diff --git a/e2e/functionalities/peer-dependency-component.e2e.ts b/e2e/functionalities/peer-dependency-component.e2e.ts
index d8585f3d7d1a..badf45cf2e04 100644
--- a/e2e/functionalities/peer-dependency-component.e2e.ts
+++ b/e2e/functionalities/peer-dependency-component.e2e.ts
@@ -100,6 +100,19 @@ describe('set-peer', function () {
         });
       });
     });
+    describe('unset-peer', () => {
+      before(() => {
+        helper.command.unsetPeer('comp2');
+        helper.command.snapAllComponents();
+        helper.command.build();
+      });
+      it('should remove the always peer fields from the scope data', () => {
+        const comp = helper.command.catComponent(`comp2@latest`);
+        const depResolver = comp.extensions.find(({ name }) => name === 'teambit.dependencies/dependency-resolver');
+        expect(depResolver.config.peer).to.eq(undefined);
+        expect(depResolver.config.defaultPeerRange).to.eq(undefined);
+      });
+    });
   });
 });
 
diff --git a/scopes/dependencies/dependencies/dependencies-cmd.ts b/scopes/dependencies/dependencies/dependencies-cmd.ts
index a94a20b73aa2..007b740e6294 100644
--- a/scopes/dependencies/dependencies/dependencies-cmd.ts
+++ b/scopes/dependencies/dependencies/dependencies-cmd.ts
@@ -343,3 +343,19 @@ export class SetPeerCmd implements Command {
     return `${chalk.green('successfully marked the component as a peer component')}`;
   }
 }
+
+export class UnsetPeerCmd implements Command {
+  name = 'unset-peer <component-id>';
+  arguments = [{ name: 'component-id', description: 'the component to unset as always peer' }];
+  group = 'info';
+  description = 'unset a component as always peer';
+  alias = '';
+  options = [];
+
+  constructor(private deps: DependenciesMain) {}
+
+  async report([componentId]: [string]) {
+    await this.deps.unsetPeer(componentId);
+    return `${chalk.green('successfully marked the component as not a peer component')}`;
+  }
+}
diff --git a/scopes/dependencies/dependencies/dependencies.main.runtime.ts b/scopes/dependencies/dependencies/dependencies.main.runtime.ts
index 917e202536b3..78eb33c50c11 100644
--- a/scopes/dependencies/dependencies/dependencies.main.runtime.ts
+++ b/scopes/dependencies/dependencies/dependencies.main.runtime.ts
@@ -32,6 +32,7 @@ import {
   RemoveDependenciesFlags,
   SetDependenciesFlags,
   SetPeerCmd,
+  UnsetPeerCmd,
   WhyCmd,
 } from './dependencies-cmd';
 import { DependenciesAspect } from './dependencies.aspect';
@@ -77,6 +78,23 @@ export class DependenciesMain {
     await this.workspace.bitMap.write(`set-peer (${componentId})`);
   }
 
+  async unsetPeer(componentId: string): Promise<void> {
+    const compId = await this.workspace.resolveComponentId(componentId);
+    // const config = { peer: true, defaultPeerRange: range };
+    const config = await this.workspace.getAspectConfigForComponent(compId, DependencyResolverAspect.id);
+    if (config) {
+      if ('peer' in config) {
+        delete config.peer;
+      }
+      if ('defaultPeerRange' in config) {
+        delete config.defaultPeerRange;
+      }
+    }
+    this.workspace.bitMap.addComponentConfig(compId, DependencyResolverAspect.id, config);
+
+    await this.workspace.bitMap.write(`unset-peer (${componentId})`);
+  }
+
   async setDependency(
     componentPattern: string,
     packages: string[],
@@ -392,9 +410,7 @@ export class DependenciesMain {
       new DependenciesBlameCmd(depsMain),
       new DependenciesUsageCmd(depsMain),
     ];
-    const whyCmd = new WhyCmd(depsMain);
-    const setPeerCmd = new SetPeerCmd(depsMain);
-    cli.register(depsCmd, whyCmd, setPeerCmd);
+    cli.register(depsCmd, new WhyCmd(depsMain), new SetPeerCmd(depsMain), new UnsetPeerCmd(depsMain));
 
     ComponentLoader.loadDeps = depsMain.loadDependencies.bind(depsMain);
 
diff --git a/scopes/workspace/workspace/workspace.ts b/scopes/workspace/workspace/workspace.ts
index 08f73d2e4de1..e959388db984 100644
--- a/scopes/workspace/workspace/workspace.ts
+++ b/scopes/workspace/workspace/workspace.ts
@@ -953,6 +953,12 @@ it's possible that the version ${component.id.version} belong to ${idStr.split('
     return EjectConfResult;
   }
 
+  async getAspectConfigForComponent(id: ComponentID, aspectId: string): Promise<object | undefined> {
+    const extensions = await this.getExtensionsFromScopeAndSpecific(id);
+    const obj = extensions.toConfigObject();
+    return obj[aspectId];
+  }
+
   async getExtensionsFromScopeAndSpecific(id: ComponentID, excludeComponentJson = false): Promise<ExtensionDataList> {
     const componentFromScope = await this.scope.get(id);
     const exclude: ExtensionsOrigin[] = ['WorkspaceVariants'];
@@ -1469,9 +1475,8 @@ the following envs are used in this workspace: ${availableEnvs.join(', ')}`);
       await componentConfigFile.write({ override: true });
     } else {
       if (shouldMergeWithPrevious) {
-        const extensions = await this.getExtensionsFromScopeAndSpecific(id);
-        const obj = extensions.toConfigObject();
-        config = obj[aspectId] ? merge(obj[aspectId], config) : config;
+        const existingConfig = await this.getAspectConfigForComponent(id, aspectId);
+        config = existingConfig ? merge(existingConfig, config) : config;
       }
       this.bitMap.addComponentConfig(id, aspectId, config, shouldMergeWithExisting);
     }
diff --git a/src/e2e-helper/e2e-command-helper.ts b/src/e2e-helper/e2e-command-helper.ts
index 279b18d2c95a..25e58dec9fcb 100644
--- a/src/e2e-helper/e2e-command-helper.ts
+++ b/src/e2e-helper/e2e-command-helper.ts
@@ -345,6 +345,9 @@ export default class CommandHelper {
   setPeer(componentId: string, range = '') {
     return this.runCmd(`bit set-peer ${componentId} ${range}`);
   }
+  unsetPeer(componentId: string) {
+    return this.runCmd(`bit unset-peer ${componentId}`);
+  }
   tagComponent(id: string, tagMsg = 'tag-message', options = '') {
     return this.runCmd(`bit tag ${id} -m ${tagMsg} ${options} --build`);
   }