diff --git a/server/src/__tests__/company-skills-routes.test.ts b/server/src/__tests__/company-skills-routes.test.ts
index 3814dc08..049ef559 100644
--- a/server/src/__tests__/company-skills-routes.test.ts
+++ b/server/src/__tests__/company-skills-routes.test.ts
@@ -3,6 +3,7 @@ import request from "supertest";
 import { beforeEach, describe, expect, it, vi } from "vitest";
 import { companySkillRoutes } from "../routes/company-skills.js";
 import { errorHandler } from "../middleware/index.js";
+import { unprocessable } from "../errors.js";
 
 const mockAgentService = vi.hoisted(() => ({
   getById: vi.fn(),
@@ -15,6 +16,7 @@ const mockAccessService = vi.hoisted(() => ({
 
 const mockCompanySkillService = vi.hoisted(() => ({
   importFromSource: vi.fn(),
+  deleteSkill: vi.fn(),
 }));
 
 const mockLogActivity = vi.hoisted(() => vi.fn());
@@ -62,6 +64,11 @@ describe("company skill mutation permissions", () => {
       imported: [],
       warnings: [],
     });
+    mockCompanySkillService.deleteSkill.mockResolvedValue({
+      id: "skill-1",
+      slug: "find-skills",
+      name: "Find Skills",
+    });
     mockLogActivity.mockResolvedValue(undefined);
     mockAccessService.canUser.mockResolvedValue(true);
     mockAccessService.hasPermission.mockResolvedValue(false);
@@ -261,4 +268,28 @@ describe("company skill mutation permissions", () => {
       "https://github.com/vercel-labs/agent-browser",
     );
   });
+
+  it("returns a blocking error when attempting to delete a skill still used by agents", async () => {
+    mockCompanySkillService.deleteSkill.mockRejectedValue(
+      unprocessable(
+        'Cannot delete skill "Find Skills" while it is still used by Builder, Reviewer. Detach it from those agents first.',
+      ),
+    );
+
+    const res = await request(createApp({
+      type: "board",
+      userId: "local-board",
+      companyIds: ["company-1"],
+      source: "local_implicit",
+      isInstanceAdmin: false,
+    }))
+      .delete("/api/companies/company-1/skills/skill-1");
+
+    expect(res.status, JSON.stringify(res.body)).toBe(422);
+    expect(res.body).toEqual({
+      error: 'Cannot delete skill "Find Skills" while it is still used by Builder, Reviewer. Detach it from those agents first.',
+    });
+    expect(mockCompanySkillService.deleteSkill).toHaveBeenCalledWith("company-1", "skill-1");
+    expect(mockLogActivity).not.toHaveBeenCalled();
+  });
 });
diff --git a/server/src/services/company-skills.ts b/server/src/services/company-skills.ts
index faea351c..60fc06b4 100644
--- a/server/src/services/company-skills.ts
+++ b/server/src/services/company-skills.ts
@@ -5,7 +5,7 @@ import { fileURLToPath } from "node:url";
 import { and, asc, eq } from "drizzle-orm";
 import type { Db } from "@paperclipai/db";
 import { companySkills } from "@paperclipai/db";
-import { readPaperclipSkillSyncPreference, writePaperclipSkillSyncPreference } from "@paperclipai/adapter-utils/server-utils";
+import { readPaperclipSkillSyncPreference } from "@paperclipai/adapter-utils/server-utils";
 import type { PaperclipSkillEntry } from "@paperclipai/adapter-utils/server-utils";
 import type {
   CompanySkill,
@@ -2314,26 +2314,23 @@ export function companySkillService(db: Db) {
     if (!row) return null;
 
     const skill = toCompanySkill(row);
+    const usedByAgents = await usage(companyId, skill.key);
 
-    // Remove from any agent desiredSkills that reference this skill
-    const agentRows = await agents.list(companyId);
-    const allSkills = await listFull(companyId);
-    for (const agent of agentRows) {
-      const config = agent.adapterConfig as Record<string, unknown>;
-      const preference = readPaperclipSkillSyncPreference(config);
-      const referencesSkill = preference.desiredSkills.some((ref) => {
-        const resolved = resolveSkillReference(allSkills, ref);
-        return resolved.skill?.id === skillId;
-      });
-      if (referencesSkill) {
-        const filtered = preference.desiredSkills.filter((ref) => {
-          const resolved = resolveSkillReference(allSkills, ref);
-          return resolved.skill?.id !== skillId;
-        });
-        await agents.update(agent.id, {
-          adapterConfig: writePaperclipSkillSyncPreference(config, filtered),
-        });
-      }
+    if (usedByAgents.length > 0) {
+      const agentNames = usedByAgents.map((agent) => agent.name).sort((left, right) => left.localeCompare(right));
+      throw unprocessable(
+        `Cannot delete skill "${skill.name}" while it is still used by ${agentNames.join(", ")}. Detach it from those agents first.`,
+        {
+          skillId: skill.id,
+          skillKey: skill.key,
+          usedByAgents: usedByAgents.map((agent) => ({
+            id: agent.id,
+            name: agent.name,
+            urlKey: agent.urlKey,
+            adapterType: agent.adapterType,
+          })),
+        },
+      );
     }
 
     // Delete DB row
diff --git a/ui/src/api/companySkills.ts b/ui/src/api/companySkills.ts
index adbc2117..7377b2fa 100644
--- a/ui/src/api/companySkills.ts
+++ b/ui/src/api/companySkills.ts
@@ -51,4 +51,8 @@ export const companySkillsApi = {
       `/companies/${encodeURIComponent(companyId)}/skills/${encodeURIComponent(skillId)}/install-update`,
       {},
     ),
+  delete: (companyId: string, skillId: string) =>
+    api.delete<CompanySkill>(
+      `/companies/${encodeURIComponent(companyId)}/skills/${encodeURIComponent(skillId)}`,
+    ),
 };
diff --git a/ui/src/pages/CompanySkills.tsx b/ui/src/pages/CompanySkills.tsx
index 11854cfe..cc2d5605 100644
--- a/ui/src/pages/CompanySkills.tsx
+++ b/ui/src/pages/CompanySkills.tsx
@@ -52,6 +52,7 @@ import {
   RefreshCw,
   Save,
   Search,
+  Trash2,
 } from "lucide-react";
 
 type SkillTreeNode = {
@@ -503,6 +504,8 @@ function SkillPane({
   checkUpdatesPending,
   onInstallUpdate,
   installUpdatePending,
+  onDelete,
+  deletePending,
   onSave,
   savePending,
 }: {
@@ -522,6 +525,8 @@ function SkillPane({
   checkUpdatesPending: boolean;
   onInstallUpdate: () => void;
   installUpdatePending: boolean;
+  onDelete: () => void;
+  deletePending: boolean;
   onSave: () => void;
   savePending: boolean;
 }) {
@@ -545,6 +550,10 @@ function SkillPane({
   const body = file?.markdown ? stripFrontmatter(file.content) : file?.content ?? "";
   const currentPin = shortRef(detail.sourceRef);
   const latestPin = shortRef(updateStatus?.latestRef);
+  const removeBlocked = usedBy.length > 0;
+  const removeDisabledReason = removeBlocked
+    ? "Detach this skill from all agents before removing it."
+    : null;
 
   return (
     <div className="min-w-0">
@@ -559,17 +568,29 @@ function SkillPane({
               <p className="mt-2 max-w-3xl text-sm text-muted-foreground">{detail.description}</p>
             )}
           </div>
-          {detail.editable ? (
-            <button
-              className="inline-flex items-center gap-2 text-sm text-muted-foreground hover:text-foreground"
-              onClick={() => setEditMode(!editMode)}
+          <div className="flex flex-wrap items-center justify-end gap-2">
+            <Button
+              variant="ghost"
+              size="sm"
+              onClick={onDelete}
+              disabled={deletePending}
+              title={removeDisabledReason ?? undefined}
             >
-              <Pencil className="h-3.5 w-3.5" />
-              {editMode ? "Stop editing" : "Edit"}
-            </button>
-          ) : (
-            <div className="text-sm text-muted-foreground">{detail.editableReason}</div>
-          )}
+              <Trash2 className="mr-1.5 h-3.5 w-3.5" />
+              {deletePending ? "Removing..." : "Remove"}
+            </Button>
+            {detail.editable ? (
+              <button
+                className="inline-flex items-center gap-2 text-sm text-muted-foreground hover:text-foreground"
+                onClick={() => setEditMode(!editMode)}
+              >
+                <Pencil className="h-3.5 w-3.5" />
+                {editMode ? "Stop editing" : "Edit"}
+              </button>
+            ) : (
+              <div className="text-sm text-muted-foreground">{detail.editableReason}</div>
+            )}
+          </div>
         </div>
 
         <div className="mt-4 space-y-3 border-t border-border pt-4 text-sm">
@@ -723,7 +744,7 @@ function SkillPane({
         ) : file.markdown && viewMode === "preview" ? (
           <MarkdownBody>{body}</MarkdownBody>
         ) : (
-          <pre className="overflow-x-auto whitespace-pre-wrap break-words border-0 bg-transparent p-0 font-mono text-sm text-foreground">
+          <pre className="overflow-x-auto whitespace-pre-wrap wrap-break-word border-0 bg-transparent p-0 font-mono text-sm text-foreground">
             <code>{file.content}</code>
           </pre>
         )}
@@ -751,6 +772,9 @@ export function CompanySkills() {
   const [displayedDetail, setDisplayedDetail] = useState<CompanySkillDetail | null>(null);
   const [displayedFile, setDisplayedFile] = useState<CompanySkillFileDetail | null>(null);
   const [scanStatusMessage, setScanStatusMessage] = useState<string | null>(null);
+  const [deleteOpen, setDeleteOpen] = useState(false);
+  const [deleteTargetSkillId, setDeleteTargetSkillId] = useState<string | null>(null);
+  const [deleteTargetDetail, setDeleteTargetDetail] = useState<CompanySkillDetail | null>(null);
   const parsedRoute = useMemo(() => parseSkillRoute(routePath), [routePath]);
   const routeSkillId = parsedRoute.skillId;
   const selectedPath = parsedRoute.filePath;
@@ -848,6 +872,20 @@ export function CompanySkills() {
   const activeDetail = detailQuery.data ?? displayedDetail;
   const activeFile = fileQuery.data ?? displayedFile;
 
+  function openDeleteDialog() {
+    setDeleteTargetSkillId(selectedSkillId);
+    setDeleteTargetDetail(activeDetail ?? null);
+    setDeleteOpen(true);
+  }
+
+  function closeDeleteDialog(open: boolean) {
+    setDeleteOpen(open);
+    if (!open) {
+      setDeleteTargetSkillId(null);
+      setDeleteTargetDetail(null);
+    }
+  }
+
   const importSkill = useMutation({
     mutationFn: (importSource: string) => companySkillsApi.importFromSource(selectedCompanyId!, importSource),
     onSuccess: async (result) => {
@@ -987,6 +1025,44 @@ export function CompanySkills() {
     },
   });
 
+  const deleteSkill = useMutation({
+    mutationFn: () => companySkillsApi.delete(selectedCompanyId!, deleteTargetSkillId!),
+    onSuccess: async (skill) => {
+      closeDeleteDialog(false);
+      setDisplayedDetail(null);
+      setDisplayedFile(null);
+      await Promise.all([
+        queryClient.invalidateQueries({ queryKey: queryKeys.companySkills.list(selectedCompanyId!) }),
+        ...(deleteTargetSkillId ? [
+          queryClient.invalidateQueries({ queryKey: queryKeys.companySkills.detail(selectedCompanyId!, deleteTargetSkillId) }),
+          queryClient.invalidateQueries({ queryKey: queryKeys.companySkills.updateStatus(selectedCompanyId!, deleteTargetSkillId) }),
+        ] : []),
+        ...(deleteTargetSkillId ? [
+          queryClient.invalidateQueries({
+            queryKey: queryKeys.companySkills.file(selectedCompanyId!, deleteTargetSkillId, selectedPath),
+          }),
+        ] : []),
+      ]);
+      await queryClient.refetchQueries({
+        queryKey: queryKeys.companySkills.list(selectedCompanyId!),
+        type: "active",
+      });
+      navigate("/skills", { replace: true });
+      pushToast({
+        tone: "success",
+        title: "Skill removed",
+        body: `${skill.name} was removed from the company skill library.`,
+      });
+    },
+    onError: (error) => {
+      pushToast({
+        tone: "error",
+        title: "Remove failed",
+        body: error instanceof Error ? error.message : "Failed to remove skill.",
+      });
+    },
+  });
+
   if (!selectedCompanyId) {
     return <EmptyState icon={Boxes} message="Select a company to manage skills." />;
   }
@@ -1002,6 +1078,54 @@ export function CompanySkills() {
 
   return (
     <>
+      <Dialog open={deleteOpen} onOpenChange={closeDeleteDialog}>
+        <DialogContent className="sm:max-w-md">
+          <DialogHeader>
+            <DialogTitle>Remove skill</DialogTitle>
+            <DialogDescription>
+              Remove this skill from the company library. If any agents still use it, removal will be blocked until it is detached.
+            </DialogDescription>
+          </DialogHeader>
+          <div className="space-y-3 text-sm">
+            <p>
+              {deleteTargetDetail
+                ? `You are about to remove ${deleteTargetDetail.name}.`
+                : "You are about to remove this skill."}
+            </p>
+            {deleteTargetDetail?.usedByAgents?.length ? (
+              <div className="rounded-md border border-border px-3 py-3 text-muted-foreground">
+                Currently used by {deleteTargetDetail.usedByAgents.map((agent) => agent.name).join(", ")}.
+              </div>
+            ) : null}
+            {(deleteTargetDetail?.usedByAgents.length ?? 0) > 0 ? (
+              <p className="text-muted-foreground">
+                Detach this skill from all agents to enable removal.
+              </p>
+            ) : null}
+          </div>
+          <DialogFooter>
+            {(deleteTargetDetail?.usedByAgents.length ?? 0) > 0 ? (
+              <Button variant="ghost" onClick={() => closeDeleteDialog(false)}>
+                Close
+              </Button>
+            ) : (
+              <>
+                <Button variant="ghost" onClick={() => closeDeleteDialog(false)} disabled={deleteSkill.isPending}>
+                  Cancel
+                </Button>
+                <Button
+                  variant="destructive"
+                  onClick={() => deleteSkill.mutate()}
+                  disabled={deleteSkill.isPending || !deleteTargetSkillId}
+                >
+                  {deleteSkill.isPending ? "Removing..." : "Remove skill"}
+                </Button>
+              </>
+            )}
+          </DialogFooter>
+        </DialogContent>
+      </Dialog>
+
       <Dialog open={emptySourceHelpOpen} onOpenChange={setEmptySourceHelpOpen}>
         <DialogContent className="sm:max-w-md">
           <DialogHeader>
@@ -1160,6 +1284,8 @@ export function CompanySkills() {
             checkUpdatesPending={updateStatusQuery.isFetching}
             onInstallUpdate={() => installUpdate.mutate()}
             installUpdatePending={installUpdate.isPending}
+            onDelete={openDeleteDialog}
+            deletePending={deleteSkill.isPending}
             onSave={() => saveFile.mutate()}
             savePending={saveFile.isPending}
           />