Claude Code CLI vs VS Code Extension: Which Should You Use?

Anthropic offers Claude Code in two forms: terminal CLI and VS Code extension. Both use the same models (Sonnet 4.5, Opus, Haiku) and authentication, but provide different workflows.

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Feature Comparison

Feature	CLI	Extension
Context Rewind	Double-ESC to edit	Not available
Plan Mode	Read-only	With editing
Visual Interface	Terminal only	Sidebar + diffs
Setup	npm + Node.js 18+	One-click install
Multiple Sessions	One at a time	Multiple workspaces

CLI excels at context control through message editing that rewinds both conversation and code state, plus keyboard-driven workflows that eliminate mouse dependency. Extension provides real-time visual diff feedback and intuitive sidebar interface that makes Claude Code accessible to developers new to AI coding tools.

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When to Use CLI

• Context rewind - Double-ESC lets you edit any previous message and rewind code to that exact state, creating branches that rescue stuck sessions without starting over
• Terminal-native workflows - Work entirely in your terminal without switching contexts between editor and command line
• Keyboard-first efficiency - Tab toggles thinking mode, /usage checks token consumption, Ctrl+R searches conversation history, Shift+Tab cycles permission modes—all without touching the mouse
• Advanced permission control - --dangerously-skip-permissions flag available for trusted workflows, not available in VS Code extension
• Mature interface - Terminal UI has been refined over longer development, while the VS Code extension is still evolving its interface
• Resource constraints - Runs as a lightweight terminal process using less memory and CPU than VS Code

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When to Use Extension

• Visual development feedback - Sidebar displays conversation history and shows file changes with inline diffs as Claude writes code
• Plan mode with editing - Review Claude's proposed changes and edit the plan directly before accepting, giving you control over implementation strategy
• Beginner-friendly onboarding - Visual interface with clickable buttons and clear status indicators removes command-line intimidation for developers new to AI tools

Install from VS Code Marketplace.

Beginners consistently report higher success rates and faster onboarding with the Extension's visual interface. Experienced terminal users prefer CLI's context control, keyboard efficiency, and lightweight resource footprint.

Complementary Tools

CLI for terminal workflows and context control. Extension for visual development and beginner-friendly interface. Use both strategically based on task requirements.

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See Also: Getting Started|Windows Setup|VS Code Integration|Plan Mode