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How to use Daytona with VS Code

You want Daytona inside VS Code so it can run and inspect code in an isolated sandbox, review a repository change before pushing it, prepare a branch with a targeted fix, and run a long-lived development process — without you copy-pasting between tabs. Here is the whole setup, once.

Create your Daytona gateway

The gateway is the thing VS Code connects to, and it is where you decide which Daytona tools an agent may use. You create it once and every client reuses it.

  1. Create an Arcade account

    Sign up and open the dashboard. The free tier is enough to follow this through.

  2. Create an MCP Gateway and select your Daytona tools

    In the dashboard, create a gateway and pick the Daytona tools you want to expose. The gateway is what your client connects to, and it is where tool access is decided.

  3. Copy your gateway URL

    Every client below needs it.

    https://api.arcade.dev/mcp/<YOUR-GATEWAY-SLUG>

Create a Daytona gateway Opens the gateway builder in your Arcade dashboard.

Connect the gateway to VS Code

  1. Add the server

    VS Code 1.107.0 or higher. Command Palette → MCP: Add Server… → choose HTTP, paste your gateway URL, and name it something like mcp-arcade.

  2. Start it and authenticate

    Click Start next to the server in mcp.json or under Extensions → MCP Servers - Installed, then approve the Arcade sign-in and consent screens.

  3. Try it out

    Open the chat pane, switch to Agent mode, and ask it to use one of your Daytona tools.

Full VS Code guide in the docs steps verified 2026-08-13

Try these Daytona prompts

VS Code can now act on your Daytona account. Click a prompt to copy it.

Running code, deleting files, and pushing commits can change a project or its remote repository. Use tool permissions with Contextual Access policies to limit which actions an agent can take and require approval for consequential changes.

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