Install the Claude Code extension from the VS Code marketplace. To open a conversation, use the Command Palette and select 'Claude Code: Open in New Tab'. From there, you can use @filename to pull a specific file into context.
When Claude proposes a file edit, it shows as an inline diff in the editor. You accept or reject it without switching to the terminal. The conversation history panel lets you scroll back through past exchanges in the current session. I find this setup useful when you want to start a session in the CLI and review diffs visually at the same time: the VS Code panel reflects changes in real time.