This research paper presents an AI-assisted web-based coding platform, Code Understanding using Sherlock, that integrates a real-time compiler with an AI-powered chatbot. The chatbot provides contextual assistance based on selected code snippets or general programming queries. Users can toggle between a standard chatbot mode and a code-aware mode, where the chatbot analyzes selected code portions to answer relevant questions. The system enhances the coding experience by providing explanations, debugging help, and execution functionalities. By leveraging AI and NLP techniques, the chatbot can understand syntax, logical structures, and common programming errors, offering detailed feedback and solutions. The platform streamlines the development process by reducing debugging time and enhancing code comprehension. Additionally, the system provides a seamless file management experience, enabling users to create, edit, and organize their projects efficiently. This integration fosters an interactive learning and development environment, making it valuable for both beginners and experienced programmers.