Short answer
Use AGENTS.md for simple instructions that different AI coding tools can read. Use Cursor project rules for instructions meant only for Cursor or only for certain files. A team can use both without copying every rule twice.
Words used in this guide
- AIPM: a tool that installs and updates reusable AI instructions.
- Package: a named group of files that people can install and update together.
- Repository or repo: a project folder whose changes are saved and tracked.
- Git: a tool that records file changes so people can review or undo them.
What this means
AGENTS.md is the simple shared option
AGENTS.md is a normal text file. It can list commands, writing rules, and test steps for the whole project. People and different AI coding tools can read it.
Cursor rules give you more control
Cursor project rules live in a folder named .cursor/rules. You can make a separate rule for each task or type of file. For example, website files and database files can follow different rules.
Use both with one clear owner
Keep shared repo facts in AGENTS.md. Put only Cursor-specific behavior in Cursor rules. If the same setup is used in many repos, package the files with AIPM so each repo gets the same reviewed version.
Simple steps to create and AI agent
- Write the instructions that every coding agent needs.
- Put those shared instructions in AGENTS.md.
- Add Cursor project rules only for Cursor or for certain types of files.
- Review both files in Git and remove repeated text.
- Package the reusable setup with AIPM for other repos.
Where to go next
If you want to try this in a real project, start with the install guide, then read how to use AIPM. If you want to share your own workflow, read the publishing guide.
FAQ
Does Cursor read AGENTS.md?
Yes. Cursor supports a root-level AGENTS.md file as a simple alternative to project rules.
Are .cursorrules files still recommended?
No. Cursor marks .cursorrules as legacy. New projects should use project rules in .cursor/rules or a simple AGENTS.md file.