diff --git a/app/gitspace/orchestrator/container/embedded_docker_container_orchestrator.go b/app/gitspace/orchestrator/container/embedded_docker_container_orchestrator.go
index 6fe92abce..77a47eda9 100644
--- a/app/gitspace/orchestrator/container/embedded_docker_container_orchestrator.go
+++ b/app/gitspace/orchestrator/container/embedded_docker_container_orchestrator.go
@@ -675,6 +675,17 @@ func (e *EmbeddedDockerOrchestrator) buildSetupSteps(
 			},
 			StopOnFailure: true,
 		},
+		{
+			Name: "Install AI agents",
+			Execute: func(
+				ctx context.Context,
+				exec *devcontainer.Exec,
+				gitspaceLogger gitspaceTypes.GitspaceLogger,
+			) error {
+				return utils.InstallAIAgents(ctx, exec, gitspaceLogger, gitspaceConfig.AIAgents)
+			},
+			StopOnFailure: true,
+		},
 		{
 			Name: "Setup IDE",
 			Execute: func(
diff --git a/app/gitspace/orchestrator/utils/ai_agent.go b/app/gitspace/orchestrator/utils/ai_agent.go
new file mode 100644
index 000000000..1a1e3ecfc
--- /dev/null
+++ b/app/gitspace/orchestrator/utils/ai_agent.go
@@ -0,0 +1,80 @@
+// Copyright 2023 Harness, Inc.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package utils
+
+import (
+	"context"
+	"fmt"
+
+	"github.com/harness/gitness/app/gitspace/orchestrator/devcontainer"
+	"github.com/harness/gitness/app/gitspace/types"
+	"github.com/harness/gitness/types/enum"
+)
+
+const (
+	templateClaudeCodeInstallScript = "install_claude_code.sh"
+)
+
+type installAgentFun func(context.Context, *devcontainer.Exec, types.GitspaceLogger) error
+
+var installationMap = map[enum.AIAgent]installAgentFun{
+	enum.AIAgentClaudeCode: installClaudeCode,
+}
+
+func InstallAIAgents(
+	ctx context.Context,
+	exec *devcontainer.Exec,
+	gitspaceLogger types.GitspaceLogger,
+	aiAgents []enum.AIAgent,
+) error {
+	gitspaceLogger.Info(fmt.Sprintf("Installing ai agents: %v...", aiAgents))
+	for _, aiAgent := range aiAgents {
+		installFun, ok := installationMap[aiAgent]
+		if !ok {
+			return fmt.Errorf("installation not available for %s", aiAgent)
+		}
+
+		if err := installFun(ctx, exec, gitspaceLogger); err != nil {
+			return err
+		}
+	}
+
+	gitspaceLogger.Info("Successfully installed ai agents")
+	return nil
+}
+
+func installClaudeCode(
+	ctx context.Context,
+	exec *devcontainer.Exec,
+	gitspaceLogger types.GitspaceLogger,
+) error {
+	script, err := GenerateScriptFromTemplate(
+		templateClaudeCodeInstallScript, &types.SetupClaudeCodePayload{
+			OSInfoScript: GetOSInfoScript(),
+		})
+	if err != nil {
+		return fmt.Errorf(
+			"failed to generate script to install claude code from template %s: %w",
+			templateClaudeCodeInstallScript, err)
+	}
+	gitspaceLogger.Info("Installing claude code output...")
+	gitspaceLogger.Info("Installing claude code inside container")
+	err = exec.ExecuteCommandInHomeDirAndLog(ctx, script, true, gitspaceLogger, true)
+	if err != nil {
+		return fmt.Errorf("failed to install claude code : %w", err)
+	}
+	gitspaceLogger.Info("Successfully Installed claude code")
+	return nil
+}
diff --git a/app/gitspace/orchestrator/utils/script_templates/install_claude_code.sh b/app/gitspace/orchestrator/utils/script_templates/install_claude_code.sh
new file mode 100644
index 000000000..b64d9c1ed
--- /dev/null
+++ b/app/gitspace/orchestrator/utils/script_templates/install_claude_code.sh
@@ -0,0 +1,76 @@
+#!/bin/sh
+osInfoScript={{ .OSInfoScript }}
+
+eval "$osInfoScript"
+
+# Function to install Node.js and npm
+install_nodejs() {
+  echo "Checking if Node.js is installed..."
+  if ! command -v node >/dev/null 2>&1; then
+    echo "Installing Node.js for $(distro)"
+    case "$(distro)" in
+      debian)
+        export DEBIAN_FRONTEND=noninteractive
+        # Install Node.js 18.x LTS
+        curl -fsSL https://deb.nodesource.com/setup_18.x | bash -
+        apt-get install -y nodejs
+        ;;
+      fedora)
+        dnf install -y nodejs npm
+        ;;
+      opensuse)
+        zypper install -y nodejs18 npm18
+        ;;
+      alpine)
+        apk add --no-cache nodejs npm
+        ;;
+      arch)
+        pacman -Syu --noconfirm nodejs npm
+        ;;
+      freebsd)
+        pkg install -y node18 npm
+        ;;
+      *)
+        echo "Unsupported distribution: $(distro). Please install Node.js manually."
+        exit 1
+        ;;
+    esac
+    echo "Node.js installation completed."
+  else
+    echo "Node.js is already installed."
+  fi
+  # Verify installation
+  if command -v node >/dev/null && command -v npm >/dev/null; then
+      echo "Successfully installed Node.js and npm"
+      return 0
+  else
+      echo "Failed to install Node.js and npm"
+      return 1
+  fi
+}
+
+# Function to install Claude Code CLI
+install_claude_code() {
+    echo "Installing Claude Code CLI..."
+    npm install -g @anthropic-ai/claude-code
+    if command -v claude >/dev/null; then
+        echo "Claude Code CLI installed successfully!"
+        claude --version
+        return 0
+    else
+        echo "ERROR: Claude Code CLI installation failed!"
+        return 1
+    fi
+}
+
+# Install required dependencies
+if ! install_nodejs; then
+    echo "ERROR: Failed to install Node.js dependencies"
+    exit 1
+fi
+
+# Install Claude agent
+if ! install_claude_code; then
+    echo "ERROR: Failed to install Claude Code CLI"
+    exit 1
+fi
diff --git a/app/gitspace/types/script_template_payload.go b/app/gitspace/types/script_template_payload.go
index b783c6a98..5301f2007 100644
--- a/app/gitspace/types/script_template_payload.go
+++ b/app/gitspace/types/script_template_payload.go
@@ -98,3 +98,7 @@ type RunIntellijIDEPayload struct {
 	IdeDownloadURL string
 	IdeDirName     string
 }
+
+type SetupClaudeCodePayload struct {
+	OSInfoScript string
+}