VS Code + Copilot / Cline
VS Code is the world's most used editor, and it has two strong AI options for Claude-powered coding: GitHub Copilot (the subscription service that uses Claude models) and Cline (an open-source extension that connects directly to your Anthropic API key). They cover different use cases and billing models.
GitHub Copilot: Inline Completions, Chat, and Code Actions
GitHub Copilot is a paid subscription service ($10/month individual, free for verified students and open-source maintainers) built into VS Code. Core features:
- Inline completions: Ghost text suggestions as you type — press Tab to accept. Context includes the current file and open editor tabs.
- Copilot Chat: A conversation panel where you can ask questions, request code, or have Claude explain selected code. Chat has access to your workspace via the
@workspaceparticipant. - Code actions: Right-click any code selection for AI actions: explain, fix, generate tests, generate documentation.
- Agent mode (2025): Multi-file agentic editing — Copilot can make changes across files and run terminal commands. Less mature than Cursor Composer but improving.
GitHub Copilot uses Claude models (Claude Sonnet 4.x family as of 2025) alongside OpenAI models — GitHub selects the model for each request. You can select preferred models in VS Code settings.
Cline: Agentic Mode with Full Tool Access
Cline is a free, open-source VS Code extension that provides full agentic coding capabilities using the Anthropic API directly. Setup:
- Install "Cline" from the VS Code marketplace
- Open Cline settings, enter your Anthropic API key
- Select a Claude model (Sonnet or Opus)
- Open the Cline panel and describe your task
Cline's capabilities:
- Reads and writes files with permission prompts (similar to Claude Code)
- Runs terminal commands
- Browses the web for documentation
- Uses MCP tools if configured
Billing: you pay Anthropic API rates directly — no Cline subscription. This can be more cost-effective for heavy users or more expensive for light users compared to Copilot's flat monthly fee.
Copilot vs Cline in VS Code
Choose GitHub Copilot when
- You want inline completions as a primary feature
- Your company has an existing Copilot Business subscription
- You want the lowest friction — no API key setup
- You use GitHub and want tight integration (Copilot in PRs, issues)
- You need a predictable monthly cost
Choose Cline when
- Agentic multi-file editing is your primary use case
- You want to use the latest Claude models immediately on release
- You prefer direct API billing over a subscription
- You want MCP tool integration
- You want full transparency into what actions the AI takes
Configuring Copilot Model Selection
In VS Code Settings (Ctrl+,), search for "Copilot". You can:
- Set the preferred model for chat (Claude Sonnet, GPT-4o, etc.)
- Enable/disable inline completions
- Configure which file types trigger completions
- Set up custom instructions via
.github/copilot-instructions.md— equivalent to .cursorrules
Checklist: Do You Understand This?
- GitHub Copilot: subscription service ($10/mo), uses Claude models, strong inline completions, improving agent mode
- Cline: free open-source extension, direct Anthropic API, full agentic mode (read/write files, terminal, MCP)
- Copilot best for: teams on VS Code with existing GitHub, inline completions, predictable billing
- Cline best for: agentic tasks, latest models, API billing, power users who want full control
- Both support custom project instructions: Copilot via
.github/copilot-instructions.md; Cline via its settings or CLAUDE.md