diff --git a/solara/server/patch.py b/solara/server/patch.py
index 5107ded78..9a480db84 100644
--- a/solara/server/patch.py
+++ b/solara/server/patch.py
@@ -269,6 +269,9 @@ def hook(msg):
         if msg["msg_type"] == "display_data":
             self.outputs += ({"output_type": "display_data", "data": msg["content"]["data"], "metadata": msg["content"]["metadata"]},)
             return None
+        if msg["msg_type"] == "clear_output":
+            self.outputs = ()
+            return None
         return msg
 
     get_ipython().display_pub.register_hook(hook)
diff --git a/solara/server/shell.py b/solara/server/shell.py
index 01c635879..4a1d0df57 100644
--- a/solara/server/shell.py
+++ b/solara/server/shell.py
@@ -119,11 +119,15 @@ def clear_output(self, wait=False):
         """
         content = dict(wait=wait)
         self._flush_streams()
+        msg = self.session.msg("clear_output", json_clean(content), parent=self.parent_header)
+        for hook in self._hooks:
+            msg = hook(msg)
+            if msg is None:
+                return
+
         self.session.send(
             self.pub_socket,
-            "clear_output",
-            content,
-            parent=self.parent_header,
+            msg,
             ident=self.topic,
         )
 
diff --git a/tests/unit/output_widget_test.py b/tests/unit/output_widget_test.py
new file mode 100644
index 000000000..a07273384
--- /dev/null
+++ b/tests/unit/output_widget_test.py
@@ -0,0 +1,43 @@
+from unittest.mock import Mock
+
+import IPython.display
+import ipywidgets as widgets
+
+from solara.server import app, kernel
+
+
+def test_interactive_shell(no_app_context):
+    ws1 = Mock()
+    ws2 = Mock()
+    kernel1 = kernel.Kernel()
+    kernel2 = kernel.Kernel()
+    kernel1.session.websockets.add(ws1)
+    kernel2.session.websockets.add(ws2)
+    context1 = app.AppContext(id="1", kernel=kernel1)
+    context2 = app.AppContext(id="2", kernel=kernel2)
+
+    with context1:
+        output1 = widgets.Output()
+        with output1:
+            IPython.display.display("test1")
+        assert output1.outputs[0]["data"]["text/plain"] == "'test1'"
+        assert ws1.send.call_count == 3  # create 2 widgets (layout and output) and update data
+        assert ws2.send.call_count == 0
+    with context2:
+        output2 = widgets.Output()
+        with output2:
+            IPython.display.display("test2")
+        assert output2.outputs[0]["data"]["text/plain"] == "'test2'"
+        assert ws1.send.call_count == 3
+        assert ws2.send.call_count == 3
+
+    context1.close()
+    context2.close()
+
+
+def test_clear_output():
+    output1 = widgets.Output()
+    with output1:
+        IPython.display.display("test1")
+        IPython.display.clear_output()
+    assert len(output1.outputs) == 0