diff --git a/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooCarrierPackagesSelectionView.swift b/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooCarrierPackagesSelectionView.swift
index 45aeb410cd4..e9ff751f1a3 100644
--- a/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooCarrierPackagesSelectionView.swift	
+++ b/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooCarrierPackagesSelectionView.swift	
@@ -36,7 +36,7 @@ struct WooCarrierPackagesView: View {
                 Section {
                     ForEach(packageGroup.packages, id: \.id) { package in
                         PackageOptionView(
-                            isSelected: selectedPackageId == package.id, // Check if this package is selected
+                            isSelected: selectedPackageId == package.id,
                             package: package,
                             showTopDivider: false,
                             showType: false,
diff --git a/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooSavedPackagesSelectionView.swift b/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooSavedPackagesSelectionView.swift
index 5dd56867b1e..08635087a91 100644
--- a/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooSavedPackagesSelectionView.swift	
+++ b/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooSavedPackagesSelectionView.swift	
@@ -31,41 +31,61 @@ struct WooSavedPackagesSelectionView: View {
         VStack(spacing: 0) {
             Divider()
             List {
-                ForEach(viewModel.packages, id: \.id) { package in
-                    PackageOptionView(
-                        isSelected: viewModel.selectedPackageId == package.id, // Check if this package is selected
-                        package: package,
-                        showTopDivider: false,
-                        showType: true,
-                        tapAction: {
-                            viewModel.selectedPackageId = viewModel.selectedPackageId == package.id ? nil : package.id
-                        }
-                    )
-                    .alignmentGuide(.listRowSeparatorLeading) { _ in
-                        return 16
-                    }
-                    .swipeActions {
-                        Button {
-                            // remove package
-                        } label: {
-                            Image(systemName: "trash")
-                        }
-                        .tint(Color.withColorStudio(name: .red, shade: .shade50))
-                    }
-                }
-                .listRowInsets(.zero)
+                packagesSection(for: viewModel.customPackages)
+                packagesSection(for: viewModel.predefinedPackages)
             }
             .listStyle(.plain)
             Divider()
             Button(WooShippingAddPackageView.Localization.addPackage) {
                 addPackageButtonTapped()
             }
-            .disabled(viewModel.selectedPackageId == nil || viewModel.packages.isEmpty)
+            .disabled(viewModel.selectedPackageId == nil || !viewModel.hasPackages)
             .buttonStyle(PrimaryButtonStyle())
             .padding()
         }
     }
 
+    @ViewBuilder
+    private func packagesSection(for packages: [any WooPackageDataRepresentable]) -> some View {
+        if packages.isEmpty {
+            EmptyView()
+        }
+        else {
+            Section {
+                packagesRows(for: packages)
+            }
+            .listRowInsets(.zero)
+        }
+    }
+
+    private func packagesRows(for packages: [any WooPackageDataRepresentable]) -> some View {
+        ForEach(packages, id: \.id) { package in
+            PackageOptionView(
+                isSelected: viewModel.selectedPackageId == package.id,
+                package: package,
+                showTopDivider: false,
+                showType: true,
+                tapAction: {
+                    viewModel.selectedPackageId = viewModel.selectedPackageId == package.id ? nil : package.id
+                }
+            )
+            .alignmentGuide(.listRowSeparatorLeading) { _ in
+                return 16
+            }
+            .swipeActions {
+                Button {
+                    withAnimation {
+                        viewModel.removePackage(package)
+                    }
+                } label: {
+                    Image(systemName: "trash")
+                }
+                .tint(Color.withColorStudio(name: .red, shade: .shade50))
+            }
+        }
+        .listRowInsets(.zero)
+    }
+
     private func addPackageButtonTapped() {
         // call addPackageAction with data from selected package
         guard let selectedPackage = viewModel.selectedPackage else { return }
diff --git a/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooSavedPackagesSelectionViewModel.swift b/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooSavedPackagesSelectionViewModel.swift
index e6fb8a1bb19..0fe82f78eb5 100644
--- a/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooSavedPackagesSelectionViewModel.swift	
+++ b/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooSavedPackagesSelectionViewModel.swift	
@@ -1,16 +1,25 @@
 import Foundation
 
 final class WooSavedPackagesSelectionViewModel: ObservableObject {
-    let packages: [any WooPackageDataRepresentable]
+    @Published var customPackages: [any WooPackageDataRepresentable]
+    @Published var predefinedPackages: [any WooPackageDataRepresentable]
     @Published var selectedPackageId: UUID? = nil  // Track the selected package index
 
-    init(packages: [any WooPackageDataRepresentable]) {
-        self.packages = packages
+    init(customPackages: [any WooPackageDataRepresentable],
+         predefinedPackages: [any WooPackageDataRepresentable]) {
+        self.customPackages = customPackages
+        self.predefinedPackages = predefinedPackages
+    }
+
+    var hasPackages: Bool {
+        return customPackages.isNotEmpty || predefinedPackages.isNotEmpty
     }
 
     var selectedPackage: WooPackageDataRepresentable? {
         guard let selectedPackageId else { return nil }
 
+        let packages = customPackages + predefinedPackages
+
         for packageItem in packages {
             if selectedPackageId == packageItem.id {
                 return packageItem
@@ -19,4 +28,13 @@ final class WooSavedPackagesSelectionViewModel: ObservableObject {
 
         return nil
     }
+
+    func removePackage(_ packageToRemove: WooPackageDataRepresentable) {
+        customPackages.removeAll { package in package.id == packageToRemove.id }
+        predefinedPackages.removeAll { package in package.id == packageToRemove.id }
+
+        if selectedPackageId == packageToRemove.id {
+            selectedPackageId = nil
+        }
+    }
 }
diff --git a/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooShippingAddPackageView.swift b/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooShippingAddPackageView.swift
index 947f33b9ca8..eb306f2d347 100644
--- a/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooShippingAddPackageView.swift	
+++ b/WooCommerce/Classes/ViewRelated/Orders/Order Details/Shipping Labels/WooShipping Create Shipping Labels/WooShipping Package and Rate Selection/WooShippingAddPackageView.swift	
@@ -108,37 +108,38 @@ struct WooShippingAddPackageView: View {
         }
     }
 
+    private let savedPackagesViewModel = WooSavedPackagesSelectionViewModel(customPackages: [
+        WooSavedPackageData(name: "Small Flat Rate Box",
+                            type: "Custom package",
+                            packageType: "box",
+                            dimensions: "21.92 × 13.67 × 4.14 cm",
+                            weight: "5 kg"),
+        WooSavedPackageData(name: "Small Flat Rate Box",
+                            type: "Custom package",
+                            packageType: "box",
+                            dimensions: "21.92 × 13.67 × 4.14 cm",
+                            weight: "5 kg"),
+        WooSavedPackageData(name: "Small Flat Rate Box",
+                            type: "Custom package",
+                            packageType: "box",
+                            dimensions: "21.92 × 13.67 × 4.14 cm",
+                            weight: "5 kg"),
+    ], predefinedPackages: [
+        WooSavedPackageData(name: "Small Flat Rate Box",
+                            type: "DHL Express",
+                            packageType: "box",
+                            dimensions: "21.92 × 13.67 × 4.14 cm",
+                            weight: "5 kg"),
+        WooSavedPackageData(name: "Small Flat Rate Box",
+                            type: "USPS Priority Mail Flat Rate Boxes",
+                            packageType: "box",
+                            dimensions: "21.92 × 13.67 × 4.14 cm",
+                            weight: "5 kg"),
+    ])
+
     @ViewBuilder
     private var savedPackageView: some View {
-        // TODO: dummy data for UI creation
-        let packages: [WooSavedPackageData] = [
-            WooSavedPackageData(name: "Small Flat Rate Box",
-                                type: "Custom package",
-                                packageType: "box",
-                                dimensions: "21.92 × 13.67 × 4.14 cm",
-                                weight: "5 kg"),
-            WooSavedPackageData(name: "Small Flat Rate Box",
-                                type: "DHL Express",
-                                packageType: "box",
-                                dimensions: "21.92 × 13.67 × 4.14 cm",
-                                weight: "5 kg"),
-            WooSavedPackageData(name: "Small Flat Rate Box",
-                                type: "Custom package",
-                                packageType: "box",
-                                dimensions: "21.92 × 13.67 × 4.14 cm",
-                                weight: "5 kg"),
-            WooSavedPackageData(name: "Small Flat Rate Box",
-                                type: "USPS Priority Mail Flat Rate Boxes",
-                                packageType: "box",
-                                dimensions: "21.92 × 13.67 × 4.14 cm",
-                                weight: "5 kg"),
-            WooSavedPackageData(name: "Small Flat Rate Box",
-                                type: "Custom package",
-                                packageType: "box",
-                                dimensions: "21.92 × 13.67 × 4.14 cm",
-                                weight: "5 kg"),
-        ]
-        WooSavedPackagesSelectionView(viewModel: WooSavedPackagesSelectionViewModel(packages: packages)) { packageData in
+        WooSavedPackagesSelectionView(viewModel: savedPackagesViewModel) { packageData in
             addPackageAction(packageData)
         }
     }
diff --git a/WooCommerce/WooCommerceTests/ViewRelated/Shipping Label/WooShipping Create Shipping Labels/WooSavedPackagesSelectionViewModelTests.swift b/WooCommerce/WooCommerceTests/ViewRelated/Shipping Label/WooShipping Create Shipping Labels/WooSavedPackagesSelectionViewModelTests.swift
index 8aa81aa2e77..d814a275ce0 100644
--- a/WooCommerce/WooCommerceTests/ViewRelated/Shipping Label/WooShipping Create Shipping Labels/WooSavedPackagesSelectionViewModelTests.swift	
+++ b/WooCommerce/WooCommerceTests/ViewRelated/Shipping Label/WooShipping Create Shipping Labels/WooSavedPackagesSelectionViewModelTests.swift	
@@ -5,37 +5,89 @@ import Yosemite
 final class WooSavedPackagesSelectionViewModelTests: XCTestCase {
     func test_it_inits_packages() {
         // Given/When
-        let packages: [WooSavedPackageData] = testingPackages()
-        let viewModel = WooSavedPackagesSelectionViewModel(packages: packages)
+        let viewModel = WooSavedPackagesSelectionViewModel(customPackages: testingCustomPackages(),
+                                                           predefinedPackages: testingPredefinedPackages())
 
         // Then
-        XCTAssertEqual(viewModel.packages.count, 2)
+        XCTAssertEqual(viewModel.customPackages.count, 2)
+        XCTAssertEqual(viewModel.predefinedPackages.count, 1)
         XCTAssertNil(viewModel.selectedPackageId)
         XCTAssertNil(viewModel.selectedPackage)
     }
 
     func test_it_selects_package() {
         // Given
-        let packages: [WooSavedPackageData] = testingPackages()
-        let viewModel = WooSavedPackagesSelectionViewModel(packages: packages)
+        let customPackages = testingCustomPackages()
+        let viewModel = WooSavedPackagesSelectionViewModel(customPackages: customPackages,
+                                                           predefinedPackages: testingPredefinedPackages())
 
         // When
-        viewModel.selectedPackageId = packages.first?.id
+        viewModel.selectedPackageId = customPackages.first?.id
 
         // Then
         XCTAssertNotNil(viewModel.selectedPackageId)
         XCTAssertNotNil(viewModel.selectedPackage)
     }
+
+    func test_it_removes_package() {
+        // Given
+        let customPackages = testingCustomPackages()
+        let customPackagesCount = customPackages.count
+        let viewModel = WooSavedPackagesSelectionViewModel(customPackages: customPackages,
+                                                           predefinedPackages: testingPredefinedPackages())
+
+        // When
+        if let package = customPackages.first {
+            viewModel.removePackage(package)
+        }
+
+        // Then
+        XCTAssertEqual(viewModel.customPackages.count, customPackagesCount - 1)
+    }
+
+    func test_it_removes_selected_package() {
+        // Given
+        let customPackages = testingCustomPackages()
+        let customPackagesCount = customPackages.count
+        let viewModel = WooSavedPackagesSelectionViewModel(customPackages: customPackages,
+                                                           predefinedPackages: testingPredefinedPackages())
+
+        // When
+        viewModel.selectedPackageId = customPackages.first?.id
+
+        // Then
+        XCTAssertNotNil(viewModel.selectedPackageId)
+        XCTAssertNotNil(viewModel.selectedPackage)
+
+        // When
+        if let package = customPackages.first {
+            viewModel.removePackage(package)
+        }
+
+        // Then
+        XCTAssertEqual(viewModel.customPackages.count, customPackagesCount - 1)
+        XCTAssertNil(viewModel.selectedPackageId)
+        XCTAssertNil(viewModel.selectedPackage)
+    }
 }
 
 extension WooSavedPackagesSelectionViewModelTests {
-    func testingPackages() -> [WooSavedPackageData] {
+    func testingCustomPackages() -> [WooSavedPackageData] {
         return [
             WooSavedPackageData(name: "Small Flat Rate Box",
                                 type: "Custom package",
                                 packageType: "box",
                                 dimensions: "21.92 × 13.67 × 4.14 cm",
                                 weight: "5 kg"),
+            WooSavedPackageData(name: "Small Flat Rate Box",
+                                type: "Custom package",
+                                packageType: "box",
+                                dimensions: "21.92 × 13.67 × 4.14 cm",
+                                weight: "5 kg")
+        ]
+    }
+    func testingPredefinedPackages() -> [WooSavedPackageData] {
+        return [
             WooSavedPackageData(name: "Small Flat Rate Box",
                                 type: "DHL Express",
                                 packageType: "box",