Prompt Optimizer for VS Code

Local prompt optimization, semantic cache, credit forecasting, memory, and SDLC agents inside VS Code.

Prompt Optimizer Control Panel

Processing is local. The extension reads your workspace, optimizes the prompt, warns about secrets, and sends data only when you explicitly send to Copilot.

Quick Start

Run Prompt Optimizer: Open Prompt Optimizer Guide.
Open the Prompt Optimizer sidebar in the Chat view.
Pick a mode: Optimize only, Agent, or Direct send.
Type a prompt and press Ctrl+Enter.
Review tokens, cache status, credit forecast, and the optimized prompt.

Modes

Mode	What happens
`Optimize only`	Default. Shows analysis and optimized prompt. You choose when to send.
`Agent`	Optimizes locally, opens Copilot Chat, and submits the optimized prompt.
`Direct send`	Opens Chat with `@promptoptimizer <prompt>` prefilled.

Switch from the sidebar, status bar, or @promptoptimizer /mode agent|optimize|direct.

What Runs Locally

Prompt compression and meaning-preserving sentence shortening.
Secret detection before send.
Exact and semantic cache lookup.
Context packing from active file, visible editors, diagnostics, recent saves, memory files, knowledge graph, and optional peer workspaces.
SDLC mode/agent selection.
Token, cost, and monthly credit forecast.
Prompt history and Git-style prompt versions.

Visual Tour - opens the interactive onboarding guide.
Guide - shows common actions.
History - restores, diffs, re-optimizes, or sends prior prompts.
Versions - commit, log, branch, switch, and tag prompts.
Try example - inserts a sample prompt.
Memory - opens workspace memory files.
Peers - connects local peer-workspace caches.
Agents - enables bundled SDLC agents or creates custom agents.
Refresh button - re-indexes the overview on demand.
Gear menu - secret detection settings and reset-to-defaults.

Agents And Skills

Built-in slash modes: /plan, /arch, /code, /test, /review, /security, /qa, /devops, /docs, /pr, /full, /bug-fix, /refactor.

Custom skills live in .promptoptimizer/skills/*.md. Global skills can be loaded from PROMPT_OPTIMIZER_SKILLS_DIR. Skill files hot-reload on the next prompt.

The Agents picker can enable, disable, edit, reset, remove, or create workspace agents. Enabled bundled agents are copied into .promptoptimizer/skills/ so your edits survive extension updates.

Memory And Cache

Prompt Optimizer indexes:

AGENTS.md, CLAUDE.md, .github/copilot-instructions.md
.promptoptimizer/memory.md, .promptoptimizer/knowledge.md
.cursorrules, .clinerules
git log, README/package metadata, active editors, diagnostics, and recent saves

The semantic cache is SQLite on your disk. Exact matches return immediately. Semantic matches at 68% or higher can reuse prior optimized prompts.

Privacy

Surface	Behavior
Processing	Runs on your machine.
Telemetry	None.
Cache	Local SQLite file from `promptProxy.dbPath`.
Secrets	Warned before any send. Custom patterns supported.
Network	Only the Copilot request you explicitly trigger.
Updates	Preserve settings, memory, cache, prompt versions, and custom agents.

Commands

Command	Purpose
`Focus Control Panel`	Open the sidebar.
`Open Chat Participant`	Jump to `@promptoptimizer`.
`Open Prompt Optimizer Guide`	Reopen onboarding.
`Select Mode (Agent / Optimize / Direct)`	Change run mode.
`Optimize Clipboard & Cost Forecast`	Optimize clipboard text.
`Copy Last Optimized Prompt`	Copy the latest result.
`Send Last Optimized Prompt To Chat`	Open Chat with latest result.
`Confirm and Send Pending Optimized Prompt`	Send the reviewed prompt.
`Cancel Pending Optimized Prompt`	Discard pending send.
`Show Cache Statistics`	Inspect local cache.
`Clear Semantic Cache`	Clear cache only.
`Clear Conversation Memory`	Clear this workspace's memory.
`Reset to Defaults`	Choose settings, cache, memory, or custom agents to reset.
`Open Workspace Memory File`	Edit long-lived workspace notes.
`Manage Peer Workspaces`	Add/remove peer caches.
`Show Knowledge Graph Stats`	Inspect graph counts.
`Show File Digest Summary`	Inspect indexed file digests.
`List Agent Skills (Modes)`	Show loaded skills.
`Create / Edit Agent Skill`	Create or edit a workspace skill.
`Diagnose Skill Loading Errors`	Open broken skills.
`Manage SDLC Agent Skills`	Enable, edit, reset, remove, or create agents.
`Health Check`	Check engine/database health.
`Show Engine Metrics`	View request/cache counters.
`Run Database Maintenance`	Prune old local data.
`Export Database`	Back up the SQLite database.
`Sync Copilot Instructions Memory`	Update the managed memory block in Copilot instructions.
`Suggest Workspace Memory Improvements`	Get memory-file improvement ideas.
`Show Memory Budget`	Inspect memory packing limits.
`Show Prompt History`	Browse prior prompts.
`Commit Prompt`, `Prompt Log`, `Create Prompt Branch`, `Switch Prompt Branch`	Version prompts.

Settings

Important settings under Extensions > Prompt Optimizer:

Setting	Default	Purpose
`promptProxy.targetModel`	`gpt-4.1`	Forecast/model pattern target.
`promptProxy.processingMode`	`blocking`	Cache lookup behavior.
`promptProxy.enableSessionContext`	`true`	Include recent turns.
`promptProxy.subscriptionPlan`	`pro`	Monthly credit allowance.
`promptProxy.forecastRequestsPerDay`	`20`	Credit forecast volume.
`promptProxy.enableSecretDetection`	`true`	Secret scanner.
`promptProxy.secretPatterns`	`[]`	Custom scanner rules.
`promptProxy.optimize.autoOpenChat`	`true`	Open Chat after optimization where applicable.
`promptProxy.dbPath`	global storage	SQLite cache path.

Onboarding

The interactive guide ships as a webview because Markdown strips scripts and styles.

Open it with:

Prompt Optimizer: Open Prompt Optimizer Guide

It covers the pipeline, modes, sidebar controls, memory, cache, secrets, commands, and reset behavior.

Prompt Optimizer - Local

Pawan Balapure