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2.1 – Getting Started with Cursor (AI Code Editor) Lesson

Begin using Cursor to write, manage, and run your code locally—gaining flexibility and faster progress as your project develops. Watch the video for practical walkthroughs of each step with Cursor’s interface and features.

What you'll learn

  • Install Cursor on your computer and understand its role as a local code editor

  • Identify where your code and files are stored and why this benefits your workflow

  • Navigate Cursor’s interface: projects, file explorer, code window, and terminal

  • Use AI chat modes (Ask and Agent) to get help, plan features, and automate file changes

  • Configure and choose the best AI models for either planning or coding tasks

  • Run your software directly from Cursor’s integrated terminal

Lesson Overview

The shift from browser-based AI coding tools to a desktop editor like Cursor significantly changes the way you build and control your projects. Cursor installs directly onto your computer, allowing you to store and manage code as plain text files within local project folders. This is a departure from cloud editors or in-browser environments that may struggle to keep up as your project grows in size and scope.

By working locally with Cursor, you gain full ownership and visibility over your files, can handle larger codebases, and reduce browser tool limitations. Whether you’re just getting started with coding or moving a project from a simple prototype to something more robust, being comfortable with a desktop code editor is key. Cursor makes this approachable through its familiar interface, flexible project management, and powerful AI features designed specifically for software builders.

You’ll learn to navigate core panels—like the file explorer, code view, AI chat, and integrated terminal—that you’ll use throughout your software project. Understanding how the AI chat panel works, and when to use Ask or Agent modes, lets you accelerate both routine tasks and more complex feature development. Examples include quickly testing out a script, planning an app module, or asking the AI to make sweeping code changes for you. This lesson lays the foundation for managing every technical aspect of your product as you build it out in later chapters.

Who This Is For

If you want to set up a modern local coding environment powered by AI, this lesson will help you get started.
You’ll benefit if you are:

  • A startup founder or entrepreneur building a prototype or MVP
  • A product manager wanting to explore hands-on app adjustments
  • A non-technical founder curious about how code editors work
  • A developer seeking to augment coding with AI support
  • A small team member who needs to work with code files locally
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Where This Fits in a Workflow

Getting started with Cursor is a key step right at the beginning of any local software development project. You’ll use it to organize code files, interact with your AI assistant, and see all changes updated directly on your computer. For example, if you’re building a web app, you might use Cursor to open your project folder, write new feature code, ask the AI to fix issues, and then test changes—all in one place. Alternatively, if you’re handling a data script or automation task, you can write, update, and run scripts with the integrated terminal and AI guidance. Mastery of Cursor’s basic workflow supports faster and more reliable project progress through every phase ahead.

Technical & Workflow Benefits

Switching from a browser-based tool to a local editor like Cursor addresses challenges that appear as projects get larger and more complex. Previously, working in cloud tools could mean hitting performance limits or data caps, especially when your codebase expands. Cursor gives you control—code stays on your machine, and performance remains steady as your project evolves. The AI chat panel allows for easy code improvements, while agent mode even automates bulk changes that could take hours manually. For instance, you save time when re-architecting your app or adding new features, and reduce errors by letting the AI handle repetitive updates. Using the integrated terminal, you test changes faster and skip the need to upload or sync files elsewhere. This method speeds up development, makes iterating safer, and increases your capability to handle bigger ambitions without running into platform constraints.

Practice Exercise

Pick an existing folder on your computer (such as one storing code, scripts, or even plain text files) or create a brand new empty folder.

  1. Open Cursor and choose “Open Project,” then select your chosen folder.
  2. Explore the file explorer panel in Cursor: open a file (if you have one), inspect its contents, and try out the code window.
  3. Open the AI chat panel and use Ask mode to request a summary of what a file in the folder does, or ask for ideas to extend or improve it.

Reflect: What do you notice about working with code as local files in Cursor versus using a web-based editor? Which workflow feels more flexible or efficient for your needs?

Course Context Recap

This lesson welcomes you into hands-on local coding with Cursor, laying the foundation for more advanced prototyping and iterative software building ahead. Up to this point, you’ve learned about coding tools and their tradeoffs. Now you’re set up to run and control code on your machine—an essential next step for entrepreneurs building real products. The coming lessons will guide you through starting a fresh project from scratch and using your new skills to quickly move from idea to working app. Keep going to unlock deeper productivity and creativity in your coding journey. Explore the next chapter or revisit earlier lessons anytime to reinforce your understanding.