Project instructions
CLAUDE.md and Settings: What Teams Should Actually Configure
CLAUDE.md is most valuable when it is short enough to matter. Settings are most valuable when their scope matches who should be affected.
Quick Answer
Put stable project conventions, commands, and review rules in CLAUDE.md; put enforceable configuration in the right settings scope; keep personal preferences local; move long procedures into skills.
For: Teams creating shared Claude Code conventions without bloating every session.
Put stable, repo-specific facts in CLAUDE.md
A good CLAUDE.md tells Claude what it cannot infer cheaply: package manager, test commands, code style exceptions, review etiquette, architecture constraints, generated-file rules, and deployment boundaries.
A bad CLAUDE.md becomes a private wiki. Long API docs, tutorials, file-by-file explanations, and frequently changing notes should live elsewhere. If a section only matters for one workflow, make it a skill and load it on demand.
Primary-source anchor: Anthropic advises keeping CLAUDE.md concise and reserving it for commands, style rules, workflow rules, repo etiquette, and non-obvious behavior.
Match settings scope to ownership
Claude Code settings have different scopes. Managed settings suit organization policy. User settings suit personal preferences across projects. Project settings suit repository-wide collaboration. Local settings suit private, repo-specific overrides.
Do not commit personal defaults as project policy. Do not rely on local settings for team safety. If a setting matters to everyone in the repo, document it and commit it where the team expects shared configuration.
- Managed Organization or machine policy for requirements that should not be optional.
- User Personal defaults that follow one developer across projects.
- Project Shared repository configuration committed for collaborators.
- Local Private repository overrides that should stay out of git.
Primary-source anchor: Anthropic documents managed, user, project, and local scopes, with different locations and sharing behavior.
A starter CLAUDE.md structure
The best structure is boring: commands, constraints, review rules, and gotchas. Avoid prose that sounds important but never changes behavior.
Keep links to deeper docs instead of pasting them. Claude can fetch or read referenced files when needed, and you preserve context for the current task.
# Commands
- Build: npm run build
- Focused tests: npm test -- <name>
# Workflow
- Inspect existing patterns before editing.
- Run the smallest relevant test first; run the full build before final handoff.
- Do not edit generated files directly.
# Review
- Final response must list changed files and verification output.
# Gotchas
- API responses use snake_case at the wire boundary and camelCase internally. Use local overrides for personal workflow, not team truth
Personal machine details, preferred editor, private test data paths, or local credentials should not leak into shared instructions. Keep them in local settings or a local instruction file that your gitignore excludes.
When local knowledge becomes team knowledge, promote it deliberately: add the stable command or gotcha to CLAUDE.md, link to the source, and remove the stale local workaround.
Review instructions after failures
When Claude repeatedly misses a project rule, do not immediately add more text. First ask whether the rule is hidden in a long file, ambiguous, contradicted by code, or better enforced by a hook.
Treat CLAUDE.md as production documentation. It should be reviewed in PRs, pruned after migrations, and tested by observing whether it changes future sessions.
Primary Sources
These are the source pages used for factual claims on this article.
Anthropic
Best practices for Claude Code
Verification-first workflow, explore-plan-code structure, concise CLAUDE.md guidance, and scaling patterns.Anthropic
How Claude remembers your project
Project instruction hierarchy and memory boundaries.Anthropic
Claude Code settings
Managed, user, project, and local settings scopes.Anthropic
Extend Claude Code
Decision map for CLAUDE.md, skills, code intelligence, MCP, subagents, hooks, agent teams, and plugins.Cite This Page
Claude Ships Code. "CLAUDE.md and Settings: What Teams Should Actually Configure." Updated 2026-07-06. https://claudeshipscode.com/claude-md-settings
Claude Ships Code. "CLAUDE.md and Settings: What Teams Should Actually Configure." Updated 2026-07-06. https://claudeshipscode.com/claude-md-settings FAQ
Should CLAUDE.md include a full architecture overview?
Only if the overview changes Claude behavior every session. Otherwise link to architecture docs and keep CLAUDE.md focused on commands, conventions, and gotchas.
Where should personal Claude Code settings live?
Use user scope for cross-project personal preferences and local scope for private overrides inside one repository.