Project Rules using the documented folder-based RULE.md format are not recognised by Cursor. The documentation at https://cursor.com/docs/context/rules shows rules should be created as folders containing a RULE.md file (e.g., .cursor/rules/my-rule/RULE.md), but this format does not work. Rules only appear in Settings when using flat .mdc files directly in .cursor/rules/ (e.g., .cursor/rules/my-rule.mdc).
Steps to Reproduce
Create .cursor/rules/test-rule/RULE.md with frontmatter (description, globs, alwaysApply)
Open Cursor Settings → Rules → Project Rules
Observe: No rules appear
Convert to .cursor/rules/test-rule.mdc (flat file, same content)
Observe: Rule now appears in Project Rules
Expected Behavior
Rules created using the documented folder-based format (.cursor/rules//RULE.md) should appear in Settings → Rules → Project Rules, matching the documentation at Rules | Cursor Docs
Operating System
MacOS
Current Cursor Version (Menu → About Cursor → Copy)
Right now, per the docs, Project Rules should be folders with a RULE.md file (see Rules | Cursor Docs). .mdc is considered legacy but still works, so it’s a good temporary workaround.
Let’s collect details for the bug:
Please show:
the exact path and tree: .cursor/rules/<rule>/RULE.md
the RULE.md frontmatter (description, globs, alwaysApply)
a screenshot of Settings > Rules > Project Rules
whether the rules were created via Settings > Rules > + Add Rule or manually
a minimal repro (an archive or a test repo)
Please try:
creating a rule via Settings > Rules > + Add Rule and check if it appears
restarting or using Reload Window
Please let us know if the + Add Rule option helped.
I can confirm. The new RULES.md format is not detected by Cursor 2.2.20 on macOS. The “Add Rule” button in the settings Cursor Settings UI still creates .mdc files.
Also hitting this issue. Rules that are created under .cursor/rules/<rule>/RULE.md are not applied and new rules are created at .cursor/rules/<new_rule>.mdc when using the + Add Rule option
