If you want to develop 2D Android games and need to use AndEngine, first you should download and install AndEngine project source codes into Eclipse.
Because it is located on GitHub, first you should be sure that your eclipse has Git plugin installed. If it is not, you can find and install on Help->Install new software and search for git. Then, select Eclipse EGit and install:
Now, you can download AndEngine source codes with right click on package explorer and then import -> Git -> Projects From Git. Before installing other extensions, you should start importing AndEngine source codes using https://github.com/nicolasgramlich/AndEngine URL:
After importing AndEngine source codes into your workspace, if you see an error in Eclipse’s console window, it is probably the Java Compiler level. Just right click project and go to Java Compiler section. Then, check “enable project specific settings” and select 1.6. Finally, you should clean AndEngine project (Project -> Clean) in order to get rid of the errors. In addition, you should change project build target to 4.0 with going to Properties -> Android -> Project Build Target section.
Note: Your Android SDK should include all the other APIs. So go to your Android SDK Manager and be sure that they all were installed.
Note: Check that “Is Library” attribute is checked under Android Properties -> Android window.
You will need other extensions while developing your game. They can be found in the same web page of the AndEngine. However, you will not need all of them in your project. So, determine whinh ones you will use and download them from GitHub similar to AndEngine just explained above. There is an other option that you download all of the extensions into your workspace and link necessery ones to your projects.Remember that you should again change Java compiler level and build target for every extension.
Other extensions you might download are: