diff --git a/lib/towerops/agents.ex b/lib/towerops/agents.ex
index 7ad6579d..40c135d4 100644
--- a/lib/towerops/agents.ex
+++ b/lib/towerops/agents.ex
@@ -162,6 +162,46 @@ defmodule Towerops.Agents do
     |> Repo.update()
   end
 
+  @doc """
+  Deletes an agent token and cleans up all references.
+
+  This function:
+  1. Removes all direct device assignments for this agent
+  2. Removes this agent from any sites using it as default
+  3. Removes this agent from any organizations using it as default
+  4. Deletes the agent token
+
+  Devices that were assigned to this agent will fall back to:
+  - Site-level agent (if configured)
+  - Organization-level default agent (if configured)
+  - Cloud polling (if no fallback exists)
+
+  ## Examples
+
+      iex> delete_agent_token(id)
+      {:ok, %AgentToken{}}
+
+  """
+  def delete_agent_token(id) do
+    Repo.transaction(fn ->
+      agent_token = Repo.get!(AgentToken, id)
+
+      # 1. Remove all direct device assignments
+      Repo.delete_all(from(a in AgentAssignment, where: a.agent_token_id == ^id))
+
+      # 2. Remove this agent from any sites using it as default
+      Repo.update_all(from(s in Towerops.Sites.Site, where: s.agent_token_id == ^id), set: [agent_token_id: nil])
+
+      # 3. Remove this agent from any organizations using it as default
+      Repo.update_all(from(o in Towerops.Organizations.Organization, where: o.default_agent_token_id == ^id),
+        set: [default_agent_token_id: nil]
+      )
+
+      # 4. Delete the agent token
+      Repo.delete!(agent_token)
+    end)
+  end
+
   ## Assignment management
 
   @doc """
diff --git a/lib/towerops_web/live/agent_live/index.ex b/lib/towerops_web/live/agent_live/index.ex
index 82e484a8..5dd8a17c 100644
--- a/lib/towerops_web/live/agent_live/index.ex
+++ b/lib/towerops_web/live/agent_live/index.ex
@@ -138,25 +138,36 @@ defmodule ToweropsWeb.AgentLive.Index do
   end
 
   @impl true
-  def handle_event("revoke_agent", %{"id" => id}, socket) do
-    case Agents.revoke_agent_token(id) do
+  def handle_event("delete_agent", %{"id" => id}, socket) do
+    case Agents.delete_agent_token(id) do
       {:ok, _} ->
         organization = socket.assigns.current_organization
         agent_tokens = Agents.list_organization_agent_tokens(organization.id)
 
+        # Recalculate device counts after deletion
+        equipment_counts =
+          Map.new(agent_tokens, fn token ->
+            direct = Agents.count_assigned_devices(token.id)
+            total = length(Agents.list_agent_polling_targets(token.id))
+            {token.id, %{direct: direct, total: total}}
+          end)
+
         # Refresh health statistics
         agent_health_stats = Stats.get_organization_agent_health(organization.id)
+        assignment_breakdown = Stats.get_device_assignment_breakdown(organization.id)
         offline_agents = Stats.get_offline_agents(organization.id)
 
         {:noreply,
          socket
          |> assign(:agent_tokens, agent_tokens)
+         |> assign(:device_counts, equipment_counts)
          |> assign(:agent_health_stats, agent_health_stats)
+         |> assign(:assignment_breakdown, assignment_breakdown)
          |> assign(:offline_agents, offline_agents)
-         |> put_flash(:info, "Agent revoked successfully")}
+         |> put_flash(:info, "Agent deleted successfully. Devices now fall back to site/org defaults or cloud polling.")}
 
       {:error, _} ->
-        {:noreply, put_flash(socket, :error, "Failed to revoke agent")}
+        {:noreply, put_flash(socket, :error, "Failed to delete agent")}
     end
   end
 
diff --git a/lib/towerops_web/live/agent_live/index.html.heex b/lib/towerops_web/live/agent_live/index.html.heex
index f579f89e..af239511 100644
--- a/lib/towerops_web/live/agent_live/index.html.heex
+++ b/lib/towerops_web/live/agent_live/index.html.heex
@@ -141,16 +141,16 @@
               </button>
               <button
                 type="button"
-                phx-click="revoke_agent"
+                phx-click="delete_agent"
                 phx-value-id={agent.id}
-                data-confirm="Are you sure you want to revoke this agent? It will no longer be able to authenticate."
+                data-confirm="Are you sure you want to delete this agent? All device assignments will be removed, and devices will fall back to site/organization defaults or cloud polling."
                 class="text-sm font-medium text-red-600 hover:text-red-700 dark:text-red-400 dark:hover:text-red-300"
               >
-                Revoke
+                Delete
               </button>
             </div>
           <% else %>
-            <span class="text-xs text-zinc-500 dark:text-zinc-400">Revoked</span>
+            <span class="text-xs text-zinc-500 dark:text-zinc-400">Disabled</span>
           <% end %>
         </:action>
       </.table>
diff --git a/test/towerops/agents_test.exs b/test/towerops/agents_test.exs
index e7a1c982..22373c56 100644
--- a/test/towerops/agents_test.exs
+++ b/test/towerops/agents_test.exs
@@ -83,6 +83,222 @@ defmodule Towerops.AgentsTest do
     end
   end
 
+  describe "delete_agent_token/1" do
+    setup %{organization: org} do
+      {:ok, site} =
+        Towerops.Sites.create_site(%{
+          name: "Test Site",
+          organization_id: org.id
+        })
+
+      {:ok, agent_token, _token} = Agents.create_agent_token(org.id, "Test Agent")
+
+      %{site: site, agent_token: agent_token}
+    end
+
+    test "deletes agent token from database", %{agent_token: agent_token} do
+      assert {:ok, _} = Agents.delete_agent_token(agent_token.id)
+
+      assert_raise Ecto.NoResultsError, fn ->
+        Agents.get_agent_token!(agent_token.id)
+      end
+    end
+
+    test "removes all direct device assignments", %{
+      site: site,
+      agent_token: agent_token
+    } do
+      {:ok, device1} =
+        Towerops.Devices.create_device(%{
+          name: "Device 1",
+          ip_address: "192.168.1.1",
+          site_id: site.id
+        })
+
+      {:ok, device2} =
+        Towerops.Devices.create_device(%{
+          name: "Device 2",
+          ip_address: "192.168.1.2",
+          site_id: site.id
+        })
+
+      # Assign both devices to the agent
+      {:ok, _} = Agents.assign_device_to_agent(agent_token.id, device1.id)
+      {:ok, _} = Agents.assign_device_to_agent(agent_token.id, device2.id)
+
+      assert Agents.count_assigned_devices(agent_token.id) == 2
+
+      # Delete the agent
+      assert {:ok, _} = Agents.delete_agent_token(agent_token.id)
+
+      # Verify assignments are removed
+      assert Agents.get_device_assignment(device1.id) == nil
+      assert Agents.get_device_assignment(device2.id) == nil
+    end
+
+    test "devices fall back to site agent when available", %{
+      organization: org,
+      site: site,
+      agent_token: agent_token_to_delete
+    } do
+      # Create another agent that will be the site default
+      {:ok, site_agent, _} = Agents.create_agent_token(org.id, "Site Agent")
+
+      # Set site to use the site_agent
+      {:ok, _site} = Towerops.Sites.update_site(site, %{agent_token_id: site_agent.id})
+
+      {:ok, device} =
+        Towerops.Devices.create_device(%{
+          name: "Device",
+          ip_address: "192.168.1.1",
+          site_id: site.id
+        })
+
+      # Directly assign device to agent_to_delete (overriding site default)
+      {:ok, _} = Agents.assign_device_to_agent(agent_token_to_delete.id, device.id)
+
+      # Device should currently use agent_to_delete
+      device = Repo.preload(device, site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == agent_token_to_delete.id
+
+      # Delete the agent
+      assert {:ok, _} = Agents.delete_agent_token(agent_token_to_delete.id)
+
+      # Device should now fall back to site agent
+      device = device |> Repo.reload!() |> Repo.preload(site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == site_agent.id
+    end
+
+    test "devices fall back to organization default when available", %{
+      organization: org,
+      site: site,
+      agent_token: agent_token_to_delete
+    } do
+      # Create another agent that will be the org default
+      {:ok, org_agent, _} = Agents.create_agent_token(org.id, "Org Agent")
+
+      # Set organization to use the org_agent
+      {:ok, _org} =
+        Towerops.Organizations.update_organization(org, %{default_agent_token_id: org_agent.id})
+
+      {:ok, device} =
+        Towerops.Devices.create_device(%{
+          name: "Device",
+          ip_address: "192.168.1.1",
+          site_id: site.id
+        })
+
+      # Directly assign device to agent_to_delete (overriding org default)
+      {:ok, _} = Agents.assign_device_to_agent(agent_token_to_delete.id, device.id)
+
+      # Device should currently use agent_to_delete
+      device = Repo.preload(device, site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == agent_token_to_delete.id
+
+      # Delete the agent
+      assert {:ok, _} = Agents.delete_agent_token(agent_token_to_delete.id)
+
+      # Device should now fall back to org default
+      device = device |> Repo.reload!() |> Repo.preload(site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == org_agent.id
+    end
+
+    test "devices have no agent when no fallback exists (cloud polling)", %{
+      site: site,
+      agent_token: agent_token
+    } do
+      {:ok, device} =
+        Towerops.Devices.create_device(%{
+          name: "Device",
+          ip_address: "192.168.1.1",
+          site_id: site.id
+        })
+
+      # Directly assign device to agent (no site or org defaults)
+      {:ok, _} = Agents.assign_device_to_agent(agent_token.id, device.id)
+
+      # Device should currently use the agent
+      device = Repo.preload(device, site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == agent_token.id
+
+      # Delete the agent
+      assert {:ok, _} = Agents.delete_agent_token(agent_token.id)
+
+      # Device should now have no agent (cloud polling)
+      device = device |> Repo.reload!() |> Repo.preload(site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == nil
+    end
+
+    test "removes agent from site defaults when deleting", %{
+      organization: org,
+      site: site,
+      agent_token: agent_token
+    } do
+      # Set site to use this agent
+      {:ok, _site} = Towerops.Sites.update_site(site, %{agent_token_id: agent_token.id})
+
+      # Create another agent as fallback
+      {:ok, fallback_agent, _} = Agents.create_agent_token(org.id, "Fallback Agent")
+
+      {:ok, _org} =
+        Towerops.Organizations.update_organization(org, %{default_agent_token_id: fallback_agent.id})
+
+      {:ok, device} =
+        Towerops.Devices.create_device(%{
+          name: "Device",
+          ip_address: "192.168.1.1",
+          site_id: site.id
+        })
+
+      # Device should use site agent
+      device = Repo.preload(device, site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == agent_token.id
+
+      # Delete the agent
+      assert {:ok, _} = Agents.delete_agent_token(agent_token.id)
+
+      # Site should no longer have this agent
+      site = Repo.reload!(site)
+      assert site.agent_token_id == nil
+
+      # Device should fall back to org default
+      device = device |> Repo.reload!() |> Repo.preload(site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == fallback_agent.id
+    end
+
+    test "removes agent from organization defaults when deleting", %{
+      organization: org,
+      site: site,
+      agent_token: agent_token
+    } do
+      # Set organization to use this agent
+      {:ok, _org} =
+        Towerops.Organizations.update_organization(org, %{default_agent_token_id: agent_token.id})
+
+      {:ok, device} =
+        Towerops.Devices.create_device(%{
+          name: "Device",
+          ip_address: "192.168.1.1",
+          site_id: site.id
+        })
+
+      # Device should use org default
+      device = Repo.preload(device, site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == agent_token.id
+
+      # Delete the agent
+      assert {:ok, _} = Agents.delete_agent_token(agent_token.id)
+
+      # Organization should no longer have this agent as default
+      org = Repo.reload!(org)
+      assert org.default_agent_token_id == nil
+
+      # Device should have no agent
+      device = device |> Repo.reload!() |> Repo.preload(site: [organization: :default_agent_token])
+      assert Agents.get_effective_agent_token(device) == nil
+    end
+  end
+
   describe "update_agent_token_heartbeat/3" do
     test "updates last_seen_at and metadata", %{organization: org} do
       {:ok, agent_token, _token} = Agents.create_agent_token(org.id, "Test Agent")
diff --git a/test/towerops_web/live/agent_live/index_test.exs b/test/towerops_web/live/agent_live/index_test.exs
index 95b99e04..2a2526de 100644
--- a/test/towerops_web/live/agent_live/index_test.exs
+++ b/test/towerops_web/live/agent_live/index_test.exs
@@ -119,9 +119,9 @@ defmodule ToweropsWeb.AgentLive.IndexTest do
     end
   end
 
-  describe "revoke_agent event" do
-    test "revokes agent token successfully", %{conn: conn, user: user, organization: organization} do
-      {:ok, agent_token, _token} = Agents.create_agent_token(organization.id, "Agent to Revoke")
+  describe "delete_agent event" do
+    test "deletes agent token successfully", %{conn: conn, user: user, organization: organization} do
+      {:ok, agent_token, _token} = Agents.create_agent_token(organization.id, "Agent to Delete")
 
       conn =
         conn
@@ -130,15 +130,13 @@ defmodule ToweropsWeb.AgentLive.IndexTest do
 
       {:ok, view, _html} = live(conn)
 
-      html = render_click(view, "revoke_agent", %{"id" => agent_token.id})
+      html = render_click(view, "delete_agent", %{"id" => agent_token.id})
 
-      assert html =~ "Agent revoked successfully"
+      assert html =~ "Agent deleted successfully"
 
-      # Verify agent was revoked (still in list but with enabled: false)
+      # Verify agent was deleted (no longer in list)
       agent_tokens = Agents.list_organization_agent_tokens(organization.id)
-      refute Enum.empty?(agent_tokens)
-      revoked_agent = hd(agent_tokens)
-      refute revoked_agent.enabled
+      assert Enum.empty?(agent_tokens)
     end
   end
 
diff --git a/test/towerops_web/live/agent_live_test.exs b/test/towerops_web/live/agent_live_test.exs
index b6c02206..4bddcbed 100644
--- a/test/towerops_web/live/agent_live_test.exs
+++ b/test/towerops_web/live/agent_live_test.exs
@@ -44,21 +44,20 @@ defmodule ToweropsWeb.AgentLiveTest do
       assert html =~ "Authentication Token"
     end
 
-    test "revokes agent", %{conn: conn, organization: organization} do
+    test "deletes agent", %{conn: conn, organization: organization} do
       {:ok, agent_token, _token} = Agents.create_agent_token(organization.id, "Agent 1")
 
       {:ok, view, _html} = live(conn, ~p"/orgs/#{organization.slug}/agents")
 
       html =
         view
-        |> element("button", "Revoke")
+        |> element("button", "Delete")
         |> render_click()
 
-      assert html =~ "Revoked"
+      assert html =~ "Agent deleted successfully"
 
-      # Verify agent was actually revoked
-      updated_token = Towerops.Repo.get!(Agents.AgentToken, agent_token.id)
-      refute updated_token.enabled
+      # Verify agent was actually deleted
+      assert is_nil(Towerops.Repo.get(Agents.AgentToken, agent_token.id))
     end
 
     test "closes token modal", %{conn: conn, organization: organization} do