diff --git a/homeassistant/components/generic/diagnostics.py b/homeassistant/components/generic/diagnostics.py
index 00be287f053..39d6a81ad88 100644
--- a/homeassistant/components/generic/diagnostics.py
+++ b/homeassistant/components/generic/diagnostics.py
@@ -21,12 +21,12 @@ TO_REDACT = {
 # A very similar redact function is in components.sql.  Possible to be made common.
 def redact_url(data: str) -> str:
     """Redact credentials from string url."""
-    url_in = yarl.URL(data)
+    url = url_in = yarl.URL(data)
     if url_in.user:
-        url = url_in.with_user("****")
+        url = url.with_user("****")
     if url_in.password:
         url = url.with_password("****")
-    if url_in.path:
+    if url_in.path != "/":
         url = url.with_path("****")
     if url_in.query_string:
         url = url.with_query("****=****")
diff --git a/tests/components/generic/test_diagnostics.py b/tests/components/generic/test_diagnostics.py
index 2d4e4c536d8..d31503c11c8 100644
--- a/tests/components/generic/test_diagnostics.py
+++ b/tests/components/generic/test_diagnostics.py
@@ -1,5 +1,8 @@
 """Test generic (IP camera) diagnostics."""
+import pytest
+
 from homeassistant.components.diagnostics import REDACTED
+from homeassistant.components.generic.diagnostics import redact_url
 
 from tests.components.diagnostics import get_diagnostics_for_config_entry
 
@@ -22,3 +25,34 @@ async def test_entry_diagnostics(hass, hass_client, setup_entry):
             "content_type": "image/jpeg",
         },
     }
+
+
+@pytest.mark.parametrize(
+    ("url_in", "url_out_expected"),
+    [
+        (
+            "http://www.example.com",
+            "http://www.example.com",
+        ),
+        (
+            "http://fred:letmein1@www.example.com/image.php?key=secret2",
+            "http://****:****@www.example.com/****?****=****",
+        ),
+        (
+            "http://fred@www.example.com/image.php?key=secret2",
+            "http://****@www.example.com/****?****=****",
+        ),
+        (
+            "http://fred@www.example.com/image.php",
+            "http://****@www.example.com/****",
+        ),
+        (
+            "http://:letmein1@www.example.com",
+            "http://:****@www.example.com",
+        ),
+    ],
+)
+def test_redact_url(url_in, url_out_expected):
+    """Test url redaction."""
+    url_out = redact_url(url_in)
+    assert url_out == url_out_expected