diff --git a/calm-plugins/vscode/src/extension/extension.test.ts b/calm-plugins/vscode/src/extension/extension.test.ts
new file mode 100644
index 0000000000..8ac1c6487c
--- /dev/null
+++ b/calm-plugins/vscode/src/extension/extension.test.ts
@@ -0,0 +1,123 @@
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+import * as vscode from 'vscode';
+import { activate, disconnectFromHub } from './extension';
+
+vi.mock('./services/hub-auth-service', () => ({
+    HubAuthService: class {
+        async initialize(): Promise<void> {}
+        async discoverAndAuthenticate(): Promise<boolean> {
+            return false;
+        }
+    },
+}));
+
+type CommandCallback = (...args: unknown[]) => unknown;
+
+const commands = new Map<string, CommandCallback>();
+const configUpdates: Array<{ key: string; value: unknown }> = [];
+let hubUrl: string | undefined;
+let statusBarItem: vscode.StatusBarItem;
+let inputValue: string | undefined;
+
+function context(): vscode.ExtensionContext {
+    return {
+        subscriptions: [],
+        extensionUri: vscode.Uri.file('/tmp/extension'),
+        secrets: {
+            get: async () => undefined,
+            store: async () => {},
+            delete: async () => {},
+            onDidChange: () => ({ dispose: () => {} }),
+        },
+    } as unknown as vscode.ExtensionContext;
+}
+
+beforeEach(() => {
+    commands.clear();
+    configUpdates.length = 0;
+    hubUrl = 'https://calmhub.example.com';
+    inputValue = undefined;
+
+    (vscode.commands as unknown as { registerCommand: unknown }).registerCommand = (
+        command: string,
+        callback: CommandCallback
+    ) => {
+        commands.set(command, callback);
+        return { dispose: () => {} };
+    };
+
+    (vscode.workspace as unknown as { getConfiguration: unknown }).getConfiguration = (
+        section?: string
+    ) => ({
+        get: <T>(key: string, defaultValue?: T): T | undefined => {
+            if (section === 'calm.hub' && key === 'url') return hubUrl as T | undefined;
+            if (section === 'calm.hub' && key === 'autoConnect') return false as T;
+            return defaultValue;
+        },
+        update: async (key: string, value: unknown) => {
+            configUpdates.push({ key, value });
+            if (section === 'calm.hub' && key === 'url') {
+                hubUrl = value as string | undefined;
+            }
+        },
+    });
+
+    const window = vscode.window as unknown as {
+        createStatusBarItem: () => vscode.StatusBarItem;
+        showQuickPick: (items: Array<{ label: string }>) => Promise<unknown>;
+        showInputBox: (options: { value?: string }) => Promise<string | undefined>;
+    };
+    window.createStatusBarItem = () => {
+        statusBarItem = {
+            text: '',
+            tooltip: undefined,
+            command: undefined,
+            backgroundColor: undefined,
+            show: () => {},
+            hide: () => {},
+            dispose: () => {},
+        };
+        return statusBarItem;
+    };
+    window.showQuickPick = async (items) => items.find((item) => item.label.includes('Clear URL'));
+    window.showInputBox = async (options) => {
+        inputValue = options.value;
+        return undefined;
+    };
+
+    activate(context());
+});
+
+describe('CALM Hub Clear URL', () => {
+    it('forgets the status bar URL and opens an empty reconnect prompt', async () => {
+        const connect = commands.get('calm.connectToHub');
+        expect(connect).toBeDefined();
+
+        await connect!();
+        expect(statusBarItem.tooltip).toContain('Failed to connect to https://calmhub.example.com');
+
+        await connect!();
+
+        expect(hubUrl).toBeUndefined();
+        expect(configUpdates).toEqual([{ key: 'url', value: undefined }]);
+        expect(statusBarItem.tooltip).toBe('Click to connect to CalmHub');
+
+        await connect!();
+
+        expect(inputValue).toBe('');
+    });
+
+    it('keeps the saved URL when Disconnect runs', async () => {
+        const connect = commands.get('calm.connectToHub');
+        expect(connect).toBeDefined();
+
+        await connect!();
+        await disconnectFromHub();
+
+        expect(hubUrl).toBe('https://calmhub.example.com');
+        expect(configUpdates).toEqual([]);
+        expect(statusBarItem.tooltip).toBe(
+            'Disconnected from https://calmhub.example.com\nClick to reconnect'
+        );
+    });
+});
diff --git a/calm-plugins/vscode/src/extension/extension.ts b/calm-plugins/vscode/src/extension/extension.ts
index a57a175d96..0cb5ccad27 100644
--- a/calm-plugins/vscode/src/extension/extension.ts
+++ b/calm-plugins/vscode/src/extension/extension.ts
@@ -157,7 +157,7 @@ async function connectToHub(
             : [
                 { label: '$(pencil) Change Hub URL', action: 'change' },
                 { label: '$(debug-restart) Retry Connection', action: 'retry' },
-                { label: '$(sign-out) Clear URL', action: 'disconnect' },
+                { label: '$(sign-out) Clear URL', action: 'clearUrl' },
             ];
 
         const choice = await vscode.window.showQuickPick(items, {
@@ -167,6 +167,7 @@ async function connectToHub(
         });
         if (!choice) return;
         if (choice.action === 'disconnect') { await disconnectFromHub(); return; }
+        if (choice.action === 'clearUrl') { await disconnectFromHub({ clearUrl: true }); return; }
         if (choice.action === 'namespaces') { await selectNamespaces(); return; }
         if (choice.action === 'refresh' || choice.action === 'retry') {
             // Fall through to reconnect with existing URL
@@ -252,15 +253,24 @@ async function connectToHub(
     }
 }
 
-async function disconnectFromHub(): Promise<void> {
+export interface DisconnectOptions {
+    clearUrl?: boolean;
+}
+
+export async function disconnectFromHub(options: DisconnectOptions = {}): Promise<void> {
     if (hubAuthService) {
         await hubAuthService.signOut();
     }
     hubClient = undefined;
     hubAuthService = undefined;
+    if (options.clearUrl) {
+        hubStatusBar?.clearHubUrl();
+    }
     hubStatusBar?.setState('disconnected');
     void canvasPanel?.setHubConnection(undefined);
-    await vscode.workspace.getConfiguration('calm.hub').update('url', undefined, vscode.ConfigurationTarget.Global);
+    if (options.clearUrl) {
+        await vscode.workspace.getConfiguration('calm.hub').update('url', undefined, vscode.ConfigurationTarget.Global);
+    }
     outputChannel.appendLine('[INFO] Disconnected from CalmHub');
 }
 
diff --git a/calm-plugins/vscode/src/extension/services/hub-status-bar.test.ts b/calm-plugins/vscode/src/extension/services/hub-status-bar.test.ts
index 56fb8bddd1..66230f5ece 100644
--- a/calm-plugins/vscode/src/extension/services/hub-status-bar.test.ts
+++ b/calm-plugins/vscode/src/extension/services/hub-status-bar.test.ts
@@ -88,6 +88,20 @@ describe('HubStatusBar', () => {
             expect(mockItem.text).toBe('$(cloud) CALM Hub (7)');
         });
 
+        it('forgets a cached URL only when it is cleared', () => {
+            statusBar.setState('connecting', undefined, 'https://calmhub.example.com');
+            statusBar.setState('error');
+            statusBar.setState('disconnected');
+
+            expect(mockItem.tooltip).toBe(
+                'Disconnected from https://calmhub.example.com\nClick to reconnect'
+            );
+
+            statusBar.clearHubUrl();
+
+            expect(mockItem.tooltip).toBe('Click to connect to CalmHub');
+        });
+
         it('shows selected vs available with setAvailableAndSelected', () => {
             statusBar.setState('connected', 3);
             statusBar.setAvailableAndSelected(['ns1', 'ns2', 'ns3'], ['ns1', 'ns3']);
diff --git a/calm-plugins/vscode/src/extension/services/hub-status-bar.ts b/calm-plugins/vscode/src/extension/services/hub-status-bar.ts
index afaf492aab..975aace113 100644
--- a/calm-plugins/vscode/src/extension/services/hub-status-bar.ts
+++ b/calm-plugins/vscode/src/extension/services/hub-status-bar.ts
@@ -35,6 +35,11 @@ export class HubStatusBar {
         this.update();
     }
 
+    clearHubUrl(): void {
+        this.hubUrl = undefined;
+        this.update();
+    }
+
     setAvailableAndSelected(available: string[], selected: string[]): void {
         this.availableNamespaces = available;
         this.selectedNamespaces = selected;