diff --git a/homeassistant/components/playstation_network/coordinator.py b/homeassistant/components/playstation_network/coordinator.py
index 2581a016feb..69cc95d1d49 100644
--- a/homeassistant/components/playstation_network/coordinator.py
+++ b/homeassistant/components/playstation_network/coordinator.py
@@ -7,13 +7,13 @@ import logging
 
 from psnawp_api.core.psnawp_exceptions import (
     PSNAWPAuthenticationError,
+    PSNAWPClientError,
     PSNAWPServerError,
 )
-from psnawp_api.models.user import User
 
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.core import HomeAssistant
-from homeassistant.exceptions import ConfigEntryAuthFailed
+from homeassistant.exceptions import ConfigEntryAuthFailed, ConfigEntryNotReady
 from homeassistant.helpers.update_coordinator import DataUpdateCoordinator, UpdateFailed
 
 from .const import DOMAIN
@@ -28,7 +28,6 @@ class PlaystationNetworkCoordinator(DataUpdateCoordinator[PlaystationNetworkData
     """Data update coordinator for PSN."""
 
     config_entry: PlaystationNetworkConfigEntry
-    user: User
 
     def __init__(
         self,
@@ -51,12 +50,17 @@ class PlaystationNetworkCoordinator(DataUpdateCoordinator[PlaystationNetworkData
         """Set up the coordinator."""
 
         try:
-            self.user = await self.psn.get_user()
+            await self.psn.get_user()
         except PSNAWPAuthenticationError as error:
             raise ConfigEntryAuthFailed(
                 translation_domain=DOMAIN,
                 translation_key="not_ready",
             ) from error
+        except (PSNAWPServerError, PSNAWPClientError) as error:
+            raise ConfigEntryNotReady(
+                translation_domain=DOMAIN,
+                translation_key="update_failed",
+            ) from error
 
     async def _async_update_data(self) -> PlaystationNetworkData:
         """Get the latest data from the PSN."""
@@ -67,7 +71,7 @@ class PlaystationNetworkCoordinator(DataUpdateCoordinator[PlaystationNetworkData
                 translation_domain=DOMAIN,
                 translation_key="not_ready",
             ) from error
-        except PSNAWPServerError as error:
+        except (PSNAWPServerError, PSNAWPClientError) as error:
             raise UpdateFailed(
                 translation_domain=DOMAIN,
                 translation_key="update_failed",
diff --git a/tests/components/playstation_network/test_init.py b/tests/components/playstation_network/test_init.py
new file mode 100644
index 00000000000..09fbe4b0de4
--- /dev/null
+++ b/tests/components/playstation_network/test_init.py
@@ -0,0 +1,109 @@
+"""Tests for PlayStation Network."""
+
+from unittest.mock import MagicMock
+
+from psnawp_api.core import (
+    PSNAWPAuthenticationError,
+    PSNAWPClientError,
+    PSNAWPNotFoundError,
+    PSNAWPServerError,
+)
+import pytest
+
+from homeassistant.components.playstation_network.const import DOMAIN
+from homeassistant.config_entries import SOURCE_REAUTH, ConfigEntryState
+from homeassistant.core import HomeAssistant
+
+from tests.common import MockConfigEntry
+
+
+@pytest.mark.parametrize(
+    "exception", [PSNAWPNotFoundError, PSNAWPServerError, PSNAWPClientError]
+)
+async def test_config_entry_not_ready(
+    hass: HomeAssistant,
+    config_entry: MockConfigEntry,
+    mock_psnawpapi: MagicMock,
+    exception: Exception,
+) -> None:
+    """Test config entry not ready."""
+
+    mock_psnawpapi.user.side_effect = exception
+    config_entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert config_entry.state is ConfigEntryState.SETUP_RETRY
+
+
+async def test_config_entry_auth_failed(
+    hass: HomeAssistant,
+    config_entry: MockConfigEntry,
+    mock_psnawpapi: MagicMock,
+) -> None:
+    """Test config entry auth failed setup error."""
+
+    mock_psnawpapi.user.side_effect = PSNAWPAuthenticationError
+    config_entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert config_entry.state is ConfigEntryState.SETUP_ERROR
+
+    flows = hass.config_entries.flow.async_progress()
+    assert len(flows) == 1
+
+    flow = flows[0]
+    assert flow.get("step_id") == "reauth_confirm"
+    assert flow.get("handler") == DOMAIN
+
+    assert "context" in flow
+    assert flow["context"].get("source") == SOURCE_REAUTH
+    assert flow["context"].get("entry_id") == config_entry.entry_id
+
+
+@pytest.mark.parametrize(
+    "exception", [PSNAWPNotFoundError, PSNAWPServerError, PSNAWPClientError]
+)
+async def test_coordinator_update_data_failed(
+    hass: HomeAssistant,
+    config_entry: MockConfigEntry,
+    mock_psnawpapi: MagicMock,
+    exception: Exception,
+) -> None:
+    """Test coordinator data update failed."""
+
+    mock_psnawpapi.user.return_value.get_presence.side_effect = exception
+    config_entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert config_entry.state is ConfigEntryState.SETUP_RETRY
+
+
+async def test_coordinator_update_auth_failed(
+    hass: HomeAssistant,
+    config_entry: MockConfigEntry,
+    mock_psnawpapi: MagicMock,
+) -> None:
+    """Test coordinator update auth failed setup error."""
+
+    mock_psnawpapi.user.return_value.get_presence.side_effect = (
+        PSNAWPAuthenticationError
+    )
+    config_entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert config_entry.state is ConfigEntryState.SETUP_ERROR
+
+    flows = hass.config_entries.flow.async_progress()
+    assert len(flows) == 1
+
+    flow = flows[0]
+    assert flow.get("step_id") == "reauth_confirm"
+    assert flow.get("handler") == DOMAIN
+
+    assert "context" in flow
+    assert flow["context"].get("source") == SOURCE_REAUTH
+    assert flow["context"].get("entry_id") == config_entry.entry_id