Software and AI tools · Updated 14 Nov 2026

How Claude Code skills work

Short answer

A Claude Code skill is a folder containing a SKILL.md instruction file plus any scripts, templates or assets it needs. Claude reads it when you name the skill or the task matches. Skills are installed into a skills folder on your computer, and they differ from one-off prompts because they persist and carry tools.

What is inside a skill?

A SKILL.md file with instructions
Scripts that do the heavy lifting
Templates and graphics
A README listing requirements

How is it installed?

You unzip it and place the folder in your Claude skills directory, then restart Claude Code. SkilledCut's install prompt does this for you and asks before replacing anything. See the setup guide.

How is it different from a prompt?

A prompt is a message. A skill is a reusable package that includes tested steps, files and tools, which is why Explainer can produce the same look each run.

Frequently asked questions

Where do skills live?

In a skills folder in your Claude configuration directory, with each skill in its own folder.

Can I edit a skill?

For your own use, yes. SkilledCut's licence allows adjustments but not sharing or reselling.

Do skills run on my computer?

Yes, the scripts run locally, while Claude plans and directs the work.

Can one skill call another?

You can use more than one skill in a project, and name each in your request.

Skills mentioned on this page

Layers
A full motion-graphics edit from one plain clip: words behind your head, plates, charts and cards.
Buy · ₹399 See Layers
Explainer
Turns a talking clip into a clear lesson with gold word-by-word captions and points on screen.
Buy · ₹399 See Explainer

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