How to Use Cursor Agent Mode (2026)

Cursor has become one of the most popular AI-powered code editors, and its Agent Mode is the feature that sets it apart from traditional autocomplete-style AI coding tools. Rather than just suggesting the next line, Agent Mode allows Cursor to autonomously plan, execute, and iterate on multi-step coding tasks across your entire codebase. This guide covers everything you need to know to use Agent Mode effectively in 2026.

What Is Cursor Agent Mode?

Agent Mode is Cursor's autonomous coding assistant that can:

Read and understand your entire codebase
Create, edit, and delete files across multiple directories
Run terminal commands (with your approval)
Search the web for documentation and solutions
Iterate on its own output by testing and fixing errors
Use MCP (Model Context Protocol) tools for external integrations

Unlike the standard "Ask" or "Edit" modes in Cursor, Agent Mode does not just respond to single prompts. It plans a sequence of actions and executes them step by step, much like a junior developer working on a ticket.

Setting Up Agent Mode

Prerequisites

Cursor IDE installed (version 0.48 or later recommended)
An active Cursor subscription (Pro or Business) for unlimited agent usage
A project opened in Cursor

Step 1: Open the Chat Panel

Press Cmd+L (macOS) or Ctrl+L (Windows/Linux) to open the Cursor chat panel on the right side of the editor.

Step 2: Select Agent Mode

At the top of the chat panel, you will see a mode selector dropdown. Click it and select Agent from the options:

Mode	Description
Agent	Autonomous multi-step execution with file editing, terminal commands, and tool use
Ask	Conversational Q&A about your codebase without making changes
Edit	Inline code editing with a focused diff view

Step 3: Choose Your Model

Agent Mode works with multiple models. Select your preferred model from the model dropdown:

Model	Best For
Claude Sonnet 4	Best overall balance of speed and capability for coding
Claude Opus 4	Complex architectural decisions and large refactors
GPT-4o	General-purpose coding and documentation
Gemini 2.5 Pro	Large context tasks with massive codebases

Step 4: Write Your Prompt

Type your task description in the chat input. Be specific about what you want accomplished:

Create a new REST API endpoint for user authentication using JWT tokens.
It should include:
- POST /api/auth/login with email and password
- POST /api/auth/register with email, password, and name
- GET /api/auth/me to return the current user
- Middleware for protecting routes
Use the existing Prisma schema for the User model and follow
the patterns in the existing route files.

Step 5: Review and Approve Actions

Agent Mode will present a plan and begin executing. For each file change, you will see a diff view. For terminal commands, you will see the command before it runs. You can:

Accept individual changes with the checkmark button
Reject changes with the X button
Accept All to approve all pending changes at once
Provide feedback by typing additional instructions in the chat

Best Practices for Agent Mode

1. Provide Context with @-mentions

Use Cursor's @ symbol to reference specific files, folders, docs, or web pages:

@src/routes/users.ts @src/middleware/auth.ts
Refactor the authentication middleware to support
both JWT and API key authentication methods,
following the patterns in these files.

Available @ references include:

Reference	Usage
`@filename`	Reference a specific file
`@foldername`	Reference an entire directory
`@codebase`	Search the entire codebase for relevant context
`@web`	Search the web for documentation
`@docs`	Reference indexed documentation
`@git`	Reference git history and diffs

2. Use .cursorrules for Project Context

Create a .cursorrules file in your project root to give Agent Mode persistent context about your project:

# Project: E-commerce API

## Tech Stack
- Node.js with TypeScript
- Express.js for routing
- Prisma ORM with PostgreSQL
- Jest for testing
- Zod for input validation

## Conventions
- Use async/await, never raw promises
- All route handlers must have try/catch with proper error responses
- Use Zod schemas for request validation
- Follow RESTful naming conventions
- Write unit tests for all new service functions

## File Structure
- src/routes/ - Route handlers
- src/services/ - Business logic
- src/middleware/ - Express middleware
- src/utils/ - Shared utilities
- src/types/ - TypeScript type definitions
- tests/ - Test files mirroring src structure

3. Break Down Large Tasks

Rather than asking Agent Mode to "build an entire feature," break work into logical chunks:

# Good: Focused, incremental tasks
"Add the Prisma schema for the Order model with relations to User and Product"

"Create the order service with createOrder, getOrderById, and listUserOrders functions"

"Add the REST endpoints for orders following the same pattern as the user routes"

"Write Jest tests for the order service functions"

# Less effective: Vague, monolithic requests
"Build the entire order management system"

4. Let Agent Run Terminal Commands

Agent Mode can run tests, linting, and build commands to validate its work. When it suggests running a command, allow it -- this creates a feedback loop where the agent can fix its own errors:

Agent: I'll run the tests to verify the changes work correctly.
> npm run test -- --testPathPattern=order

# If tests fail, the agent automatically reads the error output
# and attempts to fix the issues

5. Use Checkpoints to Roll Back

Cursor automatically creates checkpoints before Agent Mode makes changes. If the agent goes in the wrong direction:

Click the Restore button on the checkpoint in the chat panel
Provide more specific instructions
Let the agent try again with better guidance

Advanced Agent Mode Features

YOLO Mode

For experienced users who trust the agent's judgment, enable YOLO mode in Settings > Features > Agent. This auto-approves terminal commands matching specified patterns:

{
  "allowedCommands": [
    "npm run test",
    "npm run lint",
    "npx tsc --noEmit",
    "npx prisma generate"
  ]
}

Warning: Only enable YOLO mode for safe, read-only, or easily reversible commands. Never auto-approve commands that could modify production data or infrastructure.

MCP Tool Integration

Agent Mode supports MCP (Model Context Protocol) servers, enabling it to interact with external tools:

// .cursor/mcp.json
{
  "mcpServers": {
    "github": {
      "command": "npx",
      "args": ["-y", "@modelcontextprotocol/server-github"],
      "env": {
        "GITHUB_TOKEN": "your-token"
      }
    },
    "postgres": {
      "command": "npx",
      "args": ["-y", "@modelcontextprotocol/server-postgres"],
      "env": {
        "DATABASE_URL": "postgresql://localhost:5432/mydb"
      }
    }
  }
}

With MCP tools, Agent Mode can:

Create GitHub issues and pull requests
Query your database schema directly
Interact with Figma designs for UI implementation
Access Sentry errors for debugging

Multi-File Refactoring

Agent Mode excels at refactoring tasks that span many files:

Rename the "user" service layer to "account" across the entire codebase.
Update all imports, route references, test files, and type definitions.
Make sure all tests still pass after the rename.

The agent will systematically find and update every reference, run the TypeScript compiler to catch missing updates, and execute tests to verify nothing broke.

Agent Mode Keyboard Shortcuts

Shortcut	Action
`Cmd+L` / `Ctrl+L`	Open chat panel
`Cmd+Shift+L` / `Ctrl+Shift+L`	Open chat with selected code as context
`Cmd+Enter`	Accept all pending changes
`Cmd+Backspace`	Reject all pending changes
`Cmd+.`	Stop the agent mid-execution
`Tab`	Accept inline suggestion from agent

Common Pitfalls and Solutions

Problem	Solution
Agent makes too many unnecessary changes	Be more specific in your prompt; use @-mentions to scope the task
Agent gets stuck in a loop	Press `Cmd+.` to stop, provide clearer instructions, or break the task down
Agent does not understand project conventions	Add a `.cursorrules` file with your project's patterns and standards
Changes break existing functionality	Ask the agent to run tests after changes; use checkpoints to roll back
Agent hallucinates file paths or APIs	Use `@codebase` to ensure it searches for actual files rather than guessing

Pricing and Usage Limits

Plan	Agent Mode Access	Monthly Limit
Free	Limited (50 slow requests)	Restrictive
Pro ($20/mo)	Full access	500 fast + unlimited slow requests
Business ($40/mo)	Full access with admin controls	500 fast + unlimited slow requests

Conclusion

Cursor Agent Mode transforms how developers interact with AI coding assistants. Instead of copying and pasting suggestions one at a time, you can delegate entire tasks and review the results. The key to success is writing clear prompts, providing good context through .cursorrules and @-mentions, and breaking large tasks into manageable pieces.

For developers who also work with AI-generated media -- such as creating demo videos, marketing content, or product walkthroughs -- Hypereal AI offers an affordable API for AI video generation, talking avatars, and image creation that pairs naturally with the AI-powered development workflows you are already building in Cursor.