diff --git a/homeassistant/components/govee_light_local/__init__.py b/homeassistant/components/govee_light_local/__init__.py
index d2537fb5c9b..088f9bae22b 100644
--- a/homeassistant/components/govee_light_local/__init__.py
+++ b/homeassistant/components/govee_light_local/__init__.py
@@ -3,6 +3,11 @@
 from __future__ import annotations
 
 import asyncio
+from contextlib import suppress
+from errno import EADDRINUSE
+import logging
+
+from govee_local_api.controller import LISTENING_PORT
 
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import Platform
@@ -14,14 +19,29 @@ from .coordinator import GoveeLocalApiCoordinator
 
 PLATFORMS: list[Platform] = [Platform.LIGHT]
 
+_LOGGER = logging.getLogger(__name__)
+
 
 async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
     """Set up Govee light local from a config entry."""
 
     coordinator: GoveeLocalApiCoordinator = GoveeLocalApiCoordinator(hass=hass)
-    entry.async_on_unload(coordinator.cleanup)
 
-    await coordinator.start()
+    async def await_cleanup():
+        cleanup_complete: asyncio.Event = coordinator.cleanup()
+        with suppress(TimeoutError):
+            await asyncio.wait_for(cleanup_complete.wait(), 1)
+
+    entry.async_on_unload(await_cleanup)
+
+    try:
+        await coordinator.start()
+    except OSError as ex:
+        if ex.errno != EADDRINUSE:
+            _LOGGER.error("Start failed, errno: %d", ex.errno)
+            return False
+        _LOGGER.error("Port %s already in use", LISTENING_PORT)
+        raise ConfigEntryNotReady from ex
 
     await coordinator.async_config_entry_first_refresh()
 
diff --git a/homeassistant/components/govee_light_local/config_flow.py b/homeassistant/components/govee_light_local/config_flow.py
index d31bfed0579..da70d44688b 100644
--- a/homeassistant/components/govee_light_local/config_flow.py
+++ b/homeassistant/components/govee_light_local/config_flow.py
@@ -3,6 +3,7 @@
 from __future__ import annotations
 
 import asyncio
+from contextlib import suppress
 import logging
 
 from govee_local_api import GoveeController
@@ -39,7 +40,11 @@ async def _async_has_devices(hass: HomeAssistant) -> bool:
         update_enabled=False,
     )
 
-    await controller.start()
+    try:
+        await controller.start()
+    except OSError as ex:
+        _LOGGER.error("Start failed, errno: %d", ex.errno)
+        return False
 
     try:
         async with asyncio.timeout(delay=DISCOVERY_TIMEOUT):
@@ -49,7 +54,9 @@ async def _async_has_devices(hass: HomeAssistant) -> bool:
         _LOGGER.debug("No devices found")
 
     devices_count = len(controller.devices)
-    controller.cleanup()
+    cleanup_complete: asyncio.Event = controller.cleanup()
+    with suppress(TimeoutError):
+        await asyncio.wait_for(cleanup_complete.wait(), 1)
 
     return devices_count > 0
 
diff --git a/homeassistant/components/govee_light_local/coordinator.py b/homeassistant/components/govee_light_local/coordinator.py
index 79b572e89ae..64119f1871c 100644
--- a/homeassistant/components/govee_light_local/coordinator.py
+++ b/homeassistant/components/govee_light_local/coordinator.py
@@ -1,5 +1,6 @@
 """Coordinator for Govee light local."""
 
+import asyncio
 from collections.abc import Callable
 import logging
 
@@ -54,9 +55,9 @@ class GoveeLocalApiCoordinator(DataUpdateCoordinator[list[GoveeDevice]]):
         """Set discovery callback for automatic Govee light discovery."""
         self._controller.set_device_discovered_callback(callback)
 
-    def cleanup(self) -> None:
+    def cleanup(self) -> asyncio.Event:
         """Stop and cleanup the cooridinator."""
-        self._controller.cleanup()
+        return self._controller.cleanup()
 
     async def turn_on(self, device: GoveeDevice) -> None:
         """Turn on the light."""
diff --git a/homeassistant/components/govee_light_local/manifest.json b/homeassistant/components/govee_light_local/manifest.json
index df72a082190..93a19408182 100644
--- a/homeassistant/components/govee_light_local/manifest.json
+++ b/homeassistant/components/govee_light_local/manifest.json
@@ -6,5 +6,5 @@
   "dependencies": ["network"],
   "documentation": "https://www.home-assistant.io/integrations/govee_light_local",
   "iot_class": "local_push",
-  "requirements": ["govee-local-api==1.4.5"]
+  "requirements": ["govee-local-api==1.5.0"]
 }
diff --git a/requirements_all.txt b/requirements_all.txt
index cd2e79e3b31..db344424cd9 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -986,7 +986,7 @@ gotailwind==0.2.3
 govee-ble==0.31.2
 
 # homeassistant.components.govee_light_local
-govee-local-api==1.4.5
+govee-local-api==1.5.0
 
 # homeassistant.components.remote_rpi_gpio
 gpiozero==1.6.2
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index d42fa0be924..592ad3ff8b7 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -809,7 +809,7 @@ gotailwind==0.2.3
 govee-ble==0.31.2
 
 # homeassistant.components.govee_light_local
-govee-local-api==1.4.5
+govee-local-api==1.5.0
 
 # homeassistant.components.gpsd
 gps3==0.33.3
diff --git a/tests/components/govee_light_local/conftest.py b/tests/components/govee_light_local/conftest.py
index 5976d3c1b74..1c0f678e485 100644
--- a/tests/components/govee_light_local/conftest.py
+++ b/tests/components/govee_light_local/conftest.py
@@ -1,7 +1,8 @@
 """Tests configuration for Govee Local API."""
 
+from asyncio import Event
 from collections.abc import Generator
-from unittest.mock import AsyncMock, patch
+from unittest.mock import AsyncMock, MagicMock, patch
 
 from govee_local_api import GoveeLightCapability
 import pytest
@@ -14,6 +15,8 @@ def fixture_mock_govee_api():
     """Set up Govee Local API fixture."""
     mock_api = AsyncMock(spec=GoveeController)
     mock_api.start = AsyncMock()
+    mock_api.cleanup = MagicMock(return_value=Event())
+    mock_api.cleanup.return_value.set()
     mock_api.turn_on_off = AsyncMock()
     mock_api.set_brightness = AsyncMock()
     mock_api.set_color = AsyncMock()
diff --git a/tests/components/govee_light_local/test_config_flow.py b/tests/components/govee_light_local/test_config_flow.py
index 1f935f18530..2e7144fae3a 100644
--- a/tests/components/govee_light_local/test_config_flow.py
+++ b/tests/components/govee_light_local/test_config_flow.py
@@ -1,5 +1,6 @@
 """Test Govee light local config flow."""
 
+from errno import EADDRINUSE
 from unittest.mock import AsyncMock, patch
 
 from govee_local_api import GoveeDevice
@@ -12,6 +13,18 @@ from homeassistant.data_entry_flow import FlowResultType
 from .conftest import DEFAULT_CAPABILITEIS
 
 
+def _get_devices(mock_govee_api: AsyncMock) -> list[GoveeDevice]:
+    return [
+        GoveeDevice(
+            controller=mock_govee_api,
+            ip="192.168.1.100",
+            fingerprint="asdawdqwdqwd1",
+            sku="H615A",
+            capabilities=DEFAULT_CAPABILITEIS,
+        )
+    ]
+
+
 async def test_creating_entry_has_no_devices(
     hass: HomeAssistant, mock_setup_entry: AsyncMock, mock_govee_api: AsyncMock
 ) -> None:
@@ -52,15 +65,7 @@ async def test_creating_entry_has_with_devices(
 ) -> None:
     """Test setting up Govee with devices."""
 
-    mock_govee_api.devices = [
-        GoveeDevice(
-            controller=mock_govee_api,
-            ip="192.168.1.100",
-            fingerprint="asdawdqwdqwd1",
-            sku="H615A",
-            capabilities=DEFAULT_CAPABILITEIS,
-        )
-    ]
+    mock_govee_api.devices = _get_devices(mock_govee_api)
 
     with patch(
         "homeassistant.components.govee_light_local.config_flow.GoveeController",
@@ -80,3 +85,35 @@ async def test_creating_entry_has_with_devices(
 
         mock_govee_api.start.assert_awaited_once()
         mock_setup_entry.assert_awaited_once()
+
+
+async def test_creating_entry_errno(
+    hass: HomeAssistant,
+    mock_setup_entry: AsyncMock,
+    mock_govee_api: AsyncMock,
+) -> None:
+    """Test setting up Govee with devices."""
+
+    e = OSError()
+    e.errno = EADDRINUSE
+    mock_govee_api.start.side_effect = e
+    mock_govee_api.devices = _get_devices(mock_govee_api)
+
+    with patch(
+        "homeassistant.components.govee_light_local.config_flow.GoveeController",
+        return_value=mock_govee_api,
+    ):
+        result = await hass.config_entries.flow.async_init(
+            DOMAIN, context={"source": config_entries.SOURCE_USER}
+        )
+
+        # Confirmation form
+        assert result["type"] is FlowResultType.FORM
+
+        result = await hass.config_entries.flow.async_configure(result["flow_id"], {})
+        assert result["type"] is FlowResultType.ABORT
+
+        await hass.async_block_till_done()
+
+        assert mock_govee_api.start.call_count == 1
+        mock_setup_entry.assert_not_awaited()
diff --git a/tests/components/govee_light_local/test_light.py b/tests/components/govee_light_local/test_light.py
index 3bc9da77fe5..4a1125643fa 100644
--- a/tests/components/govee_light_local/test_light.py
+++ b/tests/components/govee_light_local/test_light.py
@@ -1,5 +1,6 @@
 """Test Govee light local."""
 
+from errno import EADDRINUSE, ENETDOWN
 from unittest.mock import AsyncMock, MagicMock, patch
 
 from govee_local_api import GoveeDevice
@@ -138,6 +139,62 @@ async def test_light_setup_retry(
         assert entry.state is ConfigEntryState.SETUP_RETRY
 
 
+async def test_light_setup_retry_eaddrinuse(
+    hass: HomeAssistant, mock_govee_api: AsyncMock
+) -> None:
+    """Test adding an unknown device."""
+
+    mock_govee_api.start.side_effect = OSError()
+    mock_govee_api.start.side_effect.errno = EADDRINUSE
+    mock_govee_api.devices = [
+        GoveeDevice(
+            controller=mock_govee_api,
+            ip="192.168.1.100",
+            fingerprint="asdawdqwdqwd",
+            sku="H615A",
+            capabilities=DEFAULT_CAPABILITEIS,
+        )
+    ]
+
+    with patch(
+        "homeassistant.components.govee_light_local.coordinator.GoveeController",
+        return_value=mock_govee_api,
+    ):
+        entry = MockConfigEntry(domain=DOMAIN)
+        entry.add_to_hass(hass)
+
+        await hass.config_entries.async_setup(entry.entry_id)
+        assert entry.state is ConfigEntryState.SETUP_RETRY
+
+
+async def test_light_setup_error(
+    hass: HomeAssistant, mock_govee_api: AsyncMock
+) -> None:
+    """Test adding an unknown device."""
+
+    mock_govee_api.start.side_effect = OSError()
+    mock_govee_api.start.side_effect.errno = ENETDOWN
+    mock_govee_api.devices = [
+        GoveeDevice(
+            controller=mock_govee_api,
+            ip="192.168.1.100",
+            fingerprint="asdawdqwdqwd",
+            sku="H615A",
+            capabilities=DEFAULT_CAPABILITEIS,
+        )
+    ]
+
+    with patch(
+        "homeassistant.components.govee_light_local.coordinator.GoveeController",
+        return_value=mock_govee_api,
+    ):
+        entry = MockConfigEntry(domain=DOMAIN)
+        entry.add_to_hass(hass)
+
+        await hass.config_entries.async_setup(entry.entry_id)
+        assert entry.state is ConfigEntryState.SETUP_ERROR
+
+
 async def test_light_on_off(hass: HomeAssistant, mock_govee_api: MagicMock) -> None:
     """Test adding a known device."""