If you've searched for Cursor rules, you've probably seen three different answers: a .cursorrules file, a .cursor/rules folder, and AGENTS.md. Here's the .cursorrules vs .cursor/rules difference, explained simply, and what to use today.
The short answer
Use a .cursor/rules folder with .mdc files, which is what Cursor's current documentation describes. If you want the simplest possible setup, use an AGENTS.md file instead. Treat a single .cursorrules file as the older format you'll see in older tutorials.
The three options
.cursorrules |
.cursor/rules/*.mdc |
AGENTS.md |
|
|---|---|---|---|
| What it is | One file in your project's main folder | A folder of separate rule files | One plain markdown file |
| Status | Older format, not described in current rules docs | The current, documented project rules system | Documented as a simple alternative |
| Control over when rules apply | None, all at once | Always, by file type, by relevance, or on request | Always (folders can have their own) |
| Best for | Old projects that already have one | Most projects | People who want one simple file |
Why .cursor/rules is better
Each .mdc file has a small header that controls when the rule applies: always, only for certain files, when the AI thinks it's relevant, or only when you mention it. That means your safety rules can apply to every chat while a styling rule only loads when the AI touches design files.
One gotcha from Cursor's docs: files in that folder must end in .mdc. A plain .md file there is ignored.
Why you might pick AGENTS.md
It's just a markdown file, no header needed. Cursor reads it from your main project folder and from subfolders. Claude Code can read AGENTS.md too, so it's handy if you use both tools. See Cursor vs Claude Code for non-developers.
Moving from .cursorrules
- Make a git save point first. See git for vibe coders.
- In Cursor's chat, type
/create-ruleand paste in the contents of your.cursorrules, asking it to split them into sensible.mdcfiles with "Always Apply" for safety rules. - Check the new files in
.cursor/rules, then delete.cursorrulesso you don't have two conflicting sets.
What to put in them
Start with five safety rules: plan first, ask before deleting, protect secrets, small steps, explain changes. The full text is in Cursor rules for beginners.
Get a ready-made rule file
Our free starter pack includes a ready-made .cursor/rules .mdc file with 10 safety rules, plus a matching CLAUDE.md. The Ship-Safe Starter Kit has 9 more detailed Cursor rules.
Vibe Shipped is independent and not affiliated with Cursor (Anysphere, Inc.). Written with AI assistance and reviewed by a human.
Want these rules ready-made?
The free starter pack has them, set up for Cursor and Claude Code.