diff --git a/radicle-cli/examples/rad-rm.md b/radicle-cli/examples/rad-rm.md
new file mode 100644
index 00000000..435bbbd5
--- /dev/null
+++ b/radicle-cli/examples/rad-rm.md
@@ -0,0 +1,22 @@
+To delete a repository from local storage, we use the `rad rm` command.
+First let's look at what we have locally:
+
+```
+$ rad ls
+heartwood rad:z42hL2jL4XNk6K8oHQaSWfMgCL7ji f2de534 Radicle Heartwood Protocol & Stack
+```
+
+Now let's delete the `heartwood` project:
+
+```
+$ rad rm rad:z42hL2jL4XNk6K8oHQaSWfMgCL7ji --no-confirm
+** Warning: Failed to untrack repository: failed to connect to node: No such file or directory (os error 2)
+** Warning: Make sure to untrack this repository when your node is running
+ok Successfully removed project rad:z42hL2jL4XNk6K8oHQaSWfMgCL7ji from storage
+```
+
+We can check our repositories again to see if it was deleted:
+
+```
+$ rad ls
+```
diff --git a/radicle-cli/src/commands/rm.rs b/radicle-cli/src/commands/rm.rs
index 7d696767..076dfb9f 100644
--- a/radicle-cli/src/commands/rm.rs
+++ b/radicle-cli/src/commands/rm.rs
@@ -81,7 +81,7 @@ pub fn run(options: Options, ctx: impl term::Context) -> anyhow::Result<()> {
     let id = options.id;
 
     if let Ok(Some(_)) = storage.get(signer.public_key(), id.to_owned()) {
-        let namespace = profile.home.storage().join(id.urn());
+        let path = radicle::storage::git::paths::repository(storage, &id);
 
         if !options.confirm
             || term::confirm(format!(
@@ -89,9 +89,12 @@ pub fn run(options: Options, ctx: impl term::Context) -> anyhow::Result<()> {
                 term::format::dim(id.urn())
             ))
         {
-            rad_untrack::untrack(id.to_owned(), &profile)?;
-            fs::remove_dir_all(namespace)?;
-            term::success!("Successfully removed project {}", &id);
+            if let Err(e) = rad_untrack::untrack(id.to_owned(), &profile) {
+                term::warning(&format!("Failed to untrack repository: {e}"));
+                term::warning("Make sure to untrack this repository when your node is running");
+            }
+            fs::remove_dir_all(path)?;
+            term::success!("Successfully removed project {id} from storage");
         }
     } else {
         anyhow::bail!("project {} does not exist", &id)
diff --git a/radicle-cli/tests/commands.rs b/radicle-cli/tests/commands.rs
index c15995c2..74a83b05 100644
--- a/radicle-cli/tests/commands.rs
+++ b/radicle-cli/tests/commands.rs
@@ -154,6 +154,20 @@ fn rad_patch() {
     test("examples/rad-patch.md", working.path(), Some(home), []).unwrap();
 }
 
+#[test]
+fn rad_rm() {
+    let mut environment = Environment::new();
+    let profile = environment.profile("alice");
+    let working = tempfile::tempdir().unwrap();
+    let home = &profile.home;
+
+    // Setup a test repository.
+    fixtures::repository(working.path());
+
+    test("examples/rad-init.md", working.path(), Some(home), []).unwrap();
+    test("examples/rad-rm.md", working.path(), Some(home), []).unwrap();
+}
+
 #[test]
 fn rad_clone() {
     logger::init(log::Level::Debug);