diff --git a/packages/jupyter-ai/jupyter_ai/config_manager.py b/packages/jupyter-ai/jupyter_ai/config_manager.py
index 5adc604cf..5e35fdde1 100644
--- a/packages/jupyter-ai/jupyter_ai/config_manager.py
+++ b/packages/jupyter-ai/jupyter_ai/config_manager.py
@@ -59,6 +59,12 @@ class BlockedModelError(Exception):
     pass
 
 
+class ConfigValidationError(Exception):
+    def __init__(self, property_name, message):
+        self.property_name = property_name
+        super().__init__(message)
+
+
 def _validate_provider_authn(config: GlobalConfig, provider: AnyProvider):
     # TODO: handle non-env auth strategies
     if not provider.auth_strategy or provider.auth_strategy.type != "env":
@@ -171,7 +177,14 @@ def _init_config(self):
 
                 # re-write to the file to validate the config and apply any
                 # updates to the config file immediately
-                self._write_config(config)
+                try:
+                    self._write_config(config)
+                except ConfigValidationError as e:
+                    if e.property_name == "model_provider_id":
+                        self.log.warning(f"{str(e)} Setting to None")
+                        config.model_provider_id = None
+                        self._write_config(config)
+
             return
 
         properties = self.validator.schema.get("properties", {})
@@ -213,8 +226,9 @@ def _validate_config(self, config: GlobalConfig):
 
             # verify model is declared by some provider
             if not lm_provider:
-                raise ValueError(
-                    f"No language model is associated with '{config.model_provider_id}'."
+                raise ConfigValidationError(
+                    "model_provider_id",
+                    f"No language model is associated with '{config.model_provider_id}'.",
                 )
 
             # verify model is not blocked
@@ -330,6 +344,23 @@ def update_config(self, config_update: UpdateConfigRequest):
         Merger.merge(config_dict, config_update.dict(exclude_unset=True))
         self._write_config(GlobalConfig(**config_dict))
 
+    def delete_config(self):
+        try:
+            if os.path.exists(self.config_path):
+                os.remove(self.config_path)
+                self.log.info(f"Configutation file {self.config_path} has been deleted")
+                self._config = None
+                self._last_read = None
+            else:
+                self.log.warning(
+                    f"Configuration file {self.config_path} does not exist"
+                )
+        except Exception as e:
+            self.log.warning(
+                f"Failed to delete configuration file {self.config_path}: {e}"
+            )
+            raise
+
     # this cannot be a property, as the parent Configurable already defines the
     # self.config attr.
     def get_config(self):
diff --git a/packages/jupyter-ai/jupyter_ai/handlers.py b/packages/jupyter-ai/jupyter_ai/handlers.py
index 80f094f1f..2b3556868 100644
--- a/packages/jupyter-ai/jupyter_ai/handlers.py
+++ b/packages/jupyter-ai/jupyter_ai/handlers.py
@@ -382,6 +382,15 @@ def post(self):
                 500, "Unexpected error occurred while updating the config."
             ) from e
 
+    @web.authenticated
+    def delete(self):
+        try:
+            self.config_manager.delete_config()
+            self.set_status(204)
+            self.finish()
+        except Exception as e:
+            raise HTTPError(500, str(e))
+
 
 class ApiKeysHandler(BaseAPIHandler):
     @property
diff --git a/packages/jupyter-ai/src/handler.ts b/packages/jupyter-ai/src/handler.ts
index ec91c1f3f..d99c77eb6 100644
--- a/packages/jupyter-ai/src/handler.ts
+++ b/packages/jupyter-ai/src/handler.ts
@@ -191,6 +191,10 @@ export namespace AiService {
     });
   }
 
+  export async function deleteConfig(): Promise<void> {
+    return requestAPI<void>('config', { method: 'DELETE' });
+  }
+
   export async function deleteApiKey(keyName: string): Promise<void> {
     return requestAPI<void>(`api_keys/${keyName}`, {
       method: 'DELETE'
diff --git a/packages/jupyter-ai/src/index.ts b/packages/jupyter-ai/src/index.ts
index e48e2b211..345c01a84 100644
--- a/packages/jupyter-ai/src/index.ts
+++ b/packages/jupyter-ai/src/index.ts
@@ -12,6 +12,7 @@ import { buildChatSidebar } from './widgets/chat-sidebar';
 import { SelectionWatcher } from './selection-watcher';
 import { ChatHandler } from './chat_handler';
 import { buildErrorWidget } from './widgets/chat-error';
+import { AiService } from './handler';
 
 export type DocumentTracker = IWidgetTracker<IDocumentWidget>;
 
@@ -46,7 +47,7 @@ const plugin: JupyterFrontEndPlugin<void> = {
         globalAwareness
       );
     } catch (e) {
-      chatWidget = buildErrorWidget();
+      chatWidget = buildErrorWidget(AiService.deleteConfig);
     }
 
     /**
diff --git a/packages/jupyter-ai/src/widgets/chat-error.tsx b/packages/jupyter-ai/src/widgets/chat-error.tsx
index 3b8f8ef95..24abccc5e 100644
--- a/packages/jupyter-ai/src/widgets/chat-error.tsx
+++ b/packages/jupyter-ai/src/widgets/chat-error.tsx
@@ -2,10 +2,12 @@ import React from 'react';
 import { ReactWidget } from '@jupyterlab/apputils';
 
 import { chatIcon } from '../icons';
-import { Alert, Box } from '@mui/material';
+import { Alert, Box, Button } from '@mui/material';
 import { JlThemeProvider } from '../components/jl-theme-provider';
 
-export function buildErrorWidget(): ReactWidget {
+export function buildErrorWidget(
+  deleteConfig: () => Promise<void>
+): ReactWidget {
   const ErrorWidget = ReactWidget.create(
     <JlThemeProvider>
       <Box
@@ -22,8 +24,16 @@ export function buildErrorWidget(): ReactWidget {
           <Alert severity="error">
             There seems to be a problem with the Chat backend, please look at
             the JupyterLab server logs or contact your administrator to correct
-            this problem.
+            this problem. Deleting the config file
+            `$JUPYTER_DATA_DIR/jupyter_ai/config.json` and then restarting
+            `jupyter lab` may fix the issue if it is a result of the config
+            changes.
           </Alert>
+          <Box sx={{ marginTop: 2 }}>
+            <Button variant="contained" onClick={deleteConfig}>
+              Delete Config File
+            </Button>
+          </Box>
         </Box>
       </Box>
     </JlThemeProvider>