diff --git a/frontend/src/api/strategy.ts b/frontend/src/api/strategy.ts
index f9c2a9fbe..6e08cde07 100644
--- a/frontend/src/api/strategy.ts
+++ b/frontend/src/api/strategy.ts
@@ -163,6 +163,22 @@ export const useCreateStrategyPrompt = () => {
   });
 };
 
+export const useDeleteStrategyPrompt = () => {
+  const queryClient = useQueryClient();
+
+  return useMutation({
+    mutationFn: (promptId: string) =>
+      apiClient.delete<
+        ApiResponse<{ deleted: boolean; prompt_id: string; message: string }>
+      >(`/strategies/prompts/${promptId}`),
+    onSuccess: () => {
+      queryClient.invalidateQueries({
+        queryKey: API_QUERY_KEYS.STRATEGY.strategyPrompts,
+      });
+    },
+  });
+};
+
 export const useStrategyPerformance = (strategyId: number | null) => {
   return useQuery({
     queryKey: API_QUERY_KEYS.STRATEGY.strategyPerformance(
diff --git a/frontend/src/components/valuecell/form/trading-strategy-form.tsx b/frontend/src/components/valuecell/form/trading-strategy-form.tsx
index 5d3149ffb..9061108d5 100644
--- a/frontend/src/components/valuecell/form/trading-strategy-form.tsx
+++ b/frontend/src/components/valuecell/form/trading-strategy-form.tsx
@@ -1,8 +1,22 @@
 import { MultiSelect } from "@valuecell/multi-select";
-import { Eye, Plus } from "lucide-react";
-import { useCreateStrategyPrompt } from "@/api/strategy";
+import { Eye, Plus, Trash2 } from "lucide-react";
+import { useState } from "react";
+import {
+  useCreateStrategyPrompt,
+  useDeleteStrategyPrompt,
+} from "@/api/strategy";
 import NewPromptModal from "@/app/agent/components/strategy-items/modals/new-prompt-modal";
 import ViewStrategyModal from "@/app/agent/components/strategy-items/modals/view-strategy-modal";
+import {
+  AlertDialog,
+  AlertDialogAction,
+  AlertDialogCancel,
+  AlertDialogContent,
+  AlertDialogDescription,
+  AlertDialogFooter,
+  AlertDialogHeader,
+  AlertDialogTitle,
+} from "@/components/ui/alert-dialog";
 import { Button } from "@/components/ui/button";
 import {
   Field,
@@ -37,6 +51,38 @@ export const TradingStrategyForm = withForm({
   },
   render({ form, prompts, tradingMode }) {
     const { mutateAsync: createStrategyPrompt } = useCreateStrategyPrompt();
+    const { mutate: deleteStrategyPrompt } = useDeleteStrategyPrompt();
+    const [deletePromptId, setDeletePromptId] = useState<string | null>(null);
+    const [isDeleteDialogOpen, setIsDeleteDialogOpen] = useState(false);
+
+    const handleDeletePrompt = (promptId: string) => {
+      setDeletePromptId(promptId);
+      setIsDeleteDialogOpen(true);
+    };
+
+    const confirmDeletePrompt = () => {
+      if (deletePromptId) {
+        deleteStrategyPrompt(deletePromptId, {
+          onSuccess: () => {
+            // If the deleted prompt was currently selected, clear the selection
+            if (form.state.values.template_id === deletePromptId) {
+              form.setFieldValue("template_id", "");
+            }
+            setIsDeleteDialogOpen(false);
+            setDeletePromptId(null);
+          },
+          onError: () => {
+            setIsDeleteDialogOpen(false);
+            setDeletePromptId(null);
+          },
+        });
+      }
+    };
+
+    const cancelDeletePrompt = () => {
+      setIsDeleteDialogOpen(false);
+      setDeletePromptId(null);
+    };
 
     return (
       <FieldGroup className="gap-6">
@@ -158,8 +204,25 @@ export const TradingStrategyForm = withForm({
                           <SelectContent>
                             {prompts.length > 0 &&
                               prompts.map((prompt) => (
-                                <SelectItem key={prompt.id} value={prompt.id}>
-                                  {prompt.name}
+                                <SelectItem
+                                  key={prompt.id}
+                                  value={prompt.id}
+                                  className="relative hover:[&_button]:opacity-100 hover:[&_button]:transition-opacity"
+                                >
+                                  <span>{prompt.name}</span>
+                                  {field.state.value !== prompt.id && (
+                                    <button
+                                      type="button"
+                                      className="absolute right-2 z-50 flex size-3.5 items-center justify-center rounded-sm p-0 opacity-0 transition-all hover:bg-destructive/10 hover:text-destructive hover:opacity-100"
+                                      onPointerUp={(e) => {
+                                        e.stopPropagation();
+                                        e.preventDefault();
+                                        handleDeletePrompt(prompt.id);
+                                      }}
+                                    >
+                                      <Trash2 className="h-3 w-3" />
+                                    </button>
+                                  )}
                                 </SelectItem>
                               ))}
                             <NewPromptModal
@@ -204,6 +267,34 @@ export const TradingStrategyForm = withForm({
             );
           }}
         </form.Subscribe>
+
+        {/* Delete Confirmation Dialog */}
+        <AlertDialog
+          open={isDeleteDialogOpen}
+          onOpenChange={setIsDeleteDialogOpen}
+        >
+          <AlertDialogContent>
+            <AlertDialogHeader>
+              <AlertDialogTitle>Delete Strategy Prompt</AlertDialogTitle>
+              <AlertDialogDescription>
+                Are you sure you want to delete this strategy prompt? This
+                action cannot be undone and will permanently remove the prompt
+                from the system.
+              </AlertDialogDescription>
+            </AlertDialogHeader>
+            <AlertDialogFooter>
+              <AlertDialogCancel onClick={cancelDeletePrompt}>
+                Cancel
+              </AlertDialogCancel>
+              <AlertDialogAction
+                onClick={confirmDeletePrompt}
+                className="bg-red-600 hover:bg-red-700 focus:ring-red-600"
+              >
+                Confirm Delete
+              </AlertDialogAction>
+            </AlertDialogFooter>
+          </AlertDialogContent>
+        </AlertDialog>
       </FieldGroup>
     );
   },
diff --git a/python/valuecell/server/api/routers/strategy_prompts.py b/python/valuecell/server/api/routers/strategy_prompts.py
index 0b838dfcd..2ffca1ef2 100644
--- a/python/valuecell/server/api/routers/strategy_prompts.py
+++ b/python/valuecell/server/api/routers/strategy_prompts.py
@@ -11,6 +11,8 @@
 from valuecell.server.api.schemas.strategy import (
     PromptCreateRequest,
     PromptCreateResponse,
+    PromptDeleteResponse,
+    PromptDeleteSuccessResponse,
     PromptItem,
     PromptListResponse,
 )
@@ -66,4 +68,32 @@ async def create_prompt(
         except Exception as e:  # noqa: BLE001
             raise HTTPException(status_code=500, detail=f"Failed to create prompt: {e}")
 
+    @router.delete(
+        "/{prompt_id}",
+        response_model=PromptDeleteSuccessResponse,
+        summary="Delete a strategy prompt",
+        description="Permanently delete a strategy prompt by its ID.",
+    )
+    async def delete_prompt(
+        prompt_id: str, db: Session = Depends(get_db)
+    ) -> PromptDeleteSuccessResponse:
+        try:
+            repo = get_strategy_repository(db_session=db)
+            deleted = repo.delete_prompt(prompt_id=prompt_id)
+            if deleted:
+                return SuccessResponse.create(
+                    data=PromptDeleteResponse(
+                        deleted=True,
+                        prompt_id=prompt_id,
+                        message="Prompt successfully deleted",
+                    ),
+                    msg="Prompt deleted successfully",
+                )
+            else:
+                raise HTTPException(status_code=404, detail="Prompt not found")
+        except HTTPException:
+            raise
+        except Exception as e:  # noqa: BLE001
+            raise HTTPException(status_code=500, detail=f"Failed to delete prompt: {e}")
+
     return router
diff --git a/python/valuecell/server/api/schemas/strategy.py b/python/valuecell/server/api/schemas/strategy.py
index 874119e1f..e518bf678 100644
--- a/python/valuecell/server/api/schemas/strategy.py
+++ b/python/valuecell/server/api/schemas/strategy.py
@@ -238,6 +238,17 @@ class PromptCreateRequest(BaseModel):
 PromptCreateResponse = SuccessResponse[PromptItem]
 
 
+class PromptDeleteResponse(BaseModel):
+    deleted: bool = Field(
+        ..., description="Whether the prompt was successfully deleted"
+    )
+    prompt_id: str = Field(..., description="ID of the deleted prompt")
+    message: str = Field(..., description="Delete operation result message")
+
+
+PromptDeleteSuccessResponse = SuccessResponse[PromptDeleteResponse]
+
+
 class StrategyPerformanceData(BaseModel):
     """Performance overview for a strategy including ROI and config."""
 
diff --git a/python/valuecell/server/db/repositories/strategy_repository.py b/python/valuecell/server/db/repositories/strategy_repository.py
index 8ba8f3fd6..861913ade 100644
--- a/python/valuecell/server/db/repositories/strategy_repository.py
+++ b/python/valuecell/server/db/repositories/strategy_repository.py
@@ -584,6 +584,34 @@ def get_prompt_by_id(self, prompt_id: str) -> Optional[StrategyPrompt]:
             if not self.db_session:
                 session.close()
 
+    def delete_prompt(self, prompt_id: str) -> bool:
+        """Delete a prompt by prompt_id.
+
+        Returns True on success, False if the prompt does not exist or on error.
+        """
+        session = self._get_session()
+        try:
+            # Ensure the prompt exists
+            prompt = (
+                session.query(StrategyPrompt)
+                .filter(StrategyPrompt.id == prompt_id)
+                .first()
+            )
+            if not prompt:
+                return False
+
+            session.query(StrategyPrompt).filter(StrategyPrompt.id == prompt_id).delete(
+                synchronize_session=False
+            )
+            session.commit()
+            return True
+        except Exception:
+            session.rollback()
+            return False
+        finally:
+            if not self.db_session:
+                session.close()
+
     def delete_strategy(self, strategy_id: str, cascade: bool = True) -> bool:
         """Delete a strategy by strategy_id.