diff --git a/homeassistant/components/version/binary_sensor.py b/homeassistant/components/version/binary_sensor.py
new file mode 100644
index 00000000000..0e60b1b856c
--- /dev/null
+++ b/homeassistant/components/version/binary_sensor.py
@@ -0,0 +1,61 @@
+"""Binary sensor platform for Version."""
+from __future__ import annotations
+
+from awesomeversion import AwesomeVersion
+
+from homeassistant.components.binary_sensor import (
+    BinarySensorDeviceClass,
+    BinarySensorEntity,
+    BinarySensorEntityDescription,
+)
+from homeassistant.config_entries import ConfigEntry
+from homeassistant.const import CONF_NAME, __version__ as HA_VERSION
+from homeassistant.core import HomeAssistant
+from homeassistant.helpers.entity import EntityCategory
+from homeassistant.helpers.entity_platform import AddEntitiesCallback
+
+from .const import CONF_SOURCE, DEFAULT_NAME, DOMAIN
+from .coordinator import VersionDataUpdateCoordinator
+from .entity import VersionEntity
+
+HA_VERSION_OBJECT = AwesomeVersion(HA_VERSION)
+
+
+async def async_setup_entry(
+    hass: HomeAssistant,
+    config_entry: ConfigEntry,
+    async_add_entities: AddEntitiesCallback,
+) -> None:
+    """Set up version binary_sensors."""
+    coordinator: VersionDataUpdateCoordinator = hass.data[DOMAIN][config_entry.entry_id]
+    if (source := config_entry.data[CONF_SOURCE]) == "local":
+        return
+
+    if (entity_name := config_entry.data[CONF_NAME]) == DEFAULT_NAME:
+        entity_name = config_entry.title
+
+    entities: list[VersionBinarySensor] = [
+        VersionBinarySensor(
+            coordinator=coordinator,
+            entity_description=BinarySensorEntityDescription(
+                key=str(source),
+                name=f"{entity_name} Update Available",
+                device_class=BinarySensorDeviceClass.UPDATE,
+                entity_category=EntityCategory.DIAGNOSTIC,
+            ),
+        )
+    ]
+
+    async_add_entities(entities)
+
+
+class VersionBinarySensor(VersionEntity, BinarySensorEntity):
+    """Binary sensor for version entities."""
+
+    entity_description: BinarySensorEntityDescription
+
+    @property
+    def is_on(self) -> bool:
+        """Return true if the binary sensor is on."""
+        version = self.coordinator.version
+        return version is not None and (version > HA_VERSION_OBJECT)
diff --git a/homeassistant/components/version/const.py b/homeassistant/components/version/const.py
index 8f1005961e8..9ee556c6b7f 100644
--- a/homeassistant/components/version/const.py
+++ b/homeassistant/components/version/const.py
@@ -11,7 +11,7 @@ from homeassistant.const import CONF_NAME, Platform
 
 DOMAIN: Final = "version"
 LOGGER: Final[Logger] = getLogger(__package__)
-PLATFORMS: Final[list[Platform]] = [Platform.SENSOR]
+PLATFORMS: Final[list[Platform]] = [Platform.BINARY_SENSOR, Platform.SENSOR]
 UPDATE_COORDINATOR_UPDATE_INTERVAL: Final[timedelta] = timedelta(minutes=5)
 
 ENTRY_TYPE_SERVICE: Final = "service"
diff --git a/homeassistant/components/version/entity.py b/homeassistant/components/version/entity.py
new file mode 100644
index 00000000000..1dcdc23fa9f
--- /dev/null
+++ b/homeassistant/components/version/entity.py
@@ -0,0 +1,33 @@
+"""Common entity class for Version integration."""
+
+from homeassistant.helpers.device_registry import DeviceEntryType
+from homeassistant.helpers.entity import DeviceInfo, EntityDescription
+from homeassistant.helpers.update_coordinator import CoordinatorEntity
+
+from .const import DOMAIN, HOME_ASSISTANT
+from .coordinator import VersionDataUpdateCoordinator
+
+
+class VersionEntity(CoordinatorEntity):
+    """Common entity class for Version integration."""
+
+    _attr_device_info = DeviceInfo(
+        name=f"{HOME_ASSISTANT} {DOMAIN.title()}",
+        identifiers={(HOME_ASSISTANT, DOMAIN)},
+        manufacturer=HOME_ASSISTANT,
+        entry_type=DeviceEntryType.SERVICE,
+    )
+
+    coordinator: VersionDataUpdateCoordinator
+
+    def __init__(
+        self,
+        coordinator: VersionDataUpdateCoordinator,
+        entity_description: EntityDescription,
+    ) -> None:
+        """Initialize version entities."""
+        super().__init__(coordinator)
+        self.entity_description = entity_description
+        self._attr_unique_id = (
+            f"{coordinator.config_entry.entry_id}_{entity_description.key}"
+        )
diff --git a/homeassistant/components/version/sensor.py b/homeassistant/components/version/sensor.py
index 8b09d893afd..f0583a19068 100644
--- a/homeassistant/components/version/sensor.py
+++ b/homeassistant/components/version/sensor.py
@@ -15,11 +15,8 @@ from homeassistant.config_entries import SOURCE_IMPORT, ConfigEntry
 from homeassistant.const import CONF_NAME
 from homeassistant.core import HomeAssistant
 import homeassistant.helpers.config_validation as cv
-from homeassistant.helpers.device_registry import DeviceEntryType
-from homeassistant.helpers.entity import DeviceInfo
 from homeassistant.helpers.entity_platform import AddEntitiesCallback
 from homeassistant.helpers.typing import ConfigType, DiscoveryInfoType, StateType
-from homeassistant.helpers.update_coordinator import CoordinatorEntity
 
 from .const import (
     ATTR_SOURCE,
@@ -31,12 +28,12 @@ from .const import (
     DEFAULT_NAME,
     DEFAULT_SOURCE,
     DOMAIN,
-    HOME_ASSISTANT,
     LOGGER,
     VALID_IMAGES,
     VALID_SOURCES,
 )
 from .coordinator import VersionDataUpdateCoordinator
+from .entity import VersionEntity
 
 PLATFORM_SCHEMA: Final[Schema] = SENSOR_PLATFORM_SCHEMA.extend(
     {
@@ -91,30 +88,10 @@ async def async_setup_entry(
     async_add_entities(version_sensor_entities)
 
 
-class VersionSensorEntity(CoordinatorEntity, SensorEntity):
+class VersionSensorEntity(VersionEntity, SensorEntity):
     """Version sensor entity class."""
 
     _attr_icon = "mdi:package-up"
-    _attr_device_info = DeviceInfo(
-        name=f"{HOME_ASSISTANT} {DOMAIN.title()}",
-        identifiers={(HOME_ASSISTANT, DOMAIN)},
-        manufacturer=HOME_ASSISTANT,
-        entry_type=DeviceEntryType.SERVICE,
-    )
-
-    coordinator: VersionDataUpdateCoordinator
-
-    def __init__(
-        self,
-        coordinator: VersionDataUpdateCoordinator,
-        entity_description: SensorEntityDescription,
-    ) -> None:
-        """Initialize version sensor entities."""
-        super().__init__(coordinator)
-        self.entity_description = entity_description
-        self._attr_unique_id = (
-            f"{coordinator.config_entry.entry_id}_{entity_description.key}"
-        )
 
     @property
     def native_value(self) -> StateType:
diff --git a/tests/components/version/common.py b/tests/components/version/common.py
index 17d72d6de72..b210a8600b8 100644
--- a/tests/components/version/common.py
+++ b/tests/components/version/common.py
@@ -52,9 +52,17 @@ async def mock_get_version_update(
         await hass.async_block_till_done()
 
 
-async def setup_version_integration(hass: HomeAssistant) -> MockConfigEntry:
+async def setup_version_integration(
+    hass: HomeAssistant,
+    entry_data: dict[str, Any] | None = None,
+) -> MockConfigEntry:
     """Set up the Version integration."""
-    mock_entry = MockConfigEntry(**MOCK_VERSION_CONFIG_ENTRY_DATA)
+    mock_entry = MockConfigEntry(
+        **{
+            **MOCK_VERSION_CONFIG_ENTRY_DATA,
+            "data": entry_data or MOCK_VERSION_CONFIG_ENTRY_DATA["data"],
+        }
+    )
     mock_entry.add_to_hass(hass)
 
     with patch(
@@ -65,7 +73,6 @@ async def setup_version_integration(hass: HomeAssistant) -> MockConfigEntry:
         assert await hass.config_entries.async_setup(mock_entry.entry_id)
         await hass.async_block_till_done()
 
-    assert hass.states.get("sensor.local_installation").state == MOCK_VERSION
     assert mock_entry.state == config_entries.ConfigEntryState.LOADED
 
     return mock_entry
diff --git a/tests/components/version/test_binary_sensor.py b/tests/components/version/test_binary_sensor.py
new file mode 100644
index 00000000000..c9551ad4415
--- /dev/null
+++ b/tests/components/version/test_binary_sensor.py
@@ -0,0 +1,23 @@
+"""The test for the version binary sensor platform."""
+from __future__ import annotations
+
+from homeassistant.components.version.const import DEFAULT_CONFIGURATION
+from homeassistant.core import HomeAssistant
+
+from .common import setup_version_integration
+
+
+async def test_version_binary_sensor_local_source(hass: HomeAssistant):
+    """Test the Version binary sensor with local source."""
+    await setup_version_integration(hass)
+
+    state = hass.states.get("binary_sensor.local_installation_update_available")
+    assert not state
+
+
+async def test_version_binary_sensor(hass: HomeAssistant):
+    """Test the Version binary sensor."""
+    await setup_version_integration(hass, {**DEFAULT_CONFIGURATION, "source": "pypi"})
+
+    state = hass.states.get("binary_sensor.local_installation_update_available")
+    assert state