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The short answer: memory files versus scoped rules
Use CLAUDE.md when Claude Code is your primary agent and you want hierarchical Markdown memory, user-level instructions, and imported guidance. Use .cursor/rules when Cursor is primary and you need rule-by-rule activation, file globs, descriptions, and explicit manual or agent-requested loading. A root CLAUDE.md or AGENTS.md can serve as a limited bridge for Cursor CLI, but it does not turn Claude’s memory model into Cursor’s MDC rule engine.
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| Question | Claude Code | Cursor |
|---|---|---|
| Native project format | Markdown CLAUDE.md files |
MDC files under .cursor/rules |
| User-level guidance | ~/.claude/CLAUDE.md |
User Rules in Cursor settings |
| Scope mechanism | Directory hierarchy and imported files | Rule metadata, activation type, path globs, and nested rule directories |
| Legacy option | None identified for the documented convention | .cursorrules, still supported but deprecated |
| Cross-tool bridge | Claude Code’s documented format remains CLAUDE.md |
Cursor CLI says it reads root CLAUDE.md and AGENTS.md alongside .cursor/rules |
The practical distinction is document discovery versus rule activation. Claude Code builds context from memory files it finds in relevant directories and from their imports. Cursor treats each Project Rule as a separately scoped unit whose metadata determines whether it is always attached, automatically attached to matching files, offered to the agent, or loaded only when you invoke it.
How Claude Code finds and combines instructions
Project and user memory locations
Anthropic documents a project memory file at ./CLAUDE.md and a user memory file at ~/.claude/CLAUDE.md. The user file is intended for preferences that apply across projects; the project file belongs in the repository and should contain conventions that other contributors and agents need to follow.
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Claude Code searches upward from the current working directory for CLAUDE.md or CLAUDE.local.md, stopping before the filesystem root. A nested CLAUDE.md below the working directory can also be included when Claude reads files in that subtree. This makes directory placement meaningful: a repository-wide file can hold general standards, while a deeper file can describe a particular service or package.
Imports with @path
A memory file can import another file by placing an @path reference in the Markdown. Anthropic documents both relative and absolute paths. Imports can be recursive, with a maximum depth of five hops. That limit matters when a central file imports team guidance, which imports language-specific guidance, which imports service-specific details; beyond five levels, the chain is not a safe way to deliver instructions.
# Repository instructions
Run the test suite before changing API behavior.
@docs/testing.md
@services/payments/CLAUDE.mdUse /memory inside Claude Code to inspect the memory files it has loaded. This is the most direct way to check whether a newly added file or import is actually in context rather than assuming that its location is sufficient.
What Claude Code’s model does not provide
CLAUDE.md is a Markdown memory convention, not a documented equivalent of Cursor’s MDC metadata. The cited documentation does not define fields such as globs, alwaysApply, or an activation menu for Claude Code. If you need a rule to apply only to a path, the usual Claude-oriented approach is to place a narrower memory file in the relevant directory and keep the instructions clear about when they apply.
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How Cursor Project Rules work
Files, metadata, and activation types
Cursor’s recommended project system stores MDC rule files in .cursor/rules. Project Rules are version-controlled, so the team can review changes alongside source code. A rule’s metadata can include a human-readable description, path-matching globs, and an alwaysApply setting. The body contains the actual instructions.
Cursor documents four activation types:
- Always: the rule is included for every relevant agent interaction.
- Auto Attached: the rule is attached when files matching its patterns are part of the task.
- Agent Requested: the agent can choose the rule when its description indicates that it is relevant.
- Manual: you explicitly invoke the rule, for example with an
@ruleNamereference.
A representative MDC rule might look like this:
---
description: Payments service conventions
globs: services/payments/**/*
alwaysApply: false
---
Use the repository's payment test fixtures. Never log full card numbers.The exact metadata and activation behavior should be checked against the Cursor version you run, but the conceptual difference is stable: Cursor makes scope and loading conditions properties of individual rules rather than relying only on where one Markdown file sits.
Nested rule directories
Cursor supports nested .cursor/rules directories, allowing rules to live closer to the code they govern. A repository-level rule can cover shared practices, while a nested directory can define conventions for a frontend, a data pipeline, or a particular package. Path globs can provide another layer of targeting without physically moving the rule.
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Keep rules focused
Cursor recommends focused, actionable rules supported by examples or references to relevant files. Its documentation gives under 500 lines as a target, not as a measured performance limit. Split a large policy into composable rules—such as formatting, testing, database safety, and deployment—so that the agent can load only what a task needs.
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Where the two systems genuinely differ
| Dimension | Claude Code | Cursor | What it means in practice |
|---|---|---|---|
| Primary unit | A Markdown memory file | An individual MDC rule | Claude organizes a memory document; Cursor organizes a set of independently activated rules. |
| Hierarchy | Files found above the working directory plus relevant nested files | Project-wide and nested .cursor/rules locations, with metadata |
Both can express local conventions, but they discover and activate them differently. |
| Composition | @path imports, up to five recursive hops |
Multiple rules selected by activation type and matching paths | Claude’s composition is document-oriented; Cursor’s is rule-oriented. |
| Path targeting | Usually achieved by directory placement and instructions | Explicit globs plus nested rule directories |
Cursor exposes targeting directly in metadata. |
| Inspection | /memory shows loaded memory |
Inspect active rules in the installed Cursor surface | Always verify what the agent actually loaded instead of inferring it from files on disk. |
| Legacy migration | No legacy filename is identified in the cited convention | .cursorrules remains supported but is deprecated |
New Cursor-specific work should use .cursor/rules. |
Can Cursor read CLAUDE.md?
Cursor CLI documentation says yes for a root-level file. Its “Using Agent in CLI” documentation states that the CLI reads root-level AGENTS.md and CLAUDE.md, if present, and applies them as rules alongside .cursor/rules. That creates a useful compatibility path when a repository already has Claude-oriented instructions.
Do not broaden that statement into a guarantee about every Cursor interface. The cited wording is specifically about Cursor CLI, and it does not establish that MDC metadata is understood by Claude Code, that every nested import behaves identically, or that Cursor’s IDE and CLI have precisely the same cross-format behavior. If a rule is important, test it in the exact surface and version your team uses.
What the bridge does not mean
- It does not make
CLAUDE.mda replacement for Cursor Project Rules. - It does not make Cursor’s
description,globs, oralwaysApplyfields meaningful to Claude Code. - It does not prove that all nested files, imports, or user-level settings are merged in the same way.
- It does not establish a universal precedence order when two files disagree.
Does Claude Code use .cursorrules?
Claude Code’s documented project convention is CLAUDE.md, not .cursorrules. Cursor documentation still describes .cursorrules as supported, but deprecated, and recommends migrating to Project Rules for more control. Therefore, do not design a new shared instruction system around .cursorrules; use it only when maintaining an existing Cursor setup while you migrate.
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A safe migration path from .cursorrules
- Inventory the existing file and separate universal engineering practices from Cursor-specific activation needs.
- Create one or more focused files under
.cursor/rules. - Move path-specific guidance into rules with appropriate
globsor nested rule directories. - Choose Always, Auto Attached, Agent Requested, or Manual activation for each rule.
- Keep a concise root
CLAUDE.mdonly for guidance that Claude Code needs, and avoid copying MDC metadata into it as if the fields were executable. - Run representative tasks in Cursor and Claude Code, inspect loaded instructions, and remove contradictory duplicates.
How to organize one repository for both agents
Put stable, tool-neutral policy in plain Markdown
Shared guidance should describe outcomes and commands rather than refer to one agent’s internal features. Examples include the supported runtime version, the required test command, security restrictions, generated-file policy, and review expectations. Keep this material short enough that both agents can use it without burying task-specific instructions.
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# Project standards
- Use Node.js 22 for local development.
- Run `npm test` before submitting a change.
- Do not edit generated files; update their source and regenerate them.
- Never commit credentials or production data.Place that shared policy in a root CLAUDE.md if Claude Code must load it and Cursor CLI’s documented bridge is useful to you. A root AGENTS.md is another documented option for Cursor CLI. Treat the choice as a compatibility decision, not as evidence that the tools share one rule parser.
Keep tool-specific behavior separate
Cursor activation metadata belongs in .cursor/rules. Claude-specific imports, memory organization, and instructions about using /memory belong in CLAUDE.md. Duplicating the same long policy in both places creates drift: one file will eventually be updated while the other still tells the agent to use an obsolete command.
Use local rules for high-risk subsystems
For a payments, authentication, or migration directory, put narrow instructions near the code and make the trigger obvious. In Cursor, use an Auto Attached rule with a precise glob or a nested rules directory. In Claude Code, use a nested CLAUDE.md and, where useful, import a small supporting document. State prohibitions concretely—for example, “use masked fixtures” is safer than “handle payment data carefully.”
Handling conflicts and unexpected behavior
The available official material does not define a universal precedence ladder for project files, user rules, prompts, settings, and nested instructions across both products. Do not assume that a rule in one location always wins. Instead, remove ambiguity and verify the active context in the installed tool.
When a rule appears ignored
- Confirm that you started the agent in the intended repository and working directory.
- Check spelling and capitalization of
CLAUDE.md,CLAUDE.local.md,AGENTS.md, and rule filenames. - For Claude Code, inspect loaded memory with
/memoryand check every@pathtarget. - For Cursor, verify the rule’s activation type, description, and glob; a Manual rule will not attach by itself.
- Check whether the rule is nested below the files involved in the task or whether the task actually opened a matching path.
- Reduce the instruction to one explicit testable requirement, then run a small task that should demonstrate it.
When two instructions disagree
Do not publish a guessed precedence rule. Find the conflicting sentences, decide which policy is intended, delete or rewrite the weaker duplicate, and test again. If the conflict involves user settings or a system prompt, record the resolution in the project’s canonical policy so future contributors do not recreate it.
Which format should your team choose?
| Your situation | Best starting point | Reason |
|---|---|---|
| Claude Code is the main agent | Root and nested CLAUDE.md files |
They are Claude Code’s documented project-memory convention and support imports. |
| Cursor is the main agent | .cursor/rules with MDC metadata |
You get explicit activation, path targeting, and version-controlled rule units. |
| Both tools are used daily | Short shared policy plus tool-specific files | Keep common outcomes consistent while preserving each agent’s native loading model. |
Existing repository has .cursorrules |
Migrate incrementally to .cursor/rules |
The legacy file remains supported but is deprecated. |
| Rules vary by service or package | Nested files and precise scopes | Locality reduces accidental instructions in unrelated tasks. |
A good decision rule is simple: choose the native format of the agent that performs most of the work, then add only the smallest compatibility layer needed by the other tool. If both are equally important, keep the shared policy deliberately tool-neutral and maintain separate activation logic.
Version and documentation caveats
Official search results for the cited Anthropic memory documentation did not expose a publication date or product version; the result was from a Chinese-language documentation locale and reported an approximately 1.1-year crawl age. Cursor’s cited pages likewise do not provide a single version identifier in the supplied material. File discovery and activation details can change, so verify exact behavior in the current English documentation and in the installed version before relying on a subtle edge case.
The durable guidance is therefore narrower than a universal compatibility promise: Claude Code uses CLAUDE.md memory with imports and hierarchy; Cursor uses scoped Project Rules in .cursor/rules; Cursor CLI documents root-level CLAUDE.md and AGENTS.md as additional rules; and .cursorrules is deprecated rather than removed.
Quick Recap
A practical checklist
- Choose one canonical location for shared project policy.
- Keep Cursor metadata in MDC files, not in a Markdown file intended for Claude Code.
- Use directory placement and imports for Claude-specific organization.
- Use globs and activation types for Cursor-specific targeting.
- Keep Cursor rules focused and aim for fewer than 500 lines per rule set, following Cursor’s recommendation.
- Inspect loaded memory or active rules after every structural change.
- Test the same representative task in each agent surface your team supports.
- Document exceptions next to the subsystem they protect.
- Resolve contradictions directly instead of assuming a cross-tool precedence order.
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