diff --git a/homeassistant/config_entries.py b/homeassistant/config_entries.py
index eaf65ed0b51..f9c6069295e 100644
--- a/homeassistant/config_entries.py
+++ b/homeassistant/config_entries.py
@@ -529,10 +529,21 @@ class ConfigEntry(Generic[_DataT]):
         integration: loader.Integration | None = None,
     ) -> None:
         """Set up an entry."""
-        current_entry.set(self)
         if self.source == SOURCE_IGNORE or self.disabled_by:
             return
 
+        current_entry.set(self)
+        try:
+            await self.__async_setup_with_context(hass, integration)
+        finally:
+            current_entry.set(None)
+
+    async def __async_setup_with_context(
+        self,
+        hass: HomeAssistant,
+        integration: loader.Integration | None,
+    ) -> None:
+        """Set up an entry, with current_entry set."""
         if integration is None and not (integration := self._integration_for_domain):
             integration = await loader.async_get_integration(hass, self.domain)
             self._integration_for_domain = integration
diff --git a/tests/test_config_entries.py b/tests/test_config_entries.py
index 76fe8ae6a1c..cf7e449d054 100644
--- a/tests/test_config_entries.py
+++ b/tests/test_config_entries.py
@@ -6937,3 +6937,72 @@ async def test_async_update_entry_unique_id_collision(
         "Unique id of config entry 'Mock Title' from integration test changed to "
         "'very unique' which is already in use"
     ) in caplog.text
+
+
+async def test_context_no_leak(hass: HomeAssistant) -> None:
+    """Test ensure that config entry context does not leak.
+
+    Unlikely to happen in real world, but occurs often in tests.
+    """
+
+    connected_future = asyncio.Future()
+    bg_tasks = []
+
+    async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+        """Mock setup entry."""
+
+        async def _async_set_runtime_data():
+            # Show that config_entries.current_entry is preserved for child tasks
+            await connected_future
+            entry.runtime_data = config_entries.current_entry.get()
+
+        bg_tasks.append(hass.loop.create_task(_async_set_runtime_data()))
+
+        return True
+
+    async def async_unload_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+        """Mock unload entry."""
+        return True
+
+    mock_integration(
+        hass,
+        MockModule(
+            "comp",
+            async_setup_entry=async_setup_entry,
+            async_unload_entry=async_unload_entry,
+        ),
+    )
+    mock_platform(hass, "comp.config_flow", None)
+
+    entry1 = MockConfigEntry(domain="comp")
+    entry1.add_to_hass(hass)
+
+    await hass.config_entries.async_setup(entry1.entry_id)
+    assert entry1.state is config_entries.ConfigEntryState.LOADED
+    assert config_entries.current_entry.get() is None
+
+    # Load an existing config entry
+    entry2 = MockConfigEntry(domain="comp")
+    entry2.add_to_hass(hass)
+    await hass.config_entries.async_setup(entry2.entry_id)
+    assert entry2.state is config_entries.ConfigEntryState.LOADED
+    assert config_entries.current_entry.get() is None
+
+    # Add a new config entry (eg. from config flow)
+    entry3 = MockConfigEntry(domain="comp")
+    await hass.config_entries.async_add(entry3)
+    assert entry3.state is config_entries.ConfigEntryState.LOADED
+    assert config_entries.current_entry.get() is None
+
+    for entry in (entry1, entry2, entry3):
+        assert entry.state is config_entries.ConfigEntryState.LOADED
+        assert not hasattr(entry, "runtime_data")
+    assert config_entries.current_entry.get() is None
+
+    connected_future.set_result(None)
+    await asyncio.gather(*bg_tasks)
+
+    for entry in (entry1, entry2, entry3):
+        assert entry.state is config_entries.ConfigEntryState.LOADED
+        assert entry.runtime_data is entry
+    assert config_entries.current_entry.get() is None