diff --git a/modelscope/cli/clearcache.py b/modelscope/cli/clearcache.py
new file mode 100644
index 00000000..ca2278c1
--- /dev/null
+++ b/modelscope/cli/clearcache.py
@@ -0,0 +1,107 @@
+# Copyright (c) Alibaba, Inc. and its affiliates.
+import os
+import shutil
+from argparse import ArgumentParser
+from pathlib import Path
+
+from modelscope.cli.base import CLICommand
+from modelscope.hub.constants import TEMPORARY_FOLDER_NAME
+
+
+def subparser_func(args):
+    """ Function which will be called for a specific sub parser.
+    """
+    return ClearCacheCMD(args)
+
+
+class ClearCacheCMD(CLICommand):
+    name = 'clear-cache'
+
+    def __init__(self, args):
+        self.args = args
+        self.cache_dir = os.getenv(
+            'MODELSCOPE_CACHE',
+            Path.home().joinpath('.cache', 'modelscope'))
+
+    @staticmethod
+    def define_args(parsers: ArgumentParser):
+        """ define args for clear-cache command.
+        """
+        parser = parsers.add_parser(ClearCacheCMD.name)
+        group = parser.add_mutually_exclusive_group()
+        group.add_argument(
+            '--model',
+            type=str,
+            help=
+            'The id of the model whose cache will be cleared. For clear-cache, '
+            'if neither model or dataset id is provided, entire cache will be cleared.'
+        )
+        group.add_argument(
+            '--dataset',
+            type=str,
+            help=
+            'The id of the dataset whose cache will be cleared. For clear-cahe, '
+            'if neither model or dataset id is provided, entire cache will be cleared.'
+        )
+
+        parser.set_defaults(func=subparser_func)
+
+    def execute(self):
+        self._execute_with_confirmation()
+
+    def _execute_with_confirmation(self):
+        all = False
+        single_model = False
+        prompt = '\nYou are about to delete '
+
+        if self.args.model or self.args.dataset:
+            if self.args.model:
+                id = self.args.model
+                single_model = True
+                prompt = prompt + f'local cache for model {id}. '
+            else:
+                id = self.args.dataset
+                prompt = prompt + f'local cache for dataset {id}. '
+        else:
+            prompt = prompt + f'entire ModelScope cache at {self.cache_dir}, including ALL models and dataset.\n'
+            all = True
+        user_input = input(
+            prompt
+            + '\nPlease press Y or y to proceed, any other key to abort.\n'
+        ).strip().upper()
+
+        if user_input == 'Y':
+            if all:
+                self._remove_directory(self.cache_dir)
+                print('Cache cleared.')
+            else:
+                entity_directory = os.path.join(
+                    self.cache_dir, 'hub' if single_model else 'datasets', id)
+                temp_directory = os.path.join(
+                    self.cache_dir, 'hub' if single_model else 'datasets',
+                    TEMPORARY_FOLDER_NAME, id)
+                entity_removed = self._remove_directory(entity_directory)
+                temp_removed = self._remove_directory(temp_directory)
+                if (not entity_removed) and (not temp_removed):
+                    if single_model:
+                        print(
+                            f'Cache for Model {id} not found. Nothing to do.')
+                    else:
+                        print(
+                            f'Cache for Dataset {id} not found. Nothing to do.'
+                        )
+                else:
+                    print('Cache cleared.')
+        else:
+            print('Operation aborted.')
+            return
+
+    def _remove_directory(self, path):
+        if os.path.exists(path):
+            try:
+                shutil.rmtree(path)
+                print(f'Cache folder {path} removed.')
+                return True
+            except Exception as e:
+                print(f'An error occurred while clearing cache at {path}: {e}')
+            return False
diff --git a/modelscope/cli/cli.py b/modelscope/cli/cli.py
index 5e3fcbfd..74fb05db 100644
--- a/modelscope/cli/cli.py
+++ b/modelscope/cli/cli.py
@@ -3,6 +3,7 @@
 import argparse
 import logging
 
+from modelscope.cli.clearcache import ClearCacheCMD
 from modelscope.cli.download import DownloadCMD
 from modelscope.cli.login import LoginCMD
 from modelscope.cli.modelcard import ModelCardCMD
@@ -23,6 +24,7 @@ def run_cmd():
     subparsers = parser.add_subparsers(help='modelscope commands helpers')
 
     DownloadCMD.define_args(subparsers)
+    ClearCacheCMD.define_args(subparsers)
     PluginsCMD.define_args(subparsers)
     PipelineCMD.define_args(subparsers)
     ModelCardCMD.define_args(subparsers)