For better answers when using the “@Codebase” reference or Codebase chat bind, you can compute embeddings over your codebase.

For you, it’s just a matter of clicking one button. To do that, open the Cursor AI Pane, navigate to the More tab, and then simply click on Compute Index under the Codebase Indexing section.

Your codebase index will automatically synchronize with your latest codebase changes.

If you see the error message error: Handshake failed, it means we have a server outage, and we’re probably already working on resolving it.

You can also expand the Settings section to access more advanced options. Here, you can decide whether you want to enable automatic indexing for new repositories and configure the files that Cursor will ignore during repository indexing, in addition to your .gitignore settings.

If you have any large content files in your project that the AI definitely doesn’t need to read, ignoring those files could improve the accuracy of the answers.