diff --git a/homeassistant/helpers/entity.py b/homeassistant/helpers/entity.py
index a1435a57277..ef526f956cd 100644
--- a/homeassistant/helpers/entity.py
+++ b/homeassistant/helpers/entity.py
@@ -40,7 +40,10 @@ from homeassistant.util import dt as dt_util, ensure_unique_string, slugify
 
 from . import device_registry as dr, entity_registry as er
 from .device_registry import DeviceEntryType
-from .event import async_track_entity_registry_updated_event
+from .event import (
+    async_track_device_registry_updated_event,
+    async_track_entity_registry_updated_event,
+)
 from .typing import StateType
 
 if TYPE_CHECKING:
@@ -265,6 +268,8 @@ class Entity(ABC):
     # Hold list for functions to call on remove.
     _on_remove: list[CALLBACK_TYPE] | None = None
 
+    _unsub_device_updates: CALLBACK_TYPE | None = None
+
     # Context
     _context: Context | None = None
     _context_set: datetime | None = None
@@ -926,6 +931,7 @@ class Entity(ABC):
                     self.hass, self.entity_id, self._async_registry_updated
                 )
             )
+            self._async_subscribe_device_updates()
 
     async def async_internal_will_remove_from_hass(self) -> None:
         """Run when entity will be removed from hass.
@@ -946,6 +952,9 @@ class Entity(ABC):
         if data["action"] != "update":
             return
 
+        if "device_id" in data["changes"]:
+            self._async_subscribe_device_updates()
+
         ent_reg = er.async_get(self.hass)
         old = self.registry_entry
         self.registry_entry = ent_reg.async_get(data["entity_id"])
@@ -967,6 +976,51 @@ class Entity(ABC):
         self.entity_id = self.registry_entry.entity_id
         await self.platform.async_add_entities([self])
 
+    @callback
+    def _async_unsubscribe_device_updates(self) -> None:
+        """Unsubscribe from device registry updates."""
+        if not self._unsub_device_updates:
+            return
+        self._unsub_device_updates()
+        self._unsub_device_updates = None
+
+    @callback
+    def _async_subscribe_device_updates(self) -> None:
+        """Subscribe to device registry updates."""
+        assert self.registry_entry
+
+        self._async_unsubscribe_device_updates()
+
+        if (device_id := self.registry_entry.device_id) is None:
+            return
+
+        if not self.has_entity_name:
+            return
+
+        @callback
+        def async_device_registry_updated(event: Event) -> None:
+            """Handle device registry update."""
+            data = event.data
+
+            if data["action"] != "update":
+                return
+
+            if "name" not in data["changes"] and "name_by_user" not in data["changes"]:
+                return
+
+            self.async_write_ha_state()
+
+        self._unsub_device_updates = async_track_device_registry_updated_event(
+            self.hass,
+            device_id,
+            async_device_registry_updated,
+        )
+        if (
+            not self._on_remove
+            or self._async_unsubscribe_device_updates not in self._on_remove
+        ):
+            self.async_on_remove(self._async_unsubscribe_device_updates)
+
     def __repr__(self) -> str:
         """Return the representation."""
         return f"<entity {self.entity_id}={self._stringify_state(self.available)}>"
diff --git a/tests/helpers/test_entity.py b/tests/helpers/test_entity.py
index 40c402f6f49..e556d9d5451 100644
--- a/tests/helpers/test_entity.py
+++ b/tests/helpers/test_entity.py
@@ -988,6 +988,89 @@ async def test_friendly_name(
     assert state.attributes.get(ATTR_FRIENDLY_NAME) == expected_friendly_name
 
 
+@pytest.mark.parametrize(
+    (
+        "entity_name",
+        "expected_friendly_name1",
+        "expected_friendly_name2",
+        "expected_friendly_name3",
+    ),
+    (
+        (
+            "Entity Blu",
+            "Device Bla Entity Blu",
+            "Device Bla2 Entity Blu",
+            "New Device Entity Blu",
+        ),
+        (
+            None,
+            "Device Bla",
+            "Device Bla2",
+            "New Device",
+        ),
+    ),
+)
+async def test_friendly_name_updated(
+    hass: HomeAssistant,
+    device_registry: dr.DeviceRegistry,
+    entity_registry: er.EntityRegistry,
+    entity_name: str | None,
+    expected_friendly_name1: str,
+    expected_friendly_name2: str,
+    expected_friendly_name3: str,
+) -> None:
+    """Test entity_id is influenced by entity name."""
+
+    async def async_setup_entry(hass, config_entry, async_add_entities):
+        """Mock setup entry method."""
+        async_add_entities(
+            [
+                MockEntity(
+                    unique_id="qwer",
+                    device_info={
+                        "identifiers": {("hue", "1234")},
+                        "connections": {(dr.CONNECTION_NETWORK_MAC, "abcd")},
+                        "name": "Device Bla",
+                    },
+                    has_entity_name=True,
+                    name=entity_name,
+                ),
+            ]
+        )
+        return True
+
+    platform = MockPlatform(async_setup_entry=async_setup_entry)
+    config_entry = MockConfigEntry(entry_id="super-mock-id")
+    entity_platform = MockEntityPlatform(
+        hass, platform_name=config_entry.domain, platform=platform
+    )
+
+    assert await entity_platform.async_setup_entry(config_entry)
+    await hass.async_block_till_done()
+
+    assert len(hass.states.async_entity_ids()) == 1
+    state = hass.states.async_all()[0]
+    assert state.attributes.get(ATTR_FRIENDLY_NAME) == expected_friendly_name1
+
+    device = device_registry.async_get_device(identifiers={("hue", "1234")})
+    device_registry.async_update_device(device.id, name_by_user="Device Bla2")
+    await hass.async_block_till_done()
+
+    state = hass.states.async_all()[0]
+    assert state.attributes.get(ATTR_FRIENDLY_NAME) == expected_friendly_name2
+
+    device = device_registry.async_get_or_create(
+        config_entry_id=config_entry.entry_id,
+        identifiers={("hue", "5678")},
+        name="New Device",
+    )
+    entity_registry.async_update_entity(state.entity_id, device_id=device.id)
+    await hass.async_block_till_done()
+
+    state = hass.states.async_all()[0]
+    assert state.attributes.get(ATTR_FRIENDLY_NAME) == expected_friendly_name3
+
+
 async def test_translation_key(hass: HomeAssistant) -> None:
     """Test translation key property."""
     mock_entity1 = entity.Entity()