diff --git a/src/core/__tests__/contextProxy.test.ts b/src/core/__tests__/contextProxy.test.ts
index 0ac98bbc8ce..e44f3e45b3c 100644
--- a/src/core/__tests__/contextProxy.test.ts
+++ b/src/core/__tests__/contextProxy.test.ts
@@ -255,4 +255,77 @@ describe("ContextProxy", () => {
 			expect(proxy.getGlobalState("unknownKey")).toBe("some-value")
 		})
 	})
+
+	describe("resetAllState", () => {
+		it("should clear all in-memory caches", async () => {
+			// Setup initial state in caches
+			await proxy.setValues({
+				apiModelId: "gpt-4", // global state
+				openAiApiKey: "test-api-key", // secret
+				unknownKey: "some-value", // unknown
+			})
+
+			// Verify initial state
+			expect(proxy.getGlobalState("apiModelId")).toBe("gpt-4")
+			expect(proxy.getSecret("openAiApiKey")).toBe("test-api-key")
+			expect(proxy.getGlobalState("unknownKey")).toBe("some-value")
+
+			// Reset all state
+			await proxy.resetAllState()
+
+			// Caches should be reinitialized with values from the context
+			// Since our mock globalState.get returns undefined by default,
+			// the cache should now contain undefined values
+			expect(proxy.getGlobalState("apiModelId")).toBeUndefined()
+			expect(proxy.getGlobalState("unknownKey")).toBeUndefined()
+		})
+
+		it("should update all global state keys to undefined", async () => {
+			// Setup initial state
+			await proxy.updateGlobalState("apiModelId", "gpt-4")
+			await proxy.updateGlobalState("apiProvider", "openai")
+
+			// Reset all state
+			await proxy.resetAllState()
+
+			// Should have called update with undefined for each key
+			for (const key of GLOBAL_STATE_KEYS) {
+				expect(mockGlobalState.update).toHaveBeenCalledWith(key, undefined)
+			}
+
+			// Total calls should include initial setup + reset operations
+			const expectedUpdateCalls = 2 + GLOBAL_STATE_KEYS.length
+			expect(mockGlobalState.update).toHaveBeenCalledTimes(expectedUpdateCalls)
+		})
+
+		it("should delete all secrets", async () => {
+			// Setup initial secrets
+			await proxy.storeSecret("apiKey", "test-api-key")
+			await proxy.storeSecret("openAiApiKey", "test-openai-key")
+
+			// Reset all state
+			await proxy.resetAllState()
+
+			// Should have called delete for each key
+			for (const key of SECRET_KEYS) {
+				expect(mockSecrets.delete).toHaveBeenCalledWith(key)
+			}
+
+			// Total calls should equal the number of secret keys
+			expect(mockSecrets.delete).toHaveBeenCalledTimes(SECRET_KEYS.length)
+		})
+
+		it("should reinitialize caches after reset", async () => {
+			// Spy on initialization methods
+			const initStateCache = jest.spyOn(proxy as any, "initializeStateCache")
+			const initSecretCache = jest.spyOn(proxy as any, "initializeSecretCache")
+
+			// Reset all state
+			await proxy.resetAllState()
+
+			// Should reinitialize caches
+			expect(initStateCache).toHaveBeenCalledTimes(1)
+			expect(initSecretCache).toHaveBeenCalledTimes(1)
+		})
+	})
 })
diff --git a/src/core/contextProxy.ts b/src/core/contextProxy.ts
index f27cc7f65c8..52197d99f3a 100644
--- a/src/core/contextProxy.ts
+++ b/src/core/contextProxy.ts
@@ -129,4 +129,29 @@ export class ContextProxy {
 
 		return Promise.all(promises)
 	}
+
+	/**
+	 * Resets all global state, secrets, and in-memory caches.
+	 * This clears all data from both the in-memory caches and the VSCode storage.
+	 * @returns A promise that resolves when all reset operations are complete
+	 */
+	async resetAllState(): Promise<void> {
+		// Clear in-memory caches
+		this.stateCache.clear()
+		this.secretCache.clear()
+
+		// Reset all global state values to undefined
+		const stateResetPromises = GLOBAL_STATE_KEYS.map((key) =>
+			this.originalContext.globalState.update(key, undefined),
+		)
+
+		// Delete all secrets
+		const secretResetPromises = SECRET_KEYS.map((key) => this.originalContext.secrets.delete(key))
+
+		// Wait for all reset operations to complete
+		await Promise.all([...stateResetPromises, ...secretResetPromises])
+
+		this.initializeStateCache()
+		this.initializeSecretCache()
+	}
 }
diff --git a/src/core/webview/ClineProvider.ts b/src/core/webview/ClineProvider.ts
index c2872041a35..c661d705e97 100644
--- a/src/core/webview/ClineProvider.ts
+++ b/src/core/webview/ClineProvider.ts
@@ -2432,14 +2432,7 @@ export class ClineProvider implements vscode.WebviewViewProvider {
 			return
 		}
 
-		for (const key of this.context.globalState.keys()) {
-			await this.contextProxy.updateGlobalState(key, undefined)
-		}
-
-		for (const key of SECRET_KEYS) {
-			await this.storeSecret(key, undefined)
-		}
-
+		await this.contextProxy.resetAllState()
 		await this.configManager.resetAllConfigs()
 		await this.customModesManager.resetCustomModes()
 		await this.removeClineFromStack()