Cursor IDE Setup Guide

Getting Started with AI-Powered Coding

Author

Vadim Sokolov

Published

December 18, 2025

1 What is Cursor?

Cursor is an AI-powered code editor built on VS Code. It allows you to:

  • Write code with AI assistance
  • Ask questions about your code
  • Generate code from natural language descriptions
  • Debug and fix errors with AI help

For this course, we’ll use Cursor to build an AI agent without needing deep programming expertise.

2 Part 1: Download and Install Cursor

2.1 Step 1: Download Cursor

  1. Go to cursor.sh
  2. Click the Download button
  3. The website will automatically detect your operating system (Mac, Windows, or Linux)

2.2 Step 2: Install on Mac

  1. Open the downloaded .dmg file
  2. Drag the Cursor icon to the Applications folder
  3. Open Cursor from Applications
  4. If prompted about security, go to System Preferences → Security & Privacy and click “Open Anyway”

2.3 Step 3: Install on Windows

  1. Run the downloaded .exe installer
  2. Follow the installation wizard
  3. Launch Cursor from the Start Menu

3 Part 2: Initial Setup

3.2 Step 2: Choose Your Theme

  1. Cursor will ask about your preferred color theme
  2. Choose Dark or Light based on your preference
  3. You can change this later in Settings

3.3 Step 3: Import VS Code Settings (Optional)

If you’ve used VS Code before:

  1. Cursor will offer to import your settings
  2. Click Import to bring over extensions and preferences
  3. Or click Skip to start fresh

4 Part 3: Install Python

Cursor needs Python installed on your computer to run our project.

4.1 Check if Python is Already Installed

  1. In Cursor, open the terminal: View → Terminal (or press Ctrl+`)
  2. Type this command and press Enter:
python --version
  1. If you see Python 3.x.x, you’re good! Skip to Part 4.
  2. If you get an error, follow the installation steps below.

4.2 Install Python on Mac

Option A: Using Homebrew (Recommended)

  1. Open Terminal (outside of Cursor)
  2. Install Homebrew if you don’t have it:
/bin/bash -c "$(curl -fsSL https://raw.githubusercontent.com/Homebrew/install/HEAD/install.sh)"
  1. Install Python:
brew install python

Option B: Direct Download

  1. Go to python.org/downloads
  2. Download the latest Python 3.x version
  3. Run the installer
  4. Important: Check “Add Python to PATH” during installation

4.3 Install Python on Windows

  1. Go to python.org/downloads
  2. Click “Download Python 3.x.x”
  3. Run the installer
  4. IMPORTANT: Check the box that says “Add Python to PATH”
  5. Click “Install Now”

4.4 Verify Installation

After installation, close and reopen Cursor, then:

  1. Open terminal: View → Terminal
  2. Run:
python --version
  1. You should see Python 3.x.x

5 Part 4: Install Required Packages

Our project needs a few Python libraries. Install them in Cursor’s terminal:

pip install pandas numpy scikit-learn

You should see output indicating successful installation.

If you get a “pip not found” error on Mac:

pip3 install pandas numpy scikit-learn

6 Part 5: Using Cursor’s AI Features

6.1 Feature 1: AI Chat (Cmd+L / Ctrl+L)

Use this to ask questions or get help:

  1. Press Cmd+L (Mac) or Ctrl+L (Windows)
  2. A chat panel opens on the right
  3. Ask questions like:
    • “How do I load a CSV file in Python?”
    • “Explain what this code does”
    • “Why am I getting this error?”

6.2 Feature 2: Inline Edit (Cmd+K / Ctrl+K)

Use this to write or modify code:

  1. Select some code (or place cursor where you want new code)
  2. Press Cmd+K (Mac) or Ctrl+K (Windows)
  3. Describe what you want in plain English:
    • “Add a function that calculates the average price”
    • “Fix this error”
    • “Add comments explaining this code”
  4. Review the suggested changes
  5. Press Enter to accept or Escape to cancel

6.3 Feature 3: Code Completion (Tab)

As you type, Cursor suggests completions:

  1. Start typing code
  2. You’ll see gray “ghost text” suggestions
  3. Press Tab to accept the suggestion
  4. Press Escape to dismiss

6.4 Feature 4: Agent Mode (Cmd+I / Ctrl+I)

For larger tasks, use Agent mode:

  1. Press Cmd+I (Mac) or Ctrl+I (Windows)
  2. Describe a complex task:
    • “Create a Python script that loads data and builds a regression model”
  3. The agent will generate multiple files and complete code

7 Part 6: Creating Your First Project

7.1 Step 1: Create a Project Folder

  1. In Cursor, go to File → Open Folder
  2. Navigate to where you want your project (e.g., Documents)
  3. Click New Folder and name it oj-pricing-agent
  4. Select this folder and click Open

7.2 Step 2: Create a Python File

  1. In the Explorer sidebar (left panel), right-click
  2. Select New File
  3. Name it test.py
  4. Add this code:
print("Hello from Cursor!")

7.3 Step 3: Run Your Code

  1. Open the terminal: View → Terminal
  2. Run your script:
python test.py
  1. You should see: Hello from Cursor!

Congratulations! You’re ready to build your AI agent.

8 Part 7: Keyboard Shortcuts Reference

Action Mac Windows
AI Chat Cmd+L Ctrl+L
Inline Edit Cmd+K Ctrl+K
Agent Mode Cmd+I Ctrl+I
Open Terminal Ctrl+| Ctrl+
Save File Cmd+S Ctrl+S
Open File Cmd+O Ctrl+O
New File Cmd+N Ctrl+N
Find Cmd+F Ctrl+F

9 Troubleshooting

9.1 “Python not found” in terminal

Mac:

  • Try python3 instead of python
  • Or run: brew install python

Windows:

  • Reinstall Python and make sure to check “Add Python to PATH”
  • Restart Cursor after installation

9.2 “pip not found”

Mac:

  • Use pip3 instead of pip

Windows:

  • Try python -m pip install package_name

9.3 Cursor won’t start

  1. Make sure you have enough disk space (at least 1GB free)
  2. Try restarting your computer
  3. Reinstall Cursor from cursor.sh

9.4 AI features not working

  1. Make sure you’re signed in (check bottom-left corner)
  2. Check your internet connection
  3. Try signing out and back in

9.5 Code runs but shows errors

  1. Copy the error message
  2. Press Cmd+L (or Ctrl+L) to open AI Chat
  3. Paste the error and ask “How do I fix this?”

10 Getting Help During the Course

  1. Zoom Sessions: Ask questions during live sessions
  2. Cursor AI: Use Cmd+L to ask the AI for help
  3. Discussion Board: Post questions for peer assistance
  4. Office Hours: [Insert instructor office hours if applicable]

11 Next Steps

After completing this setup:

  1. ✅ Cursor is installed and running
  2. ✅ Python is installed
  3. ✅ Required packages are installed
  4. ✅ You can create and run Python files

You’re ready for Zoom Session 1 where we’ll practice using Cursor’s AI features together!