configured, you’re ready to explore Core Features. These foundational settings will pay dividends as you scale up your Cursor usage.