diff --git a/src/panels/developer-tools/template/developer-tools-template.ts b/src/panels/developer-tools/template/developer-tools-template.ts
index b21abece9f..fe0a0c158c 100644
--- a/src/panels/developer-tools/template/developer-tools-template.ts
+++ b/src/panels/developer-tools/template/developer-tools-template.ts
@@ -10,6 +10,7 @@ import {
   RenderTemplateResult,
   subscribeRenderTemplate,
 } from "../../../data/ws-templates";
+import { showConfirmationDialog } from "../../../dialogs/generic/show-dialog-box";
 import { haStyle } from "../../../resources/styles";
 import { HomeAssistant } from "../../../types";
 import { documentationUrl } from "../../../util/documentation-url";
@@ -142,6 +143,9 @@ class HaPanelDevTemplate extends LitElement {
               "ui.panel.developer-tools.tabs.templates.reset"
             )}
           </mwc-button>
+          <mwc-button @click=${this._clear}>
+            ${this.hass.localize("ui.common.clear")}
+          </mwc-button>
         </div>
 
         <div class="render-pane">
@@ -378,11 +382,42 @@ class HaPanelDevTemplate extends LitElement {
     localStorage["panel-dev-template-template"] = this._template;
   }
 
-  private _restoreDemo() {
+  private async _restoreDemo() {
+    if (
+      !(await showConfirmationDialog(this, {
+        text: this.hass.localize(
+          "ui.panel.developer-tools.tabs.templates.confirm_reset"
+        ),
+        warning: true,
+      }))
+    ) {
+      return;
+    }
     this._template = DEMO_TEMPLATE;
     this._subscribeTemplate();
     delete localStorage["panel-dev-template-template"];
   }
+
+  private async _clear() {
+    if (
+      !(await showConfirmationDialog(this, {
+        text: this.hass.localize(
+          "ui.panel.developer-tools.tabs.templates.confirm_clear"
+        ),
+        warning: true,
+      }))
+    ) {
+      return;
+    }
+    this._unsubscribeTemplate();
+    this._template = "";
+    // Reset to empty result. Setting to 'undefined' results in a different visual
+    // behaviour compared to manually emptying the template input box.
+    this._templateResult = {
+      result: "",
+      listeners: { all: false, entities: [], domains: [], time: false },
+    };
+  }
 }
 
 declare global {
diff --git a/src/translations/en.json b/src/translations/en.json
index 883659695f..4479abbf2d 100644
--- a/src/translations/en.json
+++ b/src/translations/en.json
@@ -5348,6 +5348,8 @@
             "description": "Templates are rendered using the Jinja2 template engine with some Home Assistant specific extensions.",
             "editor": "Template editor",
             "reset": "Reset to demo template",
+            "confirm_reset": "Do you want to reset your current template back to the demo template?",
+            "confirm_clear": "Do you want to clear your current template?",
             "result_type": "Result type",
             "jinja_documentation": "Jinja2 template documentation",
             "template_extensions": "Home Assistant template extensions",