diff --git a/.changeset/nasty-nails-repair.md b/.changeset/nasty-nails-repair.md
new file mode 100644
index 000000000..4278f0992
--- /dev/null
+++ b/.changeset/nasty-nails-repair.md
@@ -0,0 +1,5 @@
+---
+"lingo.dev": minor
+---
+
+feat: add init cursor command for .cursorrules setup
diff --git a/packages/cli/assets/agents.md b/packages/cli/assets/agents.md
new file mode 100644
index 000000000..50bb1713b
--- /dev/null
+++ b/packages/cli/assets/agents.md
@@ -0,0 +1,13 @@
+# Cursor AI i18n Rules
+
+The following rules and guidelines should be followed to ensure proper internationalization (i18n) support in Cursor AI agents:
+
+1. **Use translation keys**: All user-facing strings must use translation keys instead of hardcoded text. Reference the appropriate key from your locale files.
+2. **Locale files**: Store translations in locale-specific files (e.g., `en.json`, `fr.json`). Ensure all supported languages are kept in sync.
+3. **Fallback language**: Always provide a fallback language (usually English) for missing translations.
+4. **Pluralization and formatting**: Use i18n libraries that support pluralization, date, and number formatting according to the user's locale.
+5. **No concatenation**: Avoid string concatenation for translatable text. Use interpolation features provided by your i18n library.
+6. **Contextual translations**: Provide context for translators where necessary, especially for ambiguous terms.
+7. **Testing**: Test agents in multiple locales to ensure all strings are translated and formatting is correct.
+
+_For more details, refer to the Cursor AI i18n documentation or contact the localization team._
diff --git a/packages/cli/src/cli/cmd/init.ts b/packages/cli/src/cli/cmd/init.ts
index fed7b41d0..40f7522f3 100644
--- a/packages/cli/src/cli/cmd/init.ts
+++ b/packages/cli/src/cli/cmd/init.ts
@@ -19,6 +19,7 @@ import { ensurePatterns } from "../utils/ensure-patterns";
 import updateGitignore from "../utils/update-gitignore";
 import initCICD from "../utils/init-ci-cd";
 import open from "open";
+import cursorInitCmd from "./init/cursor";
 
 const openUrl = (path: string) => {
   const settings = getSettings(undefined);
@@ -116,7 +117,6 @@ export default new InteractiveCommand()
             throw new Error(`Invalid path: ${p}`);
           }
         }
-
         return values;
       })
       .prompt(undefined) // make non-interactive
@@ -258,4 +258,5 @@ export default new InteractiveCommand()
     if (!isInteractive) {
       Ora().info("Please see https://lingo.dev/cli");
     }
-  });
+  })
+  .addCommand(cursorInitCmd);
diff --git a/packages/cli/src/cli/cmd/init/cursor.ts b/packages/cli/src/cli/cmd/init/cursor.ts
new file mode 100644
index 000000000..788b775cf
--- /dev/null
+++ b/packages/cli/src/cli/cmd/init/cursor.ts
@@ -0,0 +1,58 @@
+import { InteractiveCommand, InteractiveOption } from "interactive-commander";
+import Ora from "ora";
+import fs from "fs";
+import path from "path";
+import { fileURLToPath } from "url";
+import { confirm } from "@inquirer/prompts";
+
+// Get the directory of this file (works in both dev and production)
+const __dirname = path.dirname(fileURLToPath(import.meta.url));
+// Access agents.md from assets directory (bundled with published package)
+const AGENTS_MD = path.resolve(__dirname, "../assets/agents.md");
+// Create .cursorrules in user's current working directory (their project)
+const CURSORRULES = path.resolve(process.cwd(), ".cursorrules");
+
+export default new InteractiveCommand()
+  .command("cursor")
+  .description(
+    "Initialize .cursorrules with i18n-specific instructions for Cursor AI.",
+  )
+  .addOption(
+    new InteractiveOption(
+      "-f, --force",
+      "Overwrite .cursorrules without prompt.",
+    ).default(false),
+  )
+  .action(async (options) => {
+    const spinner = Ora();
+    // Read agents.md
+    let template: string;
+    try {
+      template = fs.readFileSync(AGENTS_MD, "utf-8");
+    } catch (err) {
+      spinner.fail("Template file agents.md not found. Please reinstall the package.");
+      return process.exit(1);
+    }
+    // Check for existing .cursorrules
+    const exists = fs.existsSync(CURSORRULES);
+    let shouldWrite;
+    if (exists && !options.force) {
+      shouldWrite = await confirm({
+        message: ".cursorrules already exists. Overwrite?",
+      });
+      if (!shouldWrite) {
+        spinner.info("Skipped: .cursorrules left unchanged.");
+        return;
+      }
+    }
+    try {
+      fs.writeFileSync(CURSORRULES, template);
+      spinner.succeed("Created .cursorrules");
+      spinner.info(
+        ".cursorrules has been created with i18n-specific instructions for Cursor AI.",
+      );
+    } catch (err) {
+      spinner.fail(`Failed to write .cursorrules: ${err}`);
+      process.exit(1);
+    }
+  });