diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/delete.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/delete.go
new file mode 100644
index 00000000000..701e96b6e18
--- /dev/null
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/delete.go
@@ -0,0 +1,226 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+package cmd
+
+import (
+	"context"
+	"encoding/json"
+	"errors"
+	"fmt"
+	"log"
+	"net/http"
+
+	"azureaiagent/internal/exterrors"
+	"azureaiagent/internal/pkg/agents/agent_api"
+
+	"github.com/Azure/azure-sdk-for-go/sdk/azcore"
+	"github.com/azure/azure-dev/cli/azd/pkg/azdext"
+	"github.com/spf13/cobra"
+)
+
+type deleteFlags struct {
+	name     string
+	force    bool
+	output   string
+	noPrompt bool
+}
+
+func newDeleteCommand(extCtx *azdext.ExtensionContext) *cobra.Command {
+	flags := &deleteFlags{}
+	extCtx = ensureExtensionContext(extCtx)
+
+	cmd := &cobra.Command{
+		Use:   "delete [name]",
+		Short: "Delete a hosted agent.",
+		Long: `Delete a hosted agent and all of its versions.
+
+If the agent has active sessions, deletion will fail unless --force is passed.
+Use --force to terminate active sessions and delete the agent.
+
+The agent name is resolved from the azd environment when omitted.`,
+		Example: `  # Delete agent (auto-resolves name from azure.yaml)
+  azd ai agent delete
+
+  # Delete a specific agent by name
+  azd ai agent delete my-agent
+
+  # Force-delete even if active sessions exist
+  azd ai agent delete my-agent --force`,
+		Args: cobra.MaximumNArgs(1),
+		RunE: func(cmd *cobra.Command, args []string) error {
+			if len(args) > 0 {
+				flags.name = args[0]
+			}
+			flags.output = extCtx.OutputFormat
+			flags.noPrompt = extCtx.NoPrompt
+
+			ctx := azdext.WithAccessToken(cmd.Context())
+
+			action := &DeleteAction{flags: flags}
+			return action.Run(ctx)
+		},
+	}
+
+	cmd.Flags().BoolVar(
+		&flags.force, "force", false,
+		"Force deletion even if the agent has active sessions",
+	)
+
+	azdext.RegisterFlagOptions(cmd, azdext.FlagOptions{
+		Name:          "output",
+		AllowedValues: []string{"json", "none"},
+		Default:       "none",
+	})
+
+	return cmd
+}
+
+// DeleteAction implements the agent delete command.
+type DeleteAction struct {
+	flags *deleteFlags
+}
+
+func (a *DeleteAction) Run(ctx context.Context) error {
+	azdClient, err := azdext.NewAzdClient()
+	if err != nil {
+		return fmt.Errorf("failed to create azd client: %w", err)
+	}
+	defer azdClient.Close()
+
+	info, err := resolveAgentServiceFromProject(ctx, azdClient, a.flags.name, a.flags.noPrompt)
+	if err != nil {
+		return err
+	}
+
+	agentName := info.AgentName
+	if agentName == "" {
+		agentName = a.flags.name
+	}
+	if agentName == "" {
+		return exterrors.Validation(
+			exterrors.CodeInvalidAgentName,
+			"agent name is required but could not be resolved",
+			"provide the agent name as a positional argument or "+
+				"deploy the agent with 'azd up' first",
+		)
+	}
+
+	// Confirmation prompt (skip in --no-prompt mode)
+	if !a.flags.noPrompt {
+		message := fmt.Sprintf("Delete agent %q and all its versions?", agentName)
+		if a.flags.force {
+			message = fmt.Sprintf(
+				"Force-delete agent %q? This will terminate all active sessions.",
+				agentName,
+			)
+		}
+		defaultValue := false
+		resp, promptErr := azdClient.Prompt().Confirm(ctx, &azdext.ConfirmRequest{
+			Options: &azdext.ConfirmOptions{
+				Message:      message,
+				DefaultValue: &defaultValue,
+			},
+		})
+		if promptErr != nil {
+			if exterrors.IsCancellation(promptErr) {
+				return exterrors.Cancelled("delete cancelled")
+			}
+			return fmt.Errorf("prompting for confirmation: %w", promptErr)
+		}
+		if resp.Value == nil || !*resp.Value {
+			return exterrors.Cancelled("delete cancelled by user")
+		}
+	}
+
+	endpoint, err := resolveAgentEndpoint(ctx, "", "")
+	if err != nil {
+		return err
+	}
+
+	credential, err := newAgentCredential()
+	if err != nil {
+		return err
+	}
+
+	client := agent_api.NewAgentClient(endpoint, credential)
+
+	result, err := client.DeleteAgent(ctx, agentName, DefaultAgentAPIVersion, a.flags.force)
+	if err != nil {
+		return classifyDeleteError(err, agentName)
+	}
+
+	// Best-effort: clear AGENT_{KEY}_NAME and AGENT_{KEY}_VERSION env vars
+	a.cleanupEnvVars(ctx, azdClient, info.ServiceName)
+
+	switch a.flags.output {
+	case "json":
+		data, jsonErr := json.MarshalIndent(result, "", "  ")
+		if jsonErr != nil {
+			return fmt.Errorf("failed to marshal response: %w", jsonErr)
+		}
+		fmt.Println(string(data))
+	default:
+		fmt.Printf("Agent %q deleted.\n", agentName)
+	}
+
+	return nil
+}
+
+// cleanupEnvVars removes AGENT_{KEY}_NAME, AGENT_{KEY}_VERSION, and
+// AGENT_{KEY}_ENDPOINT from the azd environment after a successful delete.
+// The SDK has no DeleteValue API, so we set values to empty string as a workaround.
+func (a *DeleteAction) cleanupEnvVars(ctx context.Context, azdClient *azdext.AzdClient, serviceName string) {
+	if serviceName == "" {
+		return
+	}
+
+	envResp, err := azdClient.Environment().GetCurrent(ctx, &azdext.EmptyRequest{})
+	if err != nil {
+		return
+	}
+	envName := envResp.Environment.Name
+
+	serviceKey := toServiceKey(serviceName)
+	keys := []string{
+		fmt.Sprintf("AGENT_%s_NAME", serviceKey),
+		fmt.Sprintf("AGENT_%s_VERSION", serviceKey),
+		fmt.Sprintf("AGENT_%s_ENDPOINT", serviceKey),
+	}
+
+	for _, key := range keys {
+		if _, err := azdClient.Environment().SetValue(ctx, &azdext.SetEnvRequest{
+			EnvName: envName,
+			Key:     key,
+			Value:   "",
+		}); err != nil {
+			log.Printf("delete: failed to clear env var %s: %v", key, err)
+		}
+	}
+}
+
+// classifyDeleteError maps Azure API errors from the delete operation into
+// user-friendly typed errors. Exported for testing.
+func classifyDeleteError(err error, agentName string) error {
+	if respErr, ok := errors.AsType[*azcore.ResponseError](err); ok {
+		switch respErr.StatusCode {
+		case http.StatusNotFound:
+			return exterrors.Validation(
+				exterrors.CodeAgentNotFound,
+				fmt.Sprintf("agent %q not found", agentName),
+				"use 'azd ai agent show' to verify the agent exists",
+			)
+		case http.StatusConflict:
+			return exterrors.Validation(
+				exterrors.CodeAgentHasActiveSessions,
+				fmt.Sprintf(
+					"agent %q has active sessions and cannot be deleted",
+					agentName,
+				),
+				"pass --force to terminate active sessions and delete the agent, "+
+					"or delete sessions first with 'azd ai agent sessions delete'",
+			)
+		}
+	}
+	return exterrors.ServiceFromAzure(err, exterrors.OpDeleteAgent)
+}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/delete_test.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/delete_test.go
new file mode 100644
index 00000000000..d75341b4f2e
--- /dev/null
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/delete_test.go
@@ -0,0 +1,110 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+package cmd
+
+import (
+	"errors"
+	"net/http"
+	"testing"
+
+	"azureaiagent/internal/exterrors"
+
+	"github.com/Azure/azure-sdk-for-go/sdk/azcore"
+	"github.com/azure/azure-dev/cli/azd/pkg/azdext"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+func TestDeleteCommand_AcceptsPositionalArg(t *testing.T) {
+	cmd := newDeleteCommand(nil)
+	err := cmd.Args(cmd, []string{"my-agent"})
+	assert.NoError(t, err)
+}
+
+func TestDeleteCommand_AcceptsNoArgs(t *testing.T) {
+	cmd := newDeleteCommand(nil)
+	err := cmd.Args(cmd, []string{})
+	assert.NoError(t, err)
+}
+
+func TestDeleteCommand_RejectsMultipleArgs(t *testing.T) {
+	cmd := newDeleteCommand(nil)
+	err := cmd.Args(cmd, []string{"svc1", "svc2"})
+	assert.Error(t, err)
+}
+
+func TestDeleteCommand_ForceFlag(t *testing.T) {
+	cmd := newDeleteCommand(nil)
+	flag := cmd.Flags().Lookup("force")
+	if flag == nil {
+		t.Fatal("expected --force flag to be registered")
+	}
+	if flag.DefValue != "false" {
+		t.Fatalf("expected --force default false, got %q", flag.DefValue)
+	}
+}
+
+func TestDeleteCommand_OutputFlagAnnotation(t *testing.T) {
+	cmd := newDeleteCommand(nil)
+	// RegisterFlagOptions stores allowed values in annotations
+	require.NotNil(t, cmd.Annotations)
+}
+
+// ---------------------------------------------------------------------------
+// Error classification tests — calls the real classifyDeleteError from delete.go
+// ---------------------------------------------------------------------------
+
+func TestDeleteAgent_404_ProducesValidationError(t *testing.T) {
+	azErr := &azcore.ResponseError{
+		StatusCode: http.StatusNotFound,
+		ErrorCode:  "not_found",
+	}
+
+	result := classifyDeleteError(azErr, "my-agent")
+	require.Error(t, result)
+
+	var localErr *azdext.LocalError
+	require.True(
+		t, errors.As(result, &localErr),
+		"404 should produce a LocalError, got: %T", result,
+	)
+	assert.Equal(t, exterrors.CodeAgentNotFound, localErr.Code)
+	assert.Contains(t, localErr.Message, "my-agent")
+	assert.Contains(t, localErr.Message, "not found")
+}
+
+func TestDeleteAgent_409_ProducesValidationError(t *testing.T) {
+	azErr := &azcore.ResponseError{
+		StatusCode: http.StatusConflict,
+		ErrorCode:  "conflict",
+	}
+
+	result := classifyDeleteError(azErr, "my-agent")
+	require.Error(t, result)
+
+	var localErr *azdext.LocalError
+	require.True(
+		t, errors.As(result, &localErr),
+		"409 should produce a LocalError, got: %T", result,
+	)
+	assert.Equal(t, exterrors.CodeAgentHasActiveSessions, localErr.Code)
+	assert.Contains(t, localErr.Message, "active sessions")
+	assert.Contains(t, localErr.Suggestion, "--force")
+}
+
+func TestDeleteAgent_500_ProducesServiceError(t *testing.T) {
+	azErr := &azcore.ResponseError{
+		StatusCode: http.StatusInternalServerError,
+		ErrorCode:  "internal_error",
+	}
+
+	result := classifyDeleteError(azErr, "my-agent")
+	require.Error(t, result)
+
+	var svcErr *azdext.ServiceError
+	require.True(
+		t, errors.As(result, &svcErr),
+		"500 should produce a ServiceError, got: %T", result,
+	)
+}
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/root.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/root.go
index 8a94263bf51..48e2e6e352a 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/root.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/root.go
@@ -57,6 +57,7 @@ func NewRootCommand() *cobra.Command {
 		return rootCmd
 	}))
 	rootCmd.AddCommand(newShowCommand(extCtx))
+	rootCmd.AddCommand(newDeleteCommand(extCtx))
 	rootCmd.AddCommand(newEndpointCommand(extCtx))
 	rootCmd.AddCommand(newMonitorCommand(extCtx))
 	rootCmd.AddCommand(newFilesCommand(extCtx))
diff --git a/cli/azd/extensions/azure.ai.agents/internal/exterrors/codes.go b/cli/azd/extensions/azure.ai.agents/internal/exterrors/codes.go
index 449dff025fd..87b7e0c1219 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/exterrors/codes.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/exterrors/codes.go
@@ -101,6 +101,12 @@ const (
 	CodeSessionNotFound = "session_not_found"
 )
 
+// Error codes for agent delete errors.
+const (
+	CodeAgentNotFound          = "agent_not_found"
+	CodeAgentHasActiveSessions = "agent_has_active_sessions"
+)
+
 // Error codes for file operation errors.
 const (
 	CodeFileNotFound     = "file_not_found"
@@ -155,6 +161,7 @@ const (
 	OpContainerPackage      = "container_package"
 	OpContainerPublish      = "container_publish"
 	OpCreateAgent           = "create_agent"
+	OpDeleteAgent           = "delete_agent"
 	OpStartContainer        = "start_container"
 	OpGetContainerOperation = "get_container_operation"
 	OpCreateSession         = "create_session"
diff --git a/cli/azd/extensions/azure.ai.agents/internal/pkg/agents/agent_api/operations.go b/cli/azd/extensions/azure.ai.agents/internal/pkg/agents/agent_api/operations.go
index 8d966d63fdf..d1f8f00153d 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/pkg/agents/agent_api/operations.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/pkg/agents/agent_api/operations.go
@@ -257,9 +257,10 @@ func (c *AgentClient) PatchAgent(
 	return &agent, nil
 }
 
-// DeleteAgent deletes an agent
-func (c *AgentClient) DeleteAgent(ctx context.Context, agentName, apiVersion string) (*DeleteAgentResponse, error) {
-	url := fmt.Sprintf("%s/agents/%s?api-version=%s", c.endpoint, agentName, apiVersion)
+// DeleteAgent deletes an agent. When force is true, the agent is deleted even
+// if it has active sessions.
+func (c *AgentClient) DeleteAgent(ctx context.Context, agentName, apiVersion string, force bool) (*DeleteAgentResponse, error) {
+	url := fmt.Sprintf("%s/agents/%s?api-version=%s&force=%t", c.endpoint, agentName, apiVersion, force)
 
 	req, err := runtime.NewRequest(ctx, http.MethodDelete, url)
 	if err != nil {
diff --git a/cli/azd/extensions/azure.ai.agents/internal/pkg/agents/agent_api/operations_test.go b/cli/azd/extensions/azure.ai.agents/internal/pkg/agents/agent_api/operations_test.go
index 4506f9d5b1b..2f08e208dea 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/pkg/agents/agent_api/operations_test.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/pkg/agents/agent_api/operations_test.go
@@ -560,6 +560,45 @@ func TestGetAgentSessionLogStream_ApplyIsolationHeaders(t *testing.T) {
 	requireIsolationHeaders(t, request, "user-1", "chat-1", "")
 }
 
+func TestDeleteAgent_ForceTrue(t *testing.T) {
+	body := `{"object": "agent", "name": "my-agent", "deleted": true}`
+	client, transport := newCaptureClient(http.StatusOK, body)
+
+	result, err := client.DeleteAgent(t.Context(), "my-agent", "v1", true)
+	require.NoError(t, err)
+	require.True(t, result.Deleted)
+	require.Equal(t, "my-agent", result.Name)
+
+	require.Len(t, transport.requests, 1)
+	req := transport.requests[0]
+	require.Equal(t, http.MethodDelete, req.Method)
+	require.Contains(t, req.URL.String(), "/agents/my-agent")
+	require.Contains(t, req.URL.RawQuery, "force=true")
+}
+
+func TestDeleteAgent_ForceFalse(t *testing.T) {
+	body := `{"object": "agent", "name": "my-agent", "deleted": true}`
+	client, transport := newCaptureClient(http.StatusOK, body)
+
+	result, err := client.DeleteAgent(t.Context(), "my-agent", "v1", false)
+	require.NoError(t, err)
+	require.True(t, result.Deleted)
+
+	require.Len(t, transport.requests, 1)
+	req := transport.requests[0]
+	require.Contains(t, req.URL.RawQuery, "force=false")
+}
+
+func TestDeleteAgent_NotFound(t *testing.T) {
+	client := newTestClient(
+		"https://test.example.com/api/projects/proj",
+		&fakeBodyTransport{statusCode: http.StatusNotFound, body: `{"error": "not found"}`},
+	)
+
+	_, err := client.DeleteAgent(t.Context(), "no-agent", "v1", true)
+	require.Error(t, err)
+}
+
 func TestPatchAgent_Success(t *testing.T) {
 	body := `{
 		"object": "agent",