Use Continue for AI Coding in VS Code

Continue is an open source AI coding assistant that runs inside VS Code. It works with local models (Ollama, LM Studio) or cloud APIs.

Install

1. Open VS Code
2. Extensions → search "Continue" → Install
3. Restart if prompted

Connect a model

Click the Continue icon in the sidebar. In settings, add a model provider:

• Ollama – If Ollama is running, Continue auto-detects it. No config needed.
• OpenAI – Add your API key for GPT-4
• LM Studio – Point to localhost:1234 when LM Studio's server is on

Use it

• Inline edit – Select code, press Cmd+K (Mac) or Ctrl+K (Win), describe the change
• Chat – Open the chat panel, ask questions about your codebase. Continue indexes your project for context.
• Completions – Get AI suggestions as you type (like Copilot)

Privacy tip

Use Ollama or LM Studio for zero cloud dependency. Your code never leaves your machine.