diff --git a/homeassistant/auth/__init__.py b/homeassistant/auth/__init__.py
index 23fdb775a8a..12511a7f4a5 100644
--- a/homeassistant/auth/__init__.py
+++ b/homeassistant/auth/__init__.py
@@ -20,6 +20,7 @@ from .mfa_modules import MultiFactorAuthModule, auth_mfa_module_from_config
 from .providers import AuthProvider, LoginFlow, auth_provider_from_config
 
 EVENT_USER_ADDED = "user_added"
+EVENT_USER_UPDATED = "user_updated"
 EVENT_USER_REMOVED = "user_removed"
 
 _MfaModuleDict = dict[str, MultiFactorAuthModule]
@@ -338,6 +339,8 @@ class AuthManager:
             else:
                 await self.async_deactivate_user(user)
 
+        self.hass.bus.async_fire(EVENT_USER_UPDATED, {"user_id": user.id})
+
     async def async_activate_user(self, user: models.User) -> None:
         """Activate a user."""
         await self._store.async_activate_user(user)
diff --git a/tests/auth/test_init.py b/tests/auth/test_init.py
index 53c2a4261ae..22d720da587 100644
--- a/tests/auth/test_init.py
+++ b/tests/auth/test_init.py
@@ -8,6 +8,7 @@ import voluptuous as vol
 
 from homeassistant import auth, data_entry_flow
 from homeassistant.auth import (
+    EVENT_USER_UPDATED,
     InvalidAuthError,
     auth_store,
     const as auth_const,
@@ -1097,3 +1098,20 @@ async def test_rename_does_not_change_refresh_token(mock_hass):
     token_after = list(user.refresh_tokens.values())[0]
 
     assert token_before == token_after
+
+
+async def test_event_user_updated_fires(hass):
+    """Test the user updated event fires."""
+    manager = await auth.auth_manager_from_config(hass, [], [])
+    user = MockUser().add_to_auth_manager(manager)
+    await manager.async_create_refresh_token(user, CLIENT_ID)
+
+    assert len(list(user.refresh_tokens.values())) == 1
+
+    events = async_capture_events(hass, EVENT_USER_UPDATED)
+
+    await manager.async_update_user(user, name="new name")
+    assert user.name == "new name"
+
+    await hass.async_block_till_done()
+    assert len(events) == 1