diff --git a/registry/coder-labs/modules/cursor-cli/README.md b/registry/coder-labs/modules/cursor-cli/README.md
new file mode 100644
index 000000000..e50ca1a33
--- /dev/null
+++ b/registry/coder-labs/modules/cursor-cli/README.md
@@ -0,0 +1,123 @@
+---
+display_name: Cursor CLI
+icon: ../../../../.icons/cursor.svg
+description: Run Cursor CLI agent in your workspace (no AgentAPI)
+verified: true
+tags: [agent, cursor, ai, cli]
+---
+
+# Cursor CLI
+
+Run the Cursor Coding Agent in your workspace using the Cursor CLI directly.
+
+A full example with MCP, rules, and pre/post install scripts:
+
+```tf
+
+data "coder_parameter" "ai_prompt" {
+  type        = "string"
+  name        = "AI Prompt"
+  default     = ""
+  description = "Build a Minesweeper in Python."
+  mutable     = true
+}
+
+module "coder-login" {
+  count    = data.coder_workspace.me.start_count
+  source   = "registry.coder.com/coder/coder-login/coder"
+  version  = "1.0.31"
+  agent_id = coder_agent.main.id
+}
+
+module "cursor_cli" {
+  source   = "registry.coder.com/coder-labs/cursor-cli/coder"
+  version  = "0.1.0"
+  agent_id = coder_agent.example.id
+  folder   = "/home/coder/project"
+
+  # Optional
+  install_cursor_cli = true
+  force              = true
+  model              = "gpt-5"
+  ai_prompt          = data.coder_parameter.ai_prompt.value
+
+  # Minimal MCP server (writes `folder/.cursor/mcp.json`):
+  mcp = jsonencode({
+    mcpServers = {
+      playwright = {
+        command = "npx"
+        args    = ["-y", "@playwright/mcp@latest", "--headless", "--isolated", "--no-sandbox"]
+      }
+      desktop-commander = {
+        command = "npx"
+        args    = ["-y", "@wonderwhy-er/desktop-commander"]
+      }
+    }
+  })
+
+  # Use a pre_install_script to install the CLI
+  pre_install_script = <<-EOT
+    #!/usr/bin/env bash
+    set -euo pipefail
+    curl -fsSL https://deb.nodesource.com/setup_20.x | bash -
+    apt-get install -y nodejs
+  EOT
+
+  # Use post_install_script to wait for the repo to be ready
+  post_install_script = <<-EOT
+    #!/usr/bin/env bash
+    set -euo pipefail
+    TARGET="$${FOLDER}/.git/config"
+    echo "[cursor-cli] waiting for $${TARGET}..."
+    for i in $(seq 1 600); do
+      [ -f "$TARGET" ] && { echo "ready"; exit 0; }
+      sleep 1
+    done
+    echo "timeout waiting for $${TARGET}" >&2
+  EOT
+
+  # Provide a map of file name to content; files are written to `folder/.cursor/rules/<name>`.
+  rules_files = {
+    "python.mdc" = <<-EOT
+        ---
+        description: RPC Service boilerplate
+        globs:
+        alwaysApply: false
+        ---
+
+        - Use our internal RPC pattern when defining services
+        - Always use snake_case for service names.
+        
+        @service-template.ts
+      EOT
+
+    "frontend.mdc" = <<-EOT
+        ---
+        description: RPC Service boilerplate
+        globs:
+        alwaysApply: false
+        ---
+
+        - Use our internal RPC pattern when defining services
+        - Always use snake_case for service names.
+
+        @service-template.ts
+      EOT
+  }
+}
+```
+
+> [!NOTE]
+> A `.cursor` directory will be created in the specified `folder`, containing the MCP configuration, rules.
+> To use this module with tasks, please pass the API Key obtained from Cursor to the `api_key` variable. To obtain the api key follow the instructions [here](https://docs.cursor.com/en/cli/reference/authentication#step-1%3A-generate-an-api-key)
+
+## References
+
+- See Cursor CLI docs: `https://docs.cursor.com/en/cli/overview`
+- For MCP project config, see `https://docs.cursor.com/en/context/mcp#using-mcp-json`. This module writes your `mcp_json` into `folder/.cursor/mcp.json`.
+- For Rules, see `https://docs.cursor.com/en/context/rules#project-rules`. Provide `rules_files` (map of file name to content) to populate `folder/.cursor/rules/`.
+
+## Troubleshooting
+
+- Ensure the CLI is installed (enable `install_cursor_cli = true` or preinstall it in your image)
+- Logs are written to `~/.cursor-cli-module/`
diff --git a/registry/coder-labs/modules/cursor-cli/cursor-cli.tftest.hcl b/registry/coder-labs/modules/cursor-cli/cursor-cli.tftest.hcl
new file mode 100644
index 000000000..f8e917a1f
--- /dev/null
+++ b/registry/coder-labs/modules/cursor-cli/cursor-cli.tftest.hcl
@@ -0,0 +1,152 @@
+run "test_cursor_cli_basic" {
+  command = plan
+
+  variables {
+    agent_id = "test-agent-123"
+    folder   = "/home/coder/projects"
+  }
+
+  assert {
+    condition     = coder_env.status_slug.name == "CODER_MCP_APP_STATUS_SLUG"
+    error_message = "Status slug environment variable should be set correctly"
+  }
+
+  assert {
+    condition     = coder_env.status_slug.value == "cursorcli"
+    error_message = "Status slug value should be 'cursorcli'"
+  }
+
+  assert {
+    condition     = var.folder == "/home/coder/projects"
+    error_message = "Folder variable should be set correctly"
+  }
+
+  assert {
+    condition     = var.agent_id == "test-agent-123"
+    error_message = "Agent ID variable should be set correctly"
+  }
+}
+
+run "test_cursor_cli_with_api_key" {
+  command = plan
+
+  variables {
+    agent_id = "test-agent-456"
+    folder   = "/home/coder/workspace"
+    api_key  = "test-api-key-123"
+  }
+
+  assert {
+    condition     = coder_env.cursor_api_key[0].name == "CURSOR_API_KEY"
+    error_message = "Cursor API key environment variable should be set correctly"
+  }
+
+  assert {
+    condition     = coder_env.cursor_api_key[0].value == "test-api-key-123"
+    error_message = "Cursor API key value should match the input"
+  }
+}
+
+run "test_cursor_cli_with_custom_options" {
+  command = plan
+
+  variables {
+    agent_id           = "test-agent-789"
+    folder             = "/home/coder/custom"
+    order              = 5
+    group              = "development"
+    icon               = "/icon/custom.svg"
+    model              = "sonnet-4"
+    ai_prompt          = "Help me write better code"
+    force              = false
+    install_cursor_cli = false
+    install_agentapi   = false
+  }
+
+  assert {
+    condition     = var.order == 5
+    error_message = "Order variable should be set to 5"
+  }
+
+  assert {
+    condition     = var.group == "development"
+    error_message = "Group variable should be set to 'development'"
+  }
+
+  assert {
+    condition     = var.icon == "/icon/custom.svg"
+    error_message = "Icon variable should be set to custom icon"
+  }
+
+  assert {
+    condition     = var.model == "sonnet-4"
+    error_message = "Model variable should be set to 'sonnet-4'"
+  }
+
+  assert {
+    condition     = var.ai_prompt == "Help me write better code"
+    error_message = "AI prompt variable should be set correctly"
+  }
+
+  assert {
+    condition     = var.force == false
+    error_message = "Force variable should be set to false"
+  }
+}
+
+run "test_cursor_cli_with_mcp_and_rules" {
+  command = plan
+
+  variables {
+    agent_id = "test-agent-mcp"
+    folder   = "/home/coder/mcp-test"
+    mcp = jsonencode({
+      mcpServers = {
+        test = {
+          command = "test-server"
+          args    = ["--config", "test.json"]
+        }
+      }
+    })
+    rules_files = {
+      "general.md"  = "# General coding rules\n- Write clean code\n- Add comments"
+      "security.md" = "# Security rules\n- Never commit secrets\n- Validate inputs"
+    }
+  }
+
+  assert {
+    condition     = var.mcp != null
+    error_message = "MCP configuration should be provided"
+  }
+
+  assert {
+    condition     = var.rules_files != null
+    error_message = "Rules files should be provided"
+  }
+
+  assert {
+    condition     = length(var.rules_files) == 2
+    error_message = "Should have 2 rules files"
+  }
+}
+
+run "test_cursor_cli_with_scripts" {
+  command = plan
+
+  variables {
+    agent_id            = "test-agent-scripts"
+    folder              = "/home/coder/scripts"
+    pre_install_script  = "echo 'Pre-install script'"
+    post_install_script = "echo 'Post-install script'"
+  }
+
+  assert {
+    condition     = var.pre_install_script == "echo 'Pre-install script'"
+    error_message = "Pre-install script should be set correctly"
+  }
+
+  assert {
+    condition     = var.post_install_script == "echo 'Post-install script'"
+    error_message = "Post-install script should be set correctly"
+  }
+}
diff --git a/registry/coder-labs/modules/cursor-cli/main.test.ts b/registry/coder-labs/modules/cursor-cli/main.test.ts
new file mode 100644
index 000000000..52bc993f0
--- /dev/null
+++ b/registry/coder-labs/modules/cursor-cli/main.test.ts
@@ -0,0 +1,212 @@
+import { afterEach, beforeAll, describe, expect, setDefaultTimeout, test } from "bun:test";
+import { execContainer, runTerraformInit, writeFileContainer } from "~test";
+import {
+  execModuleScript,
+  expectAgentAPIStarted,
+  loadTestFile,
+  setup as setupUtil
+} from "../../../coder/modules/agentapi/test-util";
+import { setupContainer, writeExecutable } from "../../../coder/modules/agentapi/test-util";
+
+let cleanupFns: (() => Promise<void>)[] = [];
+const registerCleanup = (fn: () => Promise<void>) => cleanupFns.push(fn);
+
+afterEach(async () => {
+  const fns = cleanupFns.slice().reverse();
+  cleanupFns = [];
+  for (const fn of fns) {
+    try {
+      await fn();
+    } catch (err) {
+      console.error(err);
+    }
+  }
+});
+
+interface SetupProps {
+  skipAgentAPIMock?: boolean;
+  skipCursorCliMock?: boolean;
+  moduleVariables?: Record<string, string>;
+  agentapiMockScript?: string;
+}
+
+const setup = async (props?: SetupProps): Promise<{ id: string }> => {
+  const projectDir = "/home/coder/project";
+  const { id } = await setupUtil({
+    moduleDir: import.meta.dir,
+    moduleVariables: {
+      enable_agentapi: "true",
+      install_cursor_cli: props?.skipCursorCliMock ? "true" : "false",
+      install_agentapi: props?.skipAgentAPIMock ? "true" : "false",
+      folder: projectDir,
+      ...props?.moduleVariables,
+    },
+    registerCleanup,
+    projectDir,
+    skipAgentAPIMock: props?.skipAgentAPIMock,
+    agentapiMockScript: props?.agentapiMockScript,
+  });
+  if (!props?.skipCursorCliMock) {
+    await writeExecutable({
+      containerId: id,
+      filePath: "/usr/bin/cursor-agent",
+      content: await loadTestFile(import.meta.dir, "cursor-cli-mock.sh"),
+    });
+  }
+  return { id };
+};
+
+setDefaultTimeout(180 * 1000);
+
+describe("cursor-cli", async () => {
+  beforeAll(async () => {
+    await runTerraformInit(import.meta.dir);
+  });
+
+  test("agentapi-happy-path", async () => {
+    const { id } = await setup({});
+    const resp = await execModuleScript(id);
+    expect(resp.exitCode).toBe(0);
+
+    await expectAgentAPIStarted(id);
+  });
+
+  test("agentapi-mcp-json", async () => {
+    const mcpJson = '{"mcpServers": {"test": {"command": "test-cmd", "type": "stdio"}}}';
+    const { id } = await setup({
+      moduleVariables: {
+        mcp: mcpJson,
+      }
+    });
+    const resp = await execModuleScript(id);
+    expect(resp.exitCode).toBe(0);
+
+    const mcpContent = await execContainer(id, [
+      "bash",
+      "-c",
+      `cat '/home/coder/project/.cursor/mcp.json'`,
+    ]);
+    expect(mcpContent.exitCode).toBe(0);
+    expect(mcpContent.stdout).toContain("mcpServers");
+    expect(mcpContent.stdout).toContain("test");
+    expect(mcpContent.stdout).toContain("test-cmd");
+    expect(mcpContent.stdout).toContain("/tmp/mcp-hack.sh");
+    expect(mcpContent.stdout).toContain("coder");
+  });
+
+  test("agentapi-rules-files", async () => {
+    const rulesContent = "Always use TypeScript";
+    const { id } = await setup({
+      moduleVariables: {
+        rules_files: JSON.stringify({ "typescript.md": rulesContent }),
+      }
+    });
+    const resp = await execModuleScript(id);
+    expect(resp.exitCode).toBe(0);
+
+    const rulesFile = await execContainer(id, [
+      "bash",
+      "-c",
+      `cat '/home/coder/project/.cursor/rules/typescript.md'`,
+    ]);
+    expect(rulesFile.exitCode).toBe(0);
+    expect(rulesFile.stdout).toContain(rulesContent);
+  });
+
+  test("agentapi-api-key", async () => {
+    const apiKey = "test-cursor-api-key-123";
+    const { id } = await setup({
+      moduleVariables: {
+        api_key: apiKey,
+      }
+    });
+    const resp = await execModuleScript(id);
+    expect(resp.exitCode).toBe(0);
+
+    const envCheck = await execContainer(id, [
+      "bash",
+      "-c",
+      `env | grep CURSOR_API_KEY || echo "CURSOR_API_KEY not found"`,
+    ]);
+    expect(envCheck.stdout).toContain("CURSOR_API_KEY");
+  });
+
+  test("agentapi-model-and-force-flags", async () => {
+    const model = "sonnet-4";
+    const { id } = await setup({
+      moduleVariables: {
+        model: model,
+        force: "true",
+        ai_prompt: "test prompt",
+      }
+    });
+    const resp = await execModuleScript(id);
+    expect(resp.exitCode).toBe(0);
+
+    const startLog = await execContainer(id, [
+      "bash",
+      "-c",
+      "cat /home/coder/.cursor-cli-module/agentapi-start.log || cat /home/coder/.cursor-cli-module/start.log || true",
+    ]);
+    expect(startLog.stdout).toContain(`-m ${model}`);
+    expect(startLog.stdout).toContain("-f");
+    expect(startLog.stdout).toContain("test prompt");
+  });
+
+  test("agentapi-pre-post-install-scripts", async () => {
+    const { id } = await setup({
+      moduleVariables: {
+        pre_install_script: "#!/bin/bash\necho 'cursor-pre-install-script'",
+        post_install_script: "#!/bin/bash\necho 'cursor-post-install-script'",
+      }
+    });
+    const resp = await execModuleScript(id);
+    expect(resp.exitCode).toBe(0);
+
+    const preInstallLog = await execContainer(id, [
+      "bash",
+      "-c",
+      "cat /home/coder/.cursor-cli-module/pre_install.log || true",
+    ]);
+    expect(preInstallLog.stdout).toContain("cursor-pre-install-script");
+
+    const postInstallLog = await execContainer(id, [
+      "bash",
+      "-c",
+      "cat /home/coder/.cursor-cli-module/post_install.log || true",
+    ]);
+    expect(postInstallLog.stdout).toContain("cursor-post-install-script");
+  });
+
+  test("agentapi-folder-variable", async () => {
+    const folder = "/tmp/cursor-test-folder";
+    const { id } = await setup({
+      moduleVariables: {
+        folder: folder,
+      }
+    });
+    const resp = await execModuleScript(id);
+    expect(resp.exitCode).toBe(0);
+
+    const installLog = await execContainer(id, [
+      "bash",
+      "-c",
+      "cat /home/coder/.cursor-cli-module/install.log || true",
+    ]);
+    expect(installLog.stdout).toContain(folder);
+  });
+
+  test("install-test-cursor-cli-latest", async () => {
+    const { id } = await setup({
+      skipCursorCliMock: true,
+      skipAgentAPIMock: true,
+    });
+    const resp = await execModuleScript(id);
+    expect(resp.exitCode).toBe(0);
+
+    await expectAgentAPIStarted(id);
+  })
+
+});
+
+
diff --git a/registry/coder-labs/modules/cursor-cli/main.tf b/registry/coder-labs/modules/cursor-cli/main.tf
new file mode 100644
index 000000000..482103718
--- /dev/null
+++ b/registry/coder-labs/modules/cursor-cli/main.tf
@@ -0,0 +1,179 @@
+terraform {
+  required_version = ">= 1.0"
+
+  required_providers {
+    coder = {
+      source  = "coder/coder"
+      version = ">= 2.7"
+    }
+  }
+}
+
+variable "agent_id" {
+  type        = string
+  description = "The ID of a Coder agent."
+}
+
+data "coder_workspace" "me" {}
+
+data "coder_workspace_owner" "me" {}
+
+variable "order" {
+  type        = number
+  description = "The order determines the position of app in the UI presentation. The lowest order is shown first and apps with equal order are sorted by name (ascending order)."
+  default     = null
+}
+
+variable "group" {
+  type        = string
+  description = "The name of a group that this app belongs to."
+  default     = null
+}
+
+variable "icon" {
+  type        = string
+  description = "The icon to use for the app."
+  default     = "/icon/cursor.svg"
+}
+
+variable "folder" {
+  type        = string
+  description = "The folder to run Cursor CLI in."
+}
+
+variable "install_cursor_cli" {
+  type        = bool
+  description = "Whether to install Cursor CLI."
+  default     = true
+}
+
+variable "install_agentapi" {
+  type        = bool
+  description = "Whether to install AgentAPI."
+  default     = true
+}
+
+variable "agentapi_version" {
+  type        = string
+  description = "The version of AgentAPI to install."
+  default     = "v0.5.0"
+}
+
+variable "force" {
+  type        = bool
+  description = "Force allow commands unless explicitly denied"
+  default     = true
+}
+
+variable "model" {
+  type        = string
+  description = "Model to use (e.g., sonnet-4, sonnet-4-thinking, gpt-5)"
+  default     = ""
+}
+
+variable "ai_prompt" {
+  type        = string
+  description = "AI prompt/task passed to cursor-agent."
+  default     = ""
+}
+
+variable "api_key" {
+  type        = string
+  description = "API key for Cursor CLI."
+  default     = ""
+  sensitive   = true
+}
+
+variable "mcp" {
+  type        = string
+  description = "Workspace-specific MCP JSON to write to folder/.cursor/mcp.json. See https://docs.cursor.com/en/context/mcp#using-mcp-json"
+  default     = null
+}
+
+variable "rules_files" {
+  type        = map(string)
+  description = "Optional map of rule file name to content. Files will be written to folder/.cursor/rules/<name>. See https://docs.cursor.com/en/context/rules#project-rules"
+  default     = null
+}
+
+variable "pre_install_script" {
+  type        = string
+  description = "Optional script to run before installing Cursor CLI."
+  default     = null
+}
+
+variable "post_install_script" {
+  type        = string
+  description = "Optional script to run after installing Cursor CLI."
+  default     = null
+}
+
+locals {
+  app_slug        = "cursorcli"
+  install_script  = file("${path.module}/scripts/install.sh")
+  start_script    = file("${path.module}/scripts/start.sh")
+  module_dir_name = ".cursor-cli-module"
+}
+
+# Expose status slug and API key to the agent environment
+resource "coder_env" "status_slug" {
+  agent_id = var.agent_id
+  name     = "CODER_MCP_APP_STATUS_SLUG"
+  value    = local.app_slug
+}
+
+resource "coder_env" "cursor_api_key" {
+  count    = var.api_key != "" ? 1 : 0
+  agent_id = var.agent_id
+  name     = "CURSOR_API_KEY"
+  value    = var.api_key
+}
+
+module "agentapi" {
+  source  = "registry.coder.com/coder/agentapi/coder"
+  version = "1.1.1"
+
+  agent_id             = var.agent_id
+  web_app_slug         = local.app_slug
+  web_app_order        = var.order
+  web_app_group        = var.group
+  web_app_icon         = var.icon
+  web_app_display_name = "Cursor CLI"
+  cli_app_slug         = local.app_slug
+  cli_app_display_name = "Cursor CLI"
+  module_dir_name      = local.module_dir_name
+  install_agentapi     = var.install_agentapi
+  agentapi_version     = var.agentapi_version
+  pre_install_script   = var.pre_install_script
+  post_install_script  = var.post_install_script
+  start_script         = <<-EOT
+     #!/bin/bash
+     set -o errexit
+     set -o pipefail
+
+     echo -n '${base64encode(local.start_script)}' | base64 -d > /tmp/start.sh
+     chmod +x /tmp/start.sh
+      ARG_FORCE='${var.force}' \
+      ARG_MODEL='${var.model}' \
+      ARG_AI_PROMPT='${base64encode(var.ai_prompt)}' \
+      ARG_MODULE_DIR_NAME='${local.module_dir_name}' \
+      ARG_FOLDER='${var.folder}' \
+     /tmp/start.sh
+   EOT
+
+  install_script = <<-EOT
+    #!/bin/bash
+    set -o errexit
+    set -o pipefail
+
+    echo -n '${base64encode(local.install_script)}' | base64 -d > /tmp/install.sh
+    chmod +x /tmp/install.sh
+    ARG_INSTALL='${var.install_cursor_cli}' \
+    ARG_WORKSPACE_MCP_JSON='${var.mcp != null ? base64encode(replace(var.mcp, "'", "'\\''")) : ""}' \
+    ARG_WORKSPACE_RULES_JSON='${var.rules_files != null ? base64encode(jsonencode(var.rules_files)) : ""}' \
+    ARG_MODULE_DIR_NAME='${local.module_dir_name}' \
+    ARG_FOLDER='${var.folder}' \
+    ARG_CODER_MCP_APP_STATUS_SLUG='${local.app_slug}' \
+    /tmp/install.sh
+  EOT
+}
diff --git a/registry/coder-labs/modules/cursor-cli/scripts/install.sh b/registry/coder-labs/modules/cursor-cli/scripts/install.sh
new file mode 100644
index 000000000..5477f07dd
--- /dev/null
+++ b/registry/coder-labs/modules/cursor-cli/scripts/install.sh
@@ -0,0 +1,122 @@
+#!/bin/bash
+
+set -o errexit
+set -o pipefail
+
+command_exists() {
+  command -v "$1" > /dev/null 2>&1
+}
+
+# Inputs
+ARG_INSTALL=${ARG_INSTALL:-true}
+ARG_MODULE_DIR_NAME=${ARG_MODULE_DIR_NAME:-.cursor-cli-module}
+ARG_FOLDER=${ARG_FOLDER:-$HOME}
+ARG_CODER_MCP_APP_STATUS_SLUG=${ARG_CODER_MCP_APP_STATUS_SLUG:-}
+
+mkdir -p "$HOME/$ARG_MODULE_DIR_NAME"
+
+ARG_WORKSPACE_MCP_JSON=$(echo -n "$ARG_WORKSPACE_MCP_JSON" | base64 -d)
+ARG_WORKSPACE_RULES_JSON=$(echo -n "$ARG_WORKSPACE_RULES_JSON" | base64 -d)
+
+echo "--------------------------------"
+echo "install: $ARG_INSTALL"
+echo "folder: $ARG_FOLDER"
+echo "coder_mcp_app_status_slug: $ARG_CODER_MCP_APP_STATUS_SLUG"
+echo "module_dir_name: $ARG_MODULE_DIR_NAME"
+echo "--------------------------------"
+
+# Install Cursor via official installer if requested
+function install_cursor_cli() {
+  if [ "$ARG_INSTALL" = "true" ]; then
+    echo "Installing Cursor via official installer..."
+    set +e
+    curl https://cursor.com/install -fsS | bash 2>&1
+    CURL_EXIT=${PIPESTATUS[0]}
+    set -e
+    if [ $CURL_EXIT -ne 0 ]; then
+      echo "Cursor installer failed with exit code $CURL_EXIT"
+    fi
+
+    # Ensure binaries are discoverable; create stable symlink to cursor-agent
+    CANDIDATES=(
+      "$(command -v cursor-agent || true)"
+      "$HOME/.cursor/bin/cursor-agent"
+    )
+    FOUND_BIN=""
+    for c in "${CANDIDATES[@]}"; do
+      if [ -n "$c" ] && [ -x "$c" ]; then
+        FOUND_BIN="$c"
+        break
+      fi
+    done
+    mkdir -p "$HOME/.local/bin"
+    if [ -n "$FOUND_BIN" ]; then
+      ln -sf "$FOUND_BIN" "$HOME/.local/bin/cursor-agent"
+    fi
+    echo "Installed cursor-agent at: $(command -v cursor-agent || true) (resolved: $FOUND_BIN)"
+  fi
+}
+
+# Write MCP config to user's home if provided (ARG_FOLDER/.cursor/mcp.json)
+function write_mcp_config() {
+  TARGET_DIR="$ARG_FOLDER/.cursor"
+  TARGET_FILE="$TARGET_DIR/mcp.json"
+  mkdir -p "$TARGET_DIR"
+
+  CURSOR_MCP_HACK_SCRIPT=$(
+    cat << EOF
+#!/usr/bin/env bash
+set -e
+
+# --- Set environment variables ---
+export CODER_MCP_APP_STATUS_SLUG="${ARG_CODER_MCP_APP_STATUS_SLUG}"
+export CODER_MCP_AI_AGENTAPI_URL="http://localhost:3284"
+export CODER_AGENT_URL="${CODER_AGENT_URL}"
+export CODER_AGENT_TOKEN="${CODER_AGENT_TOKEN}"
+
+# --- Launch the MCP server ---
+exec coder exp mcp server
+EOF
+  )
+  echo "$CURSOR_MCP_HACK_SCRIPT" > "/tmp/mcp-hack.sh"
+  chmod +x /tmp/mcp-hack.sh
+
+  CODER_MCP=$(
+    cat << EOF
+{
+ "coder": {
+   "args": [],
+   "command": "/tmp/mcp-hack.sh",
+   "description": "Report ALL tasks and statuses (in progress, done, failed) you are working on.",
+   "name": "Coder",
+   "timeout": 3000,
+   "type": "stdio",
+   "trust": true
+ }
+}
+EOF
+  )
+
+  echo "${ARG_WORKSPACE_MCP_JSON:-{}}" | jq --argjson base "$CODER_MCP" \
+    '.mcpServers = ((.mcpServers // {}) + $base)' > "$TARGET_FILE"
+  echo "Wrote workspace MCP to $TARGET_FILE"
+}
+
+# Write rules files to user's home (FOLDER/.cursor/rules)
+function write_rules_file() {
+  if [ -n "$ARG_WORKSPACE_RULES_JSON" ]; then
+    RULES_DIR="$ARG_FOLDER/.cursor/rules"
+    mkdir -p "$RULES_DIR"
+    echo "$ARG_WORKSPACE_RULES_JSON" | jq -r 'to_entries[] | @base64' | while read -r entry; do
+      _jq() { echo "${entry}" | base64 -d | jq -r ${1}; }
+      NAME=$(_jq '.key')
+      CONTENT=$(_jq '.value')
+      echo "$CONTENT" > "$RULES_DIR/$NAME"
+      echo "Wrote rule: $RULES_DIR/$NAME"
+    done
+  fi
+}
+
+install_cursor_cli
+write_mcp_config
+write_rules_file
diff --git a/registry/coder-labs/modules/cursor-cli/scripts/start.sh b/registry/coder-labs/modules/cursor-cli/scripts/start.sh
new file mode 100644
index 000000000..1bbc493bb
--- /dev/null
+++ b/registry/coder-labs/modules/cursor-cli/scripts/start.sh
@@ -0,0 +1,67 @@
+#!/bin/bash
+
+set -o errexit
+set -o pipefail
+
+command_exists() {
+  command -v "$1" > /dev/null 2>&1
+}
+
+ARG_AI_PROMPT=$(echo -n "${ARG_AI_PROMPT:-}" | base64 -d)
+ARG_FORCE=${ARG_FORCE:-false}
+ARG_MODEL=${ARG_MODEL:-}
+ARG_OUTPUT_FORMAT=${ARG_OUTPUT_FORMAT:-json}
+ARG_MODULE_DIR_NAME=${ARG_MODULE_DIR_NAME:-.cursor-cli-module}
+ARG_FOLDER=${ARG_FOLDER:-$HOME}
+
+echo "--------------------------------"
+echo "install: $ARG_INSTALL"
+echo "version: $ARG_VERSION"
+echo "folder: $ARG_FOLDER"
+echo "ai_prompt: $ARG_AI_PROMPT"
+echo "force: $ARG_FORCE"
+echo "model: $ARG_MODEL"
+echo "output_format: $ARG_OUTPUT_FORMAT"
+echo "module_dir_name: $ARG_MODULE_DIR_NAME"
+echo "folder: $ARG_FOLDER"
+echo "--------------------------------"
+
+mkdir -p "$HOME/$ARG_MODULE_DIR_NAME"
+
+# Find cursor agent cli
+if command_exists cursor-agent; then
+  CURSOR_CMD=cursor-agent
+elif [ -x "$HOME/.local/bin/cursor-agent" ]; then
+  CURSOR_CMD="$HOME/.local/bin/cursor-agent"
+else
+  echo "Error: cursor-agent not found. Install it or set install_cursor_cli=true."
+  exit 1
+fi
+
+# Ensure working directory exists
+if [ -d "$ARG_FOLDER" ]; then
+  cd "$ARG_FOLDER"
+else
+  mkdir -p "$ARG_FOLDER"
+  cd "$ARG_FOLDER"
+fi
+
+ARGS=()
+
+# global flags
+if [ -n "$ARG_MODEL" ]; then
+  ARGS+=("-m" "$ARG_MODEL")
+fi
+if [ "$ARG_FORCE" = "true" ]; then
+  ARGS+=("-f")
+fi
+
+if [ -n "$ARG_AI_PROMPT" ]; then
+  printf "AI prompt provided\n"
+   ARGS+=("Complete the task at hand in one go. Every step of the way, report your progress using coder_report_task tool with proper summary and statuses. Your task at hand: $ARG_AI_PROMPT")
+fi
+
+# Log and run in background, redirecting all output to the log file
+printf "Running: %q %s\n" "$CURSOR_CMD" "$(printf '%q ' "${ARGS[@]}")"
+
+agentapi server --type cursor --term-width 67 --term-height 1190 -- "$CURSOR_CMD" "${ARGS[@]}"
diff --git a/registry/coder-labs/modules/cursor-cli/testdata/cursor-cli-mock.sh b/registry/coder-labs/modules/cursor-cli/testdata/cursor-cli-mock.sh
new file mode 100644
index 000000000..acf637d06
--- /dev/null
+++ b/registry/coder-labs/modules/cursor-cli/testdata/cursor-cli-mock.sh
@@ -0,0 +1,14 @@
+#!/bin/bash
+
+if [[ "$1" == "--version" ]]; then
+  echo "HELLO: $(bash -c env)"
+  echo "cursor-agent version v2.5.0"
+  exit 0
+fi
+
+set -e
+
+while true; do
+    echo "$(date) - cursor-agent-mock"
+    sleep 15
+done
\ No newline at end of file