diff --git a/packages/automerge-repo/src/DocHandle.ts b/packages/automerge-repo/src/DocHandle.ts
index b85508711..e6825ac54 100644
--- a/packages/automerge-repo/src/DocHandle.ts
+++ b/packages/automerge-repo/src/DocHandle.ts
@@ -72,6 +72,9 @@ export class DocHandle<T> extends EventEmitter<DocHandleEvents<T>> {
           this.emit("delete", { handle: this })
           return { doc: A.init() }
         }),
+        onClear: assign(() => {
+          return { doc: A.init() }
+        }),
         onUnavailable: () => {
           this.emit("unavailable", { handle: this })
         },
@@ -87,6 +90,7 @@ export class DocHandle<T> extends EventEmitter<DocHandleEvents<T>> {
       on: {
         UPDATE: { actions: "onUpdate" },
         DELETE: ".deleted",
+        CLEAR: ".cleared",
       },
       states: {
         idle: {
@@ -114,6 +118,7 @@ export class DocHandle<T> extends EventEmitter<DocHandleEvents<T>> {
         },
         ready: {},
         deleted: { entry: "onDelete", type: "final" },
+        cleared: { entry: "onClear", type: "final" },
       },
     })
 
@@ -211,6 +216,13 @@ export class DocHandle<T> extends EventEmitter<DocHandleEvents<T>> {
    */
   isDeleted = () => this.inState(["deleted"])
 
+  /**
+   * @returns true if the document has been marked as cleared.
+   *
+   * Cleared documents are removed from the sync process but not storage.
+   */
+  isCleared = () => this.inState(["cleared"])
+
   /**
    * @returns true if the document is currently unavailable.
    *
@@ -426,6 +438,11 @@ export class DocHandle<T> extends EventEmitter<DocHandleEvents<T>> {
     this.#machine.send({ type: DELETE })
   }
 
+  /** Called by the repo when the document is cleared from handleCache. */
+  clear() {
+    this.#machine.send({ type: CLEAR })
+  }
+
   /**
    * Sends an arbitrary ephemeral message out to all reachable peers who would receive sync messages
    * from you. It has no guarantee of delivery, and is not persisted to the underlying automerge doc
@@ -541,12 +558,14 @@ export const HandleState = {
   READY: "ready",
   /** The document has been deleted from the repo */
   DELETED: "deleted",
+  /** The document has been removed from the repo and handleCache but not deleted from storage */
+  CLEARED: "cleared",
   /** The document was not available in storage or from any connected peers */
   UNAVAILABLE: "unavailable",
 } as const
 export type HandleState = (typeof HandleState)[keyof typeof HandleState]
 
-export const { IDLE, LOADING, REQUESTING, READY, DELETED, UNAVAILABLE } =
+export const { IDLE, LOADING, REQUESTING, READY, DELETED, CLEARED, UNAVAILABLE } =
   HandleState
 
 // context
@@ -567,8 +586,9 @@ type DocHandleEvent<T> =
       type: typeof UPDATE
       payload: { callback: (doc: A.Doc<T>) => A.Doc<T> }
     }
-  | { type: typeof TIMEOUT }
   | { type: typeof DELETE }
+  | { type: typeof CLEAR }
+  | { type: typeof TIMEOUT }
   | { type: typeof DOC_UNAVAILABLE }
 
 const BEGIN = "BEGIN"
@@ -576,5 +596,6 @@ const REQUEST = "REQUEST"
 const DOC_READY = "DOC_READY"
 const UPDATE = "UPDATE"
 const DELETE = "DELETE"
+const CLEAR = "CLEAR"
 const TIMEOUT = "TIMEOUT"
 const DOC_UNAVAILABLE = "DOC_UNAVAILABLE"
diff --git a/packages/automerge-repo/test/DocHandle.test.ts b/packages/automerge-repo/test/DocHandle.test.ts
index a82bbaa98..c3297760e 100644
--- a/packages/automerge-repo/test/DocHandle.test.ts
+++ b/packages/automerge-repo/test/DocHandle.test.ts
@@ -7,6 +7,7 @@ import { eventPromise } from "../src/helpers/eventPromise.js"
 import { pause } from "../src/helpers/pause.js"
 import { DocHandle, DocHandleChangePayload } from "../src/index.js"
 import { TestDoc } from "./types.js"
+import { CLEARED } from "../src/DocHandle.js"
 
 describe("DocHandle", () => {
   const TEST_ID = parseAutomergeUrl(generateAutomergeUrl()).documentId
@@ -325,6 +326,34 @@ describe("DocHandle", () => {
     assert.equal(handle.isDeleted(), true)
   })
 
+  it("should clear document reference when cleared", async () => {
+    const handle = setup()
+
+    handle.change(doc => {
+      doc.foo = "bar"
+    })
+    const doc = await handle.doc()
+    assert.equal(doc?.foo, "bar")
+
+    handle.clear()
+    const clearedDoc = await handle.doc([CLEARED])
+
+    assert.equal(handle.isCleared(), true)
+    assert.equal(handle.isReady(), false)
+    assert.equal(handle.docSync(), undefined)
+    assert.equal(clearedDoc?.foo, undefined)
+  })
+
+  it("should prevent transitioning out of cleared state because it is final", async () => {
+    const handle = setup()
+
+    handle.clear()
+    await handle.doc([CLEARED])
+
+    assert.throws(() => handle.change(d => (d.foo = "bar")))
+    assert.equal(handle.isCleared(), true)
+  })
+
   it("should allow changing at old heads", async () => {
     const handle = setup()