diff --git a/homeassistant/config_entries.py b/homeassistant/config_entries.py
index 206c3d9ed6c..3ae3830a8d7 100644
--- a/homeassistant/config_entries.py
+++ b/homeassistant/config_entries.py
@@ -728,6 +728,17 @@ class ConfigEntry(Generic[_DataT]):
     ) -> None:
         """Set up while holding the setup lock."""
         async with self.setup_lock:
+            if self.state is ConfigEntryState.LOADED:
+                # If something loaded the config entry while
+                # we were waiting for the lock, we should not
+                # set it up again.
+                _LOGGER.debug(
+                    "Not setting up %s (%s %s) again, already loaded",
+                    self.title,
+                    self.domain,
+                    self.entry_id,
+                )
+                return
             await self.async_setup(hass, integration=integration)
 
     @callback
diff --git a/tests/test_config_entries.py b/tests/test_config_entries.py
index 51cd11ed5f7..cdce963004a 100644
--- a/tests/test_config_entries.py
+++ b/tests/test_config_entries.py
@@ -90,6 +90,89 @@ async def manager(hass: HomeAssistant) -> config_entries.ConfigEntries:
     return manager
 
 
+async def test_setup_race_only_setup_once(hass: HomeAssistant) -> None:
+    """Test ensure that config entries are only setup once."""
+    attempts = 0
+    slow_config_entry_setup_future = hass.loop.create_future()
+    fast_config_entry_setup_future = hass.loop.create_future()
+    slow_setup_future = hass.loop.create_future()
+
+    async def async_setup(hass, config):
+        """Mock setup."""
+        await slow_setup_future
+        return True
+
+    async def async_setup_entry(hass, entry):
+        """Mock setup entry."""
+        slow = entry.data["slow"]
+        if slow:
+            await slow_config_entry_setup_future
+            return True
+        nonlocal attempts
+        attempts += 1
+        if attempts == 1:
+            raise ConfigEntryNotReady
+        await fast_config_entry_setup_future
+        return True
+
+    async def async_unload_entry(hass, entry):
+        """Mock unload entry."""
+        return True
+
+    mock_integration(
+        hass,
+        MockModule(
+            "comp",
+            async_setup=async_setup,
+            async_setup_entry=async_setup_entry,
+            async_unload_entry=async_unload_entry,
+        ),
+    )
+    mock_platform(hass, "comp.config_flow", None)
+
+    entry = MockConfigEntry(domain="comp", data={"slow": False})
+    entry.add_to_hass(hass)
+
+    entry2 = MockConfigEntry(domain="comp", data={"slow": True})
+    entry2.add_to_hass(hass)
+    await entry2.setup_lock.acquire()
+
+    async def _async_reload_entry(entry: MockConfigEntry):
+        async with entry.setup_lock:
+            await entry.async_unload(hass)
+            await entry.async_setup(hass)
+
+    hass.async_create_task(_async_reload_entry(entry2))
+
+    setup_task = hass.async_create_task(async_setup_component(hass, "comp", {}))
+    entry2.setup_lock.release()
+
+    assert entry.state is config_entries.ConfigEntryState.NOT_LOADED
+    assert entry2.state is config_entries.ConfigEntryState.NOT_LOADED
+
+    assert "comp" not in hass.config.components
+    slow_setup_future.set_result(None)
+    await asyncio.sleep(0)
+    assert "comp" in hass.config.components
+
+    assert entry.state is config_entries.ConfigEntryState.SETUP_RETRY
+    assert entry2.state is config_entries.ConfigEntryState.SETUP_IN_PROGRESS
+
+    fast_config_entry_setup_future.set_result(None)
+    # Make sure setup retry is started
+    async_fire_time_changed(hass, dt_util.utcnow() + timedelta(seconds=5))
+    slow_config_entry_setup_future.set_result(None)
+    await hass.async_block_till_done()
+
+    assert entry.state is config_entries.ConfigEntryState.LOADED
+    await hass.async_block_till_done()
+
+    assert attempts == 2
+    await hass.async_block_till_done()
+    assert setup_task.done()
+    assert entry2.state is config_entries.ConfigEntryState.LOADED
+
+
 async def test_call_setup_entry(hass: HomeAssistant) -> None:
     """Test we call <component>.setup_entry."""
     entry = MockConfigEntry(domain="comp")