diff --git a/src/systems/rendering/thoughts.js b/src/systems/rendering/thoughts.js
index fa19cea..84c5498 100644
--- a/src/systems/rendering/thoughts.js
+++ b/src/systems/rendering/thoughts.js
@@ -228,6 +228,62 @@ function uploadNpcAvatar(characterName) {
     input.click();
 }
 
+/**
+ * Removes a character from the Present Characters panel and saved data
+ * @param {string} characterName - Name of the character to remove
+ */
+function removeCharacter(characterName) {
+    console.log(`[RPG Companion] Removing character: ${characterName}`);
+
+    // Initialize if it doesn't exist
+    if (!lastGeneratedData.characterThoughts) {
+        return;
+    }
+
+    const lines = lastGeneratedData.characterThoughts.split('\n');
+    const newLines = [];
+    let skipUntilNextCharacter = false;
+    let foundCharacter = false;
+
+    for (let i = 0; i < lines.length; i++) {
+        const line = lines[i].trim();
+
+        // Check if this is the start of the character we want to remove
+        if (line.startsWith('- ')) {
+            const name = line.substring(2).trim();
+            if (name.toLowerCase() === characterName.toLowerCase()) {
+                foundCharacter = true;
+                skipUntilNextCharacter = true;
+                continue; // Skip this line
+            } else {
+                // This is a different character, stop skipping
+                skipUntilNextCharacter = false;
+            }
+        }
+
+        // If we're not skipping, add the line
+        if (!skipUntilNextCharacter) {
+            newLines.push(lines[i]);
+        }
+    }
+
+    if (foundCharacter) {
+        // Update both lastGeneratedData and committedTrackerData
+        lastGeneratedData.characterThoughts = newLines.join('\n');
+        committedTrackerData.characterThoughts = newLines.join('\n');
+
+        // Save to chat metadata
+        saveChatData();
+
+        console.log(`[RPG Companion] Character removed: ${characterName}`);
+
+        // Re-render the panel
+        renderThoughts();
+    } else {
+        console.warn(`[RPG Companion] Character not found: ${characterName}`);
+    }
+}
+
 /**
  * Renders character thoughts (Present Characters) panel.
  * Displays character cards with avatars, relationship badges, and traits.
@@ -474,6 +530,7 @@ export function renderThoughts() {
                                 <div class="rpg-character-header">
                                     <span class="rpg-character-emoji rpg-editable" contenteditable="true" data-character="${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 this character from the panel">×</button>
                                 </div>
                 `;
 
@@ -571,6 +628,13 @@ export function renderThoughts() {
         }
     });
 
+    // Add event handler for character removal
+    $thoughtsContainer.find('.rpg-character-remove').on('click', function(e) {
+        e.stopPropagation(); // Prevent event bubbling
+        const characterName = $(this).data('character');
+        removeCharacter(characterName);
+    });
+
     // Remove updating class after animation
     if (extensionSettings.enableAnimations) {
         setTimeout(() => $thoughtsContainer.removeClass('rpg-content-updating'), 600);
diff --git a/style.css b/style.css
index 13b2bc0..b57b4e5 100644
--- a/style.css
+++ b/style.css
@@ -1986,6 +1986,7 @@ body:has(.rpg-panel.rpg-position-left) #sheld {
     align-items: center;
     gap: clamp(4px, 0.5vw, 6px);
     flex-wrap: nowrap; /* Prevent wrapping */
+    position: relative;
 }
 
 .rpg-character-emoji {
@@ -2002,6 +2003,39 @@ body:has(.rpg-panel.rpg-position-left) #sheld {
     white-space: nowrap; /* Prevent name from wrapping */
     overflow: hidden;
     text-overflow: ellipsis;
+    flex: 1;
+}
+
+/* Character remove button */
+.rpg-character-remove {
+    background: transparent;
+    border: none;
+    color: var(--rpg-text);
+    font-size: clamp(14px, 2vw, 18px);
+    font-weight: bold;
+    cursor: pointer;
+    padding: 0;
+    margin-left: auto;
+    width: clamp(16px, 2.5vh, 20px);
+    height: clamp(16px, 2.5vh, 20px);
+    display: flex;
+    align-items: center;
+    justify-content: center;
+    border-radius: 50%;
+    opacity: 0.5;
+    transition: all 0.2s ease;
+    flex-shrink: 0;
+}
+
+.rpg-character-remove:hover {
+    opacity: 1;
+    background: rgba(255, 0, 0, 0.2);
+    color: #ff4444;
+    transform: scale(1.1);
+}
+
+.rpg-character-remove:active {
+    transform: scale(0.95);
 }
 
 /* Character traits/status line and custom fields */