Copy-pasting image in markdown file doesn't work as expected like in VSCode

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

In Cursor, copy-pasting an image in a markdown file does not create the image file.
In VSCode, it works well ( I usually love to copy-paste a screenshot (image) for my blog content in markdown).

Steps to Reproduce

  • Create any markdown file
  • Try copy an image (or you can use screenshot tool)
  • Try pasting the image to the markdown
  • Nothing happens (just a broken link). Meanwhile, in VSCode, it can create a file “image.png” and a link with valid image appears.

Expected Behavior

in VSCode, it can create a file “image.png” and a link with valid image appears.

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 2.0.77 (Universal)
VSCode Version: 1.99.3
Commit: ba90f2f88e4911312761abab9492c42442117cf0
Date: 2025-11-13T23:10:43.113Z
Electron: 37.7.0
Chromium: 138.0.7204.251
Node.js: 22.20.0
V8: 13.8.258.32-electron.0
OS: Darwin arm64 24.6.0

Does this stop you from using Cursor

Sometimes - I can sometimes use Cursor

Hey, thanks for the report.

By default this feature is disabled, so you’ll need to turn it on in the settings:

VS Code Settings → Editor: Paste As → Enabled

This setting controls how content is pasted, including pasting images into markdown files.

After enabling it:

  1. Try pasting an image into a markdown file again
  2. Everything should work as expected

Let me know if this fixes the issue.