diff --git a/homeassistant/util/yaml/loader.py b/homeassistant/util/yaml/loader.py
index e3add3a7c44..09e19af6840 100644
--- a/homeassistant/util/yaml/loader.py
+++ b/homeassistant/util/yaml/loader.py
@@ -4,7 +4,7 @@ from __future__ import annotations
 from collections import OrderedDict
 from collections.abc import Iterator
 import fnmatch
-from io import StringIO
+from io import StringIO, TextIOWrapper
 import logging
 import os
 from pathlib import Path
@@ -169,7 +169,7 @@ def parse_yaml(
     except yaml.YAMLError:
         # Loading failed, so we now load with the slow line loader
         # since the C one will not give us line numbers
-        if isinstance(content, (StringIO, TextIO)):
+        if isinstance(content, (StringIO, TextIO, TextIOWrapper)):
             # Rewind the stream so we can try again
             content.seek(0, 0)
         return _parse_yaml_pure_python(content, secrets)
diff --git a/tests/util/yaml/fixtures/bad.yaml.txt b/tests/util/yaml/fixtures/bad.yaml.txt
new file mode 100644
index 00000000000..8f6a62a6511
--- /dev/null
+++ b/tests/util/yaml/fixtures/bad.yaml.txt
@@ -0,0 +1,26 @@
+- id: '1658085239190'
+  alias: Config validation test
+  description: ''
+  trigger:
+  - platform: time
+    at: 00:02:03
+  condition: []
+  action:
+  - service: script.notify_admin
+    data:
+      title: 'Here's something that does not work...!'
+      message: failing
+  mode: single
+- id: '165808523911590'
+  alias: Config validation test FIXED
+  description: ''
+  trigger:
+  - platform: time
+    at: 00:02:03
+  condition: []
+  action:
+  - service: script.notify_admin
+    data:
+      title: 'Here is something that should work...!'
+      message: fixed?
+  mode: single
diff --git a/tests/util/yaml/test_init.py b/tests/util/yaml/test_init.py
index 11dc40233dc..8d1b7c1adf1 100644
--- a/tests/util/yaml/test_init.py
+++ b/tests/util/yaml/test_init.py
@@ -2,6 +2,7 @@
 import importlib
 import io
 import os
+import pathlib
 import unittest
 from unittest.mock import patch
 
@@ -490,3 +491,12 @@ def test_input(try_both_loaders, try_both_dumpers):
 def test_c_loader_is_available_in_ci():
     """Verify we are testing the C loader in the CI."""
     assert yaml.loader.HAS_C_LOADER is True
+
+
+async def test_loading_actual_file_with_syntax(hass, try_both_loaders):
+    """Test loading a real file with syntax errors."""
+    with pytest.raises(HomeAssistantError):
+        fixture_path = pathlib.Path(__file__).parent.joinpath(
+            "fixtures", "bad.yaml.txt"
+        )
+        await hass.async_add_executor_job(load_yaml_config_file, fixture_path)