Claude Code: Complete Guide for Developers & Product Managers
Master Anthropic's agentic coding tool from beginner to advanced. Learn best practices, autonomous workflows, and production-ready development with Claude Code 2.0.
- Master checkpoints and rewind for safe iteration
- Create custom slash commands and hooks
- Connect MCP servers for extended capabilities
- Build autonomous workflows with subagents
- Follow production-ready best practices
- Optimize context management and workflows
Claude Code is Anthropic's agentic coding tool for terminals and IDEs, designed for real-world software development. Unlike simple autocomplete tools, Claude Code can autonomously handle complex, multi-step development tasks—from reading GitHub issues to writing code, running tests, and submitting pull requests.
Philosophy: Low-Level and Unopinionated
Claude Code is intentionally minimal, providing close-to-raw model access. No forced workflows, no opinionated templates—just a flexible, customizable, scriptable power tool that adapts to your development style.
Where Claude Code Excels
- • Complex multi-file refactoring
- • Autonomous task completion
- • Codebase-aware development
- • Git workflow automation
- • Terminal-first development
- • Extended thinking for architecture
Key Differentiators
- • Checkpoint/rewind system
- • Plan mode (research without coding)
- • Extended thinking budgets
- • MCP server ecosystem
- • CLAUDE.md conventions
- • VS Code extension + CLI
Imagine you have a really smart coding partner who can see your entire codebase and understand what you're trying to build. You describe what you want, and they figure out the details, write the code, and even fix their own mistakes.
The magic parts: Before they make changes, they save a "checkpoint" (like a save point in a video game). If you don't like what they did, you press Escape twice and everything goes back to how it was. No Git commits needed, instant undo.
They can also go into "think mode" where they plan everything out before touching code—like an architect drawing blueprints before construction begins.
Installation
# Install Claude Code CLI (macOS/Linux)
curl -sSL https://claude.ai/install.sh | bash
# Or with Homebrew
brew install anthropic/claude/claude
# Verify installation
claude --version
# Authenticate
claude auth loginVS Code Extension
Install the official Claude Code extension from the VS Code marketplace for native IDE integration with sidebar panel and real-time collaboration.
First Steps
- 1. Navigate to your project directory
- 2. Run
claudeto start - 3. Try: "Add a README.md file explaining this project"
- 4. See Claude analyze your codebase and create the file
- 5. If you don't like it, press
Esctwice to rewind
Checkpoints & Rewind (v2.0)
The headline feature of Claude Code 2.0. Automatically saves code state before each change, creating a safety net for ambitious refactoring.
How to use:
- • Double Escape - Quick rewind to last checkpoint
- • /rewind - Choose what to restore: conversation only, code only, or both
- • Automatic - Checkpoints created before every code modification
Plan Mode
Activate with Shift+Tab twice. Claude becomes a research and analysis machine that CAN'T change files—pure architecture mode.
Best Practice:
"Make a plan for implementing user authentication, but DON'T write any code until I approve the plan."
Review the plan, iterate, then switch to code mode.
Extended Thinking
Trigger deeper reasoning by using specific keywords that allocate more "thinking budget":
"think" → Standard thinking
"think hard" → More thorough analysis
"think harder" → Deep reasoning
"ultrathink" → Maximum thinking budget
Use for complex architecture decisions and system design
1. CLAUDE.md Files
A special file that Claude automatically reads when starting. Use it to document repository conventions, coding standards, and project-specific rules.
# CLAUDE.md Example
## Repository Conventions
- Use feature/ prefix for feature branches
- Rebase, don't merge
- All PRs require 2 approvals
## Tech Stack
- Next.js 15 with App Router
- TypeScript strict mode
- Tailwind CSS for styling
- Supabase for backend
## Testing
- Write tests BEFORE implementation
- Jest for unit tests, Playwright for E2E
- Minimum 80% code coverage
## Security
- Never commit .env files
- All API keys via environment variables
- Use Zod for input validation⚠️ Keep it under 200 lines. For larger projects, create per-folder CLAUDE.md files and link from the root.
2. Context Management
Use /clear frequently
Clear context when switching tasks to prevent context drift and irrelevant file references
Scope conversations
One chat per feature or project area keeps context relevant
Reference files explicitly
Hold Shift while dragging files to properly reference them
3. Essential Shortcuts
Shift+EnterNew line in prompt (set up with /terminal-setup)
Esc (double)Rewind to previous checkpoint
Ctrl+CDoes NOT stop Claude (use Esc for that)
Ctrl+VPaste images from clipboard
Ctrl+RSearch prompt history (Terminal 2.0)
Shift+Tab (2x)Enter Plan Mode
4. Visual Context
Claude excels with visual context. Paste screenshots, design mocks, diagrams, error messages, or architecture drawings. Drag-and-drop or Ctrl+V from clipboard.
Pro tip:
Screenshot an error, paste it, and ask "think hard about why this is happening and fix it." The visual context dramatically improves accuracy.
Create custom workflows by storing prompt templates in .claude/commands/ as Markdown files.
# .claude/commands/review.md
---
description: Code review with security focus
---
Review the following code for:
1. Security vulnerabilities (SQL injection, XSS, etc.)
2. Performance issues
3. Code style consistency
4. Missing error handling
Files to review: $ARGUMENTSUsage: /review src/auth/*
Built-in Commands
/clear- Clear context/rewind- Undo changes/usage- Token usage stats/context- View context
Custom Examples
/test- Generate tests/docs- Add documentation/refactor- Refactoring patterns/debug- Debug workflow
Model Context Protocol (MCP) servers connect Claude Code to external tools, databases, and APIs. Think of them as plugins that give Claude new abilities.
Popular MCP Servers
Installation Example
# Install via npx
npx @playwright/mcp@latest
# Add to Claude config
# Edit ~/.claude/config.jsonLearn more: Check our comprehensive Model Context Protocol guide for deep dive into MCP servers.
On October 16, 2025, Anthropic introduced Claude Skills—a new framework for giving Claude specialized capabilities through progressive disclosure. Instead of overwhelming users with all available tools, Skills appear contextually when relevant to your task.
What are Claude Skills?
Skills are specialized toolkits that give Claude domain-specific capabilities. Think of them as expert modes—when you're working with a spreadsheet, Claude automatically gains Excel expertise. When analyzing a PDF, document skills activate.
Progressive Disclosure Design:
Skills aren't shown as a giant menu. They appear organically based on your context—uploaded file types, conversation topics, or explicit requests. This reduces cognitive load while maximizing capability.
Pre-built Skills (October 2025 Launch)
Anthropic launched with four foundational skills covering the most common productivity workflows:
📊 Excel Skill
- • Read and write .xlsx files
- • Complex formulas and pivot tables
- • Data analysis and visualization suggestions
- • Macro generation and debugging
📑 PowerPoint Skill
- • Create presentations from outlines
- • Slide design and formatting
- • Speaker notes generation
- • Export to .pptx format
📄 Word Skill
- • Document creation and editing
- • Formatting and styles
- • Table of contents generation
- • Track changes and comments
📕 PDF Skill
- • Extract text, tables, and images
- • Summarize long documents
- • Answer questions about content
- • Form field extraction
Custom Skills
Build your own skills using the Claude Skills SDK. Define tools, context providers, and activation conditions for specialized workflows.
# Example: Custom Database Skill
# .claude/skills/database.json
{
"name": "database-analyzer",
"description": "Analyze PostgreSQL databases",
"activationPatterns": ["sql", "database", "postgres"],
"tools": [
{
"name": "query_schema",
"description": "Get database schema",
"command": "psql -c '\dt'"
},
{
"name": "explain_query",
"description": "Explain query execution plan",
"command": "psql -c 'EXPLAIN ANALYZE {{query}}'"
}
],
"contextProvider": "./scripts/db-context.sh"
}Using Skills in Claude Code
Automatic Activation
Upload an Excel file and Claude automatically activates Excel Skill
"Analyze sales data in quarterly-report.xlsx"Explicit Invocation
Request a specific skill when needed
"Use PDF skill to extract all tables from this research paper"Skill Chaining
Combine multiple skills in workflows
"Extract data from report.pdf, analyze in Excel, create PowerPoint summary"Claude Skills vs MCP Servers
Claude Skills are high-level, opinionated toolkits with built-in UI and progressive disclosure. Great for common productivity tasks (Excel, PDFs, etc.)
MCP Servers are low-level protocol adapters connecting Claude to external systems. More flexible, require more configuration.
Use Skills for standard workflows, MCP for custom integrations.
Best Practices with Skills
- • Let Skills activate automatically rather than forcing them
- • Build custom Skills for repetitive workflows your team uses daily
- • Combine Skills with slash commands for power-user workflows
- • Review Skill outputs carefully—they're still AI-generated
- • Use custom Skills to enforce company standards (e.g., presentation templates)
Git Worktrees for Parallel Development
Run multiple Claude instances simultaneously on different branches without merge conflicts.
# Create worktrees for parallel tasks
git worktree add ../myproject-feature1 feature/auth
git worktree add ../myproject-feature2 feature/payments
# Terminal 1: cd ../myproject-feature1 && claude
# Terminal 2: cd ../myproject-feature2 && claude
# Both instances work independentlyAutonomous Task Completion
Claude Code can handle entire workflows autonomously: read issue → plan → implement → test → PR.
Example workflow:
- 1. "Read GitHub issue #123 and implement the feature"
- 2. Claude analyzes issue, creates plan
- 3. Generates code across multiple files
- 4. Runs tests, fixes failures
- 5. Creates PR with description
Background Tasks & Subagents
Claude Code 2.0 can spawn subagents that work in parallel. While one agent refactors the frontend, another can update tests.
Claude Code pairs perfectly with spec-driven development. Write detailed specifications, then let Claude implement them systematically.
Workflow:
- 1. Write specification in
spec.md - 2. Use Plan Mode: "Read spec.md and create implementation plan"
- 3. Review plan, iterate as needed
- 4. "Implement the plan, creating checkpoints for each major step"
- 5. Claude works through tasks systematically
- 6. Validate against spec, rewind if needed
What's the difference between Claude Code and ChatGPT Code Interpreter?
Claude Code is designed for real software development with codebase awareness, Git integration, and production workflows. ChatGPT Code Interpreter is for quick scripts and data analysis in isolation.
How much does Claude Code cost?
Claude Code is available on Claude Pro ($20/month) and Team plans. API usage is pay-as-you-go based on tokens consumed.
Can I use Claude Code for commercial projects?
Yes, Claude Code can be used for commercial development. Review Anthropic's commercial terms and ensure you review all AI-generated code for security and quality.
What languages does Claude Code support?
Claude Code supports all major programming languages including Python, JavaScript, TypeScript, Go, Rust, Java, C++, and more. It understands framework-specific patterns too.
How do checkpoints work technically?
Claude Code creates lightweight snapshots of your working directory before each modification. These are stored locally and can be instantly restored without Git operations.
Can Claude Code work offline?
No, Claude Code requires an internet connection to access Anthropic's API. However, checkpoints and local configuration work offline until you need AI assistance.