diff --git a/DEVELOPER.md b/DEVELOPER.md
index 931f656..f5a7085 100644
--- a/DEVELOPER.md
+++ b/DEVELOPER.md
@@ -77,6 +77,7 @@ Packet integration tests must remain inside disposable isolated namespaces.
 │   ├── integrity.py          # SHA-256 and integrity manifest logic
 │   ├── install.py            # Apt, Firecracker, kernel, rootfs installation
 │   ├── images.py             # Template lookup, private disks, and guest credentials
+│   ├── known_hosts.py        # Deletion-only cleanup of local SSH host-key caches
 │   ├── network.py            # IP/MAC/TAP/bridge/NAT/forward rules
 │   ├── firewall.py           # Owned nft bridge tables and offline conntrack cleanup
 │   ├── lifecycle.py          # Lifecycle, bulk operations, recovery, port intent
@@ -185,6 +186,7 @@ process:
 | CommandRunner | `CommandRunner` | Logged/testable subprocess execution |
 | StateStore | `StateStore` | Inventory, locks, JSON persistence |
 | ImageStore | `ImageStore` | Template verification, VM disks, and offline credentials |
+| KnownHostsManager | `KnownHostsManager` | Scoped local SSH cache cleanup before deleted IPs are released |
 | NetworkManager | `NetworkManager` | Guest allocation and Linux networking |
 | FirewallManager | Constructed by `NetworkManager` | Owned native bridge policy and scoped offline conntrack cleanup |
 | FirecrackerProcessManager | `FirecrackerProcessManager` | VMM process control |
@@ -415,7 +417,7 @@ stop:
 
 delete (destroy alias):
   persist delete intent -> same runtime cleanup -> remove owned runtime directory
-  -> remove state record -> release name/IP
+  -> clean local known_hosts entries -> remove state record -> release name/IP
 ```
 
 Stop signals the **VMM**, not a guest shutdown agent or ACPI-coordinated
@@ -428,6 +430,28 @@ Runtime cleanup retains reservations when process exit, TAP ownership, or
 connection cleanup is uncertain. A pending spawn cannot be declared gone
 merely because its PID was never persisted or its socket has not appeared.
 
+`KnownHostsManager` is an explicit lifecycle dependency, also used by API and
+bulk deletion. It runs after successful process/network/disk teardown and before
+the registry entry is removed, under the same operation lock. Cleanup errors
+retain `operation=delete` and the IP reservation; repeating delete retries it.
+Stop, restart, and resize retain the existing guest's trusted host-key entries.
+
+Default caches are `known_hosts` and `known_hosts2` under the effective user's
+and sudo invoker's account homes (`SUDO_UID`, with a `SUDO_USER` fallback).
+`UVM_KNOWN_HOSTS_FILES` overrides this discovery for service deployments using a
+colon-separated list of absolute paths. Only local files are managed. Matches
+are explicit guest IPs or UVM's `uvm-<VM-ID>` host-key alias, including OpenSSH's
+HMAC-SHA1 hashed form. Plain bracketed ports are recognized directly; hashed
+bracketed candidates use port 22 and the VM's recorded allowlist. Wildcard rules
+and other aliases sharing a line are retained.
+
+File updates use pinned directory descriptors, regular/single-link checks,
+an advisory lock, and a sibling temporary file. Owner, group, mode, and extended
+attributes are preserved. A changed source snapshot prevents publication over
+concurrent edits. A matching-free file is not rewritten and missing files are
+not created. Tests inject the dependency to avoid accessing developers' caches,
+and verify hashed-entry interoperability using real OpenSSH on temporary files.
+
 ### Policy and Bulk Operations
 
 `set_ports()` takes a frozen registry ID, not a reusable name/IP; the CLI resolves
diff --git a/README.md b/README.md
index 3e21122..9066a2f 100644
--- a/README.md
+++ b/README.md
@@ -192,6 +192,15 @@ append a remote command after a literal `--`. `--insecure-host-key` disables
 verification for one connection. SSH does not automatically supply the stored
 password or open a closed port.
 
+Deletion removes matching local SSH `known_hosts` entries for the guest IP and
+UVM's VM-ID host-key alias before releasing the IP for reuse. It checks the
+effective user's files and, under `sudo`, the invoking user's files, including
+hashed entries. Unrelated hosts and file ownership/permissions are preserved.
+For API services or custom SSH cache locations, set `UVM_KNOWN_HOSTS_FILES` to a
+colon-separated list of absolute paths on the UVM host. See the SSH section in
+[USAGE.md](USAGE.md#7-connect-with-ssh) for configuration and one-time cleanup of
+entries left by older versions.
+
 ### Private Ports
 
 ```sh
@@ -448,6 +457,7 @@ Host and API settings can be overridden through environment variables:
 | `UVM_NETWORK` | Guest private IPv4 CIDR; defaults to `10.42.0.0/24` |
 | `UVM_GATEWAY` | Bridge/guest gateway; defaults to `10.42.0.1` |
 | `UVM_BRIDGE` | Linux bridge name; defaults to `uvm0` |
+| `UVM_KNOWN_HOSTS_FILES` | Override local SSH cache files cleaned on deletion; colon-separated absolute paths |
 | `UVM_KERNEL_URL` | Override the host-architecture default guest kernel URL |
 | `UVM_ROOTFS_URL` | Override the host-architecture default guest rootfs URL |
 | `UVM_FIRECRACKER_SHA256` | Trusted Firecracker release archive SHA-256 |
diff --git a/USAGE.md b/USAGE.md
index 6cfd1fa..c9dd533 100644
--- a/USAGE.md
+++ b/USAGE.md
@@ -429,6 +429,33 @@ By default, UVM uses SSH `StrictHostKeyChecking=accept-new` and a stable
 host-key alias derived from the VM ID. This lets a guest IP be reused later
 without confusing it with the prior VM's known-hosts entry.
 
+When a VM is deleted, UVM removes its explicit IP and `uvm-<VM-ID>` entries
+from local SSH caches. This also covers direct `ssh user@GUEST_IP` connections
+and hashed hostnames. Plain `[host]:port` entries are removed for the VM;
+hashed port entries are checked for TCP/22 and the ports in the VM's allowlist.
+Other hosts (including other aliases on a shared line), wildcard trust rules,
+comments, and file ownership/mode are preserved. Missing caches are harmless.
+
+The default files are `~/.ssh/known_hosts` and `~/.ssh/known_hosts2` for the
+effective user and, when running under `sudo`, its invoking user. Homes are
+resolved from the local account database. The API uses the user context that
+launched its server. To select specific local files for a service or custom
+SSH configuration, set this variable when launching UVM:
+
+```sh
+export UVM_KNOWN_HOSTS_FILES='/root/.ssh/known_hosts:/home/dgxdev/.ssh/known_hosts'
+# Pass it explicitly through sudo when starting the API or running deletion.
+sudo env UVM_KNOWN_HOSTS_FILES="$UVM_KNOWN_HOSTS_FILES" ./uvm.py delete VM -y
+```
+
+These paths are local to the UVM host. An SSH client on another computer manages
+its own cache there. For a stale entry left by a VM deleted with an older UVM
+version, remove that entry once from the SSH client's account:
+
+```sh
+ssh-keygen -f "$HOME/.ssh/known_hosts" -R '10.42.0.2'
+```
+
 The key must already be authorized by the guest; UVM does not inject it.
 `--port` selects the guest SSH port (default 22), not a host mapping. The
 guest's sshd and private allowlist must allow that port. SSH does not feed the
@@ -519,8 +546,10 @@ sudo ./uvm.py delete web -y
 # Equivalent destructive command: sudo ./uvm.py destroy web -y
 ```
 
-Delete performs the stop cleanup, then removes the runtime directory/private
-disk and registry record, releasing the name and IP. `destroy` is the same
+Delete performs the stop cleanup, removes the runtime directory/private disk,
+cleans matching local SSH host-key entries, then removes the registry record,
+releasing the name and IP. A cache cleanup error retains the pending deletion
+and IP reservation so cleanup can be retried before the IP is reused. `destroy` is the same
 command with the same flags. Back up data first. A failed deletion remains
 pending; retry delete rather than trying to resurrect it with start.
 
@@ -1023,6 +1052,7 @@ automatically detects every conflict with host routes or other managers.
 | `UVM_NETWORK` | Guest subnet; default `10.42.0.0/24` |
 | `UVM_GATEWAY` | Guest gateway / bridge IP; default `10.42.0.1` |
 | `UVM_BRIDGE` | Linux bridge name; default `uvm0` |
+| `UVM_KNOWN_HOSTS_FILES` | Override deletion's local SSH cache files; colon-separated absolute paths |
 | `UVM_KERNEL_URL` | Override the host-architecture default kernel URL |
 | `UVM_ROOTFS_URL` | Override the host-architecture default rootfs URL |
 | `UVM_FIRECRACKER_SHA256` | Strict Firecracker archive checksum |
diff --git a/tests/test_known_hosts.py b/tests/test_known_hosts.py
index 8b7c434..226463f 100644
--- a/tests/test_known_hosts.py
+++ b/tests/test_known_hosts.py
@@ -1,7 +1,7 @@
 from __future__ import annotations
 
-import os
 import errno
+import os
 import shutil
 import tempfile
 import unittest