How to install and use Continue in VS Code: extension, config, API keys, Ollama, inline edit

Install Continue, configure API keys or Ollama, run @ Chat and one reviewable inline Edit.

The first hour with open-source Continue in VS Code usually breaks on the wrong extension, an empty config.yaml, or a provider (API key or local Ollama) that never connects—not on the prompt. Install Continue.continue from the Marketplace, add a model in the Continue panel or ~/.continue/config.yaml, then try inline edit and chat with @ codebase context.

The query is how to install and use Continue in VS Code. This page follows Continue docs at docs.continue.dev (VS Code setup, model providers, Chat, and Edit) and Marketplace item Continue.continue. Continue is a separate open-source assistant, not this site’s meeting product. For a short huddle to review a diff, open a room on wbmeet; see how to create and join a room.

What Continue does in VS Code

Continue is an open-source (Apache 2.0) IDE assistant: sidebar Chat accepts @ files, folders, docs, and codebase context; Edit rewrites a selection inline with a reviewable diff; Autocomplete offers Tab completions when your model supports them. Extension id: Continue.continue. Models and API keys live in ~/.continue/config.yaml (or the Continue settings UI); Ollama and other local runners are supported. A Continue Hub account is optional—you can bring your own keys.

Install the extension

1. 1

   Install from VS Code Marketplace

   Open VS Code, Cmd+Shift+X / Ctrl+Shift+X, search Continue, confirm publisher and id Continue.continue, then Install. Continue also ships JetBrains plugins; this page covers VS Code only.

2. 2

   Open sidebar and commands

   Click the Continue icon in the Activity Bar, or use Cmd+Shift+L / Ctrl+Shift+L to focus Chat (shortcuts per docs.continue.dev/reference/keyboard-shortcuts and your build). Command Palette entries include Continue: Open Config, Edit, etc.

3. 3

   First-run wizard (optional Hub)

   First launch may offer model picks or Continue Hub sign-in. If you already have OpenAI, Anthropic, Gemini, or similar keys, choose bring-your-own-key or skip Hub and edit config directly. Confirm org policy before storing keys locally.

Configure API keys or local Ollama

1. 1

   Open config.yaml

   In the Continue panel, open settings or run Continue: Open config.yaml to edit ~/.continue/config.yaml. The file lists models with title, provider (openai, anthropic, ollama, …), model, and apiKey or local apiBase.

2. 2

   Cloud provider example

   Anthropic: create a key at console.anthropic.com, set provider anthropic and a supported Claude model id. OpenAI and Gemini follow the same pattern from their consoles; billing and regions follow each vendor. Never paste live keys into repos or screenshots.

3. 3

   Local Ollama

   Install and run Ollama locally, ollama pull a model, then add a config entry with provider ollama, model name, and default base URL http://localhost:11434. Continue docs describe Chat and Edit on local-only setups.

4. 4

   Pick the active model

   Use the model dropdown at the top of the Continue panel for Chat, Edit, and Autocomplete. After editing config, reload the window if the list is stale.

Chat and inline Edit

1. 1

   Chat with @ context

   In Chat, use @Files, @Code, @Codebase (exact names per current docs) to attach files or retrieved chunks. Hour one: read-only questions such as explaining exports in the current file.

2. 2

   Inline Edit on a selection

   Select a function or block, press Cmd+I / Ctrl+I (or Continue: Edit), describe the change in plain language, review the diff, then accept.

3. 3

   Project rules (optional)

   Optional project files such as .continuerules (see docs) steer Chat/Edit toward repo conventions. Keep secrets out of the workspace or in .gitignore.

# First hour · Continue · VS Code · 2026-09
# Extensions → Continue (Continue.continue)
# Continue: Open config.yaml → add model + apiKey or ollama
# Chat: @Files explain this module
# Select code → Cmd+I / Ctrl+I → small edit → accept diff

Feature comparison

Official path: install Continue.continue → configure config.yaml (cloud keys or Ollama) → Chat with @ context → Cmd/Ctrl+I with reviewed diff. Trust docs.continue.dev and your installed version.

Vs Cody / Roo Code

Each VS Code AI extension configures differently; you can keep several. See our Cody install note and Roo Code for comparison.

Is Continue Hub required?

No. Bring-your-own keys or Ollama works; Hub adds hosted models and team features per official pricing.

Not a meeting-product guide

Only Continue’s first hour. Short whiteboard call: wbmeet and when not to open another heavy meeting app.

Questions worth checking