diff --git a/CLI.md b/CLI.md
index c7aa1e31..6f18244f 100644
--- a/CLI.md
+++ b/CLI.md
@@ -16,7 +16,10 @@ mxpy is part of the multiversx-sdk and consists of Command Line Tools and Python
 for interacting with the Blockchain (in general) and with Smart Contracts (in particular).
 
 mxpy targets a broad audience of users and developers.
-https://docs.multiversx.com/sdk-and-tools/mxpy.
+
+See:
+ - https://docs.multiversx.com/sdk-and-tools/sdk-py
+ - https://docs.multiversx.com/sdk-and-tools/sdk-py/mxpy-cli
         
 
 COMMAND GROUPS:
@@ -1293,7 +1296,7 @@ usage: mxpy config COMMAND [-h] ...
 Configure multiversx-sdk (default values etc.)
 
 COMMANDS:
-  {dump,get,set,delete,new,switch,list}
+  {dump,get,set,delete,new,switch,list,reset}
 
 OPTIONS:
   -h, --help            show this help message and exit
@@ -1308,6 +1311,7 @@ delete                         Deletes a configuration value.
 new                            Creates a new configuration.
 switch                         Switch to a different config
 list                           List available configs
+reset                          Deletes the config file. Default config will be used.
 
 ```
 ### Configuration.Dump
@@ -1399,6 +1403,19 @@ usage: mxpy config list [-h] ...
 
 List available configs
 
+options:
+  -h, --help  show this help message and exit
+
+```
+### Configuration.Reset
+
+
+```
+$ mxpy config reset --help
+usage: mxpy config reset [-h] ...
+
+Deletes the config file. Default config will be used.
+
 options:
   -h, --help  show this help message and exit
 
diff --git a/CLI.md.sh b/CLI.md.sh
index db02f98f..c1b3ac8d 100755
--- a/CLI.md.sh
+++ b/CLI.md.sh
@@ -93,6 +93,7 @@ generate() {
     command "Configuration.New" "config new"
     command "Configuration.Switch" "config switch"
     command "Configuration.List" "config list"
+    command "Configuration.Reset" "config reset"
 
     group "Data" "data"
     command "Data.Dump" "data parse"
diff --git a/multiversx_sdk_cli/cli_config.py b/multiversx_sdk_cli/cli_config.py
index 5169ff20..b32496df 100644
--- a/multiversx_sdk_cli/cli_config.py
+++ b/multiversx_sdk_cli/cli_config.py
@@ -1,5 +1,7 @@
 import logging
+import os
 import sys
+from pathlib import Path
 from typing import Any
 
 from multiversx_sdk_cli import cli_shared, config, utils
@@ -40,6 +42,9 @@ def setup_parser(subparsers: Any) -> Any:
     sub = cli_shared.add_command_subparser(subparsers, "config", "list", "List available configs")
     sub.set_defaults(func=list_configs)
 
+    sub = cli_shared.add_command_subparser(subparsers, "config", "reset", "Deletes the config file. Default config will be used.")
+    sub.set_defaults(func=delete_config)
+
     parser.epilog = cli_shared.build_group_epilog(subparsers)
     return subparsers
 
@@ -93,3 +98,21 @@ def list_configs(args: Any):
         if config_name == data.get("active", "default"):
             config_name += "*"
         print(config_name)
+
+
+def delete_config(args: Any):
+    config_file = config.resolve_config_path()
+    if not config_file.is_file():
+        logger.info(f"Config file not found. Aborting...")
+        return
+
+    confirm_continuation(config_file)
+    os.remove(config_file)
+    logger.info("Successfully deleted the config file")
+
+
+def confirm_continuation(file: Path):
+    answer = input(f"The file `{str(file)}` will be deleted. Do you want to continue? (y/n)")
+    if answer.lower() not in ["y", "yes"]:
+        print("Confirmation not given. Stopping...")
+        exit(1)