diff --git a/pkg/project/project.go b/pkg/project/project.go
index d3685a511f..0bf4ff9844 100644
--- a/pkg/project/project.go
+++ b/pkg/project/project.go
@@ -27,6 +27,10 @@ import (
 	"github.com/sst/sst/v3/pkg/runtime/worker"
 )
 
+type AppState struct {
+	PurgeOnRemove bool `json:"purgeOnRemove"`
+}
+
 type App struct {
 	Name      string                 `json:"name"`
 	Stage     string                 `json:"stage"`
@@ -36,6 +40,7 @@ type App struct {
 	Version   string                 `json:"version"`
 	Protect   bool                   `json:"protect"`
 	Watch     []string               `json:"watch"`
+	State     *AppState              `json:"state"`
 	// Deprecated: Backend is now Home
 	Backend string `json:"backend"`
 	// Deprecated: RemovalPolicy is now Removal
diff --git a/pkg/project/provider/aws.go b/pkg/project/provider/aws.go
index 1ee95fc941..ccbc1831f5 100644
--- a/pkg/project/provider/aws.go
+++ b/pkg/project/provider/aws.go
@@ -691,6 +691,22 @@ func (a *AwsHome) getPassphrase(app string, stage string) (string, error) {
 	return *result.Parameter.Value, nil
 }
 
+func (a *AwsHome) removePassphrase(app, stage string) error {
+	ssmClient := ssm.NewFromConfig(a.provider.config)
+
+	_, err := ssmClient.DeleteParameter(context.TODO(), &ssm.DeleteParameterInput{
+		Name: aws.String(a.pathForPassphrase(app, stage)),
+	})
+	if err != nil {
+		var pnf *ssmTypes.ParameterNotFound
+		if errors.As(err, &pnf) {
+			return nil
+		}
+		return err
+	}
+	return nil
+}
+
 func (a *AwsHome) setPassphrase(app, stage, passphrase string) error {
 	ssmClient := ssm.NewFromConfig(a.provider.config)
 
diff --git a/pkg/project/provider/cloudflare.go b/pkg/project/provider/cloudflare.go
index 2f6cbf8a93..dfb4fb2925 100644
--- a/pkg/project/provider/cloudflare.go
+++ b/pkg/project/provider/cloudflare.go
@@ -169,6 +169,10 @@ func (c *CloudflareHome) removeData(kind, app, stage string) error {
 	return nil
 }
 
+func (c *CloudflareHome) removePassphrase(app, stage string) error {
+	return c.removeData("passphrase", app, stage)
+}
+
 // these should go into secrets manager once it's out of beta
 func (c *CloudflareHome) setPassphrase(app, stage string, passphrase string) error {
 	return c.putData("passphrase", app, stage, bytes.NewReader([]byte(passphrase)))
diff --git a/pkg/project/provider/local.go b/pkg/project/provider/local.go
index e250b24a44..9f75473b10 100644
--- a/pkg/project/provider/local.go
+++ b/pkg/project/provider/local.go
@@ -65,6 +65,10 @@ func (l *LocalHome) removeData(key, app, stage string) error {
 	return os.Remove(p)
 }
 
+func (c *LocalHome) removePassphrase(app, stage string) error {
+	return c.removeData("passphrase", app, stage)
+}
+
 // these should go into secrets manager once it's out of beta
 func (c *LocalHome) setPassphrase(app, stage string, passphrase string) error {
 	return c.putData("passphrase", app, stage, bytes.NewReader([]byte(passphrase)))
diff --git a/pkg/project/provider/provider.go b/pkg/project/provider/provider.go
index f2f1a8acb9..38c43af932 100644
--- a/pkg/project/provider/provider.go
+++ b/pkg/project/provider/provider.go
@@ -29,6 +29,7 @@ type Home interface {
 	getPassphrase(app, stage string) (string, error)
 	listStages(app string) ([]string, error)
 	cleanup(key, app, stage string) error
+	removePassphrase(app, stage string) error
 	info() (util.KeyValuePairs[string], error)
 }
 
@@ -102,6 +103,18 @@ func Passphrase(backend Home, app, stage string) (string, error) {
 		return "", err
 	}
 
+	if passphrase != "" {
+		cache[app+stage] = passphrase
+	}
+	return passphrase, nil
+}
+
+func PassphraseInit(backend Home, app, stage string) (string, error) {
+	passphrase, err := Passphrase(backend, app, stage)
+	if err != nil {
+		return "", err
+	}
+
 	if passphrase == "" {
 		slog.Info("passphrase not found, setting passphrase", "app", app, "stage", stage)
 		passphrase = flag.SST_PASSPHRASE
@@ -117,9 +130,10 @@ func Passphrase(backend Home, app, stage string) (string, error) {
 		if err != nil {
 			return "", err
 		}
+
+		passphraseCache[backend][app+stage] = passphrase
 	}
 
-	existingPassphrase, ok = cache[app+stage]
 	return passphrase, nil
 }
 
@@ -168,6 +182,19 @@ func Cleanup(backend Home, app, stage string) error {
 	return nil
 }
 
+func Purge(backend Home, app, stage string) error {
+	if err := backend.removeData("app", app, stage); err != nil {
+		return err
+	}
+	if err := backend.removeData("secret", app, stage); err != nil {
+		return err
+	}
+	if err := backend.removePassphrase(app, stage); err != nil {
+		return err
+	}
+	return nil
+}
+
 func GetSecrets(backend Home, app, stage string) (map[string]string, error) {
 	if stage == "" {
 		stage = "_fallback"
@@ -348,7 +375,7 @@ func putData(backend Home, key, app, stage string, encrypt bool, data interface{
 		return err
 	}
 	if encrypt {
-		passphrase, err := Passphrase(backend, app, stage)
+		passphrase, err := PassphraseInit(backend, app, stage)
 		if err != nil {
 			return err
 		}
diff --git a/pkg/project/run.go b/pkg/project/run.go
index a21c54280d..632fcf95da 100644
--- a/pkg/project/run.go
+++ b/pkg/project/run.go
@@ -70,7 +70,12 @@ func (p *Project) Run(ctx context.Context, input *StackInput) error {
 	}
 	defer workdir.Cleanup()
 
-	passphrase, err := provider.Passphrase(p.home, p.app.Name, p.app.Stage)
+	var passphrase string
+	if input.Command == "deploy" || input.Dev {
+		passphrase, err = provider.PassphraseInit(p.home, p.app.Name, p.app.Stage)
+	} else {
+		passphrase, err = provider.Passphrase(p.home, p.app.Name, p.app.Stage)
+	}
 	if err != nil {
 		return err
 	}
@@ -670,6 +675,9 @@ loop:
 
 	if input.Command == "remove" && len(complete.Resources) == 0 {
 		provider.Cleanup(p.home, p.app.Name, p.app.Stage)
+		if p.app.State != nil && p.app.State.PurgeOnRemove {
+			provider.Purge(p.home, p.app.Name, p.app.Stage)
+		}
 	}
 
 	log.Info("done running stack command", "resources", len(complete.Resources))
diff --git a/platform/src/config.ts b/platform/src/config.ts
index c8297e4326..866d01387a 100644
--- a/platform/src/config.ts
+++ b/platform/src/config.ts
@@ -286,6 +286,55 @@ export interface App {
    * The paths are relative to the project root.
    */
   watch?: string[];
+
+  /**
+   * Configure how your app's state is managed.
+   *
+   * The state keeps track of all your resources, secrets, and the encryption key. By default,
+   * this data is preserved via versioning even after `sst remove` so you can recover it if needed.
+   *
+   * @example
+   *
+   * For example, to fully remove the state file and encryption key:
+   *
+   * ```ts
+   * {
+   *   state: {
+   *     purgeOnRemove: input.stage !== "production"
+   *   }
+   * }
+   * ```
+   */
+  state?: {
+    /**
+     * If set to `true`, running `sst remove` will fully remove all state associated
+     * with the stage once all resources have been successfully removed.
+     *
+     * This removes the state files, secrets and the encryption passphrase.
+     *
+     * :::caution
+     * This is irreversible. Once the state encryption key is deleted, secrets and all state versions will be
+     * unrecoverable.
+     * :::
+     *
+     * :::tip
+     * Only enable this for ephemeral or development stages.
+     * :::
+     *
+     * @default false
+     *
+     * @example
+     *
+     * ```ts
+     * {
+     *   state: {
+     *     purgeOnRemove: true
+     *   }
+     * }
+     * ```
+     */
+    purgeOnRemove?: boolean;
+  };
 }
 
 export interface AppInput {