diff --git a/.coveragerc b/.coveragerc
index 47376833679..3c9a1c378a8 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -807,6 +807,7 @@ omit =
     homeassistant/components/nuki/sensor.py
     homeassistant/components/nx584/alarm_control_panel.py
     homeassistant/components/oasa_telematics/sensor.py
+    homeassistant/components/obihai/__init__.py
     homeassistant/components/obihai/connectivity.py
     homeassistant/components/obihai/sensor.py
     homeassistant/components/octoprint/__init__.py
diff --git a/homeassistant/components/obihai/config_flow.py b/homeassistant/components/obihai/config_flow.py
index dd2aa0db06d..2f8dd0075b8 100644
--- a/homeassistant/components/obihai/config_flow.py
+++ b/homeassistant/components/obihai/config_flow.py
@@ -7,6 +7,7 @@ import voluptuous as vol
 
 from homeassistant.config_entries import ConfigFlow
 from homeassistant.const import CONF_HOST, CONF_NAME, CONF_PASSWORD, CONF_USERNAME
+from homeassistant.core import HomeAssistant
 from homeassistant.data_entry_flow import FlowResult
 
 from .connectivity import validate_auth
@@ -27,6 +28,16 @@ DATA_SCHEMA = vol.Schema(
 )
 
 
+async def async_validate_creds(hass: HomeAssistant, user_input: dict[str, Any]) -> bool:
+    """Manage Obihai options."""
+    return await hass.async_add_executor_job(
+        validate_auth,
+        user_input[CONF_HOST],
+        user_input[CONF_USERNAME],
+        user_input[CONF_PASSWORD],
+    )
+
+
 class ObihaiFlowHandler(ConfigFlow, domain=DOMAIN):
     """Config flow for Obihai."""
 
@@ -40,12 +51,7 @@ class ObihaiFlowHandler(ConfigFlow, domain=DOMAIN):
 
         if user_input is not None:
             self._async_abort_entries_match({CONF_HOST: user_input[CONF_HOST]})
-            if await self.hass.async_add_executor_job(
-                validate_auth,
-                user_input[CONF_HOST],
-                user_input[CONF_USERNAME],
-                user_input[CONF_PASSWORD],
-            ):
+            if await async_validate_creds(self.hass, user_input):
                 return self.async_create_entry(
                     title=user_input[CONF_HOST],
                     data=user_input,
@@ -63,11 +69,14 @@ class ObihaiFlowHandler(ConfigFlow, domain=DOMAIN):
     async def async_step_import(self, config: dict[str, Any]) -> FlowResult:
         """Handle a flow initialized by importing a config."""
         self._async_abort_entries_match({CONF_HOST: config[CONF_HOST]})
-        return self.async_create_entry(
-            title=config.get(CONF_NAME, config[CONF_HOST]),
-            data={
-                CONF_HOST: config[CONF_HOST],
-                CONF_PASSWORD: config[CONF_PASSWORD],
-                CONF_USERNAME: config[CONF_USERNAME],
-            },
-        )
+        if await async_validate_creds(self.hass, config):
+            return self.async_create_entry(
+                title=config.get(CONF_NAME, config[CONF_HOST]),
+                data={
+                    CONF_HOST: config[CONF_HOST],
+                    CONF_PASSWORD: config[CONF_PASSWORD],
+                    CONF_USERNAME: config[CONF_USERNAME],
+                },
+            )
+
+        return self.async_abort(reason="cannot_connect")
diff --git a/homeassistant/components/obihai/sensor.py b/homeassistant/components/obihai/sensor.py
index 4f7b6195e4e..7524fbc7d47 100644
--- a/homeassistant/components/obihai/sensor.py
+++ b/homeassistant/components/obihai/sensor.py
@@ -46,7 +46,7 @@ async def async_setup_platform(
         "manual_migration",
         breaks_in_ha_version="2023.6.0",
         is_fixable=False,
-        severity=ir.IssueSeverity.ERROR,
+        severity=ir.IssueSeverity.WARNING,
         translation_key="manual_migration",
     )
 
diff --git a/homeassistant/components/obihai/strings.json b/homeassistant/components/obihai/strings.json
index 053343b4501..fb673675ad7 100644
--- a/homeassistant/components/obihai/strings.json
+++ b/homeassistant/components/obihai/strings.json
@@ -18,7 +18,7 @@
   },
   "issues": {
     "manual_migration": {
-      "title": "Manual migration required for Obihai",
+      "title": "Obihai YAML configuration is being removed",
       "description": "Configuration of the Obihai platform in YAML is deprecated and will be removed in Home Assistant 2023.6; Your existing configuration has been imported into the UI automatically and can be safely removed from your configuration.yaml file."
     }
   }
diff --git a/tests/components/obihai/test_config_flow.py b/tests/components/obihai/test_config_flow.py
index 07d00f15775..234f1d59967 100644
--- a/tests/components/obihai/test_config_flow.py
+++ b/tests/components/obihai/test_config_flow.py
@@ -10,6 +10,8 @@ from homeassistant.data_entry_flow import FlowResultType
 
 from . import USER_INPUT
 
+VALIDATE_AUTH_PATCH = "homeassistant.components.obihai.config_flow.validate_auth"
+
 pytestmark = pytest.mark.usefixtures("mock_setup_entry")
 
 
@@ -43,9 +45,7 @@ async def test_auth_failure(hass: HomeAssistant) -> None:
         DOMAIN, context={"source": config_entries.SOURCE_USER}
     )
 
-    with patch(
-        "homeassistant.components.obihai.config_flow.validate_auth", return_value=False
-    ):
+    with patch(VALIDATE_AUTH_PATCH, return_value=False):
         result = await hass.config_entries.flow.async_configure(
             result["flow_id"],
             USER_INPUT,
@@ -59,9 +59,7 @@ async def test_auth_failure(hass: HomeAssistant) -> None:
 
 async def test_yaml_import(hass: HomeAssistant) -> None:
     """Test we get the YAML imported."""
-    with patch(
-        "homeassistant.components.obihai.config_flow.validate_auth", return_value=True
-    ):
+    with patch(VALIDATE_AUTH_PATCH, return_value=True):
         result = await hass.config_entries.flow.async_init(
             DOMAIN,
             context={"source": config_entries.SOURCE_IMPORT},
@@ -71,3 +69,18 @@ async def test_yaml_import(hass: HomeAssistant) -> None:
 
     assert result["type"] == FlowResultType.CREATE_ENTRY
     assert "errors" not in result
+
+
+async def test_yaml_import_fail(hass: HomeAssistant) -> None:
+    """Test the YAML import fails."""
+    with patch(VALIDATE_AUTH_PATCH, return_value=False):
+        result = await hass.config_entries.flow.async_init(
+            DOMAIN,
+            context={"source": config_entries.SOURCE_IMPORT},
+            data=USER_INPUT,
+        )
+        await hass.async_block_till_done()
+
+    assert result["type"] == FlowResultType.ABORT
+    assert result["reason"] == "cannot_connect"
+    assert "errors" not in result