Should you improvement environments (IDEs) paired with coding brokers, you’ve possible seen code recommendations and edits which can be surprisingly correct and related.
This degree of high quality and precision comes from the brokers being grounded in a deep understanding of your codebase.
Take Cursor for instance. Within the Index & Docs tab, you possibly can see a bit exhibiting that Cursor has already “ingested” and listed your mission’s codebase:

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 could already be accustomed to. Like most RAG-based programs, these instruments depend on semantic search as a key functionality.
Fairly than organizing data purely by uncooked textual content, the codebase is listed and retrieved based mostly on that means.
This enables natural-language queries to fetch probably 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) Maintaining Codebase Index As much as 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 should handle knowledge loading, textual content preprocessing, and doc parsing from a number of sources.
Nevertheless, when working with a codebase, a lot of this effort will be averted. Supply code is already properly structured and cleanly organized inside a mission 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 models (e.g., features, lessons, and logical code blocks) reasonably 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 focus 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 possibly can 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 course of a logical block until required by dimension constraints.
In observe, it means chunk splits are typically created between features reasonably than inside them, and between statements reasonably 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 option to implement code chunking, amongst many different chunking methods out there.
[Optional Reading] Below the Hood of Code Chunking
The code chunking above just isn’t unintended, 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 usually begins through the use of a supply code parser (comparable to tree-sitter) to transform the uncooked code into an summary 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 an alternative of seeing code as a string, the system now sees it as logical models of code like features, lessons, strategies, and blocks.
Think about the next line of Python code:
x = a + b
Fairly 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 permits efficient code chunking.
Every significant code assemble, comparable to a perform, block, or assertion, is represented as a node within the syntax tree.

As an alternative 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 can 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

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 that 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 comparable to code understanding, refactoring, and debugging.
Past producing embeddings, one other vital 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 vital context about the place a piece comes from, but in addition permits metadata-based key phrase filtering throughout retrieval.
Step 3 — Enhancing Information Privateness
As with every RAG-based system, knowledge privateness is a major concern. This naturally raises the query of whether or not file paths themselves could include delicate info.
In observe, file and listing names typically reveal greater than anticipated, comparable to inside mission buildings, product codenames, shopper identifiers, or possession boundaries inside a codebase.
Consequently, 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 facet earlier than any knowledge is transmitted. Every part of the trail, break up by / and ., is masked utilizing a secret key and a small mounted nonce.
This strategy 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
.cursorignorefile. Cursor makes a finest 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 a knowledge privateness perspective, it is very important be aware that solely embeddings and metadata are saved within the cloud. It signifies that our authentic supply code stays on our native machine and is by no means saved on Cursor servers or in Turbopuffer.
Step 5 — Operating 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 house.
From the attitude of semantic search, the method unfolds as follows:
- Cursor compares the question embedding in opposition to code embeddings within the vector database to establish probably the most semantically comparable code chunks.
- These candidate chunks are returned by Turbopuffer in ranked order based mostly on their similarity scores.
- Since uncooked supply code is rarely 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.
- By resolving the metadata of decrypted file paths and line ranges, the native shopper is then in a position to retrieve the precise code chunks from the native codebase.
- The retrieved code chunks, in its authentic textual content kind, are then offered 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 comparable to grep and ripgrep to find code snippets based mostly on actual string matches.
OpenCode is a well-liked open-source coding agent framework out there within the terminal, IDEs, and desktop environments.
Not like Cursor, it really works immediately on the codebase utilizing textual content search, file matching, and LSP-based navigation reasonably than embedding-based semantic search.
Consequently, OpenCode supplies robust structural consciousness however lacks the deeper semantic retrieval capabilities present in Cursor.
As a reminder, our authentic supply code is not saved on Cursor servers or in Turbopuffer.
Nevertheless, when answering a question, Cursor nonetheless must quickly go the related authentic code chunks to the coding agent so it might 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 recordsdata and contours wanted. Outdoors of this short-lived inference runtime, the codebase just isn’t saved or continued remotely.
(2) Maintaining 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 modifications.
To maintain semantic retrieval correct, Cursor routinely synchronizes the code index by way of periodic checks, usually each 5 minutes.
Throughout every sync, the system securely detects modifications and refreshes solely the affected recordsdata by eradicating outdated embeddings and producing new ones.
As well as, recordsdata are processed in batches to optimize efficiency and decrease disruption to our improvement workflow.
Utilizing Merkle Bushes
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 modifications throughout the codebase.
Alright, so what’s a Merkle tree?
It’s a knowledge construction that works like a system of digital cryptographic fingerprints, permitting modifications throughout a big set of recordsdata 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 your entire folder.
When a file modifications, solely its fingerprint and a small variety of associated fingerprints must be up to date.

The Merkle tree of the codebase is synced to the Cursor server, which periodically checks for fingerprint mismatches to establish what has modified.
Consequently, it might pinpoint which recordsdata have been modified and replace solely these recordsdata throughout index synchronization, holding the method quick and environment friendly.
Dealing with Completely different File Sorts
Right here is how Cursor effectively handles totally different file sorts as a part of the indexing course of:
- New recordsdata: Mechanically added to index
- Modified recordsdata: Previous embeddings eliminated, contemporary ones created
- Deleted recordsdata: Promptly faraway from index
- Giant/advanced recordsdata: 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 proper context by way of RAG.
By chunking code alongside significant boundaries, indexing it effectively, and constantly refreshing that context because the codebase evolves, coding brokers are in a position to ship way more related and dependable recommendations.

