The bad default is letting Cursor index every file in a repo. A
.cursorignore file lets you exclude files and folders from Cursor's indexing and AI context. 1Use it in the project root when generated output, local credentials, binary assets, or third-party code would add noise. Cursor respects
.gitignore; .cursorignore adds extra exclusions beyond it. 1The important limit is on the cards: ignored files are blocked from indexing and Agent, but terminal commands and MCP tools run outside Cursor's file-access controls and may still be able to read them. 1
References
- 1Ignore files | Cursor Docs
cursor.com


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