diff --git a/packages/node_modules/@node-red/editor-client/src/js/ui/palette.js b/packages/node_modules/@node-red/editor-client/src/js/ui/palette.js
index 9191b7400..2a6d0bdc6 100644
--- a/packages/node_modules/@node-red/editor-client/src/js/ui/palette.js
+++ b/packages/node_modules/@node-red/editor-client/src/js/ui/palette.js
@@ -606,6 +606,9 @@ RED.palette = (function() {
 
         $("#red-ui-palette > .red-ui-palette-spinner").show();
 
+        RED.events.on('logout', function () {
+            RED.settings.removeLocal('palette-state')
+        })
 
         RED.events.on('registry:node-type-added', function(nodeType) {
             var def = RED.nodes.getType(nodeType);