diff --git a/homeassistant/components/config/entity_registry.py b/homeassistant/components/config/entity_registry.py
index c292ea63068..26a2d930d18 100644
--- a/homeassistant/components/config/entity_registry.py
+++ b/homeassistant/components/config/entity_registry.py
@@ -84,8 +84,6 @@ async def websocket_get_entity(hass, connection, msg):
                 vol.Coerce(RegistryEntryDisabler), RegistryEntryDisabler.USER.value
             ),
         ),
-        vol.Inclusive("options_domain", "entity_option"): str,
-        vol.Inclusive("options", "entity_option"): vol.Any(None, dict),
     }
 )
 async def websocket_update_entity(hass, connection, msg):
@@ -95,8 +93,7 @@ async def websocket_update_entity(hass, connection, msg):
     """
     registry = await async_get_registry(hass)
 
-    entity_id = msg["entity_id"]
-    if entity_id not in registry.entities:
+    if msg["entity_id"] not in registry.entities:
         connection.send_message(
             websocket_api.error_message(msg["id"], ERR_NOT_FOUND, "Entity not found")
         )
@@ -108,7 +105,7 @@ async def websocket_update_entity(hass, connection, msg):
         if key in msg:
             changes[key] = msg[key]
 
-    if "new_entity_id" in msg and msg["new_entity_id"] != entity_id:
+    if "new_entity_id" in msg and msg["new_entity_id"] != msg["entity_id"]:
         changes["new_entity_id"] = msg["new_entity_id"]
         if hass.states.get(msg["new_entity_id"]) is not None:
             connection.send_message(
@@ -121,7 +118,7 @@ async def websocket_update_entity(hass, connection, msg):
             return
 
     if "disabled_by" in msg and msg["disabled_by"] is None:
-        entity = registry.entities[entity_id]
+        entity = registry.entities[msg["entity_id"]]
         if entity.device_id:
             device_registry = await hass.helpers.device_registry.async_get_registry()
             device = device_registry.async_get(entity.device_id)
@@ -135,28 +132,12 @@ async def websocket_update_entity(hass, connection, msg):
 
     try:
         if changes:
-            registry.async_update_entity(entity_id, **changes)
+            entry = registry.async_update_entity(msg["entity_id"], **changes)
     except ValueError as err:
         connection.send_message(
             websocket_api.error_message(msg["id"], "invalid_info", str(err))
         )
         return
-
-    if "new_entity_id" in msg:
-        entity_id = msg["new_entity_id"]
-
-    try:
-        if "options_domain" in msg:
-            registry.async_update_entity_options(
-                entity_id, msg["options_domain"], msg["options"]
-            )
-    except ValueError as err:
-        connection.send_message(
-            websocket_api.error_message(msg["id"], "invalid_info", str(err))
-        )
-        return
-
-    entry = registry.async_get(entity_id)
     result = {"entity_entry": _entry_ext_dict(entry)}
     if "disabled_by" in changes and changes["disabled_by"] is None:
         config_entry = hass.config_entries.async_get_entry(entry.config_entry_id)
@@ -214,7 +195,6 @@ def _entry_ext_dict(entry):
     data = _entry_dict(entry)
     data["capabilities"] = entry.capabilities
     data["device_class"] = entry.device_class
-    data["options"] = entry.options
     data["original_device_class"] = entry.original_device_class
     data["original_icon"] = entry.original_icon
     data["original_name"] = entry.original_name
diff --git a/tests/components/config/test_entity_registry.py b/tests/components/config/test_entity_registry.py
index 49e47cce6e2..b4065d855ff 100644
--- a/tests/components/config/test_entity_registry.py
+++ b/tests/components/config/test_entity_registry.py
@@ -111,7 +111,6 @@ async def test_get_entity(hass, client):
         "entity_id": "test_domain.name",
         "icon": None,
         "name": "Hello World",
-        "options": {},
         "original_device_class": None,
         "original_icon": None,
         "original_name": None,
@@ -139,7 +138,6 @@ async def test_get_entity(hass, client):
         "entity_id": "test_domain.no_name",
         "icon": None,
         "name": None,
-        "options": {},
         "original_device_class": None,
         "original_icon": None,
         "original_name": None,
@@ -199,7 +197,6 @@ async def test_update_entity(hass, client):
             "entity_id": "test_domain.world",
             "icon": "icon:after update",
             "name": "after update",
-            "options": {},
             "original_device_class": None,
             "original_icon": None,
             "original_name": None,
@@ -253,7 +250,6 @@ async def test_update_entity(hass, client):
             "entity_id": "test_domain.world",
             "icon": "icon:after update",
             "name": "after update",
-            "options": {},
             "original_device_class": None,
             "original_icon": None,
             "original_name": None,
@@ -263,40 +259,6 @@ async def test_update_entity(hass, client):
         "reload_delay": 30,
     }
 
-    # UPDATE ENTITY OPTION
-    await client.send_json(
-        {
-            "id": 9,
-            "type": "config/entity_registry/update",
-            "entity_id": "test_domain.world",
-            "options_domain": "sensor",
-            "options": {"unit_of_measurement": "beard_second"},
-        }
-    )
-
-    msg = await client.receive_json()
-
-    assert msg["result"] == {
-        "entity_entry": {
-            "area_id": "mock-area-id",
-            "capabilities": None,
-            "config_entry_id": None,
-            "device_class": "custom_device_class",
-            "device_id": None,
-            "disabled_by": None,
-            "entity_category": None,
-            "entity_id": "test_domain.world",
-            "icon": "icon:after update",
-            "name": "after update",
-            "options": {"sensor": {"unit_of_measurement": "beard_second"}},
-            "original_device_class": None,
-            "original_icon": None,
-            "original_name": None,
-            "platform": "test_platform",
-            "unique_id": "1234",
-        },
-    }
-
 
 async def test_update_entity_require_restart(hass, client):
     """Test updating entity."""
@@ -345,7 +307,6 @@ async def test_update_entity_require_restart(hass, client):
             "entity_id": "test_domain.world",
             "icon": None,
             "name": None,
-            "options": {},
             "original_device_class": None,
             "original_icon": None,
             "original_name": None,
@@ -450,7 +411,6 @@ async def test_update_entity_no_changes(hass, client):
             "entity_id": "test_domain.world",
             "icon": None,
             "name": "name of entity",
-            "options": {},
             "original_device_class": None,
             "original_icon": None,
             "original_name": None,
@@ -534,7 +494,6 @@ async def test_update_entity_id(hass, client):
             "entity_id": "test_domain.planet",
             "icon": None,
             "name": None,
-            "options": {},
             "original_device_class": None,
             "original_icon": None,
             "original_name": None,