Mastering Claude Code: Best Practices for AI-Driven Engineering
A collaborative team of Data Engineers, Data Analysts, Data Scientists, AI researchers, and industry experts delivering concise insights and the latest trends in data and AI.
The Shift to Agentic Engineering
By now, the novelty of chatting with an AI about code has worn off. We’ve moved past simple snippet generation and into the era of agentic engineering. You aren't just asking for a function anymore; you’re directing a tool that has access to your terminal, your file system, and your test suites.
Claude Code represents this shift. It is a command-line interface (CLI) agent that interacts directly with your local development environment. But as with any powerful tool, there is a massive gap between a developer who uses it as a glorified search engine and an engineer who orchestrates it to perform complex, multi-file refactors.
What matters here isn't just the AI’s capability, but your ability to provide the right constraints and context. These Claude Code best practices are designed to help you bridge that gap, ensuring that the agent remains an asset rather than a source of technical debt.
Understanding the Claude Code Workflow
Before diving into the granular tips, you need to understand the mental model of how Claude Code operates. Unlike the web interface, Claude Code executes a loop: it observes your files, plans a series of actions, executes those actions (writing code or running commands), and then observes the results.
Your role in this loop is that of a Technical Lead. You are providing the high-level strategy and verifying the output. If you treat Claude like a junior dev who needs clear tickets, you will succeed. If you treat it like a magic wand, you will spend more time reverting commits than shipping features.
The Importance of the Initial Prompt
The quality of your first command sets the trajectory for the entire session. Avoid vague prompts like "Fix the bugs in the auth flow." Instead, be specific about the symptoms and the scope.
Poor Prompt: "Refactor the API calls to use the new client."
Better Prompt: "Identify all instances where we use the legacy Axios instance in /src/services. Replace them with the new ApiClient defined in /src/lib/api.ts. Run the unit tests in /tests/services after each change to ensure no regressions."
Context Management: Less is More
A common mistake is thinking you need to feed Claude every file in your repository. Even with the massive context windows we have in 2026, "context noise" is a real phenomenon. When Claude has to sift through thousands of lines of irrelevant CSS or documentation to find a logic bug in a controller, its accuracy drops.
Use .claudeignore Strategically
Just as you use .gitignore to keep junk out of your repo, use .claudeignore to keep noise out of Claude’s context. You should ignore build artifacts, large datasets, and third-party dependencies that Claude doesn't need to read.
What matters here is keeping the agent focused on the logic. If you are working on a backend refactor, ignore your node_modules, dist, and perhaps even your public assets. This reduces token usage and, more importantly, keeps Claude’s reasoning sharp.
Targeted File Loading
You don't have to wait for Claude to find files. If you know exactly which files are relevant, tell it. Using the /add command or simply mentioning the paths in your prompt allows Claude to bypass the "exploratory" phase where it uses ls and find. This saves time and compute costs.
The Power of Incremental Changes
The real value of Claude Code is its ability to handle multi-step tasks, but you should still encourage an incremental approach. Large, sweeping changes are difficult to debug, for both humans and AI.
The "Plan First" Pattern
Before letting Claude write a single line of code, ask it to summarize its plan. You can do this by appending "Plan your approach first and wait for my approval" to your prompt.
This gives you a chance to catch architectural misunderstandings early. If Claude suggests a pattern that doesn't align with your team's standards, you can correct it before it modifies twenty files. Once the plan is solid, you can give it the green light to execute.
Small Commits and Checkpoints
Claude Code can commit changes for you. Use this. Instruct Claude to make a commit after every logical sub-task. For example, if you are adding a new feature:
- Commit the interface definitions.
- Commit the implementation.
- Commit the tests.
This creates a clear audit trail. If the agent goes off the rails in step 3, you can easily reset to the checkpoint at step 2. It makes the "undo" process much less painful.
Verification through Execution
One of the biggest advantages of the CLI agent over a chat interface is its ability to run your code. You should never accept a code change from Claude that hasn't been verified by a successful test run.
Integrating Test Runners
Make it a habit to include testing instructions in your prompts. Tell Claude: "After modifying the logic, run npm test and don't stop until all tests pass."
Claude is remarkably good at fixing its own mistakes when it can see the stack trace from a failed test. If it encounters an error, it will read the logs, adjust the code, and try again. This self-healing loop is where the real productivity gains happen.
The "Test-Driven" Prompt
If you are asking for a new feature, try the TDD approach with Claude. Ask it to write the test cases first based on your requirements. Once you review and approve the tests, tell it to write the implementation that makes those tests pass. This ensures the agent isn't just writing code that "looks right" but code that actually functions as intended.
Handling Large Repositories and Complexity
When working in a massive monorepo, Claude might struggle to find the needle in the haystack. In these cases, you need to act as the navigator.
Use Grep and Find
Claude knows how to use standard Unix tools. If you aren't sure where a specific utility is defined, you can ask Claude to find it: "Search the repository for any functions that handle JWT validation."
Claude will likely run a grep or ripgrep command. By observing the output of these commands, you can help it narrow down the scope. If you see it looking in the wrong directory, steer it back: "The validation logic is likely in the /packages/auth directory, check there."
Managing the Model Context Protocol (MCP)
By 2026, the Model Context Protocol (MCP) has become the standard for extending AI capabilities. Claude Code can use MCP servers to interact with external tools like your Jira backlog, your Slack channels, or even your production database logs.
When using Claude Code with MCP, the best practice is to grant permissions narrowly. Don't give it full access to every tool at once. Use it specifically for the task at hand, for example, connecting to a GitHub MCP server to pull the context of a specific issue you're trying to solve.
Security and Human-in-the-Loop
We must address the elephant in the room: security. Giving an AI agent access to your terminal is a significant responsibility.
Reviewing Shell Commands
Claude Code will often suggest running shell commands. While it is usually helpful, you must review these commands before they execute, especially if they involve rm, curl, or environment variables.
What matters here is maintaining a "Human-in-the-loop" philosophy. Never enable an "auto-approve all commands" mode for non-trivial tasks. The extra two seconds it takes to read a command is a small price to pay for the safety of your local environment.
Handling Secrets
Never ask Claude to hardcode API keys or secrets. While Claude is trained to avoid this, it can happen during complex refactors. Always use environment variables or secret managers. If you notice Claude attempting to read a .env file that contains sensitive production keys, stop the process and update your .claudeignore to prevent it from happening again.
Advanced Refactoring Strategies
When you’re ready to move beyond simple bug fixes, you can use Claude Code for architectural shifts. This requires a more structured approach.
The "Shadow File" Technique
If you're nervous about Claude modifying a critical piece of infrastructure, ask it to create a "shadow" version first. For example: "Create a new file called AuthService.v2.ts that implements the same logic as AuthService.ts but using the new database schema. Once done, I will compare them."
This allows you to perform a side-by-side diff of the entire logic shift without breaking your current build. Once you are satisfied, you can tell Claude to swap the files and update the imports.
Documentation as a First-Class Citizen
Code is only half the battle. Use Claude Code to keep your documentation in sync with your implementation. After a major change, prompt it: "Review the changes made in this session and update the README.md and the internal API docs in /docs to reflect the new architecture."
Because Claude has just performed the work, it has the best context to document it accurately. This eliminates the "documentation lag" that plagues most fast-moving projects.
Troubleshooting Claude Code
Even the best agents get stuck. You might find Claude entering a loop where it tries the same fix repeatedly, or it might start hallucinating file paths that don't exist.
Breaking the Loop
If you see Claude repeating itself, interrupt the process (usually Ctrl+C). Don't just tell it "that didn't work." Tell it why it didn't work and suggest a different path.
Example: "You've tried to update the regex three times, but the issue is actually in how the string is being encoded before it reaches the regex. Look at the formatInput function in utils.ts instead."
Providing a specific pivot point helps the model reset its reasoning and escape the local minimum it’s stuck in.
The "Refresh" Tactic
If the session has become long and Claude seems to be losing the thread, it might be due to context saturation. Save your work, exit the session, and start a fresh one. Mention the current state in your opening prompt of the new session. This clears out the "cruft" of previous failed attempts and gives the model a clean slate.
Real-World Application: A Case Study
Let’s look at how these practices come together. Imagine you need to migrate a project from CommonJS to ES Modules. This is a tedious, error-prone task for a human, but a perfect job for Claude Code.
- Preparation: You update
.claudeignoreto ignorenode_modulesand thedistfolder. - The Prompt: "I want to migrate this project from CommonJS to ESM. Start by updating the
package.jsonto include"type": "module". Then, find all.jsfiles and convertrequire/module.exportstoimport/export. Do this one directory at a time. After each directory, runnpm run buildto check for syntax errors." - The Review: Claude identifies 40 files. It proposes a plan. You notice it missed the
jest.config.jswhich needs special handling for ESM. You point this out. - The Execution: Claude proceeds. It hits an error in a utility file where a named export was expected but a default export was provided. It reads the build error, fixes the file, and continues.
- Verification: Once finished, Claude runs the full test suite. Two tests fail due to path resolution issues (
__dirnamedoesn't exist in ESM). Claude identifies this, adds a polyfill or usesimport.meta.url, and re-runs the tests. - Finalize: You review the final diff, see that everything is clean, and merge the changes.
This workflow turns a two-day manual task into a thirty-minute supervised session.
The Economics of Claude Code
As an engineer, you should also be mindful of the cost. Every time Claude reads a file or runs a command, it consumes tokens.
- Be Concise: Don't use Claude for things you can do faster yourself (like renaming a single file).
- Limit Scope: Instead of "Fix everything in the repo," focus on one module per session.
- Monitor Usage: Keep an eye on the token count if your CLI provides it. Large files (like minified JS or massive JSON dumps) can eat your budget in seconds.
Tecyfy Takeaway
Claude Code is not a replacement for your engineering judgment; it is a force multiplier for it. To get the most out of it, you must transition from being a "coder" to being an "orchestrator."
- Context is a Resource: Manage it carefully with
.claudeignoreand targeted file loading. - Verify by Doing: Always require Claude to run tests and verify its own work through the terminal.
- Iterate Small: Use incremental changes and frequent commits to maintain control over the agent's output.
- Be the Lead: Provide clear plans, review shell commands, and steer the agent when it loses its way.
By following these practices, you ensure that AI-driven development leads to cleaner codebases, faster ship times, and, most importantly, less time spent on the repetitive drudgery of software engineering.
