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    How Cursor Actually Indexes Your Codebase

    ProfitlyAIBy ProfitlyAIJanuary 26, 2026No Comments10 Mins Read
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    In the event you growth environments (IDEs) paired with coding brokers, you have got seemingly seen code strategies and edits which might be surprisingly correct and related. 

    This stage of high quality and precision comes from the brokers being grounded in a deep understanding of your codebase.

    Take Cursor for example. Within the Index & Docs tab, you’ll be able to see a bit exhibiting that Cursor has already “ingested” and listed your challenge’s codebase:

    Indexing & Docs part within the Cursor Settings tab | Picture by creator

    So how can we construct a complete understanding of a codebase within the first place? 

    At its core, the reply is retrieval-augmented era (RAG), an idea many readers might already be acquainted with. Like most RAG-based methods, these instruments depend on semantic search as a key functionality. 

    Relatively than organizing information purely by uncooked textual content, the codebase is listed and retrieved primarily based on which means. 

    This permits natural-language queries to fetch essentially the most related codes, which coding brokers can then use to cause, modify, and generate responses extra successfully.

    On this article, we discover the RAG pipeline in Cursor that permits coding brokers to do its work utilizing contextual consciousness of the codebase.

    Contents

    (1) Exploring the Codebase RAG Pipeline
    (2) Keeping Codebase Index Up to Date
    (3) Wrapping It Up


    (1) Exploring the Codebase RAG Pipeline

    Let’s discover the steps in Cursor’s RAG pipeline for indexing and contextualizing codebases:

    Step 1 — Chunking

    In most RAG pipelines, we first need to handle information loading, textual content preprocessing, and doc parsing from a number of sources.

    Nonetheless, when working with a codebase, a lot of this effort might be averted. Supply code is already nicely structured and cleanly organized inside a challenge repo, permitting us to skip the customary doc parsing and transfer straight into chunking.

    On this context, the purpose of chunking is to interrupt code into significant, semantically coherent items (e.g., features, lessons, and logical code blocks) somewhat than splitting code textual content arbitrarily. 

    Semantic code chunking ensures that every chunk captures the essence of a selected code part, resulting in extra correct retrieval and helpful era downstream.

    To make this extra concrete, let’s take a look at how code chunking works. Think about the next instance Python script (don’t fear about what the code does; the main target right here is on its construction):

    After making use of code chunking, the script is cleanly divided into 4 structurally significant and coherent chunks:

    As you’ll be able to see, the chunks are significant and contextually related as a result of they respect code semantics. In different phrases, chunking avoids splitting code in the midst of a logical block except required by dimension constraints. 

    In observe, it means chunk splits are usually created between features somewhat than inside them, and between statements somewhat than mid-line.

    For the instance above, I used Chonkie, a light-weight open-source framework designed particularly for code chunking. It supplies a easy and sensible method to implement code chunking, amongst many different chunking methods obtainable.


    [Optional Reading] Below the Hood of Code Chunking

    The code chunking above just isn’t unintentional, neither is it achieved by naively splitting code utilizing character counts or common expressions. 

    It begins with an understanding of the code’s syntax. The method sometimes begins through the use of a supply code parser (akin to tree-sitter) to transform the uncooked code into an abstract syntax tree (AST).

    An summary syntax tree is basically a tree-shaped illustration of code that captures its construction, and never the precise textual content. As a substitute of seeing code as a string, the system now sees it as logical items of code like features, lessons, strategies, and blocks.

    Think about the next line of Python code:

    x = a + b

    Relatively than being handled as plain textual content, the code is transformed right into a conceptual construction like this:

    Task
    ├── Variable(x)
    └── BinaryExpression(+)
    ├── Variable(a)
    └── Variable(b)

    This structural understanding is what allows efficient code chunking.

    Every significant code assemble, akin to a perform, block, or assertion, is represented as a node within the syntax tree. 

    Pattern illustration of a easy summary syntax tree | Picture by creator

    As a substitute of working on uncooked textual content, the chunking works immediately on the syntax tree. 

    The chunker will traverse these nodes and teams adjoining ones collectively till a token restrict is reached, producing chunks which might be semantically coherent and size-bounded.

    Right here is an instance of a barely extra difficult code and the corresponding summary syntax tree:

    whereas b != 0:
        if a > b:
            a := a - b
        else:
            b := b - a
    return 
    Instance of summary syntax free | Picture used beneath Creative Commons

    Step 2 — Producing Embeddings and Metadata

    As soon as the chunks are ready, an embedding mannequin is utilized to generate a vector illustration (aka embeddings) for every code chunk. 

    These embeddings seize the semantic which means of the code, enabling retrieval for consumer queries and era prompts to be matched with semantically associated code, even when actual key phrases don’t overlap. 

    This considerably improves retrieval high quality for duties akin to code understanding, refactoring, and debugging.

    Past producing embeddings, one other important step is enriching every chunk with related metadata. 

    For instance, metadata such because the file path and the corresponding code line vary for every chunk is saved alongside its embedding vector.

    This metadata not solely supplies essential context about the place a piece comes from, but in addition allows metadata-based key phrase filtering throughout retrieval.


    Step 3 — Enhancing Knowledge Privateness

    As with every RAG-based system, information privateness is a main concern. This naturally raises the query of whether or not file paths themselves might include delicate data.

    In observe, file and listing names usually reveal greater than anticipated, akin to inner challenge buildings, product codenames, shopper identifiers, or possession boundaries inside a codebase. 

    In consequence, file paths are handled as delicate metadata and require cautious dealing with.

    To handle this, Cursor applies file path obfuscation (aka path masking) on the shopper aspect earlier than any information is transmitted. Every part of the trail, cut up by / and ., is masked utilizing a secret key and a small fastened nonce. 

    This method hides the precise file and folder names whereas preserving sufficient listing construction to assist efficient retrieval and filtering.

    For instance, src/funds/invoice_processor.py could also be remodeled into a9f3/x72k/qp1m8d.f4.

    Observe: Customers can management which elements of their codebase are shared with Cursor by using a .cursorignore file. Cursor makes a greatest effort to forestall the listed content material from being transmitted or referenced in LLM requests.


    Step 4— Storing Embeddings

    As soon as generated, the chunk embeddings (with the corresponding metadata) are saved in a vector database utilizing Turbopuffer, which is optimized for quick semantic search throughout hundreds of thousands of code chunks.

    Turbopuffer is a serverless, high-performance search engine that mixes vector and full-text search and is backed by low-cost object storage.

    To hurry up re-indexing, embeddings are additionally cached in AWS and keyed by the hash of every chunk, permitting unchanged code to be reused throughout subsequent indexing execution.

    From an information privateness perspective, it is very important word that solely embeddings and metadata are saved within the cloud. It implies that our unique supply code stays on our native machine and is by no means saved on Cursor servers or in Turbopuffer.


    Step 5 — Working Semantic Search

    Once we submit a question in Cursor, it’s first transformed right into a vector utilizing the identical embedding mannequin for the chunk embeddings era. It ensures that each queries and code chunks stay in the identical semantic area.

    From the attitude of semantic search, the method unfolds as follows:

    1. Cursor compares the question embedding in opposition to code embeddings within the vector database to determine essentially the most semantically related code chunks.
    2. These candidate chunks are returned by Turbopuffer in ranked order primarily based on their similarity scores.
    3. Since uncooked supply code isn’t saved within the cloud or the vector database, the search outcomes consist solely of metadata, particularly the masked file paths and corresponding code line ranges.
    4. By resolving the metadata of decrypted file paths and line ranges, the native shopper is then capable of retrieve the precise code chunks from the native codebase.
    5. The retrieved code chunks, in its unique textual content kind, are then supplied as context alongside the question to the LLM to generate a context-aware response.

    As a part of a hybrid search (semantic + key phrase) technique, the coding agent may also use instruments akin to grep and ripgrep to find code snippets primarily based on actual string matches.

    OpenCode is a well-liked open-source coding agent framework obtainable within the terminal, IDEs, and desktop environments.

    In contrast to Cursor, it really works immediately on the codebase utilizing textual content search, file matching, and LSP-based navigation somewhat than embedding-based semantic search. 

    In consequence, OpenCode supplies robust structural consciousness however lacks the deeper semantic retrieval capabilities present in Cursor.

    As a reminder, our unique supply code is not saved on Cursor servers or in Turbopuffer. 

    Nonetheless, when answering a question, Cursor nonetheless must quickly move the related unique code chunks to the coding agent so it may well produce an correct response. 

    It’s because the chunk embeddings can’t be used to immediately reconstruct the unique code. 

    Plain textual content code is retrieved solely at inference time and just for the precise information and contours wanted. Exterior of this short-lived inference runtime, the codebase just isn’t saved or endured remotely.


    (2) Retaining Codebase Index As much as Date

    Overview

    Our codebase evolves shortly as we both settle for the agent-generated edits or as we make handbook code adjustments.

    To maintain semantic retrieval correct, Cursor routinely synchronizes the code index by periodic checks, sometimes each 5 minutes.

    Throughout every sync, the system securely detects adjustments and refreshes solely the affected information by eradicating outdated embeddings and producing new ones. 

    As well as, information are processed in batches to optimize efficiency and decrease disruption to our growth workflow.

    Utilizing Merkle Timber

    So how does Cursor make this work so seamlessly? It scans the opened folder and computes a Merkle tree of file hashes, which permits the system to effectively detect and observe adjustments throughout the codebase.

    Alright, so what’s a Merkle tree?

    It’s a information construction that works like a system of digital cryptographic fingerprints, permitting adjustments throughout a big set of information to be tracked effectively. 

    Every code file is transformed into a brief fingerprint, and these fingerprints are mixed hierarchically right into a single top-level fingerprint that represents the complete folder.

    When a file adjustments, solely its fingerprint and a small variety of associated fingerprints should be up to date.

    Illustration of a Merkle tree | Picture used beneath Creative Commons

    The Merkle tree of the codebase is synced to the Cursor server, which periodically checks for fingerprint mismatches to determine what has modified. 

    In consequence, it may well pinpoint which information have been modified and replace solely these information throughout index synchronization, preserving the method quick and environment friendly.

    Dealing with Totally different File Varieties

    Right here is how Cursor effectively handles totally different file varieties as a part of the indexing course of:

    • New information: Robotically added to index
    • Modified information: Previous embeddings eliminated, contemporary ones created
    • Deleted information: Promptly faraway from index
    • Massive/complicated information: Could also be skipped for efficiency

    Observe: Cursor’s codebase indexing begins routinely everytime you open a workspace.


    (3) Wrapping It Up

    On this article, we seemed past LLM era to discover the pipeline behind instruments like Cursor that builds the best context by RAG. 

    By chunking code alongside significant boundaries, indexing it effectively, and constantly refreshing that context because the codebase evolves, coding brokers are capable of ship much more related and dependable strategies.



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