When you start a new session in the Claude Code desktop app, an environment menu sits under the message box. Added in the October 2026 updates, it decides where Claude does the work. This guide explains what This computer (Local), Cloud and New environment mean and which to pick, based on the official docs and the actual screens.
🟢 Model references match the current lineup · model notice · Fable subscription
Fable 5 and 5.1 subscription (updated November 1, 2026): Claude Fable 5.1, released September 1, 2026, is the current Fable model and Fable 5 is now legacy. Plan terms are the same for both — Max, Ultra, and Team Premium plans include Fable at up to 50% of the weekly usage limit; Pro and Team Standard use usage credits ($10/M input, $50/M output tokens). The one-time $100 credit applied only to the Fable 5 transition and is not offered for 5.1. Some coding and debugging requests may be answered by an Opus model due to a security classifier (both models). See the Fable 5.1 guide and the Fable 5 availability guide for details.
- This computer (Local): works on your PC with your own files and programs. Pick this if you're new.
- Cloud: works on Anthropic's servers and keeps going after you close the app or shut down your PC, but can't see files on your PC (you pick a repository instead).
- New environment: saves a folder, SSH connection or cloud setup under a name. Skipping it costs you nothing.
- Cloud usage counts toward your plan limits with no separate compute charge (official docs).
What each option is
① This computer (Local)
In the official docs' words, a local session "runs on your machine with direct access to your files." You get your project folders, installed programs and browser sign-ins, so most work belongs here. The catch: if your PC sleeps or you quit the app, the work stops.
② Cloud
Cloud sessions run on Anthropic-managed infrastructure and, per the docs, "continue even if you close the app or shut down your computer." You can check on them at claude.ai/code or in the Claude mobile app. Instead of a folder, you pick one or more repositories; your PC's files, programs and sign-ins aren't available.
- Default environment: ready out of the box, with Trusted network access (package registries, GitHub, cloud SDKs and other allowlisted domains only) and no environment variables or setup script.
- Add cloud environment: set a name, network access level (None, Trusted, Full, Custom), environment variables and a setup script that installs what Claude needs before it starts.
- Same everywhere: cloud environments are shared by the desktop app, the mobile app, claude.ai/code,
claude --cloudin the terminal and cloud scheduled tasks. - When idle: after a few minutes without activity the VM pauses with its files saved; your next message restores it.
- Cost: usage counts toward your subscription plan limits with no separate compute charge.
- Permission modes: Accept edits, Plan and Auto; Bypass permissions isn't available.
③ New environment (saved environments)
New environment at the bottom of the menu saves a setup you use often under a name. Pick the Local, SSH or Cloud tab, create it, and next time just choose its name.
What a saved environment holds, per the official docs:
- Folders: local and SSH environments hold the folders Claude works in, so you don't pick a folder separately.
- Worktree default: for a Git repository you can decide whether each session uses its own worktree. It doesn't apply to a folder marked "Not a Git repo".
- Environment variables (local): one
KEY=valueper line, applied only to sessions started from that environment. Dev servers don't receive these values.
Why save an environment
- Faster starts: choose a name instead of hunting for a folder each time.
- Tidier projects: group the sidebar by environment so projects don't mix (October 15 desktop update).
- Separate settings: keep each project's environment variables apart. Since the October 8 update, variables live on saved environments and "This computer" starts clean.
Skipping it costs nothing. You can still choose This computer and a folder. Also, per the docs, the desktop app may create up to eight local or SSH environments for you from folders you used in the last month, which explains entries you never made.
Which one to choose
| If you… | Choose |
|---|---|
| are new, or want to edit files in a folder on your PC | This computer |
| need files only on your PC, signed-in sites or your company network | This computer (cloud can't reach them) |
| want to hand off a long task on a GitHub repo and shut down your PC | Cloud |
| want to check progress from your phone while out | Cloud, or turn on Remote Control for a local session |
| must work on a company server or cloud VM | New environment → SSH tab |
| switch between several projects | Save each as a New environment |
Per the official desktop docs, Remote Control isn't in the environment list: you turn it on with a session's Remote Control switch or /remote-control. It makes a local session visible on claude.ai/code and in the mobile apps, while the work keeps running on your PC (which must stay on). The October 15 release notes mention saving a Remote Control machine as an environment, so the menu may differ by version (uncertain).
Before you start
- Cloud sessions are a paid-plan feature: Pro, Max and Team, plus Enterprise users with premium seats or Chat + Claude Code seats.
- Don't put passwords or API keys in environment variables. The docs say anyone using a cloud environment can read its variables and recommend a network secret instead: Anthropic's proxy attaches the key to requests, so the key never appears inside the session (Pro, Max, Team, Enterprise).
- Local variables entered in the "This computer" editor are stored encrypted on your machine, per the docs. Still take care on shared PCs.
- Cloud environments are archived, not deleted. No new session can start in an archived environment.
- On work accounts, an admin may disable local sessions; This computer then appears grayed out with "Disabled by your organization".
Frequently asked questions
Is there a downside to not creating environments?
No. Choose This computer and a folder and you can work the same way. New environment is a convenience for folders you open often.
There are environments I never created.
Per the docs, the desktop app can create up to eight local or SSH environments from folders you used in the last month. Hover over one and use the gear icon to remove it.
Does the cloud cost extra?
The desktop docs say cloud usage counts toward your subscription plan limits with no separate compute charge, so it uses up your plan's allowance instead.
Can a cloud session open a folder on my PC?
No. Cloud sessions run on Anthropic's servers and can't reach your files; you pick repositories instead. For your own files use This computer, and turn on Remote Control to follow along from elsewhere.
Will I see this on the free plan?
Cloud sessions are available on Pro, Max and Team and some Enterprise seats. The docs don't say what the free plan shows (uncertain).
More: Download and install the Claude desktop app · Build an internal business system with the Claude Code desktop app · Claude Code install guide