diff --git a/homeassistant/components/rest/binary_sensor.py b/homeassistant/components/rest/binary_sensor.py
index 9692f5b9339..a90c5bd7c77 100644
--- a/homeassistant/components/rest/binary_sensor.py
+++ b/homeassistant/components/rest/binary_sensor.py
@@ -40,9 +40,11 @@ async def async_setup_platform(hass, config, async_add_entities, discovery_info=
         conf = config
         coordinator = None
         rest = create_rest_data_from_config(hass, conf)
-        await rest.async_update()
+        await rest.async_update(log_errors=False)
 
     if rest.data is None:
+        if rest.last_exception:
+            raise PlatformNotReady from rest.last_exception
         raise PlatformNotReady
 
     name = conf.get(CONF_NAME)
diff --git a/homeassistant/components/rest/data.py b/homeassistant/components/rest/data.py
index dd2e29616c7..8b03bcfb128 100644
--- a/homeassistant/components/rest/data.py
+++ b/homeassistant/components/rest/data.py
@@ -37,13 +37,14 @@ class RestData:
         self._verify_ssl = verify_ssl
         self._async_client = None
         self.data = None
+        self.last_exception = None
         self.headers = None
 
     def set_url(self, url):
         """Set url."""
         self._resource = url
 
-    async def async_update(self):
+    async def async_update(self, log_errors=True):
         """Get the latest data from REST service with provided method."""
         if not self._async_client:
             self._async_client = get_async_client(
@@ -64,6 +65,10 @@ class RestData:
             self.data = response.text
             self.headers = response.headers
         except httpx.RequestError as ex:
-            _LOGGER.error("Error fetching data: %s failed with %s", self._resource, ex)
+            if log_errors:
+                _LOGGER.error(
+                    "Error fetching data: %s failed with %s", self._resource, ex
+                )
+            self.last_exception = ex
             self.data = None
             self.headers = None
diff --git a/homeassistant/components/rest/sensor.py b/homeassistant/components/rest/sensor.py
index d303f7a57b3..7727b5f09ab 100644
--- a/homeassistant/components/rest/sensor.py
+++ b/homeassistant/components/rest/sensor.py
@@ -50,9 +50,11 @@ async def async_setup_platform(hass, config, async_add_entities, discovery_info=
         conf = config
         coordinator = None
         rest = create_rest_data_from_config(hass, conf)
-        await rest.async_update()
+        await rest.async_update(log_errors=False)
 
     if rest.data is None:
+        if rest.last_exception:
+            raise PlatformNotReady from rest.last_exception
         raise PlatformNotReady
 
     name = conf.get(CONF_NAME)
diff --git a/tests/components/rest/test_binary_sensor.py b/tests/components/rest/test_binary_sensor.py
index 9adb04ea40c..f6445c25022 100644
--- a/tests/components/rest/test_binary_sensor.py
+++ b/tests/components/rest/test_binary_sensor.py
@@ -2,7 +2,7 @@
 
 import asyncio
 from os import path
-from unittest.mock import patch
+from unittest.mock import MagicMock, patch
 
 import httpx
 import respx
@@ -47,9 +47,12 @@ async def test_setup_missing_config(hass):
 
 
 @respx.mock
-async def test_setup_failed_connect(hass):
+async def test_setup_failed_connect(hass, caplog):
     """Test setup when connection error occurs."""
-    respx.get("http://localhost").mock(side_effect=httpx.RequestError)
+
+    respx.get("http://localhost").mock(
+        side_effect=httpx.RequestError("server offline", request=MagicMock())
+    )
     assert await async_setup_component(
         hass,
         binary_sensor.DOMAIN,
@@ -63,6 +66,7 @@ async def test_setup_failed_connect(hass):
     )
     await hass.async_block_till_done()
     assert len(hass.states.async_all()) == 0
+    assert "server offline" in caplog.text
 
 
 @respx.mock
diff --git a/tests/components/rest/test_sensor.py b/tests/components/rest/test_sensor.py
index 2e308f69384..50b959be36b 100644
--- a/tests/components/rest/test_sensor.py
+++ b/tests/components/rest/test_sensor.py
@@ -1,7 +1,7 @@
 """The tests for the REST sensor platform."""
 import asyncio
 from os import path
-from unittest.mock import patch
+from unittest.mock import MagicMock, patch
 
 import httpx
 import respx
@@ -41,9 +41,11 @@ async def test_setup_missing_schema(hass):
 
 
 @respx.mock
-async def test_setup_failed_connect(hass):
+async def test_setup_failed_connect(hass, caplog):
     """Test setup when connection error occurs."""
-    respx.get("http://localhost").mock(side_effect=httpx.RequestError)
+    respx.get("http://localhost").mock(
+        side_effect=httpx.RequestError("server offline", request=MagicMock())
+    )
     assert await async_setup_component(
         hass,
         sensor.DOMAIN,
@@ -57,6 +59,7 @@ async def test_setup_failed_connect(hass):
     )
     await hass.async_block_till_done()
     assert len(hass.states.async_all()) == 0
+    assert "server offline" in caplog.text
 
 
 @respx.mock