diff --git a/extensions/clear-context/index.ts b/extensions/clear-context/index.ts
new file mode 100644
index 00000000..7923dc94
--- /dev/null
+++ b/extensions/clear-context/index.ts
@@ -0,0 +1,83 @@
+import {
+  type ExtensionAPI,
+  type ExtensionContext,
+  type KeybindingsManager,
+} from "@earendil-works/pi-coding-agent";
+import { Key, matchesKey, type EditorComponent } from "@earendil-works/pi-tui";
+import {
+  BelowEditorNavigationEditor,
+  BelowEditorStripState,
+} from "../shared/below-editor-navigation.ts";
+import {
+  registerEditorLayer,
+  removeEditorLayer,
+} from "../shared/editor-layers.ts";
+
+export function shouldClearContext(
+  data: string,
+  editorText: string,
+  isIdle: boolean,
+) {
+  return isIdle && editorText.length === 0 && matchesKey(data, Key.ctrl("c"));
+}
+
+export class ClearContextEditor extends BelowEditorNavigationEditor {
+  private readonly isIdle: () => boolean;
+
+  constructor(
+    base: EditorComponent,
+    keybindings: KeybindingsManager,
+    isIdle: () => boolean,
+  ) {
+    super(
+      base,
+      keybindings,
+      new BelowEditorStripState(),
+      () => false,
+      () => undefined,
+      () => undefined,
+    );
+    this.isIdle = isIdle;
+  }
+
+  override handleInput(data: string) {
+    if (shouldClearContext(data, this.getText(), this.isIdle())) {
+      // Route through Pi's built-in /new command so session replacement keeps
+      // Pi's persistence, cleanup, and transcript lifecycle as the source of truth.
+      this.setText("/new");
+      this.onSubmit?.("/new");
+      return;
+    }
+
+    super.handleInput(data);
+  }
+}
+
+function installClearContextShortcut(pi: ExtensionAPI, ctx: ExtensionContext) {
+  if (ctx.mode !== "tui") return () => {};
+
+  registerEditorLayer(pi, ctx, {
+    id: "clear-context",
+    order: 100,
+    wrap: (base, _tui, _theme, keybindings) =>
+      new ClearContextEditor(base, keybindings, () => ctx.isIdle()),
+  });
+
+  return () => removeEditorLayer(pi, "clear-context");
+}
+
+export default function clearContext(pi: ExtensionAPI) {
+  let removeShortcut = () => {};
+
+  pi.on("session_start", (_event, ctx) => {
+    removeShortcut();
+    removeShortcut = installClearContextShortcut(pi, ctx);
+  });
+
+  pi.on("session_shutdown", () => {
+    removeShortcut();
+    removeShortcut = () => {};
+  });
+}
+
+export { installClearContextShortcut };
diff --git a/tests/extensions/clear-context/index.test.ts b/tests/extensions/clear-context/index.test.ts
new file mode 100644
index 00000000..bcd72971
--- /dev/null
+++ b/tests/extensions/clear-context/index.test.ts
@@ -0,0 +1,119 @@
+import assert from "node:assert/strict";
+import test from "node:test";
+import {
+  SessionManager,
+  type ExtensionAPI,
+  type ExtensionContext,
+  type KeybindingsManager,
+} from "@earendil-works/pi-coding-agent";
+import type { EditorComponent, EditorTheme, TUI } from "@earendil-works/pi-tui";
+import type { EditorLayer } from "../../../extensions/shared/editor-layers.ts";
+import {
+  ClearContextEditor,
+  installClearContextShortcut,
+  shouldClearContext,
+} from "../../../extensions/clear-context/index.ts";
+
+test("Ctrl+C clears context only for an idle empty editor", () => {
+  assert.equal(shouldClearContext("\u0003", "", true), true);
+  assert.equal(shouldClearContext("\u0003", "draft", true), false);
+  assert.equal(shouldClearContext("\u0003", "", false), false);
+  assert.equal(shouldClearContext("x", "", true), false);
+});
+
+test("whitespace-only drafts preserve the native editor behavior", () => {
+  assert.equal(shouldClearContext("\u0003", "  \n", true), false);
+});
+
+test("shortcut is registered as an editor layer and preserves the existing editor", () => {
+  const listeners = new Map<string, (value: unknown) => void>();
+  let registeredLayer: EditorLayer | undefined;
+  const pi = {
+    events: {
+      emit(channel: string, value: unknown) {
+        if (channel === "openpi:editor-layers:register") {
+          registeredLayer = (value as { layer: EditorLayer }).layer;
+        }
+        listeners.get(channel)?.(value);
+      },
+      on(channel: string, listener: (value: unknown) => void) {
+        listeners.set(channel, listener);
+      },
+    },
+  } as unknown as ExtensionAPI;
+  const base: EditorComponent = {
+    render: () => [],
+    invalidate() {},
+    handleInput(data) {
+      inputs.push(data);
+    },
+    getText: () => text,
+    setText(value) {
+      text = value;
+    },
+  };
+  const inputs: string[] = [];
+  let text = "draft";
+  const ctx = {
+    mode: "tui",
+    isIdle: () => true,
+  } as unknown as ExtensionContext;
+
+  const remove = installClearContextShortcut(pi, ctx);
+  assert.equal(registeredLayer?.id, "clear-context");
+  const editor = registeredLayer!.wrap(
+    base,
+    {} as TUI,
+    {} as EditorTheme,
+    { matches: () => false } as unknown as KeybindingsManager,
+  );
+  editor.handleInput("x");
+  assert.deepEqual(inputs, ["x"]);
+
+  remove();
+});
+
+test("layer handles Ctrl+C only for idle empty editor", () => {
+  const inputs: string[] = [];
+  let text = "";
+  let submitted: string | undefined;
+  const base: EditorComponent = {
+    render: () => [],
+    invalidate() {},
+    handleInput(data) {
+      inputs.push(data);
+    },
+    getText: () => text,
+    setText(value) {
+      text = value;
+    },
+    onSubmit(value) {
+      submitted = value;
+    },
+  };
+  const editor = new ClearContextEditor(
+    base,
+    { matches: () => false } as unknown as KeybindingsManager,
+    () => true,
+  );
+
+  editor.handleInput("\u0003");
+  assert.equal(submitted, "/new");
+  assert.deepEqual(inputs, []);
+
+  text = "draft";
+  editor.handleInput("\u0003");
+  assert.deepEqual(inputs, ["\u0003"]);
+});
+
+test("Pi's new session has no history from the cleared session", () => {
+  const session = SessionManager.inMemory(process.cwd());
+  session.appendCustomMessageEntry("test-history", "old context", true);
+  const previousSessionId = session.getSessionId();
+
+  session.newSession();
+
+  assert.notEqual(session.getSessionId(), previousSessionId);
+  assert.deepEqual(session.getBranch(), []);
+  assert.deepEqual(session.buildSessionContext().messages, []);
+});