diff --git a/docs/_sidebar.md b/docs/_sidebar.md
index 881d0981..6fa78533 100644
--- a/docs/_sidebar.md
+++ b/docs/_sidebar.md
@@ -11,6 +11,10 @@
   * [info](/docs/auth/info.md) 
   * [login](/docs/auth/login.md)
   * [logout](/docs/auth/logout.md)
+* [context](/docs/context/overview.md)
+  * [set](/docs/context/set.md)
+  * [clear](/docs/context/clear.md)
+  * [info](/docs/context/info.md)
 * [api](/docs/api.md)
 * [itwin](/docs/itwin/overview.md)
   * [create](/docs/itwin/create.md)
diff --git a/docs/context/clear.md b/docs/context/clear.md
new file mode 100644
index 00000000..e0c85467
--- /dev/null
+++ b/docs/context/clear.md
@@ -0,0 +1,10 @@
+# itp context clear
+
+Clear the cached context.
+
+## Examples
+
+```bash
+# Example 1: Clear the cached context
+itp context clear
+```
diff --git a/docs/context/info.md b/docs/context/info.md
new file mode 100644
index 00000000..866a73dc
--- /dev/null
+++ b/docs/context/info.md
@@ -0,0 +1,10 @@
+# itp context info
+
+Display the cached context.
+
+## Examples
+
+```bash
+# Example 1: Display the cached context
+itp context info
+```
diff --git a/docs/context/overview.md b/docs/context/overview.md
new file mode 100644
index 00000000..dadcf8f7
--- /dev/null
+++ b/docs/context/overview.md
@@ -0,0 +1,9 @@
+# itp context
+
+Work with iTwin CLI context.
+
+## Available Commands
+
+- [itp context set](set.md)
+- [itp context info](info.md)
+- [itp context clear](clear.md)
diff --git a/docs/context/set.md b/docs/context/set.md
new file mode 100644
index 00000000..8354ef05
--- /dev/null
+++ b/docs/context/set.md
@@ -0,0 +1,26 @@
+# itp context set
+
+Set a new cached context.
+
+## Options
+
+- **`-m, --imodel-id`**  
+  The ID of the iModel to create a context for.  
+  **Type:** `string` **Required:** No
+
+- **`-i, --itwin-id`**  
+  The ID of the iTwin to create a context for.  
+  **Type:** `string` **Required:** No
+
+## Examples
+
+```bash
+# Example 1: Set a new cached context using an iTwin ID
+itp context set --itwin-id 12345
+
+# Example 2: Set a new cached context using an iModel ID
+itp context set --imodel-id 67890
+
+# Example 3: Error when neither --itwin-id nor --imodel-id is provided
+itp context set
+```
diff --git a/integration-tests/context.ts/context.test.ts b/integration-tests/context.ts/context.test.ts
new file mode 100644
index 00000000..bc182185
--- /dev/null
+++ b/integration-tests/context.ts/context.test.ts
@@ -0,0 +1,118 @@
+import { IModel } from "@itwin/imodels-client-management";
+import { ITwin } from "@itwin/itwins-client";
+import { runCommand } from "@oclif/test";
+import { expect } from "chai";
+
+import { loginToCli } from "../utils/helpers";
+
+describe('Context Integration Tests', () => {
+    let iTwin: ITwin;
+    let iModel: IModel;
+    let anotherITwin: ITwin;
+    
+    before(async () => {
+      await loginToCli();
+      const name = `IntegrationTestITwin_${new Date().toISOString()}`;
+      const iTwinResult = await runCommand<ITwin>(`itwin create --name "${name}" --class Thing --sub-class Asset`);
+      expect(iTwinResult.error).to.be.undefined;
+      expect(iTwinResult.result).to.not.be.undefined;
+      iTwin = iTwinResult.result as ITwin;
+
+      const iModelName = `IntegrationTestIModel_${new Date().toISOString()}`;
+      const iModelResult = await runCommand(`imodel create --name "${iModelName}" --itwin-id ${iTwin.id}`);
+      expect(iModelResult.error).to.be.undefined;
+      expect(iModelResult.result).to.not.be.undefined;
+      iModel = iModelResult.result as IModel;
+
+      const anotherITwinName = `AnotherITwin_${new Date().toISOString()}`;
+      const anotherITwinResult = await runCommand<ITwin>(`itwin create --name "${anotherITwinName}" --class Thing --sub-class Asset`);
+      expect(anotherITwinResult.error).to.be.undefined;
+      expect(anotherITwinResult.result).to.not.be.undefined;
+      anotherITwin = anotherITwinResult.result as ITwin;
+    });
+
+    after(async () => {
+      await runCommand(`itwin delete --id ${iTwin.id}`);
+      await runCommand(`itwin delete --id ${anotherITwin.id}`);
+    });
+
+    beforeEach(async () => {
+        const output = await runCommand('context clear');
+        expect(output.error).to.be.undefined;
+    });
+  
+    it('should clear the context', async () => {
+        const output = await runCommand('context clear');
+        expect(output.error).to.be.undefined;
+        expect(output.stdout).to.contain('Context cleared.');
+
+        const outputInfo = await runCommand('context info');
+        expect(outputInfo.error).to.be.undefined;
+        expect(outputInfo.result).to.be.undefined;
+    });
+
+    it('should set the context', async () => {
+        const output = await runCommand(`context set --itwin-id ${iTwin.id} --imodel-id ${iModel.id}`);
+        expect(output.error).to.be.undefined;
+        expect(output.result).to.deep.equal({ iModelId: iModel.id, iTwinId: iTwin.id });
+    });
+
+    it('should fail to set context with invalid iTwin ID', async () => {
+        const invalidITwinId = "invalid-id";
+        const output = await runCommand(`context set --itwin-id ${invalidITwinId}`);
+        expect(output.error).to.not.be.undefined;
+        expect(output.error?.message).to.contain('Requested iTwin is not available.');
+    });
+
+    it('should fail to set context with mismatched iModel and iTwin IDs', async () => {
+        const output = await runCommand(`context set --itwin-id ${anotherITwin.id} --imodel-id ${iModel.id}`);
+        expect(output.error).to.not.be.undefined;
+        expect(output.error?.message).to.contain(`The iModel ID ${iModel.id} does not belong to the specified iTwin ID ${anotherITwin.id}.`);
+    });
+
+    it('should fail to set context without iTwin or iModel ID', async () => {
+        const output = await runCommand('context set');
+        expect(output.error).to.not.be.undefined;
+        expect(output.error?.message).to.contain('Either --itwin-id or --imodel-id must be provided.');
+    });
+
+    it('should display the current context', async () => {
+        await runCommand(`context set --itwin-id ${iTwin.id} --imodel-id ${iModel.id}`);
+        const output = await runCommand('context info');
+        expect(output.error).to.be.undefined;
+        expect(output.result).to.deep.equal({ iModelId: iModel.id, iTwinId: iTwin.id });
+    });
+
+    it('should display undefined context after clearing', async () => {
+        await runCommand('context clear');
+        const output = await runCommand('context info');
+        expect(output.error).to.be.undefined;
+        expect(output.result).to.be.undefined;
+    });
+
+    it('should clear context multiple times without error', async () => {
+        await runCommand('context clear');
+        const output = await runCommand('context clear');
+        expect(output.error).to.be.undefined;
+        expect(output.stdout).to.contain('Context cleared.');
+    });
+
+    it('should set the context with only an iTwin ID', async () => {
+        const output = await runCommand(`context set --itwin-id ${iTwin.id}`);
+        expect(output.error).to.be.undefined;
+        expect(output.result).to.deep.equal({ iModelId: undefined, iTwinId: iTwin.id });
+    });
+
+    it('should set the context with only an iModel ID and resolve the correct iTwin ID', async () => {
+        const output = await runCommand(`context set --imodel-id ${iModel.id}`);
+        expect(output.error).to.be.undefined;
+        expect(output.result).to.deep.equal({ iModelId: iModel.id, iTwinId: iTwin.id });
+    });
+
+    it('should fail to set context with only an iModel ID if the iModel does not exist', async () => {
+        const invalidIModelId = "invalid-id";
+        const output = await runCommand(`context set --imodel-id ${invalidIModelId}`);
+        expect(output.error).to.not.be.undefined;
+        expect(output.error?.message).to.contain('Requested iModel is not available.');
+    });
+});
\ No newline at end of file
diff --git a/integration-tests/formating/formatting.test.ts b/integration-tests/formating/formatting.test.ts
index 2ce2ad55..4f5ae93b 100644
--- a/integration-tests/formating/formatting.test.ts
+++ b/integration-tests/formating/formatting.test.ts
@@ -4,6 +4,11 @@ import { expect } from "chai";
 describe('Command formatting tests', async () => {
     let allCommands : CommandWithFlags[] = [];
 
+    const commandToExcludeFromTests = [
+        "help",
+        "plugins"
+    ];
+
     before(async () => {
         const config = await Config.load({
             devPlugins: false,
@@ -11,12 +16,13 @@ describe('Command formatting tests', async () => {
             userPlugins: false,
         });
 
-        allCommands = config.commands.filter(command => !command.id.startsWith("plugins") && !command.id.startsWith("help") && !command.hidden)
-                                     .map((command) => 
-                                     ({
-                                         cmd: command,
-                                         flags: Object.entries(command.flags),
-                                     }));
+        allCommands = config.commands.filter(command => 
+            !commandToExcludeFromTests.some(excluded => command.id.startsWith(excluded)) && !command.hidden
+        ).map((command) => 
+        ({
+            cmd: command,
+            flags: Object.entries(command.flags),
+        }));
     });
 
     it('Should ensure all commands have a description', async () => {
@@ -39,7 +45,8 @@ describe('Command formatting tests', async () => {
     });
 
     it('Should ensure all itwin-id flags have env properties', async () => {
-        for (const command of allCommands) {
+        // Exclude context:set command from this test as it has a special case for itwin-id flag
+        for (const command of allCommands.filter(cmd => cmd.cmd.id !== "context:set")) {
             const iTwinIdFlag = command.flags.find(([name, _]) => name === "itwin-id");
             if (iTwinIdFlag) {
                 expect(iTwinIdFlag[1].env, `Flag 'itwin-id' in command '${command.cmd.id}' is missing the 'env' property`).to.be.a('string').and.be.equals("ITP_ITWIN_ID");
@@ -48,7 +55,8 @@ describe('Command formatting tests', async () => {
     });
 
     it('Should ensure all imodel-id flags have env properties', async () => {
-        for (const command of allCommands) {
+        // Exclude context:set command from this test as it has a special case for imodel-id flag
+        for (const command of allCommands.filter(cmd => cmd.cmd.id !== "context:set")) {
             const iTwinIdFlag = command.flags.find(([name, _]) => name === "imodel-id");
             if (iTwinIdFlag) {
                 expect(iTwinIdFlag[1].env, `Flag 'imodel-id' in command '${command.cmd.id}' is missing the 'env' property`).to.be.a('string').and.be.equals("ITP_IMODEL_ID");
diff --git a/package-lock.json b/package-lock.json
index 2e42f5cf..78d013cd 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -14,7 +14,7 @@
         "@itwin/node-cli-authorization": "^2.0.3",
         "@itwin/object-storage-core": "^2.2.5",
         "@itwin/service-authorization": "^1.2.2",
-        "@oclif/core": "^4.2.8",
+        "@oclif/core": "^4.2.10",
         "@oclif/plugin-help": "^6",
         "@oclif/plugin-plugins": "^5",
         "@opentelemetry/api": "^1.9.0",
diff --git a/package.json b/package.json
index b433d7d5..0963c953 100644
--- a/package.json
+++ b/package.json
@@ -13,7 +13,7 @@
     "@itwin/node-cli-authorization": "^2.0.3",
     "@itwin/object-storage-core": "^2.2.5",
     "@itwin/service-authorization": "^1.2.2",
-    "@oclif/core": "^4.2.8",
+    "@oclif/core": "^4.2.10",
     "@oclif/plugin-help": "^6",
     "@oclif/plugin-plugins": "^5",
     "@opentelemetry/api": "^1.9.0",
diff --git a/src/commands/context/clear.ts b/src/commands/context/clear.ts
new file mode 100644
index 00000000..fe14ea9d
--- /dev/null
+++ b/src/commands/context/clear.ts
@@ -0,0 +1,17 @@
+import BaseCommand from "../../extensions/base-command.js";
+
+export default class ClearContext extends BaseCommand {
+    static description = "Clear the cached context.";
+
+    static examples = [
+        {            
+            command: `<%= config.bin %> <%= command.id %>`,
+            description: 'Example 1: Clear the cached context'
+        }
+    ];
+  
+    async run() {
+        this.clearContext();      
+        return this.logAndReturnResult({ result: "Context cleared." });
+    }
+}
\ No newline at end of file
diff --git a/src/commands/context/info.ts b/src/commands/context/info.ts
new file mode 100644
index 00000000..0f8abb81
--- /dev/null
+++ b/src/commands/context/info.ts
@@ -0,0 +1,17 @@
+import BaseCommand from "../../extensions/base-command.js";
+
+export default class InfoContext extends BaseCommand {
+    static description = "Display the cached context.";
+
+    static examples = [
+        {
+            command: `<%= config.bin %> <%= command.id %>`,
+            description: 'Example 1: Display the cached context'
+        }
+    ];
+
+    async run() {
+        const context = this.getContext();
+        return this.logAndReturnResult(context);
+    }
+}
\ No newline at end of file
diff --git a/src/commands/context/set.ts b/src/commands/context/set.ts
new file mode 100644
index 00000000..1740b8ba
--- /dev/null
+++ b/src/commands/context/set.ts
@@ -0,0 +1,59 @@
+import { IModel } from "@itwin/imodels-client-management";
+import { ITwin } from "@itwin/itwins-client";
+import { Flags } from "@oclif/core";
+
+import BaseCommand from "../../extensions/base-command.js";
+
+export default class SetContext extends BaseCommand {
+    static description = "Set a new cached context.";
+
+    static examples = [
+        {
+            command: `<%= config.bin %> <%= command.id %>`,
+            description: 'Example 1: Set a new cached context'
+        }
+    ];
+
+    static flags = {
+        "imodel-id": Flags.string({
+            char: 'm',
+            description: "The ID of the iModel to create a context for.",
+            helpValue: '<string>',
+            required: false
+        }),
+        "itwin-id": Flags.string({
+            char: 'i',
+            description: "The ID of the iTwin to create a context for.",
+            helpValue: '<string>',
+            required: false,
+        }),
+    };
+
+    async run() {
+        const { flags } = await this.parse(SetContext);
+        const iModelId = flags["imodel-id"];
+        let iTwinId = flags["itwin-id"];
+        
+        // If iModelId is provided, check if it exists
+        // and verify that it belongs to the specified iTwinId
+        if(iModelId) {
+            const iModel = await this.runCommand<IModel>("imodel:info", ["--imodel-id", iModelId]); 
+            if(iTwinId && iModel.iTwinId !== flags["itwin-id"]) {
+                this.error(`The iModel ID ${iModelId} does not belong to the specified iTwin ID ${iTwinId}.`);
+            }
+
+            iTwinId = iModel.iTwinId;
+        }
+        // If iTwinId is provided, check if it exists
+        else if (iTwinId) {
+            await this.runCommand<ITwin>("itwin:info", ["--itwin-id", iTwinId]);
+        }
+        // If neither iModelId nor iTwinId is provided, throw an error
+        else {
+            this.error("Either --itwin-id or --imodel-id must be provided.");
+        } 
+
+        const context = await this.setContext(iTwinId, iModelId);
+        return this.logAndReturnResult(context);
+    }
+}
\ No newline at end of file
diff --git a/src/extensions/base-command.ts b/src/extensions/base-command.ts
index 44d6405d..9898c928 100644
--- a/src/extensions/base-command.ts
+++ b/src/extensions/base-command.ts
@@ -6,15 +6,18 @@
 import { Authorization, AuthorizationCallback, IModelsClient } from '@itwin/imodels-client-management';
 import { ITwinsAccessClient } from '@itwin/itwins-client';
 import { Command, Flags } from '@oclif/core';
+import { Input, ParserOutput } from '@oclif/core/interfaces';
 import { Table } from 'console-table-printer';
 import 'dotenv/config';
 import * as fs from 'node:fs';
 import * as path from 'node:path';
 
+import { ArgOutput, FlagOutput } from '../../node_modules/@oclif/core/lib/interfaces/parser.js';
 import { AccessControlClient } from '../services/access-control-client/access-control-client.js';
 import { AccessControlMemberClient } from '../services/access-control-client/access-control-member-client.js';
 import { AuthorizationClient } from '../services/authorization-client/authorization-client.js';
 import { ChangedElementsApiClient } from '../services/changed-elements-client/changed-elements-api-client.js';
+import { UserContext } from '../services/general-models/user-context.js';
 import { ITwinPlatformApiClient } from '../services/iTwin-api-client.js';
 import { StorageApiClient } from '../services/storage-client/storage-api-client.js';
 import { SynchronizationApiClient } from '../services/synchronizationClient/synchronization-api-client.js';
@@ -45,6 +48,15 @@ export default abstract class BaseCommand extends Command {
 
   static enableJsonFlag = true;
 
+  protected async clearContext() {
+    const contextPath = this.config.cacheDir + '/context.json';
+    if (fs.existsSync(contextPath)) {
+      fs.rmSync(contextPath, { force: true });
+    }
+    
+    this.debug(`Cleared context file: ${contextPath}`);
+  }
+
   protected async getAccessControlApiClient() {
     const token = await this.getAccessToken();
     const url = this.getBaseApiUrl();
@@ -87,7 +99,6 @@ export default abstract class BaseCommand extends Command {
     return config?.apiUrl ?? 'https://api.bentley.com';
   }
 
-
   protected async getChangeElementApiClient() {
     return new ChangedElementsApiClient(await this.getITwinApiClient());
   }
@@ -127,6 +138,27 @@ export default abstract class BaseCommand extends Command {
     return config;
   }
 
+  protected getContext() : UserContext | undefined {
+    const contextPath = this.config.cacheDir + '/context.json';
+    if (!fs.existsSync(contextPath)) {
+      return;
+    }
+
+    try {
+      const contextFile = fs.readFileSync(contextPath, 'utf8');
+      const context = JSON.parse(contextFile) as UserContext;
+      
+      if(!context.iModelId && !context.iTwinId) {
+        return undefined;
+      }
+
+      return context;
+    }
+    catch (error) {
+      this.debug("Error parsing context file:", error);
+    }
+  }
+
   protected getIModelClient() : IModelsClient {
     const baseUrl = `${this.getBaseApiUrl()}/imodels`;
 
@@ -137,6 +169,12 @@ export default abstract class BaseCommand extends Command {
     });
   }
 
+  protected getIModelId() : string | undefined {
+    const context = this.getContext();
+
+    return context?.iModelId;
+  }
+
   protected getITwinAccessClient(): ITwinsAccessClient {
     const baseUrl = `${this.getBaseApiUrl()}/itwins`;
     return new ITwinsAccessClient(baseUrl);
@@ -148,6 +186,12 @@ export default abstract class BaseCommand extends Command {
     return new ITwinPlatformApiClient(this.getBaseApiUrl(), token);
   }
 
+  protected getITwinId() : string | undefined {
+    const context = this.getContext();
+
+    return context?.iTwinId;
+  }
+
   protected async getStorageApiClient() {
     return new StorageApiClient(await this.getITwinApiClient());
   }
@@ -193,8 +237,46 @@ export default abstract class BaseCommand extends Command {
       }
   }
 
+  protected override async parse<F extends FlagOutput, B extends FlagOutput, A extends ArgOutput>(
+    options?: Input<F, B, A>,
+    argv?: string[]
+  ): Promise<ParserOutput<F, B, A>> {
+    if(options?.flags) {
+      const context = this.getContext();
+      
+      if (options.flags['itwin-id'] && !this.argv.includes('--itwin-id') && !this.argv.includes('-i') && context?.iTwinId) {
+        this.argv.push('--itwin-id', context.iTwinId);
+      }
+      
+      if (options.flags['imodel-id'] && !this.argv.includes('--imodel-id') && !this.argv.includes('-m') && context?.iModelId) {
+        this.argv.push('--imodel-id', context.iModelId);
+      }
+    }
+    
+    const parsed = await super.parse(options, argv);
+    
+    return parsed;
+  }
+
   protected async runCommand<T>(command: string, args: string[]) : Promise<T> {
     const mergedArgs = [...args, '--silent'];
     return this.config.runCommand<T>(command, mergedArgs);
   }
+
+  protected async setContext(iTwinId: string, iModelId: string | undefined) {
+    const contextPath = this.config.cacheDir + '/context.json';
+    
+    const context: UserContext = {
+      iModelId,
+      iTwinId
+    };
+
+    if (!fs.existsSync(this.config.cacheDir)) {
+      fs.mkdirSync(this.config.cacheDir, { recursive: true });
+    }
+
+    fs.writeFileSync(contextPath, JSON.stringify(context, null, 2), 'utf8');
+
+    return context;
+  }
 }
\ No newline at end of file
diff --git a/src/services/general-models/user-context.ts b/src/services/general-models/user-context.ts
new file mode 100644
index 00000000..a4935aec
--- /dev/null
+++ b/src/services/general-models/user-context.ts
@@ -0,0 +1,4 @@
+export type UserContext = {
+    iModelId?: string;
+    iTwinId?: string;
+}
\ No newline at end of file