diff --git a/homeassistant/components/proximity/config_flow.py b/homeassistant/components/proximity/config_flow.py
index 231a50c6c00..f3306bebf39 100644
--- a/homeassistant/components/proximity/config_flow.py
+++ b/homeassistant/components/proximity/config_flow.py
@@ -18,6 +18,7 @@ from homeassistant.helpers.selector import (
     NumberSelector,
     NumberSelectorConfig,
 )
+from homeassistant.util import slugify
 
 from .const import (
     CONF_IGNORED_ZONES,
@@ -89,11 +90,19 @@ class ProximityConfigFlow(ConfigFlow, domain=DOMAIN):
         if user_input is not None:
             self._async_abort_entries_match(user_input)
 
-            zone = self.hass.states.get(user_input[CONF_ZONE])
+            title = cast(State, self.hass.states.get(user_input[CONF_ZONE])).name
 
-            return self.async_create_entry(
-                title=cast(State, zone).name, data=user_input
-            )
+            slugified_existing_entry_titles = [
+                slugify(e.title) for e in self._async_current_entries()
+            ]
+
+            possible_title = title
+            tries = 1
+            while slugify(possible_title) in slugified_existing_entry_titles:
+                tries += 1
+                possible_title = f"{title} {tries}"
+
+            return self.async_create_entry(title=possible_title, data=user_input)
 
         return self.async_show_form(
             step_id="user",
diff --git a/tests/components/proximity/test_config_flow.py b/tests/components/proximity/test_config_flow.py
index 92b924be1ce..3c94e941227 100644
--- a/tests/components/proximity/test_config_flow.py
+++ b/tests/components/proximity/test_config_flow.py
@@ -185,3 +185,67 @@ async def test_abort_duplicated_entry(hass: HomeAssistant) -> None:
         assert result["reason"] == "already_configured"
 
         await hass.async_block_till_done()
+
+
+async def test_avoid_duplicated_title(hass: HomeAssistant) -> None:
+    """Test if we avoid duplicate titles."""
+    MockConfigEntry(
+        domain=DOMAIN,
+        title="home",
+        data={
+            CONF_ZONE: "zone.home",
+            CONF_TRACKED_ENTITIES: ["device_tracker.test1"],
+            CONF_IGNORED_ZONES: ["zone.work"],
+            CONF_TOLERANCE: 10,
+        },
+        unique_id=f"{DOMAIN}_home",
+    ).add_to_hass(hass)
+
+    MockConfigEntry(
+        domain=DOMAIN,
+        title="home 3",
+        data={
+            CONF_ZONE: "zone.home",
+            CONF_TRACKED_ENTITIES: ["device_tracker.test2"],
+            CONF_IGNORED_ZONES: ["zone.work"],
+            CONF_TOLERANCE: 10,
+        },
+        unique_id=f"{DOMAIN}_home",
+    ).add_to_hass(hass)
+
+    with patch(
+        "homeassistant.components.proximity.async_setup_entry", return_value=True
+    ):
+        result = await hass.config_entries.flow.async_init(
+            DOMAIN, context={"source": SOURCE_USER}
+        )
+        result = await hass.config_entries.flow.async_configure(
+            result["flow_id"],
+            user_input={
+                CONF_ZONE: "zone.home",
+                CONF_TRACKED_ENTITIES: ["device_tracker.test3"],
+                CONF_IGNORED_ZONES: [],
+                CONF_TOLERANCE: 10,
+            },
+        )
+        assert result["type"] == FlowResultType.CREATE_ENTRY
+        assert result["title"] == "home 2"
+
+        await hass.async_block_till_done()
+
+        result = await hass.config_entries.flow.async_init(
+            DOMAIN, context={"source": SOURCE_USER}
+        )
+        result = await hass.config_entries.flow.async_configure(
+            result["flow_id"],
+            user_input={
+                CONF_ZONE: "zone.home",
+                CONF_TRACKED_ENTITIES: ["device_tracker.test4"],
+                CONF_IGNORED_ZONES: [],
+                CONF_TOLERANCE: 10,
+            },
+        )
+        assert result["type"] == FlowResultType.CREATE_ENTRY
+        assert result["title"] == "home 4"
+
+        await hass.async_block_till_done()