A comprehensive guide to Claude Code's extension system - how components work together, their authority levels, and when to use each.
Claude Code provides a layered extension system that allows customization at multiple levels:
| Component | Purpose | Scope | Loaded When |
|---|---|---|---|
| CLAUDE.md | Memory & instructions | Global/Project | Always (system prompt) |
| AGENTS.md | Cross-platform agent instructions | Project | Always (user message) |
| Rules | Modular, topic-specific instructions | Project/User | Always or path-conditional |
| Skills | Dynamic capability packages | Project/User | On-demand when relevant |
| Agents | Specialized subagent prompts | Project/User | When spawned via Task tool |
| Commands | Custom slash commands | Project/User | When invoked by user |
| Output Styles | Response personality | Project/User | When selected |
| Hooks | Lifecycle shell scripts | Project/User | At specific events |
CLAUDE.md is Claude Code's primary memory system - a markdown file containing persistent instructions that Claude reads at the start of every conversation. It's the "constitution" for how Claude should behave in your project.
@path/to/file syntaxLevel: HIGH (System Prompt)
CLAUDE.md content is injected into the system prompt, giving it high authority over Claude's behavior. Instructions here are treated as foundational rules that should be followed.
| Location | Authority | Compliance |
|---|---|---|
| Enterprise policy | Highest | Mandatory - cannot be overridden |
User global (~/.claude/CLAUDE.md) |
High | Should follow unless project overrides |
Project (.claude/CLAUDE.md) |
High | Primary project instructions |
Project local (CLAUDE.local.md) |
Highest (project) | Personal overrides, highest project priority |
Claude reads memories recursively from cwd up to root, merging all found files. Later files (closer to project root) can override earlier ones.
# Project Instructions
## Build Commands
- `npm run dev` - Start development server
- `npm test` - Run test suite
## Code Style
- Use TypeScript strict mode
- Prefer functional components with hooks
- All API endpoints must validate input
## Architecture
See @docs/architecture.md for system overview.
AGENTS.md is a cross-platform standard for agent instructions, supported by Claude Code, Cursor, Codex, and other AI coding tools. While Claude Code uses CLAUDE.md natively, AGENTS.md provides compatibility when collaborating with developers using different tools.
Level: MEDIUM-HIGH (User Message)
AGENTS.md is loaded as a user message (not system prompt), giving it slightly lower authority than CLAUDE.md but still high priority in context. Claude treats it as important project context that should guide behavior.
| Comparison | CLAUDE.md | AGENTS.md |
|---|---|---|
| Injection point | System prompt | User message |
| Authority | Higher | Slightly lower |
| Cross-platform | Claude Code only | Universal |
| Override behavior | Can override AGENTS.md | Cannot override CLAUDE.md |
# Agent Instructions
## Project Overview
This is a Next.js 14 application with App Router.
## Key Directories
- `src/app/` - Route handlers and pages
- `src/components/` - React components
- `src/lib/` - Utility functions
## Conventions
- Use server components by default
- Client components must be marked with 'use client'
- All database queries go through Prisma
| Scenario | Use |
|---|---|
| Claude Code only team | CLAUDE.md |
| Mixed AI tools team | AGENTS.md (or both) |
| Open source project | AGENTS.md for broader compatibility |
Rules are modular markdown files in .claude/rules/ that provide topic-specific instructions. They allow you to organize instructions by concern rather than having one monolithic CLAUDE.md file.
Level: HIGH (Same as CLAUDE.md)
All .md files in .claude/rules/ are automatically loaded with the same priority as .claude/CLAUDE.md. They become part of the instruction set that Claude must follow.
| Location | Authority | Scope |
|---|---|---|
~/.claude/rules/ |
High | All your projects |
.claude/rules/ |
High | Current project |
| Path-conditional rules | High | Only matching files |
User-level rules load before project rules, so project rules can override user preferences.
.claude/rules/testing.md - Unconditional rule:
# Testing Conventions
- All new features require tests
- Use vitest for unit tests
- Use playwright for E2E tests
- Aim for 80% coverage on critical paths
.claude/rules/api-routes.md - Path-conditional rule:
---
paths: src/app/api/**/*.ts
---
# API Route Rules
- All endpoints must validate request body with zod
- Return consistent error format: { error: string, code: number }
- Log all errors with request ID for tracing
.claude/rules/
├── frontend/
│ ├── react.md
│ └── styles.md
├── backend/
│ ├── api.md
│ └── database.md
├── testing.md
└── security.md
Skills are structured capability packages that Claude can discover and load dynamically. Unlike always-loaded rules, skills are loaded on-demand when relevant to the current task, providing unbounded extensibility without consuming context unnecessarily.
Level: HIGH (When Loaded)
Skills use a three-tier loading system with varying authority:
| Tier | Content | Authority | When Loaded |
|---|---|---|---|
| Tier 1 | Name + description | Medium | Always (system prompt metadata) |
| Tier 2 | Full SKILL.md | High | When task matches triggers |
| Tier 3 | Referenced files | High | When explicitly needed |
Key insight: When a skill is loaded, its content becomes part of the agent's instructions. Unlike agent outputs which are advisory, skill content is treated as authoritative guidance that must be followed.
skills/
└── my-skill/
├── SKILL.md # Required: main instructions
├── references/ # Optional: detailed docs
│ ├── patterns.md
│ └── examples.md
├── assets/ # Optional: templates, configs
│ └── template.ts
└── scripts/ # Optional: executable scripts
└── scaffold.sh
skills/testing-ops/SKILL.md:
---
name: testing-ops
description: Test architecture, mocking strategies, and coverage patterns. Triggers on: write tests, test strategy, mocking, fixtures, coverage.
---
# Testing Patterns
## When to Use
- User asks to write or improve tests
- Discussing test architecture
- Setting up test infrastructure
## Quick Reference
- Unit tests: `vitest` with `@testing-library/react`
- E2E tests: `playwright`
- Mocking: `vi.mock()` for modules, `msw` for API
## Detailed Patterns
See @references/mocking-strategies.md for advanced mocking.
See @references/fixtures.md for test data patterns.
Agents are specialized system prompts that Claude can spawn as subagents via the Task tool. Each agent runs in its own context with specific expertise, tool permissions, and instructions - ideal for domain-specific tasks that benefit from focused context.
Level: LOW (Advisory)
Agent outputs are advisory, not authoritative. When you spawn an agent via the Task tool, it runs independently and returns output. The parent agent can choose to ignore, modify, or override that output.
| Aspect | Authority Level | Notes |
|---|---|---|
| Agent's own instructions | High (within its context) | Agent follows its own system prompt |
| Agent output to parent | Low | Parent can ignore or override |
| Tool access | Restricted | No MCP tools, limited bash |
| Context | Fresh | Doesn't see parent's conversation |
Critical limitation: Subagents do NOT have access to MCP server tools (browser automation, custom MCP servers). Only the main session has MCP access.
Agents are markdown files in agents/ or .claude/agents/:
---
name: react-expert
description: Expert in React hooks, state management, and performance
model: sonnet
---
# React Expert
You are a React expert specializing in modern React patterns...
## Core Expertise
- Hooks and custom hooks
- State management (Context, Zustand, Jotai)
- Performance optimization
- Server Components
## Patterns
[Detailed patterns and examples...]
When Claude encounters a React-specific question, it can spawn the react-expert:
User: "How should I optimize this component that re-renders too often?"
Claude: I'll consult the react-expert agent for specialized guidance.
[Uses Task tool with subagent_type="react-expert"]
Slash commands are user-invoked shortcuts that expand into prompts. They provide quick access to common workflows, complex multi-step operations, or standardized procedures.
$ARGUMENTS for dynamic behaviorLevel: HIGH (User Intent)
Commands execute with high authority because they represent explicit user intent. When a user invokes /review, they're explicitly requesting that workflow.
| Aspect | Authority |
|---|---|
| Command invocation | Explicit user request - high priority |
| Command content | Treated as user instructions |
| Can spawn agents | Yes, with Task tool |
| Can invoke skills | Yes, via Skill tool |
.claude/commands/
├── review.md # /review - Code review workflow
├── testgen.md # /testgen - Generate tests
└── deploy.md # /deploy - Deployment checklist
.claude/commands/review.md:
---
name: review
description: Review code for bugs, security, and style
---
# Code Review
Review the following code or staged changes for:
1. **Bugs**: Logic errors, edge cases, null checks
2. **Security**: Input validation, injection risks, auth issues
3. **Performance**: N+1 queries, unnecessary re-renders
4. **Style**: Naming, consistency with codebase conventions
$ARGUMENTS
Provide findings in order of severity (critical → minor).
Usage:
/review src/api/auth.ts
Output styles modify Claude Code's system prompt to change its "personality" while keeping all tools intact. The behavior depends on the keep-coding-instructions frontmatter setting.
Level: HIGHEST (System Prompt Modifier)
Output styles operate at the highest level - they modify the system prompt itself.
| Mode | keep-coding-instructions |
Authority |
|---|---|---|
| Replacement | false (default) |
Replaces coding instructions entirely. Custom style has full authority over behavior. |
| Additive | true |
Preserves coding instructions. Style adds personality layer but coding rules still apply. |
In both modes, all tools remain available. The style changes how Claude communicates, not what it can do.
---
name: Vesper
description: Sophisticated engineering companion with British wit
keep-coding-instructions: true
---
# Vesper
You are Vesper - a polymath engineer with dry wit and intellectual depth...
## Personality
- Quietly confident
- Delightfully direct
- Warm underneath the wit
## Communication Style
- Answer first, then elaborate
- Show, don't pontificate
- Energy matches context
| Location | Scope |
|---|---|
~/.claude/output-styles/ |
All projects |
.claude/output-styles/ |
Current project |
output-styles/ |
Plugin distribution |
/output-style # Open picker
/output-style vesper # Switch directly
Hooks are shell scripts that execute at specific points in Claude Code's lifecycle. Unlike CLAUDE.md (suggestions), hooks provide deterministic control - ensuring actions always happen rather than relying on the LLM to choose them.
Level: ABSOLUTE (Deterministic Execution)
Hooks have the highest practical authority because they execute deterministically - Claude cannot choose to ignore them.
| Comparison | CLAUDE.md | Hooks |
|---|---|---|
| Execution | Probabilistic (LLM decides) | Deterministic (always runs) |
| Can be ignored | Yes (LLM might not follow) | No (shell script executes) |
| Can block actions | No (suggestions only) | Yes (PreToolUse can reject) |
| Timing | N/A | Precise lifecycle events |
Key insight: Hooks = "must do", CLAUDE.md = "should do".
| Hook | Trigger | Use Case |
|---|---|---|
PreToolUse |
Before tool execution | Validate inputs, security checks, can block |
PostToolUse |
After tool execution | Format code, run tests, lint |
Notification |
On specific events | Alerts, logging, external notifications |
Stop |
When Claude stops | Cleanup, summaries, commit reminders |
{
"hooks": {
"PreToolUse": [
{
"matcher": "Bash",
"hooks": ["bash .claude/hooks/validate-command.sh"]
}
],
"PostToolUse": [
{
"matcher": "Write|Edit",
"hooks": ["bash .claude/hooks/format-file.sh $FILE_PATH"]
}
]
}
}
.claude/hooks/format-file.sh:
#!/bin/bash
FILE="$1"
case "$FILE" in
*.ts|*.tsx)
npx prettier --write "$FILE"
;;
*.go)
gofmt -w "$FILE"
;;
*.py)
ruff format "$FILE"
;;
esac
Plugins are packaged collections of commands, agents, skills, hooks, and MCP servers that can be installed with a single command. They provide a distribution mechanism for sharing Claude Code extensions.
/plugin install owner/repoLevel: INHERITED
Plugins don't have their own authority level - each component within a plugin operates at its normal authority level (skills = high, agents = low, hooks = deterministic, etc.).
my-plugin/
├── .claude-plugin/
│ └── plugin.json # Manifest
├── commands/ # Slash commands
├── agents/ # Subagent definitions
├── skills/ # Skill packages
├── hooks/ # Hook scripts
└── rules/ # Rules files
.claude-plugin/plugin.json:
{
"name": "my-plugin",
"version": "1.0.0",
"description": "My awesome Claude Code extensions",
"components": {
"commands": ["commands/review.md"],
"agents": ["agents/expert.md"],
"skills": ["skills/patterns"],
"rules": ["rules/conventions.md"]
}
}
Understanding how components interact and their authority levels:
┌─────────────────────────────────────────────────────────────────┐
│ AUTHORITY: DETERMINISTIC (Cannot be ignored) │
│ ┌───────────────────────────────────────────────────────────┐ │
│ │ Hooks (PreToolUse/PostToolUse/Stop) │ │
│ │ - Execute as shell scripts │ │
│ │ - Can block operations │ │
│ └───────────────────────────────────────────────────────────┘ │
├─────────────────────────────────────────────────────────────────┤
│ AUTHORITY: HIGHEST (System Prompt Level) │
│ ┌───────────────────────────────────────────────────────────┐ │
│ │ Output Style │ │
│ │ - keep-coding-instructions: false → replaces default │ │
│ │ - keep-coding-instructions: true → adds personality │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ Enterprise Policy CLAUDE.md (cannot override) │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ User ~/.claude/CLAUDE.md │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ User ~/.claude/rules/*.md │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ Skill metadata (names + descriptions) │ │
│ └───────────────────────────────────────────────────────────┘ │
├─────────────────────────────────────────────────────────────────┤
│ AUTHORITY: HIGH (User Message Level) │
│ ┌───────────────────────────────────────────────────────────┐ │
│ │ Project .claude/CLAUDE.md │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ Project .claude/rules/*.md │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ Project AGENTS.md │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ CLAUDE.local.md (highest project-level priority) │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ Skills (full content when loaded) │ │
│ ├───────────────────────────────────────────────────────────┤ │
│ │ Commands (user-invoked workflows) │ │
│ └───────────────────────────────────────────────────────────┘ │
├─────────────────────────────────────────────────────────────────┤
│ AUTHORITY: LOW (Advisory) │
│ ┌───────────────────────────────────────────────────────────┐ │
│ │ Agent outputs (can be ignored by parent) │ │
│ │ - Run in separate process │ │
│ │ - No MCP tool access │ │
│ │ - Fresh context each invocation │ │
│ └───────────────────────────────────────────────────────────┘ │
└─────────────────────────────────────────────────────────────────┘
Understanding when to use Skills versus Agents is one of the most important architectural decisions in Claude Code extensions. Here are the essential insights:
Skills are for knowledge, Agents are for execution. When you need Claude to know something - domain expertise, constraints, patterns, verification rules - use a Skill. The skill content becomes part of Claude's instructions with high authority. When you need Claude to do something in parallel, in the background, or with a different model for cost optimization - use an Agent. Agent outputs are advisory and can be ignored; they're workers, not authorities.
The critical difference is authority and context. Skills share context with the main conversation and have high authority - Claude treats skill content as rules to follow. Agents run in isolated contexts with fresh memory each time, and their outputs are merely suggestions the parent can override. Additionally, agents have a significant limitation: they cannot access MCP server tools (browser automation, custom MCP servers). If your workflow needs MCP tools, skills or the main session are your only options.
The hybrid pattern is often optimal. The most powerful architecture combines both: a Skill provides the authoritative knowledge and orchestration rules (what to do, when, and why), while Agents handle the actual execution (running tasks cheaply with Haiku, analyzing results in parallel with Sonnet). The skill tells Claude it must spawn certain agents; the agents do the work efficiently. Don't create agents with model: inherit - if you're not using a different model for cost savings or parallel execution, use a skill instead.
| Need | Use | Authority | Why |
|---|---|---|---|
| Project-wide instructions | CLAUDE.md | High | Always loaded, system prompt |
| Cross-platform compatibility | AGENTS.md | Medium-High | Works with Cursor, Codex, etc. |
| Topic-specific rules | .claude/rules/ |
High | Modular, can be path-conditional |
| Domain expertise | Skills | High | Progressive loading, auto-routing |
| Parallel task execution | Agents | Low | Separate process, can use cheaper models |
| Workflow shortcuts | Commands | High | User-invoked, explicit intent |
| Different personality | Output Styles | Highest | System prompt modification |
| Deterministic automation | Hooks | Absolute | Always runs, can block |
| Share with community | Plugins | Inherited | Bundled distribution |