diff --git a/homeassistant/components/sensor/__init__.py b/homeassistant/components/sensor/__init__.py
index e733cc877d1..ce488c3c76b 100644
--- a/homeassistant/components/sensor/__init__.py
+++ b/homeassistant/components/sensor/__init__.py
@@ -484,10 +484,19 @@ class SensorEntity(Entity):
         platform: EntityPlatform,
         parallel_updates: asyncio.Semaphore | None,
     ) -> None:
-        """Start adding an entity to a platform."""
+        """Start adding an entity to a platform.
+
+        Allows integrations to remove legacy custom unit conversion which is no longer
+        needed without breaking existing sensors. Only works for sensors which are in
+        the entity registry.
+
+        This can be removed once core integrations have dropped unneeded custom unit
+        conversion.
+        """
         super().add_to_platform_start(hass, platform, parallel_updates)
 
-        if self.unique_id is None:
+        # Bail out if the sensor doesn't have a unique_id or a device class
+        if self.unique_id is None or self.device_class is None:
             return
         registry = er.async_get(self.hass)
         if not (
@@ -499,24 +508,36 @@ class SensorEntity(Entity):
         registry_entry = registry.async_get(entity_id)
         assert registry_entry
 
-        # Store unit override according to automatic unit conversion rules if:
-        # - no unit override is stored in the entity registry
-        # - units have changed
-        # - the unit stored in the registry matches automatic unit conversion rules
-        # This allows integrations to drop custom unit conversion and rely on automatic
-        # conversion.
+        # If the sensor has 'unit_of_measurement' in its sensor options, the user has
+        # overridden the unit.
+        # If the sensor has 'sensor.private' in its entity options, it was added after
+        # automatic unit conversion was implemented.
         registry_unit = registry_entry.unit_of_measurement
         if (
-            DOMAIN not in registry_entry.options
-            and f"{DOMAIN}.private" not in registry_entry.options
-            and self.unit_of_measurement != registry_unit
-            and (suggested_unit := self._get_initial_suggested_unit()) == registry_unit
-        ):
-            registry.async_update_entity_options(
-                entity_id,
-                f"{DOMAIN}.private",
-                {"suggested_unit_of_measurement": suggested_unit},
+            (
+                (sensor_options := registry_entry.options.get(DOMAIN))
+                and CONF_UNIT_OF_MEASUREMENT in sensor_options
             )
+            or f"{DOMAIN}.private" in registry_entry.options
+            or self.unit_of_measurement == registry_unit
+        ):
+            return
+
+        # Make sure we can convert the units
+        if (
+            (unit_converter := UNIT_CONVERTERS.get(self.device_class)) is None
+            or registry_unit not in unit_converter.VALID_UNITS
+            or self.unit_of_measurement not in unit_converter.VALID_UNITS
+        ):
+            return
+
+        # Set suggested_unit_of_measurement to the old unit to enable automatic
+        # conversion
+        registry.async_update_entity_options(
+            entity_id,
+            f"{DOMAIN}.private",
+            {"suggested_unit_of_measurement": registry_unit},
+        )
 
     async def async_internal_added_to_hass(self) -> None:
         """Call when the sensor entity is added to hass."""
@@ -572,8 +593,12 @@ class SensorEntity(Entity):
 
         return None
 
-    def _get_initial_suggested_unit(self) -> str | None:
-        """Return initial suggested unit of measurement."""
+    def get_initial_entity_options(self) -> er.EntityOptionsType | None:
+        """Return initial entity options.
+
+        These will be stored in the entity registry the first time the entity is seen,
+        and then never updated.
+        """
         # Unit suggested by the integration
         suggested_unit_of_measurement = self.suggested_unit_of_measurement
 
@@ -583,15 +608,6 @@ class SensorEntity(Entity):
                 self.device_class, self.native_unit_of_measurement
             )
 
-        return suggested_unit_of_measurement
-
-    def get_initial_entity_options(self) -> er.EntityOptionsType | None:
-        """Return initial entity options.
-
-        These will be stored in the entity registry the first time the entity is seen,
-        and then never updated.
-        """
-        suggested_unit_of_measurement = self._get_initial_suggested_unit()
         if suggested_unit_of_measurement is None:
             return None
 
diff --git a/tests/components/sensor/test_init.py b/tests/components/sensor/test_init.py
index 51e1c014fc9..3e68ba1a7fd 100644
--- a/tests/components/sensor/test_init.py
+++ b/tests/components/sensor/test_init.py
@@ -889,6 +889,14 @@ async def test_unit_conversion_priority_suggested_unit_change(
             621,
             SensorDeviceClass.DISTANCE,
         ),
+        (
+            US_CUSTOMARY_SYSTEM,
+            LENGTH_METERS,
+            LENGTH_MILES,
+            1000000,
+            621.371,
+            SensorDeviceClass.DISTANCE,
+        ),
     ],
 )
 async def test_unit_conversion_priority_legacy_conversion_removed(