How to Install the Continue Extension in VS Code

Continue is an open-source AI code assistant that you can point at any model, from cloud providers to a model running on your own machine. This guide installs the extension and gets the chat, autocomplete, and edit panels visible so you are ready to connect a model in the next step.

What you need

• VS Code installed
• An internet connection for the Marketplace
• An API key or a local model (added in a later guide)
• About 5 minutes

Step 1: Install Continue from the Marketplace

Open the Extensions view, search for Continue, and install the extension published by Continue.dev. After installation, a Continue icon appears in the Activity Bar on the left.

Step 2: Open the Continue panel

Click the Continue icon in the Activity Bar to open the chat panel. On first launch it offers a quick onboarding where you can sign in, pick a starter model, or skip to configure it yourself. You can drag the panel to the right side or the bottom to suit your layout.

Step 3: Learn the three modes

Continue has three core actions. Chat answers questions in the side panel. Edit, opened with Ctrl+I or Cmd+I over a selection, rewrites code in place. Autocomplete shows inline suggestions as you type, similar to Copilot. Each can use a different model if you want.

1. Chat: ask questions and get explanations in the side panel
2. Edit: select code, press Cmd+I or Ctrl+I, describe the change
3. Autocomplete: inline ghost text suggestions while typing

Step 4: Open the config file

Continue stores its setup in a config file in your home folder under the .continue directory. Open the Continue panel, click the gear icon, and choose the option to edit the config. Recent versions use a YAML file; this is where you will add models in the next guide.

Result

Continue is installed, the panel is open, and you know where its config lives. The assistant cannot do much until you connect a model, which is the focus of the next guide.