diff --git a/homeassistant/components/modbus/binary_sensor.py b/homeassistant/components/modbus/binary_sensor.py
index b50d21faf42..97ade53762b 100644
--- a/homeassistant/components/modbus/binary_sensor.py
+++ b/homeassistant/components/modbus/binary_sensor.py
@@ -121,7 +121,7 @@ class ModbusBinarySensor(BasePlatform, RestoreEntity, BinarySensorEntity):
         else:
             self._attr_available = True
             if self._input_type in (CALL_TYPE_COIL, CALL_TYPE_DISCRETE):
-                self._result = result.bits
+                self._result = [int(bit) for bit in result.bits]
             else:
                 self._result = result.registers
             self._attr_is_on = bool(self._result[0] & 1)
diff --git a/homeassistant/components/modbus/manifest.json b/homeassistant/components/modbus/manifest.json
index 7cba4692eb6..fc25a329c11 100644
--- a/homeassistant/components/modbus/manifest.json
+++ b/homeassistant/components/modbus/manifest.json
@@ -5,5 +5,5 @@
   "documentation": "https://www.home-assistant.io/integrations/modbus",
   "iot_class": "local_polling",
   "loggers": ["pymodbus"],
-  "requirements": ["pymodbus==3.6.9"]
+  "requirements": ["pymodbus==3.7.4"]
 }
diff --git a/homeassistant/components/modbus/modbus.py b/homeassistant/components/modbus/modbus.py
index 18d91f8dd3b..efce44d7979 100644
--- a/homeassistant/components/modbus/modbus.py
+++ b/homeassistant/components/modbus/modbus.py
@@ -14,8 +14,8 @@ from pymodbus.client import (
     AsyncModbusUdpClient,
 )
 from pymodbus.exceptions import ModbusException
-from pymodbus.pdu import ModbusResponse
-from pymodbus.transaction import ModbusAsciiFramer, ModbusRtuFramer, ModbusSocketFramer
+from pymodbus.framer import FramerType
+from pymodbus.pdu import ModbusPDU
 import voluptuous as vol
 
 from homeassistant.const import (
@@ -265,14 +265,13 @@ class ModbusHub:
             "port": client_config[CONF_PORT],
             "timeout": client_config[CONF_TIMEOUT],
             "retries": 3,
-            "retry_on_empty": True,
         }
         if self._config_type == SERIAL:
             # serial configuration
             if client_config[CONF_METHOD] == "ascii":
-                self._pb_params["framer"] = ModbusAsciiFramer
+                self._pb_params["framer"] = FramerType.ASCII
             else:
-                self._pb_params["framer"] = ModbusRtuFramer
+                self._pb_params["framer"] = FramerType.RTU
             self._pb_params.update(
                 {
                     "baudrate": client_config[CONF_BAUDRATE],
@@ -285,9 +284,9 @@ class ModbusHub:
             # network configuration
             self._pb_params["host"] = client_config[CONF_HOST]
             if self._config_type == RTUOVERTCP:
-                self._pb_params["framer"] = ModbusRtuFramer
+                self._pb_params["framer"] = FramerType.RTU
             else:
-                self._pb_params["framer"] = ModbusSocketFramer
+                self._pb_params["framer"] = FramerType.SOCKET
 
         if CONF_MSG_WAIT in client_config:
             self._msg_wait = client_config[CONF_MSG_WAIT] / 1000
@@ -370,12 +369,12 @@ class ModbusHub:
 
     async def low_level_pb_call(
         self, slave: int | None, address: int, value: int | list[int], use_call: str
-    ) -> ModbusResponse | None:
+    ) -> ModbusPDU | None:
         """Call sync. pymodbus."""
         kwargs = {"slave": slave} if slave else {}
         entry = self._pb_request[use_call]
         try:
-            result: ModbusResponse = await entry.func(address, value, **kwargs)
+            result: ModbusPDU = await entry.func(address, value, **kwargs)
         except ModbusException as exception_error:
             error = f"Error: device: {slave} address: {address} -> {exception_error!s}"
             self._log_error(error)
@@ -403,7 +402,7 @@ class ModbusHub:
         address: int,
         value: int | list[int],
         use_call: str,
-    ) -> ModbusResponse | None:
+    ) -> ModbusPDU | None:
         """Convert async to sync pymodbus call."""
         if self._config_delay:
             return None
diff --git a/requirements_all.txt b/requirements_all.txt
index 011fedd5a5f..e4b9787c641 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -2091,7 +2091,7 @@ pymitv==1.4.3
 pymochad==0.2.0
 
 # homeassistant.components.modbus
-pymodbus==3.6.9
+pymodbus==3.7.4
 
 # homeassistant.components.monoprice
 pymonoprice==0.4
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 0f94266313c..58f6d599825 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -1696,7 +1696,7 @@ pymicro-vad==1.0.1
 pymochad==0.2.0
 
 # homeassistant.components.modbus
-pymodbus==3.6.9
+pymodbus==3.7.4
 
 # homeassistant.components.monoprice
 pymonoprice==0.4
diff --git a/tests/components/modbus/test_init.py b/tests/components/modbus/test_init.py
index 3b8a76f5606..0cfa7ba8b24 100644
--- a/tests/components/modbus/test_init.py
+++ b/tests/components/modbus/test_init.py
@@ -19,7 +19,7 @@ from unittest import mock
 
 from freezegun.api import FrozenDateTimeFactory
 from pymodbus.exceptions import ModbusException
-from pymodbus.pdu import ExceptionResponse, IllegalFunctionRequest
+from pymodbus.pdu import ExceptionResponse
 import pytest
 import voluptuous as vol
 
@@ -820,7 +820,6 @@ SERVICE = "service"
     [
         {VALUE: ReadResult([0x0001]), DATA: ""},
         {VALUE: ExceptionResponse(0x06), DATA: "Pymodbus:"},
-        {VALUE: IllegalFunctionRequest(0x06), DATA: "Pymodbus:"},
         {VALUE: ModbusException("fail write_"), DATA: "Pymodbus:"},
     ],
 )
@@ -928,7 +927,6 @@ async def mock_modbus_read_pymodbus_fixture(
     ("do_return", "do_exception", "do_expect_state", "do_expect_value"),
     [
         (ReadResult([1]), None, STATE_ON, "1"),
-        (IllegalFunctionRequest(0x99), None, STATE_UNAVAILABLE, STATE_UNAVAILABLE),
         (ExceptionResponse(0x99), None, STATE_UNAVAILABLE, STATE_UNAVAILABLE),
         (
             ReadResult([1]),