Apr 16, 2026 · 4 min read

Last updated on Apr 19, 2026

Continue.dev Complete Guide — The Open-Source AI Coding Assistant (2026)

Continue.dev is an open-source AI coding assistant for VS Code and JetBrains with 25K+ GitHub stars. It’s the best free alternative to GitHub Copilot and Cursor — with one critical advantage: you choose your own models.

Use Claude, GPT, Gemini, local models via Ollama, or any API through OpenRouter. No vendor lock-in, no subscription required.

Features

Chat — Ask questions, debug, generate code without leaving the IDE
Autocomplete — Inline code suggestions as you type (like Copilot)
Edit — Select code and describe changes in natural language
Agent — Make substantial multi-file changes to your codebase
Custom rules — Define coding standards, prompts, and workflows
50+ model support — Any provider, including self-hosted

Installation

VS Code

Search “Continue” in the Extensions marketplace, or:

code --install-extension continue.continue

JetBrains

Search “Continue” in the JetBrains Marketplace.

Configuration

After installing, open the Continue config: Cmd/Ctrl+Shift+P → “Continue: Open config.json”

With OpenRouter (easiest — access all models)

{
  "models": [
    {
      "provider": "openrouter",
      "model": "anthropic/claude-opus-4.6",
      "apiKey": "your-openrouter-key",
      "title": "Claude Opus"
    },
    {
      "provider": "openrouter",
      "model": "deepseek/deepseek-chat",
      "apiKey": "your-openrouter-key",
      "title": "DeepSeek (cheap)"
    }
  ],
  "tabAutocompleteModel": {
    "provider": "openrouter",
    "model": "mistralai/codestral-latest",
    "apiKey": "your-openrouter-key",
    "title": "Codestral Autocomplete"
  }
}

With Ollama (free, private, local)

{
  "models": [
    {
      "provider": "ollama",
      "model": "qwen3.5:27b",
      "title": "Qwen 3.5 27B (local)"
    }
  ],
  "tabAutocompleteModel": {
    "provider": "ollama",
    "model": "codestral:22b",
    "title": "Codestral (local)"
  }
}

Run Ollama first: ollama pull qwen3.5:27b && ollama pull codestral:22b

With direct provider APIs

{
  "models": [
    {
      "provider": "anthropic",
      "model": "claude-3-opus-20240229",
      "apiKey": "your-anthropic-key",
      "title": "Claude Opus"
    },
    {
      "provider": "openai",
      "model": "gpt-5.4",
      "apiKey": "your-openai-key",
      "title": "GPT-5.4"
    }
  ]
}

The recommended setup

The best Continue.dev setup uses two models:

Chat/Agent model: A powerful model for complex tasks — Claude Opus via API or Qwen 3.5 27B locally
Autocomplete model: A fast, specialized model — Codestral locally via Ollama

This gives you Cursor-level functionality for free (if using local models) or at API cost (much cheaper than Cursor Pro).

Custom rules

Create .continue/rules/ in your project:

<!-- .continue/rules/typescript.md -->
- Use TypeScript strict mode
- Prefer `const` over `let`
- Use functional components with hooks
- Add JSDoc to all exported functions
- Use Zod for runtime validation

Rules are automatically included in every prompt, ensuring consistent code style.

Continue.dev vs Cursor vs GitHub Copilot

Feature	Continue.dev	Cursor	GitHub Copilot
Price	Free (BYOK)	$20/mo	$10/mo
Model choice	Any model	Multi-model	Multi-model
Local models	✅ Ollama	❌	❌
Open source	✅ Apache 2.0	❌	❌
Autocomplete	✅	✅ (better)	✅
Agent mode	✅	✅ (better)	✅
IDE support	VS Code, JetBrains	VS Code fork	VS Code, JetBrains, Xcode
Privacy	Full control	Cloud-dependent	Cloud-dependent

Choose Continue.dev when: You want free/open-source, model flexibility, local models, or full privacy control.

Choose Cursor when: You want the best AI coding experience and don’t mind paying $20/month.

Choose Copilot when: You want the safest enterprise option with broad IDE support.

Tips

Use Codestral for autocomplete — it’s purpose-built for FIM and runs fast locally
Use a powerful model for chat — Claude Opus or GPT-5.4 for complex reasoning
Set up custom rules per project — consistency matters more than model quality
Use @codebase in chat — references your entire project for context-aware answers
Try the agent mode for multi-file changes — it’s improved significantly in 2026

Bottom line

Continue.dev is the best free AI coding assistant. It won’t match Cursor’s polish or Copilot’s seamless integration, but it gives you something neither can: complete control over your models, your data, and your costs. For developers who value open source and privacy, it’s the clear choice.

FAQ

Is Continue.dev free?

Yes, Continue.dev is completely free and open-source under the Apache 2.0 license. You bring your own model — either local (free) or via API keys (pay per usage to the provider).

Does it work with Ollama?

Yes, Continue.dev has first-class Ollama integration for both chat and autocomplete. You can configure any Ollama model in your config.json and get fully private, free AI coding assistance.

How does it compare to Copilot?

Continue.dev gives you full control over models and data privacy, while Copilot offers a more seamless out-of-the-box experience. Copilot is easier to set up but locks you into GitHub’s ecosystem and pricing; Continue.dev is free but requires more configuration.

Can I use it in JetBrains?

Yes, Continue.dev supports both VS Code and JetBrains IDEs (IntelliJ, PyCharm, WebStorm, etc.). The JetBrains plugin offers the same core features including chat, autocomplete, and inline editing.