diff --git a/packages/accounts-controller/CHANGELOG.md b/packages/accounts-controller/CHANGELOG.md
index fbf98f64b2d..e4357206b66 100644
--- a/packages/accounts-controller/CHANGELOG.md
+++ b/packages/accounts-controller/CHANGELOG.md
@@ -26,6 +26,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Bump `@metamask/messenger` from `^2.0.0` to `^3.0.0` ([#10160](https://github.com/MetaMask/core/pull/10160))
 - Bump `@metamask/network-controller` from `^36.0.0` to `^37.0.0` ([#10160](https://github.com/MetaMask/core/pull/10160))
 
+### Fixed
+
+- Now properly sends `:account*Removed` events during `clearState` ([#10150](https://github.com/MetaMask/core/pull/10150))
+
 ## [39.1.1]
 
 ### Changed
diff --git a/packages/accounts-controller/src/AccountsController.test.ts b/packages/accounts-controller/src/AccountsController.test.ts
index b8deb353ba2..25c10b71673 100644
--- a/packages/accounts-controller/src/AccountsController.test.ts
+++ b/packages/accounts-controller/src/AccountsController.test.ts
@@ -3421,6 +3421,90 @@ describe('AccountsController', () => {
       );
     });
 
+    it('publishes accountRemoved for each removed account', () => {
+      const { accountsController, accountsControllerMessenger } =
+        setupAccountsController({
+          initialState: {
+            internalAccounts: {
+              accounts: {
+                [mockAccount.id]: mockAccount,
+                [mockAccount2.id]: mockAccount2,
+              },
+              selectedAccount: mockAccount.id,
+            },
+            accountIdByAddress: {
+              [mockAccount.address]: mockAccount.id,
+              [mockAccount2.address]: mockAccount2.id,
+            },
+          },
+        });
+
+      const messengerSpy = jest.spyOn(accountsControllerMessenger, 'publish');
+
+      accountsController.clearState();
+
+      expect(messengerSpy).toHaveBeenCalledWith(
+        'AccountsController:accountRemoved',
+        mockAccount.id,
+      );
+      expect(messengerSpy).toHaveBeenCalledWith(
+        'AccountsController:accountRemoved',
+        mockAccount2.id,
+      );
+    });
+
+    it('publishes accountsRemoved with all account ids', () => {
+      const { accountsController, accountsControllerMessenger } =
+        setupAccountsController({
+          initialState: {
+            internalAccounts: {
+              accounts: {
+                [mockAccount.id]: mockAccount,
+                [mockAccount2.id]: mockAccount2,
+              },
+              selectedAccount: mockAccount.id,
+            },
+            accountIdByAddress: {
+              [mockAccount.address]: mockAccount.id,
+              [mockAccount2.address]: mockAccount2.id,
+            },
+          },
+        });
+
+      const accountsRemovedListener = jest.fn();
+      accountsControllerMessenger.subscribe(
+        'AccountsController:accountsRemoved',
+        accountsRemovedListener,
+      );
+
+      accountsController.clearState();
+
+      expect(accountsRemovedListener).toHaveBeenCalledTimes(1);
+      expect(accountsRemovedListener).toHaveBeenCalledWith(
+        expect.arrayContaining([mockAccount.id, mockAccount2.id]),
+      );
+    });
+
+    it('does not publish removal events when state is already empty', () => {
+      const { accountsController, accountsControllerMessenger } =
+        setupAccountsController({
+          initialState: getDefaultAccountsControllerState(),
+        });
+
+      const messengerSpy = jest.spyOn(accountsControllerMessenger, 'publish');
+
+      accountsController.clearState();
+
+      expect(messengerSpy).not.toHaveBeenCalledWith(
+        'AccountsController:accountRemoved',
+        expect.anything(),
+      );
+      expect(messengerSpy).not.toHaveBeenCalledWith(
+        'AccountsController:accountsRemoved',
+        expect.anything(),
+      );
+    });
+
     it('is a no-op when state is already empty', () => {
       const { accountsController } = setupAccountsController({
         initialState: getDefaultAccountsControllerState(),
diff --git a/packages/accounts-controller/src/AccountsController.ts b/packages/accounts-controller/src/AccountsController.ts
index 50af609db83..cc4204d6e4d 100644
--- a/packages/accounts-controller/src/AccountsController.ts
+++ b/packages/accounts-controller/src/AccountsController.ts
@@ -763,9 +763,18 @@ export class AccountsController extends BaseController<
    * Use `AccountTreeController`, `MultichainAccountService`, or the Keyring API v2 instead.
    */
   clearState(): void {
+    const removedIds = Object.keys(this.state.internalAccounts.accounts);
+
     this.update(() => {
       return getDefaultAccountsControllerState();
     });
+
+    for (const id of removedIds) {
+      this.messenger.publish('AccountsController:accountRemoved', id);
+    }
+    if (removedIds.length > 0) {
+      this.messenger.publish('AccountsController:accountsRemoved', removedIds);
+    }
   }
 
   /**