MCP connects AI to external tools. Skills solve a different problem: how do you package domain knowledge and SOPs so agents load them automatically?
Three Often-Confused Concepts
| Concept | Essence | Analogy |
|---|---|---|
| System prompt | One-shot instruction text | Verbal briefing |
| MCP server | Standard tool/data interface | USB device |
| Skill | Structured knowledge + behavior | Training manual + SOP |
Skills don’t replace MCP—they tell the agent when and how to use MCP and what best practices apply.
What a Cursor Skill Looks Like
A SKILL.md in the right directory. The agent reads it when relevant:
# Git Commit Skill
## When to Use
When the user asks to create a git commit.
## Steps
1. Run git diff to see changes
2. Classify change (feat/fix/refactor/docs)
3. Write message in Conventional Commits format
4. Do not commit unrelated files
## Format
feat(scope): short description
## Examples
feat(auth): add JWT token refresh endpoint
fix(ui): resolve button alignment on mobile
The agent follows this instead of you repeating rules every time.
Skill vs MCP vs Prompt
Need Use
─────────────────────────────────────────
"Let AI query the database" → MCP server
"How/when/what to query" → Skill
"This task's special ask" → user prompt
"Baseline behavior always" → system prompt
Typical stack:
System prompt (baseline)
+ Skills (domain SOPs, on demand)
+ MCP servers (tools and data)
+ user prompt (current task)
Cursor Skill Ecosystem
Official and community skills include:
- create-skill — how to author skills
- create-rule — Cursor rules
- sdk — Cursor SDK guide
- babysit — PR merge-ready workflow
Good skills share traits:
- Clear when to use
- Executable steps, not vague principles
- Examples of input/output
Writing a Good Skill
✅ Good:
- title states scope
- "when to use" is specific ("creating git commit" not "writing code")
- numbered steps
- anti-patterns ("don't do this")
- real examples
❌ Weak:
- "You are an excellent programmer" (system prompt territory)
- no trigger condition
- "ensure quality" without how
Loading in Cursor
- User request
- Agent infers task type
- Selects relevant skills (not all skills at once)
- Executes with skill + MCP + codebase context
Like RAG for procedures—retrieve the right playbook, not the whole library.
Comparison Across Products
| Product | Similar idea | Format |
|---|---|---|
| Cursor | Skill | SKILL.md |
| Claude | Projects + custom instructions | text + files |
| OpenAI | GPTs / custom actions | UI + OpenAPI |
| GitHub Copilot | Instructions | .github/copilot-instructions.md |
Cursor’s structured triggers and steps suit engineering teams standardizing agent behavior.
Summary
Skill = reusable, on-demand domain SOP. MCP gives hands; Skills give the playbook. Together agents execute reliably.
Next: the layer that wires everything—Agent Harness.