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CLAUDE.md is Claude Code's persistent memory. A well-written file eliminates repeated instructions, enforces conventions automatically, and makes every session smarter than the last.
When you run claude in a directory, Claude Code automatically reads any CLAUDE.md it finds and injects it at the top of the context window. This happens before you type a single word.
Think of it as a briefing document Claude reads every morning before sitting down to work with you. Anything in that document becomes active knowledge for the entire session.
./CLAUDE.md — Project-level. Committed to the repo. Shared with the team.~/.claude/CLAUDE.md — Global. Personal preferences that apply to every project../CLAUDE.local.md — Local override. Gitignored. Personal dev preferences for this project.Every effective CLAUDE.md contains these six sections in roughly this order:
./CLAUDE.md~/.claude/CLAUDE.mdThe AI Starter Package includes a production-ready CLAUDE.md template used across real projects — with all six sections, example rules, and a memory architecture already wired up.