diff --git a/homeassistant/components/assist_pipeline/pipeline.py b/homeassistant/components/assist_pipeline/pipeline.py
index f8f6be3a40f..7dda24c4023 100644
--- a/homeassistant/components/assist_pipeline/pipeline.py
+++ b/homeassistant/components/assist_pipeline/pipeline.py
@@ -16,6 +16,7 @@ import time
 from typing import Any, Literal, cast
 import wave
 
+import hass_nabucasa
 import voluptuous as vol
 
 from homeassistant.components import (
@@ -918,6 +919,11 @@ class PipelineRun:
             )
         except (asyncio.CancelledError, TimeoutError):
             raise  # expected
+        except hass_nabucasa.auth.Unauthenticated as src_error:
+            raise SpeechToTextError(
+                code="cloud-auth-failed",
+                message="Home Assistant Cloud authentication failed",
+            ) from src_error
         except Exception as src_error:
             _LOGGER.exception("Unexpected error during speech-to-text")
             raise SpeechToTextError(
diff --git a/tests/components/assist_pipeline/snapshots/test_init.ambr b/tests/components/assist_pipeline/snapshots/test_init.ambr
index d3241b8ac1f..f63a28efbb7 100644
--- a/tests/components/assist_pipeline/snapshots/test_init.ambr
+++ b/tests/components/assist_pipeline/snapshots/test_init.ambr
@@ -387,6 +387,42 @@
     }),
   ])
 # ---
+# name: test_pipeline_from_audio_stream_with_cloud_auth_fail
+  list([
+    dict({
+      'data': dict({
+        'language': 'en',
+        'pipeline': <ANY>,
+      }),
+      'type': <PipelineEventType.RUN_START: 'run-start'>,
+    }),
+    dict({
+      'data': dict({
+        'engine': 'stt.mock_stt',
+        'metadata': dict({
+          'bit_rate': <AudioBitRates.BITRATE_16: 16>,
+          'channel': <AudioChannels.CHANNEL_MONO: 1>,
+          'codec': <AudioCodecs.PCM: 'pcm'>,
+          'format': <AudioFormats.WAV: 'wav'>,
+          'language': 'en-US',
+          'sample_rate': <AudioSampleRates.SAMPLERATE_16000: 16000>,
+        }),
+      }),
+      'type': <PipelineEventType.STT_START: 'stt-start'>,
+    }),
+    dict({
+      'data': dict({
+        'code': 'cloud-auth-failed',
+        'message': 'Home Assistant Cloud authentication failed',
+      }),
+      'type': <PipelineEventType.ERROR: 'error'>,
+    }),
+    dict({
+      'data': None,
+      'type': <PipelineEventType.RUN_END: 'run-end'>,
+    }),
+  ])
+# ---
 # name: test_pipeline_language_used_instead_of_conversation_language
   list([
     dict({
diff --git a/tests/components/assist_pipeline/test_init.py b/tests/components/assist_pipeline/test_init.py
index a3e65766c34..d4cce4e2e98 100644
--- a/tests/components/assist_pipeline/test_init.py
+++ b/tests/components/assist_pipeline/test_init.py
@@ -8,6 +8,7 @@ import tempfile
 from unittest.mock import ANY, patch
 import wave
 
+import hass_nabucasa
 import pytest
 from syrupy.assertion import SnapshotAssertion
 
@@ -1173,3 +1174,43 @@ async def test_pipeline_language_used_instead_of_conversation_language(
             mock_async_converse.call_args_list[0].kwargs.get("language")
             == pipeline.language
         )
+
+
+async def test_pipeline_from_audio_stream_with_cloud_auth_fail(
+    hass: HomeAssistant,
+    mock_stt_provider_entity: MockSTTProviderEntity,
+    init_components,
+    snapshot: SnapshotAssertion,
+) -> None:
+    """Test creating a pipeline from an audio stream but the cloud authentication fails."""
+
+    events: list[assist_pipeline.PipelineEvent] = []
+
+    async def audio_data():
+        yield b"audio"
+
+    with patch.object(
+        mock_stt_provider_entity,
+        "async_process_audio_stream",
+        side_effect=hass_nabucasa.auth.Unauthenticated,
+    ):
+        await assist_pipeline.async_pipeline_from_audio_stream(
+            hass,
+            context=Context(),
+            event_callback=events.append,
+            stt_metadata=stt.SpeechMetadata(
+                language="",
+                format=stt.AudioFormats.WAV,
+                codec=stt.AudioCodecs.PCM,
+                bit_rate=stt.AudioBitRates.BITRATE_16,
+                sample_rate=stt.AudioSampleRates.SAMPLERATE_16000,
+                channel=stt.AudioChannels.CHANNEL_MONO,
+            ),
+            stt_stream=audio_data(),
+            audio_settings=assist_pipeline.AudioSettings(is_vad_enabled=False),
+        )
+
+    assert process_events(events) == snapshot
+    assert len(events) == 4  # run start, stt start, error, run end
+    assert events[2].type == assist_pipeline.PipelineEventType.ERROR
+    assert events[2].data["code"] == "cloud-auth-failed"