diff --git a/homeassistant/components/risco/__init__.py b/homeassistant/components/risco/__init__.py
index b1847b002ea..7255c724e3f 100644
--- a/homeassistant/components/risco/__init__.py
+++ b/homeassistant/components/risco/__init__.py
@@ -90,6 +90,9 @@ async def _async_setup_local_entry(hass: HomeAssistant, entry: ConfigEntry) -> b
 
     async def _error(error: Exception) -> None:
         _LOGGER.error("Error in Risco library", exc_info=error)
+        if isinstance(error, ConnectionResetError) and not hass.is_stopping:
+            _LOGGER.debug("Disconnected from panel. Reloading integration")
+            hass.async_create_task(hass.config_entries.async_reload(entry.entry_id))
 
     entry.async_on_unload(risco.add_error_handler(_error))
 
diff --git a/homeassistant/components/risco/manifest.json b/homeassistant/components/risco/manifest.json
index 25520d1f96e..372d8e0c629 100644
--- a/homeassistant/components/risco/manifest.json
+++ b/homeassistant/components/risco/manifest.json
@@ -7,5 +7,5 @@
   "iot_class": "local_push",
   "loggers": ["pyrisco"],
   "quality_scale": "platinum",
-  "requirements": ["pyrisco==0.6.2"]
+  "requirements": ["pyrisco==0.6.4"]
 }
diff --git a/requirements_all.txt b/requirements_all.txt
index 5356fa75d9b..3de5ee532da 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -2126,7 +2126,7 @@ pyrecswitch==1.0.2
 pyrepetierng==0.1.0
 
 # homeassistant.components.risco
-pyrisco==0.6.2
+pyrisco==0.6.4
 
 # homeassistant.components.rituals_perfume_genie
 pyrituals==0.0.6
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index c33072d9b79..496eff4d327 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -1671,7 +1671,7 @@ pyqwikswitch==0.93
 pyrainbird==6.0.1
 
 # homeassistant.components.risco
-pyrisco==0.6.2
+pyrisco==0.6.4
 
 # homeassistant.components.rituals_perfume_genie
 pyrituals==0.0.6
diff --git a/tests/components/risco/test_init.py b/tests/components/risco/test_init.py
new file mode 100644
index 00000000000..4f604c75fe9
--- /dev/null
+++ b/tests/components/risco/test_init.py
@@ -0,0 +1,30 @@
+"""Tests for the Risco integration."""
+
+from unittest.mock import patch
+
+import pytest
+
+from homeassistant.core import HomeAssistant
+
+
+@pytest.fixture
+def mock_error_handler():
+    """Create a mock for add_error_handler."""
+    with patch("homeassistant.components.risco.RiscoLocal.add_error_handler") as mock:
+        yield mock
+
+
+async def test_connection_reset(
+    hass: HomeAssistant, two_zone_local, mock_error_handler, setup_risco_local
+) -> None:
+    """Test config entry reload on connection reset."""
+
+    callback = mock_error_handler.call_args.args[0]
+    assert callback is not None
+
+    with patch.object(hass.config_entries, "async_reload") as reload_mock:
+        await callback(Exception())
+        reload_mock.assert_not_awaited()
+
+        await callback(ConnectionResetError())
+        reload_mock.assert_awaited_once()