diff --git a/implementations/rust/ockam/ockam_app_lib/src/state/mod.rs b/implementations/rust/ockam/ockam_app_lib/src/state/mod.rs
index 09240b9d619..d326f60150c 100644
--- a/implementations/rust/ockam/ockam_app_lib/src/state/mod.rs
+++ b/implementations/rust/ockam/ockam_app_lib/src/state/mod.rs
@@ -27,6 +27,7 @@ use ockam_api::cli_state::{
 };
 use ockam_api::cloud::enroll::auth0::UserInfo;
 use ockam_api::cloud::project::Project;
+use ockam_api::cloud::space::Spaces;
 use ockam_api::cloud::{AuthorityNode, Controller};
 use ockam_api::nodes::models::portal::OutletStatus;
 use ockam_api::nodes::models::transport::{CreateTransportJson, TransportMode, TransportType};
@@ -269,6 +270,7 @@ impl AppState {
     }
 
     async fn reset_state(&self) -> miette::Result<()> {
+        self.reset_orchestrator().await?;
         let mut state = self.state.write().await;
         match state.reset().await {
             Ok(s) => {
@@ -280,6 +282,17 @@ impl AppState {
         Ok(())
     }
 
+    async fn reset_orchestrator(&self) -> miette::Result<()> {
+        let ctx = self.context();
+        let controller = self.controller().await?;
+        for space in self.state().await.spaces.list()? {
+            controller
+                .delete_space(&ctx, space.config().id.clone())
+                .await?;
+        }
+        Ok(())
+    }
+
     /// Recreate a new NodeManagerWorker instance, which will restart the necessary
     /// child workers as described in its Worker trait implementation.
     pub async fn reset_node_manager(&self) -> miette::Result<()> {