diff --git a/dem/cli/command/uninstall_cmd.py b/dem/cli/command/uninstall_cmd.py
new file mode 100644
index 0000000..5f24019
--- /dev/null
+++ b/dem/cli/command/uninstall_cmd.py
@@ -0,0 +1,29 @@
+"""uninstall CLI command implementation."""
+# dem/cli/command/uninstall_cmd.py
+
+from dem.core.dev_env import DevEnv
+from dem.core.platform import DevEnvLocalSetup
+from dem.cli.console import stderr, stdout
+
+
+def try_to_uninstall_dev_env(dev_env_to_uninstall: DevEnv, is_dev_env_installed: str, platform: DevEnvLocalSetup) -> bool:    
+    if is_dev_env_installed == "True":                
+        return platform.try_to_remove_tool_images(dev_env_to_uninstall)
+    else:                
+        return False        
+
+
+def execute(platform: DevEnvLocalSetup, dev_env_name: str) -> None:    
+    dev_env_to_uninstall = platform.get_dev_env_by_name(dev_env_name)
+    is_dev_env_installed = platform.get_dev_env_status_by_name(dev_env_name)   
+
+
+    if dev_env_to_uninstall is None:
+        stderr.print("[red]Error: The [bold]" + dev_env_name + "[/bold] Development Environment doesn't exist.")
+    else:        
+        if True == try_to_uninstall_dev_env(dev_env_to_uninstall,is_dev_env_installed,platform):        
+            stdout.print("[green]Successfully deleted the " + dev_env_name + "![/]")
+            platform.update_dev_env_status_in_json(dev_env_to_uninstall)
+
+        else:            
+            stderr.print("[red]Error: The [bold]" + dev_env_name + "[/bold] Development Environment uninstall failed")
\ No newline at end of file
diff --git a/dem/cli/main.py b/dem/cli/main.py
index 08d4e76..51ffd7b 100644
--- a/dem/cli/main.py
+++ b/dem/cli/main.py
@@ -8,7 +8,7 @@
 from dem.cli.command import cp_cmd, info_cmd, list_cmd, pull_cmd, create_cmd, modify_cmd, delete_cmd, \
                             rename_cmd, run_cmd, export_cmd, load_cmd, clone_cmd, add_reg_cmd, \
                             list_reg_cmd, del_reg_cmd, add_cat_cmd, list_cat_cmd, del_cat_cmd, \
-                            add_host_cmd
+                            add_host_cmd, uninstall_cmd
 from dem.cli.console import stdout
 from dem.core.platform import DevEnvLocalSetup
 from dem.core.exceptions import InternalError
@@ -194,6 +194,18 @@ def delete(dev_env_name: Annotated[str, typer.Argument(help="Name of the Develop
     else:
         raise InternalError("Error: The platform hasn't been initialized properly!")
 
+@typer_cli.command()
+def uninstall(dev_env_name: Annotated[str, typer.Argument(help="Name of the Development Environment to uninstall.",
+                                                       autocompletion=autocomplete_dev_env_name)]) -> None:
+    """
+    Uninstall the Development Environment from the local setup. If a tool image is not required
+    anymore by any of the available local Development Environments, the DEM will delete it.
+    """
+    if platform is not None:
+        uninstall_cmd.execute(platform, dev_env_name)
+    else:
+        raise InternalError("Error: The platform hasn't been initialized properly!")  
+
 @typer_cli.command(context_settings={"allow_extra_args": True, "ignore_unknown_options": True})
 def run(dev_env_name: Annotated[str, typer.Argument(help="Run the container in this Development Environment context",
                                                     autocompletion=autocomplete_dev_env_name)],
diff --git a/dem/core/container_engine.py b/dem/core/container_engine.py
index 261b518..57810f3 100644
--- a/dem/core/container_engine.py
+++ b/dem/core/container_engine.py
@@ -106,7 +106,19 @@ def remove(self, image: str) -> None:
             Args: 
                 image -- the tool image to remove
         """
-        self._docker_client.images.remove(image)
+        retVal=True        
+        try:
+             self._docker_client.images.remove(image)
+        except docker.errors.ImageNotFound:
+            self.user_output.error("[yellow]" + image + " doesn't exist. Unable to remove it.[/]\n")
+            retVal=False
+        except docker.errors.APIError:
+            self.user_output.error("[red]Error: " + image + " is used by a container. Unable to remove it.[/]\n")
+            retVal=False
+        else:
+            self.user_output.msg("[green]Successfully removed![/]\n")
+            retVal=True
+        return retVal
 
     def search(self, registry: str) -> list[str]:
         """ Search repository in the axemsolutions registry.
diff --git a/dem/core/dev_env.py b/dem/core/dev_env.py
index 8af0b9e..cc8e62d 100755
--- a/dem/core/dev_env.py
+++ b/dem/core/dev_env.py
@@ -33,6 +33,7 @@ def __init__(self, descriptor: dict | None = None,
         if descriptor:
             self.name = descriptor["name"]
             self.tools = descriptor["tools"]
+            self.installed = descriptor["installed"]            
         else:
             self.name = dev_env_to_copy.name
             self.tools = dev_env_to_copy.tools
diff --git a/dem/core/platform.py b/dem/core/platform.py
index d44fa4b..8dc777f 100644
--- a/dem/core/platform.py
+++ b/dem/core/platform.py
@@ -10,6 +10,8 @@
 from dem.core.tool_images import ToolImages
 from dem.core.dev_env import DevEnv, DevEnv, DevEnv
 
+import docker.errors
+
 class DevEnvSetup(Core):
     """ Representation of the Development Platform:
         - The available tool images.
@@ -136,6 +138,7 @@ def get_deserialized(self) -> dict:
         for dev_env in self.local_dev_envs:
             dev_env_descriptor = {}
             dev_env_descriptor["name"] = dev_env.name
+            dev_env_descriptor["installed"] = dev_env.installed
             dev_env_descriptor["tools"] = dev_env.tools
             dev_env_descriptors.append(dev_env_descriptor)
         dev_env_json_deserialized["development_environments"] = dev_env_descriptors
@@ -153,6 +156,30 @@ def get_dev_env_by_name(self, dev_env_name: str) -> ("DevEnv | DevEnv | None"):
         for dev_env in self.local_dev_envs:
             if dev_env.name == dev_env_name:
                 return dev_env
+            
+    def get_dev_env_status_by_name(self, dev_env_name: str) -> ("DevEnv | DevEnv | None"):
+        """ Get the Development Environment status by name.
+        
+            Args:
+                dev_env_name -- name of the Development Environment to get
+
+            Return with the instance representing the Development Environment. If the Development 
+            Environment doesn't exist in the setup, return with None.
+        """
+        for dev_env in self.local_dev_envs:
+            if dev_env.name == dev_env_name:
+                return dev_env.installed      
+
+    def set_dev_env_status_by_name(self, dev_env_name: str, status: str) -> ("DevEnv | DevEnv | None"):
+        """ Set the Development Environment status by name.
+        
+            Args:
+                dev_env_name -- name of the Development Environment to set
+                status -- status of the Development Environment            
+        """
+        for dev_env in self.local_dev_envs:
+            if dev_env.name == dev_env_name:
+                dev_env.installed = status
 
     def get_local_dev_env(self, catalog_dev_env: DevEnv) -> DevEnv | None:
         """ Get the local copy of the catalog's Dev Env if exists.
@@ -165,6 +192,43 @@ def get_local_dev_env(self, catalog_dev_env: DevEnv) -> DevEnv | None:
         for local_dev_env in self.local_dev_envs:
             if catalog_dev_env.name == local_dev_env.name:
                 return local_dev_env
+            
+
+    def try_to_remove_tool_images(self, uninstalled_dev_env: DevEnv) -> None:
+        retVal=True
+        all_required_tool_images = set()
+        for dev_env in self.local_dev_envs:
+            for tool in dev_env.tools:                            
+                if (dev_env.installed == "True") and (dev_env.name != uninstalled_dev_env.name) :                
+                    all_required_tool_images.add(tool["image_name"] + ":" + tool["image_version"])
+                    
+        uninstalled_dev_env_tool_images = set()
+        for tool in uninstalled_dev_env.tools:
+            uninstalled_dev_env_tool_images.add(tool["image_name"] + ":" + tool["image_version"])
+            
+
+        for tool_image in uninstalled_dev_env_tool_images:
+            if tool_image in all_required_tool_images:            
+                self.user_output.msg("[yellow] Can't delete" + tool_image + "tool images!")
+            else:
+                retVal = self.delete_tool_image(tool_image)
+            if retVal == False:
+                return retVal
+            else:
+                retVal = True
+                
+            
+        return retVal
+
+    def delete_tool_image(self, tool_image: str) -> bool:
+        self.user_output.msg("\nThe tool image [bold]" + tool_image + "[/bold] is not required by any Development Environment anymore.")
+        retVal=self.container_engine.remove(tool_image)
+        return retVal
+
+    def update_dev_env_status_in_json(self, uninstalled_dev_env: DevEnv):
+        listindex = self.local_dev_envs.index(uninstalled_dev_env)                
+        self.local_dev_envs[listindex].installed = "False"
+        self.flush_to_file()            
 
 class DevEnvLocalSetup(DevEnvSetup):
     def __init__(self) -> None:
diff --git a/docs/commands.md b/docs/commands.md
index 556b7d8..ce0f8a3 100644
--- a/docs/commands.md
+++ b/docs/commands.md
@@ -296,4 +296,16 @@ Arguments:
 
 `ADDRESS` IP or hostname of the host. [required]
 
+---
+
+## **`dem uninstall DEV_ENV_NAME`**
+
+Uninstall the selected Development Environment. Set installed flag to False if it was True. Dem checks whether a tool image is
+required or not by any of the remaining installed local Development Environments. In case the tool image is
+not required anymore, the dem delete it. 
+
+Arguments:
+
+`DEV_ENV_NAME` Name of the Development Environment to uninstall. [required]
+
 ---
\ No newline at end of file
diff --git a/tests/cli/test_export_cmd.py b/tests/cli/test_export_cmd.py
index c0baa11..5955a95 100644
--- a/tests/cli/test_export_cmd.py
+++ b/tests/cli/test_export_cmd.py
@@ -24,6 +24,7 @@ def test_create_exported_dev_env_json(mock_os_path_isdir,mock_open):
     dev_env_name = "dev_env_name"
     dev_env_json = {
                     "name": "Cica",
+                    "installed": "True",
                     "tools": [
                         {
                             "type": "build system",
diff --git a/tests/cli/test_uninstall_cmd.py b/tests/cli/test_uninstall_cmd.py
new file mode 100644
index 0000000..db4349c
--- /dev/null
+++ b/tests/cli/test_uninstall_cmd.py
@@ -0,0 +1,103 @@
+"""Tests for the uninstall command."""
+
+
+# Unit under test:
+import dem.cli.main as main
+import dem.cli.command.uninstall_cmd as uninstall_cmd
+
+# Test framework
+from typer.testing import CliRunner
+from unittest.mock import patch, MagicMock, call
+
+import docker.errors
+
+## Global test variables
+runner = CliRunner()
+
+
+@patch("dem.cli.command.uninstall_cmd.stderr.print")
+def test_uninstall_dev_env_invalid_name(mock_stderr_print):
+    # Test setup
+    test_invalid_name = "fake_dev_env_name"
+
+    mock_platform = MagicMock()
+    mock_platform.get_dev_env_by_name.return_value = None
+    main.platform = mock_platform
+        
+    # Run unit under test
+    runner_result = runner.invoke(main.typer_cli, ["uninstall", test_invalid_name], color=True)
+
+    # Check expectations
+    assert 0 == runner_result.exit_code
+    
+    mock_platform.get_dev_env_by_name.assert_called_once_with(test_invalid_name)
+    mock_stderr_print.assert_called_once_with("[red]Error: The [bold]" + test_invalid_name + "[/bold] Development Environment doesn't exist.")
+
+
+@patch("dem.cli.command.uninstall_cmd.stdout.print")
+def test_uninstall_dev_env_valid_name(mock_stdout_print):
+     # Test setup
+    fake_dev_env_to_uninstall = MagicMock()
+    fake_dev_env_to_uninstall.name = "dev_env"
+    fake_dev_env_to_uninstall.installed = "True"    
+    mock_platform = MagicMock()
+    mock_platform.get_dev_env_by_name.return_value = [fake_dev_env_to_uninstall]
+    mock_platform.get_dev_env_status_by_name.return_value = "True"
+    main.platform = mock_platform
+    mock_platform.try_to_remove_tool_images.return_value = True
+
+            
+    # Run unit under test
+    runner_result = runner.invoke(main.typer_cli, ["uninstall", fake_dev_env_to_uninstall.name ], color=True)
+
+    # Check expectations
+    assert 0 == runner_result.exit_code
+    
+    mock_platform.get_dev_env_by_name.assert_called_once_with(fake_dev_env_to_uninstall.name )
+    mock_stdout_print.assert_called_once_with("[green]Successfully deleted the " + fake_dev_env_to_uninstall.name  + "![/]")
+
+
+@patch("dem.cli.command.uninstall_cmd.stderr.print")
+def test_uninstall_dev_env_valid_name_not_installed(mock_stderr_print):
+     # Test setup
+    fake_dev_env_to_uninstall = MagicMock()
+    fake_dev_env_to_uninstall.name = "dev_env"
+    fake_dev_env_to_uninstall.installed = "False"    
+    mock_platform = MagicMock()
+    mock_platform.get_dev_env_by_name.return_value = [fake_dev_env_to_uninstall]
+    mock_platform.get_dev_env_status_by_name.return_value = "False"
+    main.platform = mock_platform    
+
+        
+    # Run unit under test
+    runner_result = runner.invoke(main.typer_cli, ["uninstall", fake_dev_env_to_uninstall.name ], color=True)
+
+    # Check expectations
+    assert 0 == runner_result.exit_code
+    
+    mock_platform.get_dev_env_by_name.assert_called_once_with(fake_dev_env_to_uninstall.name )
+    mock_stderr_print.assert_called_once_with("[red]Error: The [bold]" + fake_dev_env_to_uninstall.name + "[/bold] Development Environment uninstall failed")
+
+
+@patch("dem.cli.command.uninstall_cmd.stderr.print")
+def test_uninstall_dev_env_valid_name_failed(mock_stderr_print):
+     # Test setup
+    fake_dev_env_to_uninstall = MagicMock()
+    fake_dev_env_to_uninstall.name = "dev_env"
+    fake_dev_env_to_uninstall.installed = "True"    
+    mock_platform = MagicMock()
+    mock_platform.get_dev_env_by_name.return_value = [fake_dev_env_to_uninstall]
+    mock_platform.get_dev_env_status_by_name.return_value = "True"
+    mock_platform.try_to_remove_tool_images.return_value = False
+    main.platform = mock_platform    
+
+        
+    # Run unit under test
+    runner_result = runner.invoke(main.typer_cli, ["uninstall", fake_dev_env_to_uninstall.name ], color=True)
+
+    # Check expectations
+    assert 0 == runner_result.exit_code
+    
+    mock_platform.get_dev_env_by_name.assert_called_once_with(fake_dev_env_to_uninstall.name )
+    mock_stderr_print.assert_called_once_with("[red]Error: The [bold]" + fake_dev_env_to_uninstall.name + "[/bold] Development Environment uninstall failed")
+
diff --git a/tests/core/test_dev_env.py b/tests/core/test_dev_env.py
index 8946715..ac6895b 100644
--- a/tests/core/test_dev_env.py
+++ b/tests/core/test_dev_env.py
@@ -11,6 +11,7 @@ def test_DevEnv():
     # Test setup
     test_descriptor = {
         "name": "test_name",
+        "installed": "True",
         "tools": [MagicMock()]
     }
 
@@ -38,6 +39,7 @@ def test_DevEnv_check_image_availability():
     # Test setup
     test_descriptor = {
         "name": "test_name",
+        "installed": "True",
         "tools": [
             {
                 "image_name": "test_image_name1",
@@ -91,6 +93,7 @@ def test_DevEnv_check_image_availability_local_only():
     # Test setup
     test_descriptor = {
         "name": "test_name",
+        "installed": "True",
         "tools": [
             {
                 "image_name": "test_image_name1",
diff --git a/tests/fake_data.py b/tests/fake_data.py
index 3864326..3225a55 100644
--- a/tests/fake_data.py
+++ b/tests/fake_data.py
@@ -2,6 +2,7 @@
     "version": "0.1",
     "development_environments": [{
             "name": "demo",
+            "installed": "True",
             "tools": [{
                     "type": "build system",
                     "image_name": "axemsolutions/make_gnu_arm",
@@ -31,6 +32,7 @@
         },
         {
             "name": "nagy_cica_project",
+            "installed": "True",
             "tools": [{
                     "type": "build system",
                     "image_name": "axemsolutions/bazel",
@@ -72,6 +74,7 @@
 	"version": "0.1",
 	"development_environments": [{
 			"name": "demo",
+            "installed": "False",
 			"tools": [{
 					"type": "build_system",
 					"image_name": "axemsolutions/make_gnu_arm",