Claude Code Side Panel (Chat Panel) Setup Guide
Why We Created This Guide
After spending considerable time trying to configure the Claude Code extension in Visual Studio Code’s side panel, we discovered that finding clear, step-by-step instructions was surprisingly difficult. The process isn’t immediately intuitive, and many developers struggle with the configuration steps.
We decided to create a comprehensive, tested guide to help others avoid the same frustration we experienced. Our goal is to make AI-powered coding assistance more accessible to the developer community.
What This Guide Provides
Our GitHub Gist contains a complete, step-by-step tutorial for configuring the Claude Code extension in Visual Studio Code. The guide includes:
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Prerequisites and system requirements
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Detailed installation instructions with alternative methods
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Activity bar configuration for optimal layout
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Sidebar setup with command palette instructions
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Chat panel integration
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Verification steps to ensure everything works
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Troubleshooting section for common issues
Key Benefits
Tested and Verified: All steps have been tested with Claude Code for VS Code v2.0.10 (October 7, 2025)
Cross-Platform: Works on Windows, macOS, and Linux
Beginner-Friendly: Clear explanations for each step
Troubleshooting Included: Solutions for common configuration issues
Quick Summary - How to Use
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Install the Extension: Search for “Claude Code” in VS Code extensions marketplace
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Configure Layout: Set Activity Bar orientation to “vertical” in VS Code settings
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Open in Sidebar: Use Command Palette (
Ctrl+Shift+P/Cmd+Shift+P) → “Claude Code: Open in sidebar” -
Move to Chat Panel: Drag the Claude Code icon from sidebar to chat panel for better accessibility
Who Should Use This Guide
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VS Code users wanting to integrate AI coding assistance
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Developers struggling with Claude Code extension setup
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Teams looking to standardize their development environment
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Anyone interested in AI-powered coding tools
How to Access the Guide
Direct Link: Claude Code VS Code Setup Guide
The guide is hosted as a GitHub Gist, making it:
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Easily shareable with team members
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Always accessible without account requirements
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Version controlled with update history
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Embeddable in documentation or websites
Community Impact
We believe this guide will help reduce the barrier to entry for AI-assisted coding. By providing clear, tested instructions, we hope to:
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Save developers time on configuration
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Increase adoption of AI coding tools
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Improve productivity in the development community
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Create a foundation for other similar guides
Feedback and Contributions
If you find this guide helpful or have suggestions for improvements, please:
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Star the Gist if it helped you
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Share it with colleagues who might benefit
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Report issues if you encounter problems
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Suggest enhancements for future updates
Note: This guide works with other chat extensions like Codex as well, making it useful for various AI coding assistants.
Happy coding ! 