diff --git a/src/basic_memory/fileio.py b/src/basic_memory/fileio.py
index e33c771d..4b29fbc6 100644
--- a/src/basic_memory/fileio.py
+++ b/src/basic_memory/fileio.py
@@ -118,3 +118,28 @@ async def read_entity_file(entities_path: Path, entity_id: str) -> Entity:
         entity_type=entity_type,
         observations=observations
     )
+
+
+async def delete_entity_file(entities_path: Path, entity_id: str) -> bool:
+    """
+    Delete an entity's file from the filesystem.
+    
+    Args:
+        entities_path: Path to entities directory
+        entity_id: ID of entity to delete
+        
+    Returns:
+        True if successful or file didn't exist
+        
+    Raises:
+        FileOperationError: If file deletion fails
+    """
+    entity_path = entities_path / f"{entity_id}.md"
+    
+    if entity_path.exists():
+        try:
+            entity_path.unlink()
+        except Exception as e:
+            raise FileOperationError(f"Failed to delete entity file: {str(e)}") from e
+    
+    return True
\ No newline at end of file
diff --git a/src/basic_memory/services.py b/src/basic_memory/services.py
index ba24386b..d6b21137 100644
--- a/src/basic_memory/services.py
+++ b/src/basic_memory/services.py
@@ -9,7 +9,7 @@ from basic_memory.models import Observation as DbObservation
 from basic_memory.repository import EntityRepository, ObservationRepository
 from basic_memory.schemas import Entity, Observation
 from basic_memory.fileio import (
-    read_entity_file, write_entity_file,
+    read_entity_file, write_entity_file, delete_entity_file,
     FileOperationError, EntityNotFoundError
 )
 
@@ -85,14 +85,10 @@ class EntityService:
 
     async def delete_entity(self, entity_id: str) -> bool:
         """Delete entity from filesystem and database."""
-        entity_path = self.entities_path / f"{entity_id}.md"
-        
-        if entity_path.exists():
-            try:
-                entity_path.unlink()
-            except Exception as e:
-                raise FileOperationError(f"Failed to delete entity file: {str(e)}") from e
+        # Delete from filesystem first (source of truth)
+        await delete_entity_file(self.entities_path, entity_id)
         
+        # Delete from database index
         await self.entity_repo.delete(entity_id)
         return True