This is best overview of how to match the goal and the features that Claude provides.
Extensions plug into different parts of the agentic loop:
CLAUDE.md adds persistent context Claude sees every session
Skills add reusable knowledge and invocable workflows
Code intelligence connects Claude to a language server for symbol-level navigation and live type errors
MCP connects Claude to external services and tools
Subagents run their own loops in isolated context, returning summaries
Agent teams coordinate multiple independent sessions with peer-to-peer messaging, plus a shared task list for agents that have the Task tools
Hooks run your script, HTTP request, prompt, or subagent when Claude Code reaches a lifecycle event
Plugins and marketplaces package and distribute these features
Skills are the most flexible extension. A skill is a markdown file containing knowledge, workflows, or instructions. You can invoke skills with a command like /deploy, or Claude can load them automatically when relevant. Skills can run in your current conversation or in an isolated context via subagents.
Work effectively with Claude Code
These tips help you get better results from Claude Code.
Ask Claude Code for help
Claude Code can teach you how to use it. Ask questions like “how do I set up hooks?” or “what’s the best way to structure my CLAUDE.md?” and Claude will explain.
Built-in commands also guide you through setup:
/init walks you through creating a CLAUDE.md for your project
/doctor runs a setup checkup that diagnoses installation and configuration issues and can fix them
It’s a conversation
Claude Code is conversational. You don’t need perfect prompts. Start with what you want, then refine:
Fix the login bug
[Claude investigates, tries something]
That's not quite right. The issue is in the session handling.
[Claude adjusts approach]
When the first attempt isn’t right, you don’t start over. You iterate.
Interrupt and steer
You can redirect Claude at any point without waiting for the turn to finish or starting over:
Press Esc to stop Claude immediately. The running tool call is canceled and Claude waits for your next instruction.
Type a correction and press Enter to send it without stopping the running tool. Claude reads it as soon as the current action completes and adjusts before deciding its next step.
Be specific upfront
The more precise your initial prompt, the fewer corrections you’ll need. Reference specific files, mention constraints, and point to example patterns.
The checkout flow is broken for users with expired cards.
Check src/payments/ for the issue, especially token refresh.
Write a failing test first, then fix it.
Vague prompts work, but you’ll spend more time steering. Specific prompts like the one above often succeed on the first attempt.
Give Claude something to verify against
Claude performs better when it can check its own work. Include test cases, paste screenshots of expected UI, or define the output you want.
Implement validateEmail. Test cases: 'user@example.com' → true,
'invalid' → false, 'user@.com' → false. Run the tests after.
For visual work, paste a screenshot of the design and ask Claude to compare its implementation against it.
Explore before implementing
For complex problems, separate research from coding. Use plan mode (Shift+Tab twice) to analyze the codebase first:
Read src/auth/ and understand how we handle sessions.
Then create a plan for adding OAuth support.
Review the plan, refine it through conversation, then let Claude implement. This two-phase approach produces better results than jumping straight to code.
Delegate, don’t dictate
Think of delegating to a capable colleague. Give context and direction, then trust Claude to figure out the details:
The checkout flow is broken for users with expired cards.
The relevant code is in src/payments/. Can you investigate and fix it?
Future Claude models will generate text that contains a watermark. This is a way of determining the likelihood that Claude was involved in writing the text, and we, along with several other major AI providers, are implementing this change to comply with the EU AI Act.
In this article, we share answers to some of the questions we’ve received about how our chosen watermarking method works, whether it affects Claude’s outputs, and why we’re making this change. To summarize:
We use a method of watermarking that does not have any practical impact on the quality or content of Claude’s outputs;
The difference between watermarked and un-watermarked text will not be distinguishable to readers;
Nothing is added to the text and there are no hidden characters;
Watermarking doesn’t require extra tokens, and will not be more expensive;
Watermarking carries no identifying information and can’t be traced to a specific person, organization, or chat;
Watermarking won’t be specific to Claude. As of August 2, the EU requires AI providers serving its market to mark AI-generated content. Other major model developers have signed the same Code of Practice and will be implementing their own watermarks.
What is watermarking?
Large language models like Claude work by generating one word at a time. Each time the model decides on the next word, it chooses among a list of potential candidates, ultimately selecting the most sensible or likely based on the preceding text. Take the sentence “The weather today was cold and…”. The next word is very unlikely to be “sugary.” But it is quite likely to be “overcast” or “grey.” Under most circumstances, it doesn’t matter much to the reader which of these latter two words the model ultimately chooses—the meaning of the sentence is largely the same either way. In cases like this, the choice is settled by a random number.
Watermarking uses low-stakes choices like these—which occur many times over a piece of generated text—to leave a pattern in Claude’s responses. That pattern is undetectable to the reader, but is detectable to anyone who has a key that encodes it. When watermarking is used, choices are still made at random, but the source of the randomness is different. Instead of using an arbitrary random number generator to pick the next word, watermarking uses the key and a few words that come before to settle what word the model should pick. That is, the words that Claude picks are still random, but now, one can check the sequence of words and see if it’s consistent with the choices Claude would make if it was using the key. If it is, one can assign a probability that the text was generated by Claude.
Importantly, it isn’t that the model will now always be biased toward overcast or grey. Just as with non-watermarked text, overcast might be selected in one sentence, grey in the next, depending on the words that came before. And it’s not the case that the watermarking method pushes Claude to choose a word it wouldn’t have considered anyway (for instance, it wouldn’t make Claude pick a word like “nubilous”—an obscure1 synonym for overcast or grey that Claude almost certainly wouldn’t use under normal circumstances).
The context window
Claude’s context window holds your conversation history, file contents, command outputs, CLAUDE.md, auto memory, loaded skills, and system instructions. As you work, context fills up. Claude compacts automatically, but instructions from early in the conversation can get lost. Put persistent rules in CLAUDE.md, and run /context to see what’s using space.
For an interactive walkthrough of what loads and when, see Explore the context window.
When context fills up
Claude Code manages context automatically as you approach the limit. It clears older tool outputs first, then summarizes the conversation if needed. Your requests and key code snippets are preserved; detailed instructions from early in the conversation may be lost. Put persistent rules in CLAUDE.md rather than relying on conversation history.
To control what’s preserved during compaction, add a “Compact Instructions” section to CLAUDE.md or run /compact with a focus (like /compact focus on the API changes).
If a single file or tool output is so large that context refills immediately after each summary, Claude Code stops auto-compacting after a few attempts and shows an error instead of looping. See Auto-compaction stops with a thrashing error for recovery steps.
Run /context to see what’s using space. MCP tool definitions are deferred by default and loaded on demand via tool search, so only tool names consume context until Claude uses a specific tool. Run /mcp to check per-server costs.
Manage context with skills and subagents
Beyond compaction, you can use other features to control what loads into context.
Skills load on demand. Claude sees skill descriptions at session start, but the full content only loads when a skill is used. For skills you invoke manually, set disable-model-invocation: true to keep descriptions out of context until you need them. For skills you didn’t write, use skillOverrides to do the same from settings.
Subagents get their own fresh context, completely separate from your main conversation. Their work doesn’t bloat your context. When done, they return a summary. This isolation is why subagents help with long sessions.
See context costs for what each feature costs, and reduce token usage for tips on managing context.
Stay safe with checkpoints and permissions
Claude has two safety mechanisms: checkpoints let you undo file changes, and permissions control what Claude can do without asking.
Undo changes with checkpoints
File edits are reversible. Before Claude edits a file, it snapshots the current contents. If something goes wrong, press Esc twice to rewind to a previous state, or ask Claude to undo.
Checkpoints are separate from git and remain available when you resume a conversation. They only cover file changes, and a restore skips symlinked and hard-linked files. Actions that affect remote systems (databases, APIs, deployments) can’t be checkpointed, which is why Claude asks before running commands with external side effects.
Control what Claude can do
Press Shift+Tab to cycle through permission modes:
Manual: Claude asks before file edits and shell commands
Accept edits: Claude edits files and runs common filesystem commands like mkdir and mv without asking, still asks for other commands
Plan: Claude explores and proposes a plan without editing your source files
Auto: Claude evaluates all actions with background safety checks
You can also allow specific commands in .claude/settings.json so Claude doesn’t ask each time. This is useful for trusted commands like npm test or git status. Settings can be scoped from organization-wide policies down to personal preferences. See Permissions for details.
Claude Models
=============
Claude Code uses Claude models to understand your code and reason about tasks. Claude can read code in any language, understand how components connect, and figure out what needs to change to accomplish your goal. For complex tasks, it breaks work into steps, executes them, and adjusts based on what it learns.
Multiple models are available with different tradeoffs. Sonnet handles most coding tasks well. Opus provides stronger reasoning for complex architectural decisions. Switch with /model during a session or start with claude --model <name>.
Claude Tools
===========
Tools are what make Claude Code agentic. Without tools, Claude can only respond with text. With tools, Claude can act: read your code, edit files, run commands, search the web, and interact with external services. Each tool use returns information that feeds back into the loop, informing Claude’s next decision.
The built-in tools generally fall into five categories, each representing a different kind of agency.
Category What Claude can do
File operations Read files, edit code, create new files, rename and reorganize
Search Find files by pattern, search content with regex, explore codebases
Execution Run shell commands, start servers, run tests, use git
Web Search the web, fetch documentation, look up error messages
Code intelligence See type errors and warnings after edits, jump to definitions, find references (requires code intelligence plugins)
Claude chooses which tools to use based on your prompt and what it learns along the way. When you say “fix the failing tests,” Claude might:
Run the test suite to see what’s failing
Read the error output
Search for the relevant source files
Read those files to understand the code
Edit the files to fix the issue
Run the tests again to verify
Each tool use gives Claude new information that informs the next step. This is the agentic loop in action.
Extending the base capabilities: The built-in tools are the foundation. You can extend what Claude knows with skills, connect to external services with MCP, automate workflows with hooks, and offload tasks to subagents. These extensions form a layer on top of the core agentic loop.
What Claude can access
When you run claude in a directory, Claude Code gains access to:
Your project. Files in your directory and subdirectories, plus files elsewhere with your permission.
Your terminal. Any command you could run: build tools, git, package managers, system utilities, scripts. If you can do it from the command line, Claude can too.
Your git state. Current branch, uncommitted changes, and recent commit history.
Your CLAUDE.md. A markdown file where you store project-specific instructions, conventions, and context that Claude should know every session.
Auto memory. Learnings Claude saves automatically as you work, like project patterns and your preferences. The first 200 lines or 25KB of MEMORY.md, whichever comes first, load at the start of each session.
Extensions you configure. MCP servers for external services, skills for workflows, subagents for delegated work, and Claude in Chrome for browser interaction.
Because Claude sees your whole project, it can work across it. When you ask Claude to “fix the authentication bug,” it searches for relevant files, reads multiple files to understand context, makes coordinated edits across them, runs tests to verify the fix, and commits the changes if you ask. This is different from inline code assistants that only see the current file.
Environments and interfaces
The agentic loop, tools, and capabilities described above are the same everywhere you use Claude Code. What changes is where the code executes and how you interact with it.
Execution environments
Claude Code runs in three environments, each with different tradeoffs for where your code executes.
Environment Where code runs Use case
Local Your machine Default. Full access to your files, tools, and environment
Cloud Anthropic-managed VMs, or self-hosted environments your organization operates Offload tasks, work on repos you don’t have locally
Remote Control Your machine, controlled from a browser Use the web UI while execution and your files stay local
Work with sessions
Claude Code saves your conversation locally as you work. Each message, tool use, and result is written to a plaintext JSONL file under ~/.claude/projects/, which enables rewinding, resuming, and forking sessions. Before Claude makes code changes, it also snapshots the affected files so you can revert if needed. For paths, retention, and how to clear this data, see application data in ~/.claude.
Sessions are independent. Each new session starts with a fresh context window, without the conversation history from previous sessions. Claude can persist learnings across sessions using auto memory, and you can add your own persistent instructions in CLAUDE.md.
Work across branches
Each Claude Code conversation is a session tied to your current directory. The /resume picker shows sessions from the current worktree by default, with keyboard shortcuts to widen the list to other worktrees or projects. See Manage sessions for the full list of picker shortcuts and how name resolution works.
Claude sees your current branch’s files. When you switch branches, Claude sees the new branch’s files, but your conversation history stays the same. Claude remembers what you discussed even after switching.
Since sessions are tied to directories, you can run parallel Claude sessions by using git worktrees, which create separate directories for individual branches.
Claude Code is an agentic coding tool that reads your codebase, edits files, runs commands, and integrates with your development tools. Available in your terminal, IDE, desktop app, and browser.
Claude Code is an AI-powered coding assistant that helps you build features, fix bugs, and automate development tasks. It understands your entire codebase and can work across multiple files and tools to get things done.
Claude Code runs on several surfaces: the terminal, IDE extensions, a desktop app, and the web. Choose one from the tabs below to get started. Most surfaces require a Claude subscription or Anthropic Console account. The Terminal CLI and VS Code also support third-party providers.
Claude Code is an agentic assistant that runs in your terminal. While it excels at coding, it can help with anything you can do from the command line: writing docs, running builds, searching files, researching topics, and more.
The agentic loop
When you give Claude a task, it works through three phases: gather context, take action, and verify results. These phases blend together. Claude uses tools throughout, whether searching files to understand your code, editing to make changes, or running tests to check its work.
The loop adapts to what you ask. A question about your codebase might only need context gathering. A bug fix cycles through all three phases repeatedly. A refactor might involve extensive verification. Claude decides what each step requires based on what it learned from the previous step, chaining dozens of actions together and course-correcting along the way.
You’re part of this loop too. You can interrupt at any point to steer Claude in a different direction, provide additional context, or ask it to try a different approach. Claude works autonomously but stays responsive to your input.
The agentic loop is powered by two components: models that reason and tools that act. Claude Code serves as the agentic harness around Claude: it provides the tools, context management, and execution environment that turn a language model into a capable coding agent.