diff --git a/src/claude-code/README.md b/src/claude-code/README.md
index c383602..f472851 100644
--- a/src/claude-code/README.md
+++ b/src/claude-code/README.md
@@ -11,10 +11,23 @@ Installs the Claude Code CLI globally
 }
 ```
 
+### Installing as a user (recommended for non-root containers)
+
+If you run your devcontainer as a non-root user (e.g., `vscode` user), use the `installAsUser` option to prevent permission issues with auto-updates:
+
+```json
+"features": {
+    "ghcr.io/anthropics/devcontainer-features/claude-code:1": {
+        "installAsUser": true
+    }
+}
+```
+
 ## Options
 
 | Options Id | Description | Type | Default Value |
 |-----|-----|-----|-----|
+| installAsUser | Install Claude Code locally for the current user instead of globally. This prevents permission issues with auto-updates when running as a non-root user. | boolean | false |
 
 
 ## Customizations
@@ -60,6 +73,19 @@ If your container already has Node.js installed (for example, a container based
 
 When using with containers that have nvm pre-installed, you can use the Claude Code feature directly, and it will use the existing Node.js installation.
 
+## User Installation vs Global Installation
+
+### Global Installation (default)
+- Installs Claude Code system-wide
+- Requires root permissions for updates
+- May cause permission issues when running as non-root user
+
+### User Installation (`installAsUser: true`)
+- Installs Claude Code to `~/.local/bin`
+- Allows updates without root permissions
+- Recommended when running devcontainers as non-root users
+- Automatically configures PATH in shell profiles
+
 
 
 ---
diff --git a/src/claude-code/devcontainer-feature.json b/src/claude-code/devcontainer-feature.json
index c9ba494..1bff615 100644
--- a/src/claude-code/devcontainer-feature.json
+++ b/src/claude-code/devcontainer-feature.json
@@ -1,9 +1,15 @@
 {
     "name": "Claude Code CLI",
     "id": "claude-code",
-    "version": "1.0.5",
-    "description": "Installs the Claude Code CLI globally",
-    "options": {},
+    "version": "1.1.0",
+    "description": "Installs the Claude Code CLI globally or locally for the current user",
+    "options": {
+        "installAsUser": {
+            "type": "boolean",
+            "default": false,
+            "description": "Install Claude Code locally for the current user instead of globally. This prevents permission issues with auto-updates when running as a non-root user."
+        }
+    },
     "documentationURL": "https://github.com/anthropics/devcontainer-features/tree/main/src/claude-code",
     "licenseURL": "https://github.com/anthropics/devcontainer-features/blob/main/LICENSE",
     "customizations": {
diff --git a/src/claude-code/install.sh b/src/claude-code/install.sh
index b115c9e..e75caa8 100755
--- a/src/claude-code/install.sh
+++ b/src/claude-code/install.sh
@@ -89,9 +89,46 @@ install_nodejs() {
 
 # Function to install Claude Code CLI
 install_claude_code() {
-    echo "Installing Claude Code CLI..."
-    npm install -g @anthropic-ai/claude-code
+    local install_as_user="$1"
+    
+    if [ "$install_as_user" = "true" ]; then
+        echo "Installing Claude Code CLI for current user..."
+        
+        # Set npm to install to user directory
+        export NPM_CONFIG_PREFIX="$HOME/.local"
+        mkdir -p "$HOME/.local/bin"
+        
+        # Install globally but to user directory
+        npm install -g @anthropic-ai/claude-code
+        
+        # Add user bin directory to PATH
+        if [[ ":$PATH:" != *":$HOME/.local/bin:"* ]]; then
+            export PATH="$HOME/.local/bin:$PATH"
+            echo "Added $HOME/.local/bin to PATH"
+        fi
+        
+        # Create a script to ensure PATH is set for the user
+        cat > "$HOME/.bashrc_claude" << 'EOF'
+# Add user-local npm packages to PATH
+if [[ ":$PATH:" != *":$HOME/.local/bin:"* ]]; then
+    export PATH="$HOME/.local/bin:$PATH"
+fi
+EOF
+        
+        # Source the script in common shell configs
+        for config_file in "$HOME/.bashrc" "$HOME/.zshrc" "$HOME/.profile"; do
+            if [ -f "$config_file" ] && ! grep -q "source.*\.bashrc_claude" "$config_file"; then
+                echo "source ~/.bashrc_claude" >> "$config_file"
+                echo "Added Claude Code PATH setup to $config_file"
+            fi
+        done
+        
+    else
+        echo "Installing Claude Code CLI globally..."
+        npm install -g @anthropic-ai/claude-code
+    fi
 
+    # Check if claude command is available
     if command -v claude >/dev/null; then
         echo "Claude Code CLI installed successfully!"
         claude --version
@@ -121,6 +158,10 @@ EOF
 # Main script starts here
 main() {
     echo "Activating feature 'claude-code'"
+    
+    # Read the installAsUser option (default: false)
+    local install_as_user="${INSTALLASUSER:-false}"
+    echo "Install as user: $install_as_user"
 
     # Detect package manager
     PKG_MANAGER=$(detect_package_manager)
@@ -133,7 +174,7 @@ main() {
     fi
 
     # Install Claude Code CLI
-    install_claude_code || exit 1
+    install_claude_code "$install_as_user" || exit 1
 }
 
 # Execute main function
diff --git a/test/claude-code/scenarios.json b/test/claude-code/scenarios.json
index 0c894f0..c8a9f7c 100644
--- a/test/claude-code/scenarios.json
+++ b/test/claude-code/scenarios.json
@@ -5,5 +5,14 @@
             "ghcr.io/devcontainers/features/node:1": {},
             "claude-code": {}
         }
+    },
+    "user_install": {
+        "image": "mcr.microsoft.com/devcontainers/base:ubuntu",
+        "features": {
+            "ghcr.io/devcontainers/features/node:1": {},
+            "claude-code": {
+                "installAsUser": true
+            }
+        }
     }
 }
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