Bump version to 1.1.0

- Update changelog with all new features since 1.0.7
- Add Inline Diff Viewer section to README
- Update package.json version

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude <noreply@anthropic.com>

CHANGELOG.md

@@ -4,6 +4,38 @@ All notable changes to the "claude-code-chat" extension will be documented in th
 
 Check [Keep a Changelog](http://keepachangelog.com/) for recommendations on how to structure this file.
 
+## [1.1.0] - 2025-12-06
+
+### 🚀 Features Added
+- **Install Modal**: Added installation flow for users without Claude Code CLI
+  - Auto-detects when Claude Code is not installed
+  - One-click installation with progress indicator
+  - Platform-specific installation commands
+- **Diff Viewer Improvements**:
+  - Show full diff in Edit, MultiEdit, and Write tool use messages
+  - Add "Open Diff" button to open VS Code's native side-by-side diff editor
+  - Add truncation with expand button for long diffs
+  - Optimize diff storage and improve Open Diff button behavior
+- **Processing Indicator**: New morphing orange dot animation while Claude is working
+- **Subscription Detection**: Added usage badge to status bar showing plan type (Pro, Max) or API cost
+- **Conversation Compacting**: Handle `/compact` command in chat with status messages and token reset
+- **Permission System**: Migrated from MCP file-based to stdio-based permission prompts
+- **Plan Mode**: Now uses native `--permission-mode plan` CLI flag for cleaner implementation
+
+### 🐛 Bug Fixes
+- Fixed diff line alignment by removing ::before pseudo-elements
+- Fixed auto-scroll for diff tool results
+- Strip tool_use_error tags from error messages
+- Improved process termination handling
+
+### 🔧 Technical Improvements
+- Run /compact command in chat instead of spawning terminal
+- Improved terminal and UI experience
+- Updated diff icon colors
+
+### 📊 Analytics
+- Added Umami analytics events to track install flow (modal shown, started, success/failed)
+
 ## [1.0.7] - 2025-10-01
 
 ### 🚀 Features Added

README.md

@@ -47,6 +47,13 @@ Ditch the command line and experience Claude Code like never before. This extens
 - Real-time cost and token tracking
 - Session statistics and performance metrics
 
+### 📝 **Inline Diff Viewer** ⭐ **NEW IN V1.1**
+- **Full Diff Display** - See complete file changes directly in Edit, MultiEdit, and Write messages
+- **Open in VS Code Diff** - One-click button to open VS Code's native side-by-side diff editor
+- **Smart Truncation** - Long diffs are truncated with an expand button for better readability
+- **Syntax Highlighting** - Proper code highlighting in diff views
+- **Visual Change Indicators** - Clear green/red highlighting for additions and deletions
+
 ### 🔌 **MCP Server Management** ⭐ **NEW IN V1.0**
 - **Popular Servers Gallery** - One-click installation of common MCP servers
 - **Custom Server Creation** - Build and configure your own MCP servers

package.json

@@ -2,7 +2,7 @@
   "name": "claude-code-chat",
   "displayName": "Chat for Claude Code",
   "description": "Beautiful Claude Code Chat Interface for VS Code",
-  "version": "1.0.7",
+  "version": "1.1.0",
   "publisher": "AndrePimenta",
   "author": "Andre Pimenta",
   "repository": {

src/extension.ts

@@ -120,6 +120,8 @@ class ClaudeChatProvider {
 	private _totalTokensInput: number = 0;
 	private _totalTokensOutput: number = 0;
 	private _requestCount: number = 0;
+	private _subscriptionType: string | undefined;  // 'pro', 'max', or undefined for API users
+	private _accountInfoFetchedThisSession: boolean = false;  // Track if we fetched account info this session
 	private _currentSessionId: string | undefined;
 	private _backupRepoPath: string | undefined;
 	private _commits: Array<{ id: string, sha: string, message: string, timestamp: string }> = [];
@@ -168,6 +170,9 @@ class ClaudeChatProvider {
 		// Load saved model preference
 		this._selectedModel = this._context.workspaceState.get('claude.selectedModel', 'default');
 
+		// Load cached subscription type (will be refreshed on first message)
+		this._subscriptionType = this._context.globalState.get('claude.subscriptionType');
+
 		// Resume session from latest conversation
 		const latestConversation = this._getLatestConversation();
 		this._currentSessionId = latestConversation?.sessionId;
@@ -255,6 +260,16 @@ class ClaudeChatProvider {
 			model: this._selectedModel
 		});
 
+		// Send cached subscription type to webview (will be refreshed on first message)
+		if (this._subscriptionType) {
+			this._postMessage({
+				type: 'accountInfo',
+				data: {
+					subscriptionType: this._subscriptionType
+				}
+			});
+		}
+
 		// Send platform information to webview
 		this._sendPlatformInfo();
 
@@ -311,12 +326,18 @@ class ClaudeChatProvider {
 			case 'openModelTerminal':
 				this._openModelTerminal();
 				return;
+			case 'viewUsage':
+				this._openUsageTerminal(message.usageType);
+				return;
 			case 'executeSlashCommand':
 				this._executeSlashCommand(message.command);
 				return;
 			case 'dismissWSLAlert':
 				this._dismissWSLAlert();
 				return;
+			case 'runInstallCommand':
+				this._runInstallCommand();
+				return;
 			case 'openFile':
 				this._openFileInEditor(message.filePath);
 				return;
@@ -442,11 +463,8 @@ class ClaudeChatProvider {
 		const configThink = vscode.workspace.getConfiguration('claudeCodeChat');
 		const thinkingIntensity = configThink.get<string>('thinking.intensity', 'think');
 
-		// Prepend mode instructions if enabled
+		// Prepend thinking mode instructions if enabled
 		let actualMessage = message;
-		if (planMode) {
-			actualMessage = 'PLAN FIRST FOR THIS MESSAGE ONLY: Plan first before making any changes. Show me in detail what you will change and wait for my explicit approval in a separate message before proceeding. Do not implement anything until I confirm. This planning requirement applies ONLY to this current message. \n\n' + message;
-		}
 		if (thinkingMode) {
 			let thinkingPrompt = '';
 			const thinkingMesssage = ' THROUGH THIS STEP BY STEP: \n'
@@ -527,6 +545,11 @@ class ClaudeChatProvider {
 			args.push('--mcp-config', this.convertToWSLPath(mcpConfigPath));
 		}
 
+		// Add plan mode if enabled
+		if (planMode) {
+			args.push('--permission-mode', 'plan');
+		}
+
 		// Add model selection if not using default
 		if (this._selectedModel && this._selectedModel !== 'default') {
 			args.push('--model', this._selectedModel);
@@ -597,6 +620,19 @@ class ClaudeChatProvider {
 		// Send the message to Claude's stdin as JSON (stream-json input format)
 		// Don't end stdin yet - we need to keep it open for permission responses
 		if (claudeProcess.stdin) {
+			// First, send an initialize request to get account info (once per session)
+			if (!this._accountInfoFetchedThisSession) {
+				this._accountInfoFetchedThisSession = true;
+				const initRequest = {
+					type: 'control_request',
+					request_id: 'init-' + Date.now(),
+					request: {
+						subtype: 'initialize'
+					}
+				};
+				claudeProcess.stdin.write(JSON.stringify(initRequest) + '\n');
+			}
+
 			const userMessage = {
 				type: 'user',
 				session_id: this._currentSessionId || '',
@@ -633,6 +669,12 @@ class ClaudeChatProvider {
 								continue;
 							}
 
+							// Handle control_response messages (responses to our initialize request)
+							if (jsonData.type === 'control_response') {
+								this._handleControlResponse(jsonData);
+								continue;
+							}
+
 							// Handle result message - end stdin when done
 							if (jsonData.type === 'result') {
 								if (claudeProcess.stdin && !claudeProcess.stdin.destroyed) {
@@ -719,9 +761,8 @@ class ClaudeChatProvider {
 
 			// Check if claude command is not installed
 			if (error.message.includes('ENOENT') || error.message.includes('command not found')) {
-				this._sendAndSaveMessage({
+				this._postMessage({
-					type: 'error',
+					type: 'showInstallModal'
-					data: 'Install claude code first: https://www.anthropic.com/claude-code'
 				});
 			} else {
 				this._sendAndSaveMessage({
@@ -1111,7 +1152,10 @@ class ClaudeChatProvider {
 		const claudePath = config.get<string>('wsl.claudePath', '/usr/local/bin/claude');
 
 		// Open terminal and run claude login
-		const terminal = vscode.window.createTerminal('Claude Login');
+		const terminal = vscode.window.createTerminal({
+			name: 'Claude Login',
+			location: { viewColumn: vscode.ViewColumn.One }
+		});
 		if (wslEnabled) {
 			terminal.sendText(`wsl -d ${wslDistro} ${nodePath} --no-warnings --enable-source-maps ${claudePath}`);
 		} else {
@@ -1121,14 +1165,14 @@ class ClaudeChatProvider {
 
 		// Show info message
 		vscode.window.showInformationMessage(
-			'Please login to Claude in the terminal, then come back to this chat to continue.',
+			'Please login with your Claude plan or API key in the terminal, then come back to this chat.',
 			'OK'
 		);
 
 		// Send message to UI about terminal
 		this._postMessage({
 			type: 'terminalOpened',
-			data: `Please login to Claude in the terminal, then come back to this chat to continue.`,
+			data: `Please login with your Claude plan or API key in the terminal, then come back to this chat.`,
 		});
 	}
 
@@ -1404,6 +1448,38 @@ class ClaudeChatProvider {
 		return false;
 	}
 
+	/**
+	 * Handle control_response messages from Claude CLI via stdio
+	 * This is used to get account info from the initialize request
+	 */
+	private _handleControlResponse(controlResponse: any): void {
+		// Structure: controlResponse.response.response.account
+		// The outer response has subtype/request_id, inner response has the actual data
+		const innerResponse = controlResponse.response?.response;
+
+		// Check if this is an initialize response with account info
+		if (innerResponse?.account) {
+			const account = innerResponse.account;
+			this._subscriptionType = account.subscriptionType;
+
+			console.log('Account info received:', {
+				subscriptionType: account.subscriptionType,
+				email: account.email
+			});
+
+			// Save to globalState for persistence
+			this._context.globalState.update('claude.subscriptionType', this._subscriptionType);
+
+			// Send subscription type to UI
+			this._postMessage({
+				type: 'accountInfo',
+				data: {
+					subscriptionType: this._subscriptionType
+				}
+			});
+		}
+	}
+
 	/**
 	 * Handle control_request messages from Claude CLI via stdio
 	 * This is the new permission flow that replaces the MCP file-based approach
@@ -2615,7 +2691,10 @@ class ClaudeChatProvider {
 		}
 
 		// Create terminal with the claude /model command
-		const terminal = vscode.window.createTerminal('Claude Model Selection');
+		const terminal = vscode.window.createTerminal({
+			name: 'Claude Model Selection',
+			location: { viewColumn: vscode.ViewColumn.One }
+		});
 		if (wslEnabled) {
 			terminal.sendText(`wsl -d ${wslDistro} ${nodePath} --no-warnings --enable-source-maps ${claudePath} ${args.join(' ')}`);
 		} else {
@@ -2636,7 +2715,84 @@ class ClaudeChatProvider {
 		});
 	}
 
+	private _openUsageTerminal(usageType: string): void {
+		// Get WSL configuration
+		const config = vscode.workspace.getConfiguration('claudeCodeChat');
+		const wslEnabled = config.get<boolean>('wsl.enabled', false);
+		const wslDistro = config.get<string>('wsl.distro', 'Ubuntu');
+
+		const terminal = vscode.window.createTerminal({
+			name: 'Claude Usage',
+			location: { viewColumn: vscode.ViewColumn.One }
+		});
+
+		let command: string;
+		if (usageType === 'plan') {
+			// Plan users get live usage view
+			command = 'npx -y ccusage blocks --live';
+		} else {
+			// API users get recent usage history
+			command = 'npx -y ccusage blocks --recent --order desc';
+		}
+
+		if (wslEnabled) {
+			terminal.sendText(`wsl -d ${wslDistro} bash -ic "${command}"`);
+		} else {
+			terminal.sendText(command);
+		}
+
+		terminal.show();
+	}
+
+	private _runInstallCommand(): void {
+		const { exec } = require('child_process');
+
+		// Check if npm exists and node >= 18
+		exec('node --version', { shell: true }, (nodeErr: Error | null, nodeStdout: string) => {
+			let useNpm = false;
+
+			if (!nodeErr && nodeStdout) {
+				// Parse version (e.g., "v18.17.0" -> 18)
+				const match = nodeStdout.trim().match(/^v(\d+)/);
+				if (match && parseInt(match[1], 10) >= 18) {
+					useNpm = true;
+				}
+			}
+
+			let command: string;
+			if (useNpm) {
+				command = 'npm install -g @anthropic-ai/claude-code';
+			} else if (process.platform === 'win32') {
+				command = 'irm https://claude.ai/install.ps1 | iex';
+			} else {
+				command = 'curl -fsSL https://claude.ai/install.sh | sh';
+			}
+
+			// Run installation silently in the background
+			exec(command, { shell: true }, (error: Error | null, stdout: string, stderr: string) => {
+				if (error) {
+					this._postMessage({
+						type: 'installComplete',
+						success: false,
+						error: stderr || error.message
+					});
+				} else {
+					this._postMessage({
+						type: 'installComplete',
+						success: true
+					});
+				}
+			});
+		});
+	}
+
 	private _executeSlashCommand(command: string): void {
+		// Handle /compact in chat instead of spawning a terminal
+		if (command === 'compact') {
+			this._sendMessageToClaude(`/${command}`);
+			return;
+		}
+
 		const config = vscode.workspace.getConfiguration('claudeCodeChat');
 		const wslEnabled = config.get<boolean>('wsl.enabled', false);
 		const wslDistro = config.get<string>('wsl.distro', 'Ubuntu');
@@ -2652,7 +2808,10 @@ class ClaudeChatProvider {
 		}
 
 		// Create terminal with the claude command
-		const terminal = vscode.window.createTerminal(`Claude /${command}`);
+		const terminal = vscode.window.createTerminal({
+			name: `Claude /${command}`,
+			location: { viewColumn: vscode.ViewColumn.One }
+		});
 		if (wslEnabled) {
 			terminal.sendText(`wsl -d ${wslDistro} ${nodePath} --no-warnings --enable-source-maps ${claudePath} ${args.join(' ')}`);
 		} else {

src/script.ts

@@ -890,6 +890,7 @@ const getScript = (isTelemetryEnabled: boolean) => `<script>
 		let isProcessing = false;
 		let requestStartTime = null;
 		let requestTimer = null;
+		let subscriptionType = null;  // 'pro', 'max', or null for API users
 
 		// Send usage statistics
 		function sendStats(eventName) {
@@ -909,6 +910,15 @@ const getScript = (isTelemetryEnabled: boolean) => `<script>
 			statusDiv.className = \`status \${state}\`;
 		}
 
+		function updateStatusHtml(html, state = 'ready') {
+			statusTextDiv.innerHTML = html;
+			statusDiv.className = \`status \${state}\`;
+		}
+
+		function viewUsage(usageType) {
+			vscode.postMessage({ type: 'viewUsage', usageType: usageType });
+		}
+
 		function updateStatusWithTotals() {
 			if (isProcessing) {
 				// While processing, show tokens and elapsed time
@@ -926,14 +936,29 @@ const getScript = (isTelemetryEnabled: boolean) => `<script>
 				updateStatus(statusText, 'processing');
 			} else {
 				// When ready, show full info
-				const costStr = totalCost > 0 ? \`$\${totalCost.toFixed(4)}\` : '$0.00';
+				// Show plan type for subscription users, cost for API users
+				let usageStr;
+				const usageIcon = \`<svg class="usage-icon" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+					<rect x="1" y="8" width="3" height="6" rx="0.5" fill="currentColor" opacity="0.5"/>
+					<rect x="5.5" y="5" width="3" height="9" rx="0.5" fill="currentColor" opacity="0.7"/>
+					<rect x="10" y="2" width="3" height="12" rx="0.5" fill="currentColor"/>
+				</svg>\`;
+				if (subscriptionType) {
+					// Extract just the plan type (e.g., "Claude Max" -> "Max", "pro" -> "Pro")
+					let planName = subscriptionType.replace(/^claude\\s*/i, '').trim();
+					planName = planName.charAt(0).toUpperCase() + planName.slice(1);
+					usageStr = \`<a href="#" onclick="event.preventDefault(); viewUsage('plan');" class="usage-badge" title="View live usage">\${planName} Plan\${usageIcon}</a>\`;
+				} else {
+					const costStr = totalCost > 0 ? \`$\${totalCost.toFixed(4)}\` : '$0.00';
+					usageStr = \`<a href="#" onclick="event.preventDefault(); viewUsage('api');" class="usage-badge" title="View usage">\${costStr}\${usageIcon}</a>\`;
+				}
 				const totalTokens = totalTokensInput + totalTokensOutput;
-				const tokensStr = totalTokens > 0 ? 
+				const tokensStr = totalTokens > 0 ?
 					\`\${totalTokens.toLocaleString()} tokens\` : '0 tokens';
 				const requestStr = requestCount > 0 ? \`\${requestCount} requests\` : '';
-				
+
-				const statusText = \`Ready • \${costStr} • \${tokensStr}\${requestStr ? \` • \${requestStr}\` : ''}\`;
+				const statusText = \`Ready • \${tokensStr}\${requestStr ? \` • \${requestStr}\` : ''} • \${usageStr}\`;
-				updateStatus(statusText, 'ready');
+				updateStatusHtml(statusText, 'ready');
 			}
 		}
 
@@ -1577,6 +1602,57 @@ const getScript = (isTelemetryEnabled: boolean) => `<script>
 			document.getElementById('slashCommandsModal').style.display = 'none';
 		}
 
+		// Install modal functions
+		function showInstallModal() {
+			const modal = document.getElementById('installModal');
+			const main = document.getElementById('installMain');
+			const progress = document.getElementById('installProgress');
+			const success = document.getElementById('installSuccess');
+
+			if (modal) modal.style.display = 'flex';
+			if (main) main.style.display = 'flex';
+			if (progress) progress.style.display = 'none';
+			if (success) success.style.display = 'none';
+
+			sendStats('Install modal shown');
+		}
+
+		function hideInstallModal() {
+			document.getElementById('installModal').style.display = 'none';
+		}
+
+		function startInstallation() {
+			sendStats('Install started');
+
+			// Hide main content, show progress
+			document.getElementById('installMain').style.display = 'none';
+			document.getElementById('installProgress').style.display = 'flex';
+
+			// Extension handles platform detection and command selection
+			vscode.postMessage({
+				type: 'runInstallCommand'
+			});
+		}
+
+		function handleInstallComplete(success, error) {
+			document.getElementById('installProgress').style.display = 'none';
+
+			const successEl = document.getElementById('installSuccess');
+			successEl.style.display = 'flex';
+
+			if (success) {
+				sendStats('Install success');
+				successEl.querySelector('.install-success-text').textContent = 'Installed';
+				successEl.querySelector('.install-success-hint').textContent = 'Send a message to get started';
+			} else {
+				sendStats('Install failed');
+				// Show error state
+				successEl.querySelector('.install-check').style.display = 'none';
+				successEl.querySelector('.install-success-text').textContent = 'Installation failed';
+				successEl.querySelector('.install-success-hint').textContent = error || 'Try installing manually from claude.ai/download';
+			}
+		}
+
 		// Thinking intensity modal functions
 		function showThinkingIntensityModal() {
 			// Request current settings from VS Code first
@@ -1679,18 +1755,22 @@ const getScript = (isTelemetryEnabled: boolean) => `<script>
 		function executeSlashCommand(command) {
 			// Hide the modal
 			hideSlashCommandsModal();
-			
+
 			// Clear the input since user selected a command
 			messageInput.value = '';
-			
+
-			// Send command to VS Code to execute in terminal
+			// Send command to VS Code to execute
 			vscode.postMessage({
 				type: 'executeSlashCommand',
 				command: command
 			});
-			
+
-			// Show user feedback
+			// Show user feedback - /compact runs in chat, others in terminal
-			addMessage('user', \`Executing /\${command} command in terminal. Check the terminal output and return when ready.\`, 'assistant');
+			if (command === 'compact') {
+				// No message needed - compact runs in chat and shows its own status
+			} else {
+				addMessage('user', \`Executing /\${command} command in terminal. Check the terminal output and return when ready.\`, 'assistant');
+			}
 		}
 
 		function handleCustomCommandKeydown(event) {
@@ -2161,17 +2241,25 @@ const getScript = (isTelemetryEnabled: boolean) => `<script>
 					totalTokensInput = message.data.totalTokensInput || 0;
 					totalTokensOutput = message.data.totalTokensOutput || 0;
 					requestCount = message.data.requestCount || 0;
-					
+
 					// Update status bar with new totals
 					updateStatusWithTotals();
-					
+
-					// Show current request info if available
+					// Show current request info if available (only for API users)
-					if (message.data.currentCost || message.data.currentDuration) {
+					if (!subscriptionType && (message.data.currentCost || message.data.currentDuration)) {
 						const currentCostStr = message.data.currentCost ? \`$\${message.data.currentCost.toFixed(4)}\` : 'N/A';
 						const currentDurationStr = message.data.currentDuration ? \`\${message.data.currentDuration}ms\` : 'N/A';
 						addMessage(\`Request completed - Cost: \${currentCostStr}, Duration: \${currentDurationStr}\`, 'system');
 					}
 					break;
+
+				case 'accountInfo':
+					// Store subscription type to determine cost vs plan display
+					subscriptionType = message.data.subscriptionType || null;
+					console.log('Account info received:', subscriptionType);
+					// Update status bar to reflect plan type
+					updateStatusWithTotals();
+					break;
 					
 				case 'sessionResumed':
 					console.log('Session resumed:', message.data);
@@ -2211,10 +2299,23 @@ const getScript = (isTelemetryEnabled: boolean) => `<script>
 
 				case 'loginRequired':
 					sendStats('Login required');
-					addMessage('🔐 Login Required\\n\\nYour Claude API key is invalid or expired.\\nA terminal has been opened - please run the login process there.\\n\\nAfter logging in, come back to this chat to continue.', 'error');
+					addMessage('🔐 Login Required\\n\\nPlease login with your Claude plan (Pro/Max) or API key.\\nA terminal has been opened - follow the login process there.\\n\\nAfter logging in, come back to this chat to continue.', 'error');
 					updateStatus('Login Required', 'error');
 					break;
-					
+
+				case 'showInstallModal':
+					sendStats('Claude not installed');
+					showInstallModal();
+					updateStatus('Claude Code not installed', 'error');
+					break;
+
+				case 'installComplete':
+					handleInstallComplete(message.success, message.error);
+					if (message.success) {
+						updateStatus('Ready', 'success');
+					}
+					break;
+
 				case 'showRestoreOption':
 					showRestoreContainer(message.data);
 					break;
@@ -2915,9 +3016,19 @@ const getScript = (isTelemetryEnabled: boolean) => `<script>
 				const date = new Date(conv.startTime).toLocaleDateString();
 				const time = new Date(conv.startTime).toLocaleTimeString();
 
+				// Show plan type or cost based on subscription
+				let usageStr;
+				if (subscriptionType) {
+					let planName = subscriptionType.replace(/^claude\\s*/i, '').trim();
+					planName = planName.charAt(0).toUpperCase() + planName.slice(1);
+					usageStr = planName;
+				} else {
+					usageStr = \`$\${conv.totalCost.toFixed(3)}\`;
+				}
+
 				item.innerHTML = \`
 					<div class="conversation-title">\${conv.firstUserMessage.substring(0, 60)}\${conv.firstUserMessage.length > 60 ? '...' : ''}</div>
-					<div class="conversation-meta">\${date} at \${time} • \${conv.messageCount} messages • $\${conv.totalCost.toFixed(3)}</div>
+					<div class="conversation-meta">\${date} at \${time} • \${conv.messageCount} messages • \${usageStr}</div>
 					<div class="conversation-preview">Last: \${conv.lastUserMessage.substring(0, 80)}\${conv.lastUserMessage.length > 80 ? '...' : ''}</div>
 				\`;
 

src/ui-styles.ts

@@ -28,6 +28,12 @@ const styles = `
         letter-spacing: -0.3px;
     }
 
+    @media (max-width: 385px) {
+        .header h2 {
+            display: none;
+        }
+    }
+
     .controls {
         display: flex;
         gap: 6px;
@@ -2432,6 +2438,34 @@ const styles = `
         flex: 1;
     }
 
+    .status-text .usage-badge {
+        display: inline-flex;
+        align-items: center;
+        gap: 4px;
+        color: inherit;
+        text-decoration: none;
+        background: rgba(255, 255, 255, 0.08);
+        padding: 2px 8px 2px 8px;
+        border-radius: 10px;
+        cursor: pointer;
+        transition: background 0.15s, transform 0.1s;
+    }
+
+    .status-text .usage-badge:hover {
+        background: rgba(255, 255, 255, 0.15);
+        transform: translateY(-1px);
+    }
+
+    .status-text .usage-badge:active {
+        transform: translateY(0);
+    }
+
+    .status-text .usage-icon {
+        width: 12px;
+        height: 12px;
+        flex-shrink: 0;
+    }
+
     pre {
         white-space: pre-wrap;
         word-wrap: break-word;
@@ -2992,6 +3026,218 @@ const styles = `
         }
     }
 
+    /* Install Modal Styles */
+    .install-modal {
+        position: fixed;
+        top: 0;
+        left: 0;
+        right: 0;
+        bottom: 0;
+        z-index: 1000;
+        display: flex;
+        align-items: center;
+        justify-content: center;
+    }
+
+    .install-modal-backdrop {
+        position: absolute;
+        top: 0;
+        left: 0;
+        right: 0;
+        bottom: 0;
+        background: rgba(0, 0, 0, 0.6);
+        backdrop-filter: blur(2px);
+    }
+
+    .install-modal-content {
+        position: relative;
+        background: var(--vscode-editor-background);
+        border: 1px solid var(--vscode-widget-border, var(--vscode-panel-border));
+        border-radius: 12px;
+        width: 320px;
+        padding: 32px;
+        box-shadow: 0 8px 32px rgba(0, 0, 0, 0.3);
+        animation: installFadeIn 0.2s ease-out;
+    }
+
+    @keyframes installFadeIn {
+        from { opacity: 0; transform: scale(0.95) translateY(-8px); }
+        to { opacity: 1; transform: scale(1) translateY(0); }
+    }
+
+    .install-close-btn {
+        position: absolute;
+        top: 16px;
+        right: 16px;
+        width: 28px;
+        height: 28px;
+        background: none;
+        border: none;
+        color: var(--vscode-descriptionForeground);
+        cursor: pointer;
+        border-radius: 6px;
+        display: flex;
+        align-items: center;
+        justify-content: center;
+        opacity: 0.6;
+        transition: all 0.15s;
+    }
+
+    .install-close-btn:hover {
+        background: var(--vscode-toolbar-hoverBackground);
+        opacity: 1;
+    }
+
+    .install-body {
+        text-align: center;
+    }
+
+    .install-main {
+        display: flex;
+        flex-direction: column;
+        align-items: center;
+        gap: 20px;
+    }
+
+    .install-icon-wrapper {
+        width: 64px;
+        height: 64px;
+        border-radius: 16px;
+        background: var(--vscode-button-background);
+        display: flex;
+        align-items: center;
+        justify-content: center;
+    }
+
+    .install-icon {
+        color: var(--vscode-button-foreground);
+    }
+
+    .install-text {
+        display: flex;
+        flex-direction: column;
+        gap: 6px;
+    }
+
+    .install-title {
+        margin: 0;
+        font-size: 18px;
+        font-weight: 600;
+        color: var(--vscode-foreground);
+    }
+
+    .install-desc {
+        margin: 0;
+        font-size: 13px;
+        color: var(--vscode-descriptionForeground);
+        line-height: 1.4;
+    }
+
+    .install-btn {
+        width: 100%;
+        padding: 12px 24px;
+        font-size: 14px;
+        font-weight: 500;
+        background: var(--vscode-button-background);
+        color: var(--vscode-button-foreground);
+        border: none;
+        border-radius: 8px;
+        cursor: pointer;
+        transition: all 0.15s;
+    }
+
+    .install-btn:hover {
+        background: var(--vscode-button-hoverBackground);
+        transform: translateY(-1px);
+    }
+
+    .install-btn:active {
+        transform: translateY(0);
+    }
+
+    .install-link {
+        font-size: 13px;
+        color: var(--vscode-textLink-foreground);
+        text-decoration: none;
+        opacity: 0.9;
+    }
+
+    .install-link:hover {
+        text-decoration: underline;
+        opacity: 1;
+    }
+
+    .install-progress {
+        display: flex;
+        flex-direction: column;
+        align-items: center;
+        gap: 16px;
+        padding: 20px 0;
+    }
+
+    .install-spinner {
+        width: 32px;
+        height: 32px;
+        border: 2.5px solid var(--vscode-widget-border, var(--vscode-panel-border));
+        border-top-color: var(--vscode-button-background);
+        border-radius: 50%;
+        animation: installSpin 0.8s linear infinite;
+    }
+
+    @keyframes installSpin {
+        to { transform: rotate(360deg); }
+    }
+
+    .install-progress-text {
+        margin: 0;
+        font-size: 14px;
+        font-weight: 500;
+        color: var(--vscode-foreground);
+    }
+
+    .install-progress-hint {
+        margin: 0;
+        font-size: 12px;
+        color: var(--vscode-descriptionForeground);
+    }
+
+    .install-success {
+        display: flex;
+        flex-direction: column;
+        align-items: center;
+        gap: 12px;
+        padding: 20px 0;
+    }
+
+    .install-success-icon {
+        width: 56px;
+        height: 56px;
+        border-radius: 50%;
+        background: rgba(78, 201, 176, 0.15);
+        display: flex;
+        align-items: center;
+        justify-content: center;
+    }
+
+    .install-check {
+        width: 28px;
+        height: 28px;
+        color: var(--vscode-testing-iconPassed, #4ec9b0);
+    }
+
+    .install-success-text {
+        margin: 0;
+        font-size: 16px;
+        font-weight: 600;
+        color: var(--vscode-foreground);
+    }
+
+    .install-success-hint {
+        margin: 0;
+        font-size: 13px;
+        color: var(--vscode-descriptionForeground);
+    }
+
 </style>`
 
 export default styles

src/ui.ts

@@ -399,6 +399,57 @@ const getHtml = (isTelemetryEnabled: boolean) => `<!DOCTYPE html>
 		</div>
 	</div>
 
+	<!-- Install Claude Code modal -->
+	<div id="installModal" class="install-modal" style="display: none;">
+		<div class="install-modal-backdrop" onclick="hideInstallModal()"></div>
+		<div class="install-modal-content">
+			<button class="install-close-btn" onclick="hideInstallModal()">
+				<svg width="12" height="12" viewBox="0 0 12 12" fill="currentColor">
+					<path d="M1.5 1.5L10.5 10.5M1.5 10.5L10.5 1.5" stroke="currentColor" stroke-width="1.5" stroke-linecap="round"/>
+				</svg>
+			</button>
+
+			<div class="install-body" id="installBody">
+				<div class="install-main" id="installMain">
+					<div class="install-icon-wrapper">
+						<svg class="install-icon" width="40" height="40" viewBox="0 0 24 24" fill="none">
+							<path d="M21 15V19C21 20.1 20.1 21 19 21H5C3.9 21 3 20.1 3 19V15" stroke="currentColor" stroke-width="1.5" stroke-linecap="round" stroke-linejoin="round"/>
+							<path d="M12 3V15M12 15L7 10M12 15L17 10" stroke="currentColor" stroke-width="1.5" stroke-linecap="round" stroke-linejoin="round"/>
+						</svg>
+					</div>
+					<div class="install-text">
+						<h2 class="install-title">Install Claude Code</h2>
+						<p class="install-desc">The CLI is required to use this extension</p>
+					</div>
+
+					<button class="install-btn" id="installMainBtn" onclick="startInstallation()">
+						Install Now
+					</button>
+
+					<a href="https://docs.anthropic.com/en/docs/claude-code" target="_blank" class="install-link">
+						View documentation
+					</a>
+				</div>
+
+				<div class="install-progress" id="installProgress" style="display: none;">
+					<div class="install-spinner"></div>
+					<p class="install-progress-text">Installing Claude Code...</p>
+					<p class="install-progress-hint">This may take a minute</p>
+				</div>
+
+				<div class="install-success" id="installSuccess" style="display: none;">
+					<div class="install-success-icon">
+						<svg class="install-check" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2.5">
+							<polyline points="20 6 9 17 4 12"></polyline>
+						</svg>
+					</div>
+					<p class="install-success-text">Installation Complete</p>
+					<p class="install-success-hint">Send a message to get started</p>
+				</div>
+			</div>
+		</div>
+	</div>
+
 	<!-- Thinking intensity modal -->
 	<div id="thinkingIntensityModal" class="tools-modal" style="display: none;">
 		<div class="tools-modal-content" style="width: 450px;">