diff --git a/pkgs/clan-cli/clan_lib/persist/path_utils.py b/pkgs/clan-cli/clan_lib/persist/path_utils.py
index 408d995cd..8bd1b5a03 100644
--- a/pkgs/clan-cli/clan_lib/persist/path_utils.py
+++ b/pkgs/clan-cli/clan_lib/persist/path_utils.py
@@ -67,7 +67,7 @@ def set_value_by_path_tuple(d: DictLike, path: PathTuple, content: Any) -> None:
     current[keys[-1]] = content
 
 
-def delete_by_path_tuple(d: dict[str, Any], path: PathTuple) -> Any:
+def delete_by_path_tuple(d: DictLike, path: PathTuple) -> Any:
     """Deletes the nested entry specified by a dot-separated path from the dictionary using pop().
 
     :param data: The dictionary to modify.
@@ -126,6 +126,7 @@ def delete_by_path(d: dict[str, Any], path: str) -> Any:
 V = TypeVar("V")
 
 
+# TODO: Use PathTuple
 def get_value_by_path(
     d: DictLike,
     path: str,
diff --git a/pkgs/clan-cli/clan_lib/services/modules.py b/pkgs/clan-cli/clan_lib/services/modules.py
index 3416fdeb6..495d02659 100644
--- a/pkgs/clan-cli/clan_lib/services/modules.py
+++ b/pkgs/clan-cli/clan_lib/services/modules.py
@@ -15,7 +15,11 @@ from clan_lib.nix_models.clan import (
     InventoryInstancesType,
 )
 from clan_lib.persist.inventory_store import InventoryStore
-from clan_lib.persist.path_utils import get_value_by_path, set_value_by_path
+from clan_lib.persist.path_utils import (
+    delete_by_path_tuple,
+    get_value_by_path,
+    set_value_by_path,
+)
 
 log = logging.getLogger(__name__)
 
@@ -492,6 +496,37 @@ def list_service_instances(flake: Flake) -> dict[str, InventoryInstanceInfo]:
     return res
 
 
+@API.register
+def delete_service_instance(
+    flake: Flake,
+    instance_ref: str,
+) -> None:
+    """Deletes an instance
+
+    :param instance_ref: The name of the instance to update
+
+    :raises ClanError: If the instance_ref is invalid or cannot be deleted
+    """
+    inventory_store = InventoryStore(flake)
+    inventory = inventory_store.read()
+
+    instance: InventoryInstance | None = get_value_by_path(
+        inventory, f"instances.{instance_ref}", None
+    )
+
+    if instance is None:
+        msg = f"Instance '{instance_ref}' not found"
+        raise ClanError(msg)
+
+    delete_by_path_tuple(inventory, ("instances", f"{instance_ref}"))
+
+    # TODO: improve error message
+    # "Cannot delete path 'instances.static"
+    inventory_store.write(
+        inventory, message=f"Delete service instance '{instance_ref}'"
+    )
+
+
 @API.register
 def set_service_instance(
     flake: Flake, instance_ref: str, roles: InventoryInstanceRolesType
@@ -540,6 +575,8 @@ def set_service_instance(
         )
 
         # override settings, machines only if passed
+        # TODO: refactor after extraModules removal
+        # in https://git.clan.lol/clan/clan-core/pulls/5634
         merged = {
             **static,
             **role_cfg,
diff --git a/pkgs/clan-cli/clan_lib/services/modules_test.py b/pkgs/clan-cli/clan_lib/services/modules_test.py
index ff530650c..0c3221f28 100644
--- a/pkgs/clan-cli/clan_lib/services/modules_test.py
+++ b/pkgs/clan-cli/clan_lib/services/modules_test.py
@@ -6,6 +6,7 @@ from clan_cli.tests.fixtures_flakes import nested_dict
 from clan_lib.errors import ClanError
 from clan_lib.flake.flake import Flake
 from clan_lib.services.modules import (
+    delete_service_instance,
     get_service_readmes,
     list_service_instances,
     list_service_modules,
@@ -251,3 +252,67 @@ def test_update_service_instance(
     assert updated_machines == {
         "sara": {"settings": {"greeting": "sara"}},
     }
+
+
+@pytest.mark.with_core
+def test_delete_service_instance(
+    clan_flake: Callable[..., Flake],
+) -> None:
+    # Data that can be mutated via API calls
+    mutable_inventory_json: Inventory = {
+        "instances": {
+            "to-remain": {"module": {"name": "admin"}},
+            "to-delete": {"module": {"name": "admin"}},
+        }
+    }
+
+    flake = clan_flake({}, mutable_inventory_json=mutable_inventory_json)
+
+    # Ensure preconditions
+    instances = list_service_instances(flake)
+    assert set(instances.keys()) == {"to-delete", "to-remain"}
+
+    # Raises for non-existing instance
+    with pytest.raises(ClanError) as excinfo:
+        delete_service_instance(flake, "non-existing-instance")
+    assert "Instance 'non-existing-instance' not found" in str(excinfo.value)
+
+    # Deletes instance
+    delete_service_instance(flake, "to-delete")
+
+    updated_instances = list_service_instances(flake)
+    assert set(updated_instances.keys()) == {"to-remain"}
+
+
+@pytest.mark.with_core
+def test_delete_static_service_instance(
+    clan_flake: Callable[..., Flake],
+) -> None:
+    # Data that can be mutated via API calls
+    mutable_inventory_json: Inventory = {
+        "instances": {
+            "static": {"module": {"name": "admin"}},
+        }
+    }
+
+    flake = clan_flake(
+        {
+            "inventory": {
+                "instances": {
+                    "static": {"roles": {"default": {}}},
+                }
+            }
+        },
+        mutable_inventory_json=mutable_inventory_json,
+    )
+
+    # Ensure preconditions
+    instances = list_service_instances(flake)
+    assert set(instances.keys()) == {"static"}
+
+    # Raises for non-existing instance
+    with pytest.raises(ClanError) as excinfo:
+        delete_service_instance(flake, "static")
+
+    # TODO: improve error message
+    assert "Cannot delete path 'instances.static" in str(excinfo.value)