diff --git a/nexus/db-model/src/oximeter_info.rs b/nexus/db-model/src/oximeter_info.rs
index ac30384c59..39bde98ea8 100644
--- a/nexus/db-model/src/oximeter_info.rs
+++ b/nexus/db-model/src/oximeter_info.rs
@@ -8,7 +8,7 @@ use chrono::{DateTime, Utc};
 use nexus_types::internal_api;
 use uuid::Uuid;
 
-/// Message used to notify Nexus that this oximeter instance is up and running.
+/// A record representing a registered `oximeter` collector.
 #[derive(Queryable, Insertable, Debug, Clone, Copy)]
 #[diesel(table_name = oximeter)]
 pub struct OximeterInfo {
@@ -18,8 +18,9 @@ pub struct OximeterInfo {
     pub time_created: DateTime<Utc>,
     /// When this resource was last modified.
     pub time_modified: DateTime<Utc>,
-    /// The address on which this oximeter instance listens for requests
+    /// The address on which this `oximeter` instance listens for requests.
     pub ip: ipnetwork::IpNetwork,
+    /// The port on which this `oximeter` instance listens for requests.
     pub port: SqlU16,
 }
 
diff --git a/nexus/db-queries/src/db/datastore/oximeter.rs b/nexus/db-queries/src/db/datastore/oximeter.rs
index c9b3a59b05..55b650ea53 100644
--- a/nexus/db-queries/src/db/datastore/oximeter.rs
+++ b/nexus/db-queries/src/db/datastore/oximeter.rs
@@ -21,7 +21,20 @@ use omicron_common::api::external::ResourceType;
 use uuid::Uuid;
 
 impl DataStore {
-    // Create a record for a new Oximeter instance
+    /// Lookup an oximeter instance by its ID.
+    pub async fn oximeter_lookup(
+        &self,
+        id: &Uuid,
+    ) -> Result<OximeterInfo, Error> {
+        use db::schema::oximeter::dsl;
+        dsl::oximeter
+            .find(*id)
+            .first_async(&*self.pool_connection_unauthorized().await?)
+            .await
+            .map_err(|e| public_error_from_diesel(e, ErrorHandler::Server))
+    }
+
+    /// Create a record for a new Oximeter instance
     pub async fn oximeter_create(
         &self,
         info: &OximeterInfo,
@@ -55,7 +68,7 @@ impl DataStore {
         Ok(())
     }
 
-    // List the oximeter collector instances
+    /// List the oximeter collector instances
     pub async fn oximeter_list(
         &self,
         page_params: &DataPageParams<'_, Uuid>,
@@ -69,7 +82,7 @@ impl DataStore {
             .map_err(|e| public_error_from_diesel(e, ErrorHandler::Server))
     }
 
-    // Create a record for a new producer endpoint
+    /// Create a record for a new producer endpoint
     pub async fn producer_endpoint_create(
         &self,
         producer: &ProducerEndpoint,
@@ -102,7 +115,27 @@ impl DataStore {
         Ok(())
     }
 
-    // List the producer endpoint records by the oximeter instance to which they're assigned.
+    /// Delete a record for a producer endpoint, by its ID.
+    ///
+    /// This is idempotent, and deleting a record that is already removed is a
+    /// no-op. If the record existed, then the ID of the `oximeter` collector is
+    /// returned. If there was no record, `None` is returned.
+    pub async fn producer_endpoint_delete(
+        &self,
+        id: &Uuid,
+    ) -> Result<Option<Uuid>, Error> {
+        use db::schema::metric_producer::dsl;
+        diesel::delete(dsl::metric_producer.find(*id))
+            .returning(dsl::oximeter_id)
+            .get_result_async::<Uuid>(
+                &*self.pool_connection_unauthorized().await?,
+            )
+            .await
+            .optional()
+            .map_err(|e| public_error_from_diesel(e, ErrorHandler::Server))
+    }
+
+    /// List the producer endpoint records by the oximeter instance to which they're assigned.
     pub async fn producers_list_by_oximeter_id(
         &self,
         oximeter_id: Uuid,
diff --git a/nexus/src/app/instance.rs b/nexus/src/app/instance.rs
index 17d033c5a0..923bb1777e 100644
--- a/nexus/src/app/instance.rs
+++ b/nexus/src/app/instance.rs
@@ -1320,7 +1320,9 @@ impl super::Nexus {
         .await?;
 
         // If the supplied instance state indicates that the instance no longer
-        // has an active VMM, attempt to delete the virtual provisioning record
+        // has an active VMM, attempt to delete the virtual provisioning record,
+        // and the assignment of the Propolis metric producer to an oximeter
+        // collector.
         //
         // As with updating networking state, this must be done before
         // committing the new runtime state to the database: once the DB is
@@ -1338,6 +1340,21 @@ impl super::Nexus {
                     (&new_runtime_state.instance_state.gen).into(),
                 )
                 .await?;
+
+            // TODO-correctness: The `notify_instance_updated` method can run
+            // concurrently with itself in some situations, such as where a
+            // sled-agent attempts to update Nexus about a stopped instance;
+            // that times out; and it makes another request to a different
+            // Nexus. The call to `unassign_producer` is racy in those
+            // situations, and we may end with instances with no metrics.
+            //
+            // This unfortunate case should be handled as part of
+            // instance-lifecycle improvements, notably using a reliable
+            // persistent workflow to correctly update the oximete assignment as
+            // an instance's state changes.
+            //
+            // Tracked in https://github.com/oxidecomputer/omicron/issues/3742.
+            self.unassign_producer(instance_id).await?;
         }
 
         // Write the new instance and VMM states back to CRDB. This needs to be
diff --git a/nexus/src/app/oximeter.rs b/nexus/src/app/oximeter.rs
index bc947cf4bc..03f833b087 100644
--- a/nexus/src/app/oximeter.rs
+++ b/nexus/src/app/oximeter.rs
@@ -187,6 +187,58 @@ impl super::Nexus {
         Ok(())
     }
 
+    /// Idempotently un-assign a producer from an oximeter collector.
+    pub(crate) async fn unassign_producer(
+        &self,
+        id: &Uuid,
+    ) -> Result<(), Error> {
+        if let Some(collector_id) =
+            self.db_datastore.producer_endpoint_delete(id).await?
+        {
+            debug!(
+                self.log,
+                "deleted metric producer assignment";
+                "producer_id" => %id,
+                "collector_id" => %collector_id,
+            );
+            let oximeter_info =
+                self.db_datastore.oximeter_lookup(&collector_id).await?;
+            let address =
+                SocketAddr::new(oximeter_info.ip.ip(), *oximeter_info.port);
+            let client = self.build_oximeter_client(&id, address);
+            if let Err(e) = client.producer_delete(&id).await {
+                error!(
+                    self.log,
+                    "failed to delete producer from collector";
+                    "producer_id" => %id,
+                    "collector_id" => %collector_id,
+                    "address" => %address,
+                    "error" => ?e,
+                );
+                return Err(Error::internal_error(
+                    format!("failed to delete producer from collector: {e:?}")
+                        .as_str(),
+                ));
+            } else {
+                debug!(
+                    self.log,
+                    "successfully deleted producer from collector";
+                    "producer_id" => %id,
+                    "collector_id" => %collector_id,
+                    "address" => %address,
+                );
+                Ok(())
+            }
+        } else {
+            trace!(
+                self.log,
+                "un-assigned non-existent metric producer";
+                "producer_id" => %id,
+            );
+            Ok(())
+        }
+    }
+
     /// Returns a results from the timeseries DB based on the provided query
     /// parameters.
     ///