diff --git a/homeassistant/components/gpsd/__init__.py b/homeassistant/components/gpsd/__init__.py
index a0e3db2e404..0550148d2a7 100644
--- a/homeassistant/components/gpsd/__init__.py
+++ b/homeassistant/components/gpsd/__init__.py
@@ -2,19 +2,45 @@
 
 from __future__ import annotations
 
+from gps3.agps3threaded import AGPS3mechanism
+
 from homeassistant.config_entries import ConfigEntry
-from homeassistant.const import Platform
+from homeassistant.const import CONF_HOST, CONF_PORT, Platform
 from homeassistant.core import HomeAssistant
 
 PLATFORMS: list[Platform] = [Platform.SENSOR]
 
+type GPSDConfigEntry = ConfigEntry[AGPS3mechanism]
 
-async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+
+async def async_setup_entry(hass: HomeAssistant, entry: GPSDConfigEntry) -> bool:
     """Set up GPSD from a config entry."""
+    agps_thread = AGPS3mechanism()
+    entry.runtime_data = agps_thread
+
+    def setup_agps() -> None:
+        host = entry.data.get(CONF_HOST)
+        port = entry.data.get(CONF_PORT)
+        agps_thread.stream_data(host, port)
+        agps_thread.run_thread()
+
+    await hass.async_add_executor_job(setup_agps)
+
     await hass.config_entries.async_forward_entry_setups(entry, PLATFORMS)
+
     return True
 
 
-async def async_unload_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+async def async_unload_entry(hass: HomeAssistant, entry: GPSDConfigEntry) -> bool:
     """Unload a config entry."""
-    return await hass.config_entries.async_unload_platforms(entry, PLATFORMS)
+    if unload_ok := await hass.config_entries.async_unload_platforms(entry, PLATFORMS):
+        agps_thread = entry.runtime_data
+        await hass.async_add_executor_job(
+            lambda: agps_thread.stream_data(
+                host=entry.data.get(CONF_HOST),
+                port=entry.data.get(CONF_PORT),
+                enable=False,
+            )
+        )
+
+    return unload_ok
diff --git a/homeassistant/components/gpsd/config_flow.py b/homeassistant/components/gpsd/config_flow.py
index 10fb8a3a252..59c95d0ddbf 100644
--- a/homeassistant/components/gpsd/config_flow.py
+++ b/homeassistant/components/gpsd/config_flow.py
@@ -27,6 +27,18 @@ class GPSDConfigFlow(ConfigFlow, domain=DOMAIN):
 
     VERSION = 1
 
+    @staticmethod
+    def test_connection(host: str, port: int) -> bool:
+        """Test socket connection."""
+        try:
+            with socket.socket(socket.AF_INET, socket.SOCK_STREAM) as sock:
+                sock.connect((host, port))
+                sock.shutdown(2)
+        except OSError:
+            return False
+        else:
+            return True
+
     async def async_step_import(self, import_data: dict[str, Any]) -> ConfigFlowResult:
         """Import a config entry from configuration.yaml."""
         return await self.async_step_user(import_data)
@@ -38,11 +50,11 @@ class GPSDConfigFlow(ConfigFlow, domain=DOMAIN):
         if user_input is not None:
             self._async_abort_entries_match(user_input)
 
-            sock = socket.socket(socket.AF_INET, socket.SOCK_STREAM)
-            try:
-                sock.connect((user_input[CONF_HOST], user_input[CONF_PORT]))
-                sock.shutdown(2)
-            except OSError:
+            connected = await self.hass.async_add_executor_job(
+                self.test_connection, user_input[CONF_HOST], user_input[CONF_PORT]
+            )
+
+            if not connected:
                 return self.async_abort(reason="cannot_connect")
 
             port = ""
diff --git a/homeassistant/components/gpsd/sensor.py b/homeassistant/components/gpsd/sensor.py
index 5a978f9f66e..e67287ae134 100644
--- a/homeassistant/components/gpsd/sensor.py
+++ b/homeassistant/components/gpsd/sensor.py
@@ -20,7 +20,7 @@ from homeassistant.components.sensor import (
     SensorEntity,
     SensorEntityDescription,
 )
-from homeassistant.config_entries import SOURCE_IMPORT, ConfigEntry
+from homeassistant.config_entries import SOURCE_IMPORT
 from homeassistant.const import (
     ATTR_LATITUDE,
     ATTR_LONGITUDE,
@@ -37,6 +37,7 @@ from homeassistant.helpers.entity_platform import AddEntitiesCallback
 from homeassistant.helpers.issue_registry import IssueSeverity, async_create_issue
 from homeassistant.helpers.typing import ConfigType, DiscoveryInfoType
 
+from . import GPSDConfigEntry
 from .const import DOMAIN
 
 _LOGGER = logging.getLogger(__name__)
@@ -81,15 +82,14 @@ PLATFORM_SCHEMA = SENSOR_PLATFORM_SCHEMA.extend(
 
 async def async_setup_entry(
     hass: HomeAssistant,
-    config_entry: ConfigEntry,
+    config_entry: GPSDConfigEntry,
     async_add_entities: AddEntitiesCallback,
 ) -> None:
     """Set up the GPSD component."""
     async_add_entities(
         [
             GpsdSensor(
-                config_entry.data[CONF_HOST],
-                config_entry.data[CONF_PORT],
+                config_entry.runtime_data,
                 config_entry.entry_id,
                 description,
             )
@@ -135,8 +135,7 @@ class GpsdSensor(SensorEntity):
 
     def __init__(
         self,
-        host: str,
-        port: int,
+        agps_thread: AGPS3mechanism,
         unique_id: str,
         description: GpsdSensorDescription,
     ) -> None:
@@ -148,9 +147,7 @@ class GpsdSensor(SensorEntity):
         )
         self._attr_unique_id = f"{unique_id}-{self.entity_description.key}"
 
-        self.agps_thread = AGPS3mechanism()
-        self.agps_thread.stream_data(host=host, port=port)
-        self.agps_thread.run_thread()
+        self.agps_thread = agps_thread
 
     @property
     def native_value(self) -> str | None:
diff --git a/tests/components/gpsd/test_config_flow.py b/tests/components/gpsd/test_config_flow.py
index 6f330571076..2d68a704119 100644
--- a/tests/components/gpsd/test_config_flow.py
+++ b/tests/components/gpsd/test_config_flow.py
@@ -43,10 +43,7 @@ async def test_form(hass: HomeAssistant, mock_setup_entry: AsyncMock) -> None:
 
 async def test_connection_error(hass: HomeAssistant) -> None:
     """Test connection to host error."""
-    with patch("socket.socket") as mock_socket:
-        mock_connect = mock_socket.return_value.connect
-        mock_connect.side_effect = OSError
-
+    with patch("socket.socket", side_effect=OSError):
         result = await hass.config_entries.flow.async_init(
             DOMAIN,
             context={"source": config_entries.SOURCE_USER},