diff --git a/src/systems/generation/promptBuilder.js b/src/systems/generation/promptBuilder.js
index bb2c302..7cf787b 100644
--- a/src/systems/generation/promptBuilder.js
+++ b/src/systems/generation/promptBuilder.js
@@ -401,6 +401,7 @@ export function generateJSONTrackerInstructions(includeHtmlPrompt = true, includ
     }
 
     instructions += '- Empty arrays [] for sections with no items\n';
+    instructions += '- Items may be added or removed from all sections\n';
     instructions += '- null for main quest if none active\n';
     
     // Add stat descriptions if any have descriptions
diff --git a/src/systems/rendering/thoughts.js b/src/systems/rendering/thoughts.js
index 436db8a..1bed375 100644
--- a/src/systems/rendering/thoughts.js
+++ b/src/systems/rendering/thoughts.js
@@ -478,6 +478,7 @@ export function renderThoughts() {
                                 <div class="rpg-character-header">
                                     <span class="rpg-character-emoji rpg-editable" contenteditable="true" data-character="${escapedName}" data-field="emoji" title="Click to edit emoji">${char.emoji}</span>
                                     <span class="rpg-character-name rpg-editable" contenteditable="true" data-character="${escapedName}" data-field="name" title="Click to edit name">${char.name}</span>
+                                    <button class="rpg-character-remove" data-character="${escapedName}" title="Remove character">×</button>
                                 </div>
                 `;
 
@@ -541,6 +542,15 @@ export function renderThoughts() {
         updateCharacterField(character, field, value);
     });
 
+    // Add event handlers for remove character buttons
+    $thoughtsContainer.find('.rpg-character-remove').on('click', function(e) {
+        e.stopPropagation();
+        const characterName = $(this).data('character');
+        if (characterName && confirm(`Remove ${characterName} from present characters?`)) {
+            removeCharacter(characterName);
+        }
+    });
+
     // Remove updating class after animation
     if (extensionSettings.enableAnimations) {
         setTimeout(() => $thoughtsContainer.removeClass('rpg-content-updating'), 600);
@@ -780,6 +790,112 @@ export function updateCharacterField(characterName, field, value) {
     }
 }
 
+/**
+ * Removes a character from Present Characters data and re-renders.
+ * Works with both structured (charactersData) and text (characterThoughts) formats.
+ *
+ * @param {string} characterName - Name of the character to remove
+ */
+export function removeCharacter(characterName) {
+    console.log('[RPG Companion] Removing character:', characterName);
+
+    // Remove from structured data if it exists
+    if (extensionSettings.charactersData && Array.isArray(extensionSettings.charactersData)) {
+        const initialLength = extensionSettings.charactersData.length;
+        extensionSettings.charactersData = extensionSettings.charactersData.filter(
+            char => char.name && char.name.toLowerCase() !== characterName.toLowerCase()
+        );
+        if (extensionSettings.charactersData.length < initialLength) {
+            console.log('[RPG Companion] Removed character from structured data');
+        }
+    }
+
+    // Remove from text format
+    if (!lastGeneratedData.characterThoughts) {
+        console.log('[RPG Companion] No characterThoughts data to remove from');
+        return;
+    }
+
+    const lines = lastGeneratedData.characterThoughts.split('\n');
+    const presentCharsConfig = extensionSettings.trackerConfig?.presentCharacters;
+    
+    let characterFound = false;
+    let inTargetCharacter = false;
+    let characterStartIndex = -1;
+    let characterEndIndex = -1;
+    const linesToRemove = [];
+
+    // Find the character block
+    for (let i = 0; i < lines.length; i++) {
+        const line = lines[i].trim();
+
+        if (line.startsWith('- ')) {
+            const name = line.substring(2).trim();
+            if (name.toLowerCase() === characterName.toLowerCase()) {
+                characterFound = true;
+                inTargetCharacter = true;
+                characterStartIndex = i;
+                linesToRemove.push(i);
+            } else if (inTargetCharacter) {
+                characterEndIndex = i;
+                break;
+            }
+        } else if (inTargetCharacter) {
+            // Include all lines until the next character or end of file
+            linesToRemove.push(i);
+            // Check if this is a character name line (next character)
+            if (line.startsWith('- ')) {
+                characterEndIndex = i;
+                break;
+            }
+        }
+    }
+
+    if (characterFound && characterEndIndex === -1) {
+        characterEndIndex = lines.length;
+    }
+
+    if (characterFound && linesToRemove.length > 0) {
+        // Remove lines in reverse order to maintain indices
+        for (let i = linesToRemove.length - 1; i >= 0; i--) {
+            lines.splice(linesToRemove[i], 1);
+        }
+
+        // Clean up any trailing empty lines after removal
+        while (lines.length > 0 && lines[lines.length - 1].trim() === '') {
+            lines.pop();
+        }
+
+        lastGeneratedData.characterThoughts = lines.join('\n');
+        committedTrackerData.characterThoughts = lines.join('\n');
+
+        console.log('[RPG Companion] Removed character from text format');
+
+        // Update chat swipe data
+        const chat = getContext().chat;
+        if (chat && chat.length > 0) {
+            for (let i = chat.length - 1; i >= 0; i--) {
+                const message = chat[i];
+                if (!message.is_user) {
+                    if (message.extra && message.extra.rpg_companion_swipes) {
+                        const swipeId = message.swipe_id || 0;
+                        if (message.extra.rpg_companion_swipes[swipeId]) {
+                            message.extra.rpg_companion_swipes[swipeId].characterThoughts = lines.join('\n');
+                        }
+                    }
+                    break;
+                }
+            }
+        }
+
+        saveChatData();
+        renderThoughts();
+        updateChatThoughts();
+    } else {
+        console.log('[RPG Companion] Character not found in text format:', characterName);
+    }
+}
+
 /**
  * Updates or removes thought overlays in the chat.
  * Creates floating thought bubbles positioned near character avatars.
diff --git a/style.css b/style.css
index 45e92ec..c8379e7 100644
--- a/style.css
+++ b/style.css
@@ -1957,6 +1957,38 @@ body:has(.rpg-panel.rpg-position-left) #sheld {
     white-space: nowrap; /* Prevent name from wrapping */
     overflow: hidden;
     text-overflow: ellipsis;
+    flex: 1;
+    min-width: 0;
+}
+
+/* Character remove button */
+.rpg-character-remove {
+    flex-shrink: 0;
+    background: rgba(255, 0, 0, 0.2);
+    border: 1px solid rgba(255, 0, 0, 0.4);
+    border-radius: 50%;
+    width: clamp(18px, 2.5vh, 22px);
+    height: clamp(18px, 2.5vh, 22px);
+    display: flex;
+    align-items: center;
+    justify-content: center;
+    font-size: clamp(14px, 2vw, 18px);
+    color: var(--rpg-highlight);
+    cursor: pointer;
+    transition: all 0.2s ease;
+    padding: 0;
+    line-height: 1;
+    margin-left: auto;
+}
+
+.rpg-character-remove:hover {
+    background: rgba(255, 0, 0, 0.4);
+    border-color: rgba(255, 0, 0, 0.6);
+    transform: scale(1.1);
+}
+
+.rpg-character-remove:active {
+    transform: scale(0.95);
 }
 
 /* Character traits/status line and custom fields */