diff --git a/jupyter_server_documents/outputs/handlers.py b/jupyter_server_documents/outputs/handlers.py
index 8e87f56..789cdf1 100644
--- a/jupyter_server_documents/outputs/handlers.py
+++ b/jupyter_server_documents/outputs/handlers.py
@@ -1,10 +1,7 @@
-import json
-
 from tornado import web
 
 from jupyter_server.auth.decorator import authorized
 from jupyter_server.base.handlers import APIHandler
-from jupyter_server.utils import url_path_join
 
 
 class OutputsAPIHandler(APIHandler):
@@ -18,7 +15,7 @@ def outputs(self):
 
     @web.authenticated
     @authorized
-    async def get(self, file_id=None, cell_id=None, output_index=None):
+    async def get(self, file_id, cell_id=None, output_index=None):
         try:
             if output_index:
                 output = self.outputs.get_output(file_id, cell_id, output_index)
@@ -35,6 +32,19 @@ async def get(self, file_id=None, cell_id=None, output_index=None):
             self.write(output)
             self.finish(set_content_type=content_type)
 
+    @web.authenticated
+    @authorized
+    async def delete(self, file_id, cell_id=None, output_index=None):
+        # output_index is accepted but ignored as we clear all cell outputs regardless
+        try:
+            self.outputs.clear(file_id, cell_id)
+        except (FileNotFoundError):
+            self.set_status(404)
+            self.finish({"error": "Output not found."})
+        else:
+            self.set_status(200)
+            self.finish()
+
 
 class StreamAPIHandler(APIHandler):
     """An outputs service API handler."""
@@ -69,7 +79,7 @@ async def get(self, file_id=None, cell_id=None):
 
 _file_id_regex = r"(?P<file_id>[a-f0-9]{8}-[a-f0-9]{4}-[a-f0-9]{4}-[a-f0-9]{4}-[a-f0-9]{12})"
 # In nbformat, cell_ids follow this format, compatible with uuid4
-_cell_id_regex = rf"(?P<cell_id>[a-zA-Z0-9_-]+)"
+_cell_id_regex = r"(?P<cell_id>[a-zA-Z0-9_-]+)"
 
 # non-negative integers
 _output_index_regex = r"(?P<output_index>0|[1-9]\d*)"
diff --git a/jupyter_server_documents/rooms/yroom.py b/jupyter_server_documents/rooms/yroom.py
index 73ce477..03f3b8d 100644
--- a/jupyter_server_documents/rooms/yroom.py
+++ b/jupyter_server_documents/rooms/yroom.py
@@ -294,6 +294,9 @@ def _init_awareness(self, ydoc: pycrdt.Doc) -> pycrdt.Awareness:
         `awareness.unobserve(self._awareness_subscription)`.
         """
         self._awareness = pycrdt.Awareness(ydoc=ydoc)
+        if self.room_id != "JupyterLab:globalAwareness":
+            file_format, file_type, file_id = self.room_id.split(":")
+            self._awareness.set_local_state_field("file_id", file_id)
         self._awareness_subscription = self._awareness.observe(
             self._on_awareness_update
         )
@@ -325,7 +328,6 @@ def _init_jupyter_ydoc(self, ydoc: pycrdt.Doc, awareness: pycrdt.Awareness) -> Y
         self._jupyter_ydoc.observe(self._on_jupyter_ydoc_update)
         return self._jupyter_ydoc
 
-
     @property
     def clients(self) -> YjsClientGroup:
         """
diff --git a/src/notebook-factory/notebook-factory.ts b/src/notebook-factory/notebook-factory.ts
index eef61cf..a4b15c5 100644
--- a/src/notebook-factory/notebook-factory.ts
+++ b/src/notebook-factory/notebook-factory.ts
@@ -5,7 +5,7 @@ import {
   ICodeCellModel
 } from '@jupyterlab/cells';
 import { IChangedArgs } from '@jupyterlab/coreutils';
-import { Notebook, NotebookPanel } from '@jupyterlab/notebook';
+import { Notebook, NotebookPanel, NotebookActions } from '@jupyterlab/notebook';
 import { CellChange, createMutex, ISharedCodeCell } from '@jupyter/ydoc';
 import { IOutputAreaModel, OutputAreaModel } from '@jupyterlab/outputarea';
 import { requestAPI } from '../handler';
@@ -340,3 +340,52 @@ export class RtcNotebookContentFactory
     return new ResettableNotebook(options);
   }
 }
+
+// Add a handler for the outputCleared signal
+NotebookActions.outputCleared.connect((sender, args) => {
+  const { notebook, cell } = args;
+  const cellId = cell.model.sharedModel.getId();
+  const awareness = notebook.model?.sharedModel.awareness;
+  const awarenessStates = awareness?.getStates();
+
+  // FIRST: Clear outputs in YDoc for immediate real-time sync to all clients
+  try {
+    const sharedCodeCell = cell.model.sharedModel as ISharedCodeCell;
+    sharedCodeCell.setOutputs([]);
+    console.debug(`Cleared outputs in YDoc for cell ${cellId}`);
+  } catch (error: unknown) {
+    console.error('Error clearing YDoc outputs:', error);
+  }
+
+  if (awarenessStates?.size === 0) {
+    console.log('Could not delete cell output, awareness is not present');
+    return; // Early return since we can't get fileId without awareness
+  }
+
+  let fileId = null;
+  for (const [_, state] of awarenessStates || []) {
+    if (state && 'file_id' in state) {
+      fileId = state['file_id'];
+    }
+  }
+
+  if (fileId === null) {
+    console.error('No fileId found in awareness');
+    return; // Early return since we can't make API call without fileId
+  }
+
+  // SECOND: Send API request to clear outputs from disk storage
+  try {
+    requestAPI(`/api/outputs/${fileId}/${cellId}`, {
+      method: 'DELETE'
+    })
+      .then(() => {
+        console.debug(`Successfully cleared outputs from disk for cell ${cellId}`);
+      })
+      .catch((error: Error) => {
+        console.error(`Failed to clear outputs from disk for cell ${cellId}:`, error);
+      });
+  } catch (error: unknown) {
+    console.error('Error in disk output clearing process:', error);
+  }
+});