diff --git a/doc/api/index.rst b/doc/api/index.rst
index 25de6d44adf..e376e4172ae 100644
--- a/doc/api/index.rst
+++ b/doc/api/index.rst
@@ -47,6 +47,7 @@ Plotting tabular data
     Figure.contour
     Figure.histogram
     Figure.meca
+    Figure.clip
     Figure.plot
     Figure.plot3d
     Figure.rose
diff --git a/pygmt/figure.py b/pygmt/figure.py
index 5c5d4734ce6..8af1b4f2404 100644
--- a/pygmt/figure.py
+++ b/pygmt/figure.py
@@ -411,6 +411,7 @@ def _repr_html_(self) -> str:
 
     from pygmt.src import (  # type: ignore[misc]
         basemap,
+        clip,
         coast,
         colorbar,
         contour,
diff --git a/pygmt/src/__init__.py b/pygmt/src/__init__.py
index 8905124f917..0389d4dfe5e 100644
--- a/pygmt/src/__init__.py
+++ b/pygmt/src/__init__.py
@@ -5,6 +5,7 @@
 from pygmt.src.basemap import basemap
 from pygmt.src.binstats import binstats
 from pygmt.src.blockm import blockmean, blockmedian, blockmode
+from pygmt.src.clip import clip
 from pygmt.src.coast import coast
 from pygmt.src.colorbar import colorbar
 from pygmt.src.config import config
diff --git a/pygmt/src/clip.py b/pygmt/src/clip.py
new file mode 100644
index 00000000000..3ff2b1ff720
--- /dev/null
+++ b/pygmt/src/clip.py
@@ -0,0 +1,107 @@
+"""
+clip - Create a polygonal clip path.
+"""
+
+import contextlib
+
+from pygmt.clib import Session
+from pygmt.helpers import build_arg_list, fmt_docstring, kwargs_to_strings, use_alias
+
+
+@fmt_docstring
+@contextlib.contextmanager
+@use_alias(
+    A="straight_line",
+    B="frame",
+    J="projection",
+    N="invert",
+    R="region",
+    W="pen",
+    V="verbose",
+)
+@kwargs_to_strings(R="sequence")
+def clip(self, data=None, x=None, y=None, **kwargs):
+    r"""
+    Create a polygonal clip path.
+
+    This function sets a clip path for the figure. The clip path is applied
+    to plotting functions that are called within the context manager.
+
+    Full option list at :gmt-docs:`clip.html`
+
+    {aliases}
+
+    Parameters
+    ----------
+    data : str or {table-like}
+        Pass in either a file name to an ASCII data table, a 2D {table-classes}.
+    x/y : 1d arrays
+        The x and y coordinates of the clip path.
+    {frame}
+    {projection}
+    {region}
+    straight_line
+        By default, line segments are drawn as straight lines in the Cartesian and polar
+        coordinate systems, and as great circle arcs (by resampling coarse input data
+        along such arcs) in the geographic coordinate system. The ``straight_line``
+        parameter can control the drawing of line segments. Valid values are:
+
+        - ``True``: Draw line segments as straight lines in geographic coordinate
+          systems.
+        - ``"x"``: Draw line segments by first along *x*, then along *y*.
+        - ``"y"``: Draw line segments by first along *y*, then along *x*.
+
+        Here, *x* and *y* have different meanings depending on the coordinate system:
+
+        - **Cartesian** coordinate system: *x* and *y* are the X- and Y-axes.
+        - **Polar** coordinate system: *x* and *y* are theta and radius.
+        - **Geographic** coordinate system: *x* and *y* are parallels and meridians.
+
+        .. attention::
+
+            There exits a bug in GMT<=6.5.0 that, in geographic coordinate systems, the
+            meaning of *x* and *y* is reversed, i.e., *x* means meridians and *y* means
+            parallels. The bug is fixed by upstream
+            `PR #8648 <https://github.com/GenericMappingTools/gmt/pull/8648>`__.
+    invert : bool
+        Invert the sense of what is inside and outside. For example, when using a single
+        path, ``invert=True`` means only plot points outside that path will be shown.
+        Cannot be used together with ``frame``.
+    {verbose}
+    pen : str
+        Draw outline of clip path using given pen attributes before clipping is
+        initiated [Default is no outline].
+
+    Examples
+    --------
+    >>> import pygmt
+    >>>
+    >>> # Create x,y data for the clip path
+    >>> x = [-60, 60, 60, -60]
+    >>> y = [-30, -30, 30, 30]
+    >>>
+    >>> # Load the 1 degree global earth relief
+    >>> grid = pygmt.datasets.load_earth_relief()
+    >>>
+    >>> # Create a figure and draw the map frame
+    >>> fig = pygmt.Figure()
+    >>> fig.basemap(region="d", projection="W15c", frame=True)
+    >>>
+    >>> # Use a "with" statement to initialize the clip context manager
+    >>> with fig.clip(x=x, y=y):
+    ...     # Map elements under the "with" statement are clipped
+    ...     fig.grdimage(grid=grid)
+    >>> fig.show()  # doctest: +SKIP
+    <IPython.core.display.Image object>
+    """
+    kwargs = self._preprocess(**kwargs)  # pylint: disable=protected-access
+    with Session() as lib:
+        try:
+            with lib.virtualfile_in(check_kind="vector", data=data, x=x, y=y) as vintbl:
+                lib.call_module(
+                    module="clip", args=build_arg_list(kwargs, infile=vintbl)
+                )
+            yield
+        finally:
+            # End the top most clipping path
+            lib.call_module(module="clip", args="-C1")
diff --git a/pygmt/tests/baseline/test_clip.png.dvc b/pygmt/tests/baseline/test_clip.png.dvc
new file mode 100644
index 00000000000..be6e9a34749
--- /dev/null
+++ b/pygmt/tests/baseline/test_clip.png.dvc
@@ -0,0 +1,4 @@
+outs:
+- md5: 449fec4d58132742abb615931e6e240a
+  size: 7968
+  path: test_clip.png
diff --git a/pygmt/tests/test_clip.py b/pygmt/tests/test_clip.py
new file mode 100644
index 00000000000..d79cc112d1d
--- /dev/null
+++ b/pygmt/tests/test_clip.py
@@ -0,0 +1,80 @@
+"""
+Tests for fig.clip.
+"""
+
+import numpy as np
+import pandas as pd
+import pytest
+import xarray as xr
+from pygmt import Figure
+from pygmt.helpers.testing import load_static_earth_relief
+
+
+@pytest.fixture(scope="module", name="grid")
+def fixture_grid():
+    """
+    Load the grid data from the static_earth_relief file.
+    """
+    return load_static_earth_relief()
+
+
+@pytest.fixture(scope="module", name="dataframe")
+def fixture_dataframe():
+    """
+    Load the table data from the sample bathymetry dataset.
+    """
+    return pd.DataFrame(data={"x": [-52, -50, -50, -52], "y": [-20, -20, -16, -16]})
+
+
+@pytest.fixture(scope="module", name="region")
+def fixture_region():
+    """
+    Load the table data from the sample bathymetry dataset.
+    """
+    return [-55, -47, -24, -10]
+
+
+@pytest.fixture(scope="module", name="projection")
+def fixture_projection():
+    """
+    Load the table data from the sample bathymetry dataset.
+    """
+    return "M4c"
+
+
+@pytest.mark.mpl_image_compare(filename="test_clip.png")
+def test_clip_xy(grid, dataframe, region, projection):
+    """
+    Test clip with x,y input.
+    """
+    fig = Figure()
+    fig.basemap(region=region, frame=True, projection=projection)
+    with fig.clip(x=dataframe["x"], y=dataframe["y"]):
+        fig.grdimage(grid=grid)
+    return fig
+
+
+@pytest.mark.parametrize("array_func", [np.array, xr.Dataset])
+@pytest.mark.mpl_image_compare(filename="test_clip.png")
+def test_clip_matrix(array_func, dataframe, grid, region, projection):
+    """
+    Test clip with matrix input for the clip path.
+    """
+    table = array_func(dataframe)
+    fig = Figure()
+    fig.basemap(region=region, frame=True, projection=projection)
+    with fig.clip(data=table):
+        fig.grdimage(grid=grid, region=region)
+    return fig
+
+
+@pytest.mark.mpl_image_compare(filename="test_clip.png")
+def test_clip_dataframe(grid, dataframe, region, projection):
+    """
+    Test clip with dataframe input for the clip path.
+    """
+    fig = Figure()
+    fig.basemap(region=region, frame=True, projection=projection)
+    with fig.clip(data=dataframe):
+        fig.grdimage(grid=grid, region=region)
+    return fig