What Are Claude Skills? Complete Guide (2025)
Learn how Claude Skills work, why they matter, and how to create, manage, and secure them in Claude Code.

Claude Skills are modular, filesystem-based AI capabilities that transform Anthropic's Claude Sonnet 4.5 and related 4.5-series models from general-purpose assistants into specialized agents - automating structured workflows through reusable procedural knowledge.
Intro
Launched on October 16, 2025, Anthropic's Claude Skills framework lets teams capture and reuse procedural knowledge directly within Claude. Each Skill is a folder of instructions and scripts that Claude discovers dynamically, turning prompts into standardized workflows.
Anthropic's September 2025 Economic Index reports that directive conversations - those in which Claude autonomously executes structured tasks - rose from 27% to 39% compared with late 2024. (Source: Anthropic Economic Index 2025)
Skills are designed precisely for this autonomy trend.
TL;DR
- Claude Skills = reusable AI procedures stored as folders with a
SKILL.mdmanifest - Progressive disclosure keeps context lean by loading only relevant content
- Integrates with Claude Code for filesystem, Bash, and version-controlled collaboration
- Official document Skills (
docx,pdf,pptx,xlsx) ship as pre-built capabilities - Sugar.dev internal testing observed ≈ 40% faster QA/reporting workflows (illustrative, non-representative)
How do Claude Skills actually work?
Claude Skills load knowledge progressively in three stages - metadata, instructions, and on-demand resources. Claude first learns what capabilities exist, then loads details when needed, and finally accesses extra files or scripts on demand. This preserves context space inside Claude Sonnet 4.5's 200k-token window and enables multi-Skill composition.
Three-tier architecture
- Metadata (Level 1) – lightweight YAML fields (
name,description) load at startup - Instruction (Level 2) – Claude reads
SKILL.mdfor procedures and examples - Resources (Level 3) – additional docs or scripts load on demand

Takeaway: Progressive disclosure keeps Skills light, scalable, and efficient. (Source: Anthropic Docs 2025)
Where are Claude Skills stored and how do you set them up?
Claude Code recognizes three locations for Skills - Personal, Project, and Plugin - so individuals and teams can manage workflows separately but consistently. Personal Skills live in a user directory, Project Skills reside in the repo for team sharing, and Plugin Skills distribute via marketplaces for organization-wide use.
1 · Personal Skills
Path: ~/.claude/skills/ – ideal for private workflows.
1mkdir -p ~/.claude/skills/my-skill2code ~/.claude/skills/my-skill/SKILL.md2 · Project Skills
Path: .claude/skills/ in repo root – shared via git.
1git add .claude/skills/2git commit -m "Add team workflow Skill"3 · Plugin Skills
Installed through marketplaces in Claude Code or API environments:
1/plugin marketplace add anthropics/skills2/plugin install document-skills@anthropic-agent-skillsTakeaway: Storage tiers mirror real-world collaboration patterns. (Source: Anthropic GitHub 2025)
What's inside a SKILL.md file?
Each Skill centers on a SKILL.md manifest with YAML frontmatter and Markdown instructions. The description field triggers activation; optional fields may include version, dependencies, or tool restrictions. The Markdown body contains procedures, examples, and references.
1---2name: pdf-processor3description: "Extract text and tables from PDF files; use when working with forms or documents."4version: 1.05dependencies: [pypdf2, pandas]6---Takeaway: SKILL.md acts as both manifest and manual - how Claude discovers and executes your procedure. (Source: Anthropic Docs 2025)
Which pre-built and community Skills exist today?
Anthropic ships four official document Skills (docx, pdf, pptx, xlsx) and maintains a public repository with additional examples. Community lists track rapid growth of custom Skills in creative, technical, and enterprise domains.
As of October 2025, Anthropic's repo lists ≈ 14 Skills; community lists such as travisvn/awesome-claude-skills show 20+ entries.
Confirmed examples: algorithmic-art, slack-gif-creator, brand-guidelines, webapp-testing.
Takeaway: Claude Skills are early-stage but expanding as developers publish specialized procedures. (Source: Anthropic GitHub 2025)
How do Claude Skills use Bash and deterministic execution?
Claude Code's Bash tool lets Skills run commands and scripts in a persistent shell. Claude handles reasoning and decision logic; Bash handles precise execution-testing, data processing, or script invocation. This hybrid model combines language understanding with deterministic outcomes.
1git status2python scripts/extract_forms.py input.pdfTakeaway: Bash integration gives Skills real-world agency while preserving safety. (Source: Anthropic Docs 2025)
How can developers create and test custom Skills?
Start with Anthropic's examples, observe how they trigger, then use the skill-creator Skill to scaffold your own. Focus on one repeatable workflow, test triggers, and iterate descriptions until Claude activates reliably. Commit to .claude/skills/ for team distribution.
Steps:
/plugin marketplace add anthropics/skills/plugin install example-skills@anthropic-agent-skills- Prompt to observe trigger
- Use
skill-creatorto generate structure - Commit to repo
Takeaway: Iterative testing and clear descriptions ensure robust Skill activation. (Source: Anthropic GitHub 2025)
How do Skills compare to Projects, Custom Instructions, and MCP Servers?
Skills encode procedures, Projects store persistent context, Custom Instructions set interaction preferences, and MCP Servers (Model Context Protocol) connect Claude to external tools or data. Used together, they create a full stack for scalable automation.
| Layer | Purpose | Persistence | Example Use |
|---|---|---|---|
| Skills | Reusable procedural workflows | Ephemeral | Generate reports, QA checks |
| Projects | Persistent context and memory | Session-based | Manage ongoing campaigns |
| Custom Instructions | Default behavior and tone | Global | Set communication style |
| MCP Servers | External integrations and APIs | Continuous | Fetch CRM data, trigger pipelines |
Takeaway: Combine Skills + Projects + MCP for complete AI operations. (Source: Anthropic Docs 2025)
How secure are Claude Skills in practice?
Claude Code executes Skills inside a sandboxed environment with filesystem controls and tool-use confirmations. Treat Skills like software packages: use trusted sources, review scripts, restrict permissions, and store secrets as environment variables - not inline.
| Best Practice | Why It Matters |
|---|---|
| Use trusted repositories only | Prevents malicious code execution |
| Review scripts and dependencies | Blocks hidden network calls or data leaks |
| Apply read-only modes where possible | Reduces file-modification risk |
| Never embed API keys or credentials | Keeps secrets secure via environment variables |
Takeaway: Follow least-privilege principles - Skills inherit your execution rights. (Source: Anthropic Docs 2025)
FAQs
Conclusion
Claude Skills represent the procedural layer of Anthropic's automation stack-codifying team expertise into discoverable AI capabilities. With structured metadata and deterministic execution, Skills standardize how organizations automate knowledge work at scale.
At Sugar.dev, we built a QA reporting Skill that applies our internal style guide automatically - an illustrative example of workflow standardization.