diff --git a/homeassistant/components/iron_os/coordinator.py b/homeassistant/components/iron_os/coordinator.py
index e8424478d86..aefb14b689b 100644
--- a/homeassistant/components/iron_os/coordinator.py
+++ b/homeassistant/components/iron_os/coordinator.py
@@ -46,4 +46,8 @@ class IronOSCoordinator(DataUpdateCoordinator[LiveDataResponse]):
     async def _async_setup(self) -> None:
         """Set up the coordinator."""
 
-        self.device_info = await self.device.get_device_info()
+        try:
+            self.device_info = await self.device.get_device_info()
+
+        except CommunicationError as e:
+            raise UpdateFailed("Cannot connect to device") from e
diff --git a/tests/components/iron_os/test_init.py b/tests/components/iron_os/test_init.py
new file mode 100644
index 00000000000..fb0a782ea36
--- /dev/null
+++ b/tests/components/iron_os/test_init.py
@@ -0,0 +1,26 @@
+"""Test init of IronOS integration."""
+
+from unittest.mock import AsyncMock
+
+from pynecil import CommunicationError
+import pytest
+
+from homeassistant.config_entries import ConfigEntryState
+from homeassistant.core import HomeAssistant
+
+from tests.common import MockConfigEntry
+
+
+@pytest.mark.usefixtures("ble_device")
+async def test_setup_config_entry_not_ready(
+    hass: HomeAssistant,
+    config_entry: MockConfigEntry,
+    mock_pynecil: AsyncMock,
+) -> None:
+    """Test config entry not ready."""
+    mock_pynecil.get_device_info.side_effect = CommunicationError
+    config_entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert config_entry.state is ConfigEntryState.SETUP_RETRY