Cursor Privacy Mode: what it protects and what it does not
Privacy Mode does not keep AI requests on your machine. It keeps Cursor's AI features working while preventing your code from being used for training. Here is what changes, the retention exceptions to check, and where .cursorignore fits.
Fact-checked against Cursor's official privacy and security documentation. Updated September 2026.
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The Bottom Line
Cursor sends prompts and relevant code context through its servers to model providers when you use AI features. Privacy Mode does not stop that transfer. It prevents your code from being used for training and provides zero data retention for supported Cursor-routed models. Some models, BYOK, and Cloud Agents have separate data-handling rules, so review those before approving Cursor for sensitive work. See Cursor's current privacy documentation.
Privacy Modes Compared
Privacy Mode Off
Prompts and relevant code context are sent through Cursor for AI processing
Device → Cursor → model provider → responsePros
- Full AI capabilities available
- Prompts and code may help improve Cursor
- Suitable for code you are permitted to share
Cons
- Prompt and code data may be stored or used for training
- Requests are processed by Cursor and model providers
- Usually unsuitable for confidential client code
Privacy Mode
AI remains available, but Cursor says your code is not used for training
Device → Cursor → approved model provider → responsePros
- Code is not used for model training
- Zero data retention for supported Cursor-routed models
- Teams can enforce the setting organization-wide
Cons
- AI request context still leaves your device
- Some models require separate retention approval
- BYOK data handling follows the model provider's terms
How to Enable Privacy Mode
Open Cursor Settings
Open Cursor Settings from the app menu
Select General in the sidebar
Enable Privacy Mode
Find the 'Privacy Mode' toggle and enable it
This prevents your code from being used for training; it does not make AI processing local
Create .cursorignore
In your project root, create a .cursorignore file
Cursor accepts .gitignore-style patterns in this file
Add Sensitive Patterns
Add patterns for files that should never be in AI context
Include .env files, credentials, and proprietary code
Verify Configuration
Test by checking if excluded files appear in AI suggestions
Confirm Agent, Tab, Inline Edit, and @ mentions cannot read the excluded file
Configuring .cursorignore
Use .cursorignore to block listed files from Agent, Tab, Inline Edit, and @ mentions. Cursor warns that terminal and MCP tools do not necessarily honor it, so keep secrets out of the repository and use permissions and approvals too. See Cursor's ignore-file reference.
Recommended .cursorignore Patterns
Red patterns contain common secrets and should be excluded, but an ignore file is not a substitute for a secret manager.
Compliance Considerations
HIPAA-Regulated Development
PHI (Protected Health Information) cannot be sent to third parties
Use synthetic data until your legal, BAA, model, and subprocessor requirements are approved
Privacy Mode alone does not establish HIPAA compliance
SOC 2 Compliance
Customer data must be protected according to service commitments
Enforce Privacy Mode and document model, retention, BYOK, and Cloud Agent settings
Undocumented data flows can create audit gaps
Client NDA Projects
Code cannot be shared with third parties
Confirm the NDA permits approved subprocessors, then use Privacy Mode and .cursorignore
Privacy Mode does not override contract restrictions
Government/Defense Work
Strict data handling requirements, often air-gapped
Follow the agency's approved tooling and data-classification rules before using cloud AI
Some repositories may need to remain outside Cursor entirely
Verify Your App's Security
Privacy settings protect part of your development workflow. They do not find authorization mistakes, exposed secrets, or unsafe production configuration in the app you ship.
Run your first scan freeFrequently Asked Questions
Does Cursor Privacy Mode disable AI features?
No. Cursor's AI features still send prompts and relevant code context through Cursor to model providers. Privacy Mode changes how that data may be retained and used: Cursor says it will not be used for training, and supported Cursor-routed models operate under zero data retention.
Can a team enforce Privacy Mode?
Yes. Cursor says Teams and Enterprise administrators can enforce Privacy Mode organization-wide so members cannot disable it. Enterprise has Privacy Mode enabled by default.
Is .cursorignore enough without Privacy Mode?
No. .cursorignore blocks listed files from Agent, Tab, Inline Edit, and @ mentions, but Cursor warns that terminal and MCP tools may still access them. Treat it as one layer alongside Privacy Mode, file permissions, secret management, and tool approvals.
Does Cursor store my code?
It depends on the feature and configuration. With Privacy Mode, Cursor says supported Cursor-routed AI requests use zero data retention and are not used for training. Cloud Agents temporarily store encrypted repository copies, some models require retention approval, and BYOK follows your provider agreement.
Does Privacy Mode keep my code on my machine?
No. Cursor's official documentation says prompts and code context are sent to Cursor and AI model providers when you use AI features. Privacy Mode is a no-training and, where supported, zero-retention control. It is not a local-only mode.
How do I verify Privacy Mode is working?
Open Cursor Settings, select General, and confirm Privacy Mode is enabled. For a team, verify the administrator has enforced it in the Cursor dashboard. Also review allowed models, BYOK settings, Cloud Agent use, and .cursorignore because Privacy Mode does not control every data path by itself.