Understanding the .claude/ folder structure for Claude Code configuration

Project and global configuration folders
There are two .claude directories: one in your project root for team configuration that gets committed to git, and another in your home directory (~/.claude/) for personal preferences and machine-local state like session history.
CLAUDE.md: The instruction manual
CLAUDE.md is loaded into Claude's system prompt at the start of each session and followed throughout the conversation. You can have CLAUDE.md at project root, in ~/.claude/ for global preferences, or in subdirectories for folder-specific rules.
Effective CLAUDE.md content includes:
- Build, test, and lint commands (npm run test, make build, etc.)
- Key architectural decisions
- Non-obvious gotchas
- Import conventions, naming patterns, error handling styles
- File and folder structure for main modules
Keep CLAUDE.md under 200 lines. Files longer than that start eating too much context and Claude's instruction adherence drops.
Example CLAUDE.md structure
# Project: Acme APICommands
npm run dev # Start dev server npm run test # Run tests (Jest) npm run lint # ESLint + Prettier check npm run build # Production build
Architecture
- Express REST API, Node 20
- PostgreSQL via Prisma ORM
- All handlers live in src/handlers/
- Shared types in src/types/
Conventions
- Use zod for request validation in every handler
- Return shape is always { data, error }
- Never expose stack traces to the client
- Use the logger module, not console.log
Watch out for
- Tests use a real local DB, not mocks. Run
npm run db:test:resetfirst - Strict TypeScript: no unused imports, ever
Personal overrides with CLAUDE.local.md
Create CLAUDE.local.md in your project root for personal preferences that don't apply to the whole team. Claude reads it alongside the main CLAUDE.md, and it's automatically gitignored so personal tweaks never land in the repository.
Modular instructions with rules/ folder
For larger teams, the rules/ folder provides modular instructions that scale better than a single large CLAUDE.md file.
📖 Read the full source: HN AI Agents
👀 See Also

How to Optimize Your OpenClaw Setup with Specific Instructions and Refinements
OpenClaw optimization relies on precise instructions and continuous refinement of agent personalities and cost-effective model utilization.

OpenClaw Docker users: Pin to commit 0c926a2c5 to fix broken Discord and channel extensions
After updating OpenClaw via Docker, channel extensions like Discord, Signal, and WhatsApp fail with module import errors. The issue stems from commit d9c285e93 and a second Docker-specific bug. Pin to commit 0c926a2c5 for a stable workaround.

The LLM Voice Problem: Avoiding AI-Generated Writing Patterns
A developer discusses the common issue of LLM-assisted writing having recognizable "LLM-isms" that trigger immediate AI detection, and shares an article on identifying these patterns and editing for authenticity.

Practical Guide to Self-Hosting Your First LLM
A Reddit post outlines reasons for self-hosting LLMs including privacy for sensitive data, cost predictability for agent workloads, performance improvements by removing API roundtrips, and customization through fine-tuning methods like LoRA and QLoRA.