diff --git a/api/sys_policy.go b/api/sys_policy.go
index 635bc7c28a..ea57a69ad8 100644
--- a/api/sys_policy.go
+++ b/api/sys_policy.go
@@ -20,6 +20,9 @@ func (c *Sys) ListPolicies() ([]string, error) {
 func (c *Sys) GetPolicy(name string) (string, error) {
 	r := c.c.NewRequest("GET", fmt.Sprintf("/v1/sys/policy/%s", name))
 	resp, err := c.c.RawRequest(r)
+	if resp.StatusCode == 404 {
+		return "", nil
+	}
 	if err != nil {
 		return "", err
 	}
diff --git a/cli/commands.go b/cli/commands.go
index 303a69b5d0..dd2fbebfcb 100644
--- a/cli/commands.go
+++ b/cli/commands.go
@@ -115,6 +115,12 @@ func Commands(metaPtr *command.Meta) map[string]cli.CommandFactory {
 			}, nil
 		},
 
+		"policy-delete": func() (cli.Command, error) {
+			return &command.PolicyDeleteCommand{
+				Meta: meta,
+			}, nil
+		},
+
 		"policy-write": func() (cli.Command, error) {
 			return &command.PolicyWriteCommand{
 				Meta: meta,
diff --git a/command/policy_delete.go b/command/policy_delete.go
new file mode 100644
index 0000000000..9a1fb36c2b
--- /dev/null
+++ b/command/policy_delete.go
@@ -0,0 +1,77 @@
+package command
+
+import (
+	"fmt"
+	"strings"
+)
+
+// PolicyDeleteCommand is a Command that enables a new endpoint.
+type PolicyDeleteCommand struct {
+	Meta
+}
+
+func (c *PolicyDeleteCommand) Run(args []string) int {
+	flags := c.Meta.FlagSet("policy-delete", FlagSetDefault)
+	flags.Usage = func() { c.Ui.Error(c.Help()) }
+	if err := flags.Parse(args); err != nil {
+		return 1
+	}
+
+	args = flags.Args()
+	if len(args) != 1 {
+		flags.Usage()
+		c.Ui.Error(fmt.Sprintf(
+			"\npolicy-delete expects exactly one argument"))
+		return 1
+	}
+
+	client, err := c.Client()
+	if err != nil {
+		c.Ui.Error(fmt.Sprintf(
+			"Error initializing client: %s", err))
+		return 2
+	}
+
+	name := args[0]
+	if err := client.Sys().DeletePolicy(name); err != nil {
+		c.Ui.Error(fmt.Sprintf(
+			"Error: %s", err))
+		return 1
+	}
+
+	c.Ui.Output(fmt.Sprintf("Policy '%s' deleted.", name))
+	return 0
+}
+
+func (c *PolicyDeleteCommand) Synopsis() string {
+	return "Delete a policy from the server"
+}
+
+func (c *PolicyDeleteCommand) Help() string {
+	helpText := `
+Usage: vault policy-delete [options] name
+
+  Delete a policy with the given name.
+
+  One the policy is deleted, all users associated with the policy will
+  be affected immediately. When a user is associated with a policy that
+  doesn't exist, it is identical to not being associated with that policy.
+
+General Options:
+
+  -address=TODO           The address of the Vault server.
+
+  -ca-cert=path           Path to a PEM encoded CA cert file to use to
+                          verify the Vault server SSL certificate.
+
+  -ca-path=path           Path to a directory of PEM encoded CA cert files
+                          to verify the Vault server SSL certificate. If both
+                          -ca-cert and -ca-path are specified, -ca-path is used.
+
+  -insecure               Do not verify TLS certificate. This is highly
+                          not recommended. This is especially not recommended
+                          for unsealing a vault.
+
+`
+	return strings.TrimSpace(helpText)
+}
diff --git a/command/policy_delete_test.go b/command/policy_delete_test.go
new file mode 100644
index 0000000000..15e0e8c8bd
--- /dev/null
+++ b/command/policy_delete_test.go
@@ -0,0 +1,60 @@
+package command
+
+import (
+	"testing"
+
+	"github.com/hashicorp/vault/http"
+	"github.com/hashicorp/vault/vault"
+	"github.com/mitchellh/cli"
+)
+
+func TestPolicyDelete(t *testing.T) {
+	core, _, token := vault.TestCoreUnsealed(t)
+	ln, addr := http.TestServer(t, core)
+	defer ln.Close()
+
+	ui := new(cli.MockUi)
+	c := &PolicyDeleteCommand{
+		Meta: Meta{
+			ClientToken: token,
+			Ui:          ui,
+		},
+	}
+
+	args := []string{
+		"-address", addr,
+		"foo",
+	}
+
+	// Run once so the client is setup, ignore errors
+	c.Run(args)
+
+	// Get the client so we can write data
+	client, err := c.Client()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	if err := client.Sys().PutPolicy("foo", testPolicyDeleteRules); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	// Test that the delete works
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	// Test the policy is gone
+	rules, err := client.Sys().GetPolicy("foo")
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	if rules != "" {
+		t.Fatalf("bad: %#v", rules)
+	}
+}
+
+const testPolicyDeleteRules = `
+path "sys" {
+	policy = "deny"
+}
+`
diff --git a/http/sys_policy.go b/http/sys_policy.go
index db010e0a59..d17d75be56 100644
--- a/http/sys_policy.go
+++ b/http/sys_policy.go
@@ -95,6 +95,10 @@ func handleSysReadPolicy(core *vault.Core, w http.ResponseWriter, r *http.Reques
 	if !ok {
 		return
 	}
+	if resp == nil {
+		respondError(w, http.StatusNotFound, nil)
+		return
+	}
 
 	respondOk(w, resp.Data)
 }