diff --git a/homeassistant/components/update/__init__.py b/homeassistant/components/update/__init__.py
index 75535849cc1..6f0b56b14e8 100644
--- a/homeassistant/components/update/__init__.py
+++ b/homeassistant/components/update/__init__.py
@@ -453,7 +453,7 @@ class UpdateEntity(
         # Otherwise, we use the internal progress value.
         if UpdateEntityFeature.PROGRESS in self.supported_features_compat:
             in_progress = self.in_progress
-            update_percentage = self.update_percentage
+            update_percentage = self.update_percentage if in_progress else None
             if type(in_progress) is not bool and isinstance(in_progress, int):
                 update_percentage = in_progress
                 in_progress = True
diff --git a/tests/components/update/test_init.py b/tests/components/update/test_init.py
index a354db44bd3..a35f7bb0f12 100644
--- a/tests/components/update/test_init.py
+++ b/tests/components/update/test_init.py
@@ -589,6 +589,16 @@ async def test_entity_already_in_progress(
             blocking=True,
         )
 
+    # Check update percentage is suppressed when in_progress is False
+    entity = next(
+        entity for entity in mock_update_entities if entity.entity_id == entity_id
+    )
+    entity._attr_in_progress = False
+    entity.async_write_ha_state()
+    state = hass.states.get(entity_id)
+    assert state.attributes[ATTR_IN_PROGRESS] is False
+    assert state.attributes[ATTR_UPDATE_PERCENTAGE] is None
+
 
 async def test_entity_without_progress_support(
     hass: HomeAssistant,