diff --git a/app/brave_settings_strings.grdp b/app/brave_settings_strings.grdp
index 747f2b7b5441..4cfe0659a5b2 100644
--- a/app/brave_settings_strings.grdp
+++ b/app/brave_settings_strings.grdp
@@ -1089,6 +1089,9 @@
   <message name="IDS_SETTINGS_MANAGE_EXTENSIONS_V2_TOAST_CONFIRM" desc="The label of the error toast button in settings">
     Close
   </message>
+  <message name="IDS_SETTINGS_MANAGE_EXTENSIONS_V2_REMOVE_BUTTON" desc="The label of the remove button in settings">
+    Remove
+  </message>
   <message name="IDS_SETTINGS_MANAGE_EXTENSIONS_V2_NO_SCRIPT_NAME" desc="Manifest V2 extension toggle's label">
     Enable NoScript&#x2122;
   </message>
diff --git a/browser/resources/settings/brave_default_extensions_page/brave_default_extensions_browser_proxy.ts b/browser/resources/settings/brave_default_extensions_page/brave_default_extensions_browser_proxy.ts
index 9f777771daf8..470714db64de 100644
--- a/browser/resources/settings/brave_default_extensions_page/brave_default_extensions_browser_proxy.ts
+++ b/browser/resources/settings/brave_default_extensions_page/brave_default_extensions_browser_proxy.ts
@@ -10,6 +10,7 @@ export type ExtensionV2 = {
   id: string
   name: string
   description: string
+  installed: boolean
   enabled: boolean
 }
 
@@ -23,6 +24,7 @@ export interface BraveDefaultExtensionsBrowserProxy  {
   isMediaRouterEnabled(): boolean
   getExtensionsManifestV2(): Promise<ExtensionV2[]>
   enableExtensionManifestV2(id: string, enabled: boolean): Promise<boolean>
+  removeExtensionManifestV2(id: string): Promise<boolean>
 }
 
 export class BraveDefaultExtensionsBrowserProxyImpl implements BraveDefaultExtensionsBrowserProxy {
@@ -59,7 +61,11 @@ export class BraveDefaultExtensionsBrowserProxyImpl implements BraveDefaultExten
   }
 
   enableExtensionManifestV2(id: string, enabled: boolean) {
-    return sendWithPromise('enableExtensionManifestV2', id, enabled);
+    return sendWithPromise('enableExtensionManifestV2', id, enabled)
+  }
+
+  removeExtensionManifestV2(id:string) {
+    return sendWithPromise('removeExtensionManifestV2', id)
   }
 
   static getInstance(): BraveDefaultExtensionsBrowserProxy {
diff --git a/browser/resources/settings/brave_default_extensions_page/brave_extensions_manifest_v2_subpage.html b/browser/resources/settings/brave_default_extensions_page/brave_extensions_manifest_v2_subpage.html
index 91428a317ed7..e3d68de76b35 100644
--- a/browser/resources/settings/brave_default_extensions_page/brave_extensions_manifest_v2_subpage.html
+++ b/browser/resources/settings/brave_default_extensions_page/brave_extensions_manifest_v2_subpage.html
@@ -46,8 +46,13 @@
 
 <template is="dom-repeat" items="[[braveV2Extensions_]]">
   <settings-toggle-button id="[[item.id]]" class="cr-row" label="[[item.name]]" sub-label="[[item.description]]"
-    on-settings-boolean-control-change="onExtensionV2EnabledChange_" checked="[[item.enabled]]" pref="[[itemPref_(item.enabled)]]"
-    no-pref-set disabled="[[installInProgress_]]">
+    on-settings-boolean-control-change="onExtensionV2EnabledChange_" checked="[[item.enabled]]"
+    pref="[[itemPref_(item.enabled)]]" no-pref-set disabled="[[installInProgress_]]">
+    <template is="dom-if" if="[[showRemoveButton_(item)]]" restamp>
+      <cr-button on-click="removeExtension_" id="[[item.id]]" slot="more-actions">
+        $i18n{extensionsV2RemoveButtonLabel}
+      </cr-button>
+    </template>
   </settings-toggle-button>
 </template>
 <template is="dom-if" if="{{showErrorToast_}}">
diff --git a/browser/resources/settings/brave_default_extensions_page/brave_extensions_manifest_v2_subpage.ts b/browser/resources/settings/brave_default_extensions_page/brave_extensions_manifest_v2_subpage.ts
index a6d44d6bf15e..42b05e4fc05c 100644
--- a/browser/resources/settings/brave_default_extensions_page/brave_extensions_manifest_v2_subpage.ts
+++ b/browser/resources/settings/brave_default_extensions_page/brave_extensions_manifest_v2_subpage.ts
@@ -95,6 +95,15 @@ class BraveExtensionsV2Subpage extends BraveExtensionsV2SubpageBase {
       })
   }
 
+  removeExtension_(e: any) {
+    e.stopPropagation()
+    this.browserProxy_.removeExtensionManifestV2(e.target.id)
+  }
+
+  showRemoveButton_(ext: ExtensionV2): boolean {
+    return ext.installed && !ext.enabled
+  }
+
   itemPref_(enabled: boolean) {
     return {
       key: '',
diff --git a/browser/ui/webui/settings/brave_extensions_manifest_v2_browsertest.cc b/browser/ui/webui/settings/brave_extensions_manifest_v2_browsertest.cc
index 8a1507f50a16..ca17f719079c 100644
--- a/browser/ui/webui/settings/brave_extensions_manifest_v2_browsertest.cc
+++ b/browser/ui/webui/settings/brave_extensions_manifest_v2_browsertest.cc
@@ -30,6 +30,14 @@ bool ClickExtensionToggle(content::WebContents* web_contents) {
       .value.is_none();
 }
 
+bool ClickExtensionRemove(content::WebContents* web_contents) {
+  return EvalJs(web_contents,
+                "window.testing.extensionsV2Subpage.getElementById('"
+                "doojmbjmlfjjnbmnoijecmcbfeoakpjm').querySelector('#"
+                "doojmbjmlfjjnbmnoijecmcbfeoakpjm').click()")
+      .value.is_none();
+}
+
 bool IsExtensionToggled(content::WebContents* web_contents) {
   return EvalJs(web_contents,
                 "window.testing.extensionsV2Subpage.getElementById('"
@@ -86,6 +94,12 @@ class BraveExtensionsManifestV2BrowserTest : public InProcessBrowserTest {
     }
   }
 
+  bool IsExtensionEnabled() {
+    return extensions::ExtensionRegistry::Get(browser()->profile())
+        ->enabled_extensions()
+        .Contains(kExtensionId);
+  }
+
   bool IsExtensionInstalled() {
     return extensions::ExtensionRegistry::Get(browser()->profile())
         ->GetInstalledExtension(kExtensionId);
@@ -147,9 +161,16 @@ IN_PROC_BROWSER_TEST_F(BraveExtensionsManifestV2BrowserTest,
   ClickExtensionToggle(web_contents);
   WaitExtensionToggled(true);
   EXPECT_TRUE(IsExtensionInstalled());
+  EXPECT_TRUE(IsExtensionEnabled());
 
-  // disabled from settings -> uninstalled.
+  // disabled from settings.
   ClickExtensionToggle(web_contents);
   WaitExtensionToggled(false);
+  EXPECT_TRUE(IsExtensionInstalled());
+  EXPECT_FALSE(IsExtensionEnabled());
+
+  // remove from settings.
+  ClickExtensionRemove(web_contents);
   EXPECT_FALSE(IsExtensionInstalled());
+  EXPECT_FALSE(IsExtensionEnabled());
 }
diff --git a/browser/ui/webui/settings/brave_extensions_manifest_v2_handler.cc b/browser/ui/webui/settings/brave_extensions_manifest_v2_handler.cc
index 30b3e09d7548..04753a51ffe1 100644
--- a/browser/ui/webui/settings/brave_extensions_manifest_v2_handler.cc
+++ b/browser/ui/webui/settings/brave_extensions_manifest_v2_handler.cc
@@ -63,6 +63,7 @@ struct ExtensionManifestV2 {
   std::string id;
   std::u16string name;
   std::u16string description;
+  bool installed = false;
   bool enabled = false;
 
   base::Value ToValue() const {
@@ -70,6 +71,7 @@ struct ExtensionManifestV2 {
     v.Set("id", id);
     v.Set("name", name);
     v.Set("description", description);
+    v.Set("installed", installed);
     v.Set("enabled", enabled);
     return base::Value(std::move(v));
   }
@@ -123,6 +125,11 @@ void BraveExtensionsManifestV2Handler::RegisterMessages() {
       base::BindRepeating(
           &BraveExtensionsManifestV2Handler::EnableExtensionManifestV2,
           base::Unretained(this)));
+  web_ui()->RegisterMessageCallback(
+      "removeExtensionManifestV2",
+      base::BindRepeating(
+          &BraveExtensionsManifestV2Handler::RemoveExtensionManifestV2,
+          base::Unretained(this)));
 
   observation_.Observe(GetExtensionRegistry());
 }
@@ -131,7 +138,7 @@ void BraveExtensionsManifestV2Handler::OnExtensionLoaded(
     content::BrowserContext* browser_context,
     const extensions::Extension* extension) {
   DCHECK(extension);
-  NotifyExtensionManifestV2Changed(browser_context, extension->id(), true);
+  NotifyExtensionManifestV2Changed(browser_context, extension->id());
 }
 
 void BraveExtensionsManifestV2Handler::OnExtensionUnloaded(
@@ -139,28 +146,28 @@ void BraveExtensionsManifestV2Handler::OnExtensionUnloaded(
     const extensions::Extension* extension,
     extensions::UnloadedExtensionReason reason) {
   DCHECK(extension);
-  NotifyExtensionManifestV2Changed(browser_context, extension->id(), false);
+  NotifyExtensionManifestV2Changed(browser_context, extension->id());
 }
 
 void BraveExtensionsManifestV2Handler::OnExtensionInstalled(
     content::BrowserContext* browser_context,
     const extensions::Extension* extension,
     bool is_update) {
-  OnExtensionLoaded(browser_context, extension);
+  DCHECK(extension);
+  NotifyExtensionManifestV2Changed(browser_context, extension->id());
 }
 
 void BraveExtensionsManifestV2Handler::OnExtensionUninstalled(
     content::BrowserContext* browser_context,
     const extensions::Extension* extension,
     extensions::UninstallReason reason) {
-  OnExtensionUnloaded(browser_context, extension,
-                      extensions::UnloadedExtensionReason::UNINSTALL);
+  DCHECK(extension);
+  NotifyExtensionManifestV2Changed(browser_context, extension->id());
 }
 
 void BraveExtensionsManifestV2Handler::NotifyExtensionManifestV2Changed(
     content::BrowserContext* browser_context,
-    const std::string& id,
-    bool enabled) {
+    const std::string& id) {
   if (!IsJavascriptAllowed() ||
       browser_context != web_ui()->GetWebContents()->GetBrowserContext()) {
     return;
@@ -169,7 +176,6 @@ void BraveExtensionsManifestV2Handler::NotifyExtensionManifestV2Changed(
   if (fnd == extensions_.end()) {
     return;
   }
-  fnd->enabled = enabled;
   FireWebUIListener("brave-extension-manifest-v2-changed");
 }
 
@@ -216,10 +222,33 @@ void BraveExtensionsManifestV2Handler::EnableExtensionManifestV2(
     }
   } else {
     installer_.reset();
+    extension_service->DisableExtension(
+        id, extensions::disable_reason::DISABLE_USER_ACTION);
+    ResolveJavascriptCallback(args[0], base::Value(true));
+  }
+}
+
+void BraveExtensionsManifestV2Handler::RemoveExtensionManifestV2(
+    const base::Value::List& args) {
+  CHECK_EQ(args.size(), 2U);
+  const std::string id = args[1].GetString();
+
+  const bool installed =
+      GetExtensionRegistry()->GetInstalledExtension(id) != nullptr;
+
+  installer_.reset();
+
+  if (installed) {
+    auto* profile = Profile::FromBrowserContext(
+        web_ui()->GetWebContents()->GetBrowserContext());
+    auto* extension_service =
+        extensions::ExtensionSystem::Get(profile)->extension_service();
     extension_service->UninstallExtension(
         id, extensions::UNINSTALL_REASON_INTERNAL_MANAGEMENT, nullptr);
-    ResolveJavascriptCallback(args[0], base::Value(true));
   }
+
+  AllowJavascript();
+  ResolveJavascriptCallback(args[0], base::Value(true));
 }
 
 void BraveExtensionsManifestV2Handler::GetExtensionsManifestV2(
@@ -229,6 +258,8 @@ void BraveExtensionsManifestV2Handler::GetExtensionsManifestV2(
 
   base::Value::List result;
   for (auto& e : extensions_) {
+    e.installed =
+        GetExtensionRegistry()->GetInstalledExtension(e.id) != nullptr;
     e.enabled = GetExtensionRegistry()->enabled_extensions().Contains(e.id);
     result.Append(e.ToValue());
   }
diff --git a/browser/ui/webui/settings/brave_extensions_manifest_v2_handler.h b/browser/ui/webui/settings/brave_extensions_manifest_v2_handler.h
index 70b26426100c..a5dd3bb1046a 100644
--- a/browser/ui/webui/settings/brave_extensions_manifest_v2_handler.h
+++ b/browser/ui/webui/settings/brave_extensions_manifest_v2_handler.h
@@ -52,13 +52,13 @@ class BraveExtensionsManifestV2Handler
 
   void NotifyExtensionManifestV2Changed(
       content::BrowserContext* browser_context,
-      const std::string& id,
-      bool enabled);
+      const std::string& id);
 
   extensions::ExtensionRegistry* GetExtensionRegistry();
 
   void GetExtensionsManifestV2(const base::Value::List& args);
   void EnableExtensionManifestV2(const base::Value::List& args);
+  void RemoveExtensionManifestV2(const base::Value::List& args);
   void OnExtensionManifestV2Installed(
       base::Value js_callback,
       bool success,
diff --git a/browser/ui/webui/settings/brave_settings_localized_strings_provider.cc b/browser/ui/webui/settings/brave_settings_localized_strings_provider.cc
index e9befdfa8f94..10516d124932 100644
--- a/browser/ui/webui/settings/brave_settings_localized_strings_provider.cc
+++ b/browser/ui/webui/settings/brave_settings_localized_strings_provider.cc
@@ -622,6 +622,8 @@ void BraveAddCommonStrings(content::WebUIDataSource* html_source,
        IDS_SETTINGS_MANAGE_EXTENSIONS_V2_SUBLABEL},
       {"extensionsV2ToastConfirmButtonLabel",
        IDS_SETTINGS_MANAGE_EXTENSIONS_V2_TOAST_CONFIRM},
+      {"extensionsV2RemoveButtonLabel",
+       IDS_SETTINGS_MANAGE_EXTENSIONS_V2_REMOVE_BUTTON},
       {"manageExtensionsLabel", IDS_SETTINGS_MANAGE_EXTENSIONS_LABEL},
       {"keyboardShortcuts", IDS_EXTENSIONS_SIDEBAR_KEYBOARD_SHORTCUTS},
       {"getMoreExtensionsLabel", IDS_BRAVE_SETTINGS_GET_MORE_EXTENSIONS_LABEL},