diff --git a/homeassistant/components/deconz/binary_sensor.py b/homeassistant/components/deconz/binary_sensor.py
index 1e6edbbe415..cda743f0893 100644
--- a/homeassistant/components/deconz/binary_sensor.py
+++ b/homeassistant/components/deconz/binary_sensor.py
@@ -119,6 +119,15 @@ BINARY_SENSOR_DESCRIPTIONS = [
         device_class=BinarySensorDeviceClass.BATTERY,
         entity_category=EntityCategory.DIAGNOSTIC,
     ),
+    DeconzBinarySensorDescription(
+        key="in_test_mode",
+        required_attr="in_test_mode",
+        value_fn=lambda device: device.in_test_mode,
+        suffix="Test Mode",
+        update_key="test",
+        device_class=BinarySensorDeviceClass.SMOKE,
+        entity_category=EntityCategory.DIAGNOSTIC,
+    ),
 ]
 
 
diff --git a/homeassistant/components/deconz/manifest.json b/homeassistant/components/deconz/manifest.json
index 68b89b70b9c..94356f95eaf 100644
--- a/homeassistant/components/deconz/manifest.json
+++ b/homeassistant/components/deconz/manifest.json
@@ -4,7 +4,7 @@
   "config_flow": true,
   "documentation": "https://www.home-assistant.io/integrations/deconz",
   "requirements": [
-    "pydeconz==85"
+    "pydeconz==86"
   ],
   "ssdp": [
     {
diff --git a/requirements_all.txt b/requirements_all.txt
index 4640175336d..991fe762c02 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -1464,7 +1464,7 @@ pydaikin==2.7.0
 pydanfossair==0.1.0
 
 # homeassistant.components.deconz
-pydeconz==85
+pydeconz==86
 
 # homeassistant.components.delijn
 pydelijn==0.6.1
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 78e8213db5e..6bd90858479 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -908,7 +908,7 @@ pycoolmasternet-async==0.1.2
 pydaikin==2.7.0
 
 # homeassistant.components.deconz
-pydeconz==85
+pydeconz==86
 
 # homeassistant.components.dexcom
 pydexcom==0.2.2
diff --git a/tests/components/deconz/test_binary_sensor.py b/tests/components/deconz/test_binary_sensor.py
index 04c5335ffd5..11f9483e277 100644
--- a/tests/components/deconz/test_binary_sensor.py
+++ b/tests/components/deconz/test_binary_sensor.py
@@ -183,6 +183,58 @@ async def test_tampering_sensor(hass, aioclient_mock, mock_deconz_websocket):
     assert len(hass.states.async_all()) == 0
 
 
+async def test_fire_sensor(hass, aioclient_mock, mock_deconz_websocket):
+    """Verify smoke alarm sensor works."""
+    data = {
+        "sensors": {
+            "1": {
+                "name": "Fire alarm",
+                "type": "ZHAFire",
+                "state": {"fire": False, "test": False},
+                "config": {"on": True, "reachable": True},
+                "uniqueid": "00:00:00:00:00:00:00:00-00",
+            },
+        }
+    }
+    with patch.dict(DECONZ_WEB_REQUEST, data):
+        config_entry = await setup_deconz_integration(hass, aioclient_mock)
+
+    ent_reg = er.async_get(hass)
+
+    assert len(hass.states.async_all()) == 2
+    assert hass.states.get("binary_sensor.fire_alarm").state == STATE_OFF
+    assert ent_reg.async_get("binary_sensor.fire_alarm").entity_category is None
+
+    assert hass.states.get("binary_sensor.fire_alarm_test_mode").state == STATE_OFF
+    assert (
+        ent_reg.async_get("binary_sensor.fire_alarm_test_mode").entity_category
+        is EntityCategory.DIAGNOSTIC
+    )
+
+    event_changed_sensor = {
+        "t": "event",
+        "e": "changed",
+        "r": "sensors",
+        "id": "1",
+        "state": {"fire": True, "test": True},
+    }
+    await mock_deconz_websocket(data=event_changed_sensor)
+    await hass.async_block_till_done()
+
+    assert hass.states.get("binary_sensor.fire_alarm").state == STATE_ON
+    assert hass.states.get("binary_sensor.fire_alarm_test_mode").state == STATE_ON
+
+    await hass.config_entries.async_unload(config_entry.entry_id)
+    assert hass.states.get("binary_sensor.fire_alarm").state == STATE_UNAVAILABLE
+    assert (
+        hass.states.get("binary_sensor.fire_alarm_test_mode").state == STATE_UNAVAILABLE
+    )
+
+    await hass.config_entries.async_remove(config_entry.entry_id)
+    await hass.async_block_till_done()
+    assert len(hass.states.async_all()) == 0
+
+
 async def test_allow_clip_sensor(hass, aioclient_mock):
     """Test that CLIP sensors can be allowed."""
     data = {