diff --git a/hub/changelog.rst b/hub/changelog.rst
index a7e53fac6f..0e9c0a487f 100644
--- a/hub/changelog.rst
+++ b/hub/changelog.rst
@@ -1,6 +1,12 @@
 Changelog
 =========
 
+.. _changelog_2026-03-17:
+
+2026-03-17
+----------
+* Added the :ref:`$retract <dollar_retract>` special field. Setting ``$retract: true`` on an output entity permanently removes all earlier versions of that entity id while keeping the current version.
+
 .. _changelog_2026-03-04:
 
 2026-03-04
diff --git a/hub/documentation/data-management/entity-data-model.rst b/hub/documentation/data-management/entity-data-model.rst
index 0232ad2c13..42abff1480 100644
--- a/hub/documentation/data-management/entity-data-model.rst
+++ b/hub/documentation/data-management/entity-data-model.rst
@@ -173,6 +173,84 @@ Entity fields starting with ``$`` are semi-reserved. They have special meaning a
        the current one.
      -
 
+       .. _dollar_retract:
+   * - ``$retract``
+     - If set to ``true``, all previous versions of the entity are permanently
+       removed from the dataset while the current version is retained. See
+       :ref:`Retract as history prune <dollar_retract_detail>` for details
+       and a configuration example.
+     -
+
+.. _dollar_retract_detail:
+
+Retract as history prune
+------------------------
+
+Setting ``$retract: true`` on an output entity permanently removes all earlier
+versions of that entity id while keeping the current version. Deletion state is
+unaffected. The operation is idempotent.
+
+.. note::
+   ``$retract`` is stored as a regular field and will propagate downstream
+   automatically. However, patterns such as :ref:`merge sources <merge_source>`
+   or :ref:`emit_children <emit_children_transform>` may not carry it through
+   to the output entity and require explicit handling.
+
+**Configuration example:**
+
+When a customer is offboarded their SSN is no longer needed. The pipe emits a
+sanitised entity (omitting ``ssn``) and sets ``$retract: true`` to prune the
+version history that contained it:
+
+.. code-block:: json
+
+   {
+       "_id": "customer-status-retract-history",
+       "type": "pipe",
+       "source": {
+           "type": "dataset",
+           "dataset": "customer_status"
+       },
+       "transform": {
+           "type": "dtl",
+           "rules": {
+               "default": [
+                   ["if", ["eq", "_S.status", "offboarded"],
+                       [
+                           ["copy", "_id"],
+                           ["copy", "status"],
+                           ["add", "$retract", true]
+                       ],
+                       ["copy", "*"]
+                   ]
+               ]
+           }
+       }
+   }
+
+Source entity while the customer is active:
+
+.. code-block:: json
+
+   {
+       "_id": "customer_123",
+       "status": "paid",
+       "ssn": "123456789"
+   }
+
+After offboarding, the pipe outputs:
+
+.. code-block:: json
+
+   {
+       "_id": "customer_123",
+       "status": "offboarded",
+       "$retract": true
+   }
+
+The sink writes this as the latest version and permanently removes all earlier
+versions, including those that contained ``ssn``.
+
 .. _entity_data_types:
 
 Standard types
diff --git a/hub/quick-reference.rst b/hub/quick-reference.rst
index b7790c7af2..9f3b7534a6 100644
--- a/hub/quick-reference.rst
+++ b/hub/quick-reference.rst
@@ -336,4 +336,5 @@ Entity model
    * - Special fields
      - :ref:`$children <dollar_children>` ·
        :ref:`$ids <dollar_ids_field>` ·
-       :ref:`$replaced <dollar_replaced>`
+       :ref:`$replaced <dollar_replaced>` ·
+       :ref:`$retract <dollar_retract>`