diff --git a/coderd/coderd.go b/coderd/coderd.go
index f5956d7457fe8..ccfa059294b49 100644
--- a/coderd/coderd.go
+++ b/coderd/coderd.go
@@ -1391,6 +1391,7 @@ func New(options *Options) *API {
 				r.Get("/", api.listInboxNotifications)
 				r.Get("/watch", api.watchInboxNotifications)
 				r.Put("/{id}/read-status", api.updateInboxNotificationReadStatus)
+				r.Put("/mark-all-read", api.updateAllInboxNotificationsReadStatus)
 			})
 			r.Get("/settings", api.notificationsSettings)
 			r.Put("/settings", api.putNotificationsSettings)
diff --git a/coderd/database/queries/notificationsinbox.sql b/coderd/database/queries/notificationsinbox.sql
index 43ab63ae83652..73bb2e8b7cb69 100644
--- a/coderd/database/queries/notificationsinbox.sql
+++ b/coderd/database/queries/notificationsinbox.sql
@@ -57,3 +57,13 @@ SET
     read_at = $1
 WHERE
     id = $2;
+    
+-- name: UpdateAllInboxNotificationsReadStatusByUserID :exec
+-- Marks all unread notifications as read for a user
+UPDATE
+    inbox_notifications
+SET
+    read_at = $1
+WHERE
+    user_id = $2 AND
+    read_at IS NULL;
diff --git a/coderd/inboxnotifications.go b/coderd/inboxnotifications.go
index 5437165bb71a6..bf94bcd7e8332 100644
--- a/coderd/inboxnotifications.go
+++ b/coderd/inboxnotifications.go
@@ -345,3 +345,47 @@ func (api *API) updateInboxNotificationReadStatus(rw http.ResponseWriter, r *htt
 		UnreadCount:  int(unreadCount),
 	})
 }
+
+// updateAllInboxNotificationsReadStatus marks all notifications as read for the user.
+// @Summary Mark all notifications as read
+// @ID mark-all-notifications-as-read
+// @Security CoderSessionToken
+// @Produce json
+// @Tags Notifications
+// @Success 200 {object} codersdk.Response
+// @Router /notifications/inbox/mark-all-read [put]
+func (api *API) updateAllInboxNotificationsReadStatus(rw http.ResponseWriter, r *http.Request) {
+	var (
+		ctx    = r.Context()
+		apikey = httpmw.APIKey(r)
+	)
+
+	err := api.Database.UpdateAllInboxNotificationsReadStatusByUserID(ctx, database.UpdateAllInboxNotificationsReadStatusByUserIDParams{
+		ReadAt: sql.NullTime{
+			Time:  dbtime.Now(),
+			Valid: true,
+		},
+		UserID: apikey.UserID,
+	})
+	if err != nil {
+		api.Logger.Error(ctx, "failed to update all inbox notifications read status", slog.Error(err))
+		httpapi.Write(ctx, rw, http.StatusInternalServerError, codersdk.Response{
+			Message: "Failed to update all inbox notifications read status.",
+		})
+		return
+	}
+
+	// Get the updated unread count
+	unreadCount, err := api.Database.CountUnreadInboxNotificationsByUserID(ctx, apikey.UserID)
+	if err != nil {
+		api.Logger.Error(ctx, "failed to call count unread inbox notifications", slog.Error(err))
+		httpapi.Write(ctx, rw, http.StatusInternalServerError, codersdk.Response{
+			Message: "Failed to call count unread inbox notifications.",
+		})
+		return
+	}
+
+	httpapi.Write(ctx, rw, http.StatusOK, codersdk.MarkAllInboxNotificationsReadResponse{
+		UnreadCount: int(unreadCount),
+	})
+}
diff --git a/coderd/inboxnotifications_test.go b/coderd/inboxnotifications_test.go
index 81e119381d281..38bf99538487d 100644
--- a/coderd/inboxnotifications_test.go
+++ b/coderd/inboxnotifications_test.go
@@ -723,3 +723,64 @@ func TestInboxNotifications_ReadStatus(t *testing.T) {
 		require.Empty(t, updatedNotif.Notification)
 	})
 }
+
+func TestInboxNotifications_MarkAllRead(t *testing.T) {
+	t.Parallel()
+
+	// I skip these tests specifically on windows as for now they are flaky - only on Windows.
+	// For now the idea is that the runner takes too long to insert the entries, could be worth
+	// investigating a manual Tx.
+	if runtime.GOOS == "windows" {
+		t.Skip("our runners are randomly taking too long to insert entries")
+	}
+
+	t.Run("ok", func(t *testing.T) {
+		t.Parallel()
+		client, _, api := coderdtest.NewWithAPI(t, &coderdtest.Options{})
+		firstUser := coderdtest.CreateFirstUser(t, client)
+		client, member := coderdtest.CreateAnotherUser(t, client, firstUser.OrganizationID)
+
+		ctx, cancel := context.WithTimeout(context.Background(), testutil.WaitLong)
+		defer cancel()
+
+		notifs, err := client.ListInboxNotifications(ctx, codersdk.ListInboxNotificationsRequest{})
+		require.NoError(t, err)
+		require.NotNil(t, notifs)
+		require.Equal(t, 0, notifs.UnreadCount)
+		require.Empty(t, notifs.Notifications)
+
+		for i := range 20 {
+			dbgen.NotificationInbox(t, api.Database, database.InsertInboxNotificationParams{
+				ID:         uuid.New(),
+				UserID:     member.ID,
+				TemplateID: notifications.TemplateWorkspaceOutOfMemory,
+				Title:      fmt.Sprintf("Notification %d", i),
+				Actions:    json.RawMessage("[]"),
+				Content:    fmt.Sprintf("Content of the notif %d", i),
+				CreatedAt:  dbtime.Now(),
+			})
+		}
+
+		notifs, err = client.ListInboxNotifications(ctx, codersdk.ListInboxNotificationsRequest{})
+		require.NoError(t, err)
+		require.NotNil(t, notifs)
+		require.Equal(t, 20, notifs.UnreadCount)
+		require.Len(t, notifs.Notifications, 20)
+
+		// Mark all as read
+		response, err := client.MarkAllInboxNotificationsRead(ctx)
+		require.NoError(t, err)
+		require.NotNil(t, response)
+		require.Equal(t, 0, response.UnreadCount)
+
+		// Check that all notifications are marked as read
+		notifs, err = client.ListInboxNotifications(ctx, codersdk.ListInboxNotificationsRequest{})
+		require.NoError(t, err)
+		require.Equal(t, 0, notifs.UnreadCount)
+		
+		// All notifications should be marked as read
+		for _, notif := range notifs.Notifications {
+			require.NotNil(t, notif.ReadAt)
+		}
+	})
+}
diff --git a/codersdk/inboxnotification.go b/codersdk/inboxnotification.go
index 845140ea658c7..4d9749c2adb66 100644
--- a/codersdk/inboxnotification.go
+++ b/codersdk/inboxnotification.go
@@ -109,3 +109,26 @@ func (c *Client) UpdateInboxNotificationReadStatus(ctx context.Context, notifID
 	var resp UpdateInboxNotificationReadStatusResponse
 	return resp, json.NewDecoder(res.Body).Decode(&resp)
 }
+
+type MarkAllInboxNotificationsReadResponse struct {
+	UnreadCount int `json:"unread_count"`
+}
+
+func (c *Client) MarkAllInboxNotificationsRead(ctx context.Context) (MarkAllInboxNotificationsReadResponse, error) {
+	res, err := c.Request(
+		ctx, http.MethodPut,
+		"/api/v2/notifications/inbox/mark-all-read",
+		nil,
+	)
+	if err != nil {
+		return MarkAllInboxNotificationsReadResponse{}, err
+	}
+	defer res.Body.Close()
+
+	if res.StatusCode != http.StatusOK {
+		return MarkAllInboxNotificationsReadResponse{}, ReadBodyAsError(res)
+	}
+
+	var resp MarkAllInboxNotificationsReadResponse
+	return resp, json.NewDecoder(res.Body).Decode(&resp)
+}