diff --git a/homeassistant/components/hue/bridge.py b/homeassistant/components/hue/bridge.py
index 6a654744397..5015ec669aa 100644
--- a/homeassistant/components/hue/bridge.py
+++ b/homeassistant/components/hue/bridge.py
@@ -5,12 +5,12 @@ import aiohue
 import async_timeout
 import voluptuous as vol
 
-from homeassistant import config_entries
 from homeassistant.exceptions import ConfigEntryNotReady
 from homeassistant.helpers import aiohttp_client, config_validation as cv
 
 from .const import DOMAIN, LOGGER
 from .errors import AuthenticationRequired, CannotConnect
+from .helpers import create_config_flow
 
 SERVICE_HUE_SCENE = "hue_activate_scene"
 ATTR_GROUP_NAME = "group_name"
@@ -30,6 +30,7 @@ class HueBridge:
         self.allow_unreachable = allow_unreachable
         self.allow_groups = allow_groups
         self.available = True
+        self.authorized = False
         self.api = None
 
     @property
@@ -49,13 +50,7 @@ class HueBridge:
             # We are going to fail the config entry setup and initiate a new
             # linking procedure. When linking succeeds, it will remove the
             # old config entry.
-            hass.async_create_task(
-                hass.config_entries.flow.async_init(
-                    DOMAIN,
-                    context={"source": config_entries.SOURCE_IMPORT},
-                    data={"host": host},
-                )
-            )
+            create_config_flow(hass, host)
             return False
 
         except CannotConnect:
@@ -82,6 +77,7 @@ class HueBridge:
             DOMAIN, SERVICE_HUE_SCENE, self.hue_activate_scene, schema=SCENE_SCHEMA
         )
 
+        self.authorized = True
         return True
 
     async def async_reset(self):
@@ -155,6 +151,17 @@ class HueBridge:
 
         await group.set_action(scene=scene.id)
 
+    async def handle_unauthorized_error(self):
+        """Create a new config flow when the authorization is no longer valid."""
+        if not self.authorized:
+            # we already created a new config flow, no need to do it again
+            return
+        LOGGER.error(
+            "Unable to authorize to bridge %s, setup the linking again.", self.host
+        )
+        self.authorized = False
+        create_config_flow(self.hass, self.host)
+
 
 async def get_bridge(hass, host, username=None):
     """Create a bridge object and verify authentication."""
diff --git a/homeassistant/components/hue/helpers.py b/homeassistant/components/hue/helpers.py
index 971509ab647..af0f996b537 100644
--- a/homeassistant/components/hue/helpers.py
+++ b/homeassistant/components/hue/helpers.py
@@ -1,6 +1,7 @@
 """Helper functions for Philips Hue."""
 from homeassistant.helpers.device_registry import async_get_registry as get_dev_reg
 from homeassistant.helpers.entity_registry import async_get_registry as get_ent_reg
+from homeassistant import config_entries
 
 from .const import DOMAIN
 
@@ -31,3 +32,14 @@ async def remove_devices(hass, config_entry, api_ids, current):
 
     for item_id in removed_items:
         del current[item_id]
+
+
+def create_config_flow(hass, host):
+    """Start a config flow."""
+    hass.async_create_task(
+        hass.config_entries.flow.async_init(
+            DOMAIN,
+            context={"source": config_entries.SOURCE_IMPORT},
+            data={"host": host},
+        )
+    )
diff --git a/homeassistant/components/hue/light.py b/homeassistant/components/hue/light.py
index 041eb76c1d3..d58e4608b65 100644
--- a/homeassistant/components/hue/light.py
+++ b/homeassistant/components/hue/light.py
@@ -189,6 +189,9 @@ async def async_update_items(
     progress_waiting,
 ):
     """Update either groups or lights from the bridge."""
+    if not bridge.authorized:
+        return
+
     if is_group:
         api_type = "group"
         api = bridge.api.groups
@@ -200,6 +203,9 @@ async def async_update_items(
         start = monotonic()
         with async_timeout.timeout(4):
             await api.update()
+    except aiohue.Unauthorized:
+        await bridge.handle_unauthorized_error()
+        return
     except (asyncio.TimeoutError, aiohue.AiohueException) as err:
         _LOGGER.debug("Failed to fetch %s: %s", api_type, err)
 
@@ -337,10 +343,14 @@ class HueLight(Light):
     @property
     def available(self):
         """Return if light is available."""
-        return self.bridge.available and (
-            self.is_group
-            or self.bridge.allow_unreachable
-            or self.light.state["reachable"]
+        return (
+            self.bridge.available
+            and self.bridge.authorized
+            and (
+                self.is_group
+                or self.bridge.allow_unreachable
+                or self.light.state["reachable"]
+            )
         )
 
     @property
diff --git a/homeassistant/components/hue/sensor_base.py b/homeassistant/components/hue/sensor_base.py
index 7236dfbd886..62bd98df3a2 100644
--- a/homeassistant/components/hue/sensor_base.py
+++ b/homeassistant/components/hue/sensor_base.py
@@ -4,7 +4,7 @@ from datetime import timedelta
 import logging
 from time import monotonic
 
-from aiohue import AiohueException
+from aiohue import AiohueException, Unauthorized
 from aiohue.sensors import TYPE_ZLL_PRESENCE
 import async_timeout
 
@@ -80,6 +80,11 @@ class SensorManager:
 
         async def async_update_bridge(now):
             """Will update sensors from the bridge."""
+
+            # don't update when we are not authorized
+            if not self.bridge.authorized:
+                return
+
             await self.async_update_items()
 
             async_track_point_in_utc_time(
@@ -96,6 +101,9 @@ class SensorManager:
             start = monotonic()
             with async_timeout.timeout(4):
                 await api.update()
+        except Unauthorized:
+            await self.bridge.handle_unauthorized_error()
+            return
         except (asyncio.TimeoutError, AiohueException) as err:
             _LOGGER.debug("Failed to fetch sensor: %s", err)
 
@@ -220,8 +228,10 @@ class GenericHueSensor:
     @property
     def available(self):
         """Return if sensor is available."""
-        return self.bridge.available and (
-            self.bridge.allow_unreachable or self.sensor.config["reachable"]
+        return (
+            self.bridge.available
+            and self.bridge.authorized
+            and (self.bridge.allow_unreachable or self.sensor.config["reachable"])
         )
 
     @property
diff --git a/tests/components/hue/test_bridge.py b/tests/components/hue/test_bridge.py
index a426d35abf7..7265b468714 100644
--- a/tests/components/hue/test_bridge.py
+++ b/tests/components/hue/test_bridge.py
@@ -91,3 +91,25 @@ async def test_reset_unloads_entry_if_setup():
 
     assert len(hass.config_entries.async_forward_entry_unload.mock_calls) == 3
     assert len(hass.services.async_remove.mock_calls) == 1
+
+
+async def test_handle_unauthorized():
+    """Test handling an unauthorized error on update."""
+    hass = Mock()
+    entry = Mock()
+    entry.data = {"host": "1.2.3.4", "username": "mock-username"}
+    hue_bridge = bridge.HueBridge(hass, entry, False, False)
+
+    with patch.object(bridge, "get_bridge", return_value=mock_coro(Mock())):
+        assert await hue_bridge.async_setup() is True
+
+    assert hue_bridge.authorized is True
+
+    await hue_bridge.handle_unauthorized_error()
+
+    assert hue_bridge.authorized is False
+    assert len(hass.async_create_task.mock_calls) == 4
+    assert len(hass.config_entries.flow.async_init.mock_calls) == 1
+    assert hass.config_entries.flow.async_init.mock_calls[0][2]["data"] == {
+        "host": "1.2.3.4"
+    }
diff --git a/tests/components/hue/test_light.py b/tests/components/hue/test_light.py
index 582cc185bc8..88c527a50ca 100644
--- a/tests/components/hue/test_light.py
+++ b/tests/components/hue/test_light.py
@@ -180,6 +180,7 @@ def mock_bridge(hass):
     """Mock a Hue bridge."""
     bridge = Mock(
         available=True,
+        authorized=True,
         allow_unreachable=False,
         allow_groups=False,
         api=Mock(),
@@ -598,13 +599,13 @@ async def test_update_timeout(hass, mock_bridge):
 
 
 async def test_update_unauthorized(hass, mock_bridge):
-    """Test bridge marked as not available if unauthorized during update."""
+    """Test bridge marked as not authorized if unauthorized during update."""
     mock_bridge.api.lights.update = Mock(side_effect=aiohue.Unauthorized)
     mock_bridge.api.groups.update = Mock(side_effect=aiohue.Unauthorized)
     await setup_bridge(hass, mock_bridge)
     assert len(mock_bridge.mock_requests) == 0
     assert len(hass.states.async_all()) == 0
-    assert mock_bridge.available is False
+    assert len(mock_bridge.handle_unauthorized_error.mock_calls) == 1
 
 
 async def test_light_turn_on_service(hass, mock_bridge):
diff --git a/tests/components/hue/test_sensor_base.py b/tests/components/hue/test_sensor_base.py
index 72ac816483a..ba259dccf71 100644
--- a/tests/components/hue/test_sensor_base.py
+++ b/tests/components/hue/test_sensor_base.py
@@ -256,6 +256,7 @@ def create_mock_bridge():
     """Create a mock Hue bridge."""
     bridge = Mock(
         available=True,
+        authorized=True,
         allow_unreachable=False,
         allow_groups=False,
         api=Mock(),
@@ -425,6 +426,36 @@ async def test_new_sensor_discovered(hass, mock_bridge):
     assert temperature.state == "17.75"
 
 
+async def test_sensor_removed(hass, mock_bridge):
+    """Test if 2nd update has removed sensor."""
+    mock_bridge.mock_sensor_responses.append(SENSOR_RESPONSE)
+
+    await setup_bridge(hass, mock_bridge)
+    assert len(mock_bridge.mock_requests) == 1
+    assert len(hass.states.async_all()) == 6
+
+    mock_bridge.mock_sensor_responses.clear()
+    keys = ("1", "2", "3")
+    mock_bridge.mock_sensor_responses.append({k: SENSOR_RESPONSE[k] for k in keys})
+
+    # Force updates to run again
+    sm_key = hue_sensor_base.SENSOR_MANAGER_FORMAT.format("mock-host")
+    sm = hass.data[hue.DOMAIN][sm_key]
+    await sm.async_update_items()
+
+    # To flush out the service call to update the group
+    await hass.async_block_till_done()
+
+    assert len(mock_bridge.mock_requests) == 2
+    assert len(hass.states.async_all()) == 3
+
+    sensor = hass.states.get("binary_sensor.living_room_sensor_motion")
+    assert sensor is not None
+
+    removed_sensor = hass.states.get("binary_sensor.kitchen_sensor_motion")
+    assert removed_sensor is None
+
+
 async def test_update_timeout(hass, mock_bridge):
     """Test bridge marked as not available if timeout error during update."""
     mock_bridge.api.sensors.update = Mock(side_effect=asyncio.TimeoutError)
@@ -435,9 +466,9 @@ async def test_update_timeout(hass, mock_bridge):
 
 
 async def test_update_unauthorized(hass, mock_bridge):
-    """Test bridge marked as not available if unauthorized during update."""
+    """Test bridge marked as not authorized if unauthorized during update."""
     mock_bridge.api.sensors.update = Mock(side_effect=aiohue.Unauthorized)
     await setup_bridge(hass, mock_bridge)
     assert len(mock_bridge.mock_requests) == 0
     assert len(hass.states.async_all()) == 0
-    assert mock_bridge.available is False
+    assert len(mock_bridge.handle_unauthorized_error.mock_calls) == 1