diff --git a/homeassistant/components/feedreader/coordinator.py b/homeassistant/components/feedreader/coordinator.py
index f45b303946a..fc338d63268 100644
--- a/homeassistant/components/feedreader/coordinator.py
+++ b/homeassistant/components/feedreader/coordinator.py
@@ -14,6 +14,7 @@ import feedparser
 
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.core import HomeAssistant, callback
+from homeassistant.exceptions import ConfigEntryNotReady
 from homeassistant.helpers.storage import Store
 from homeassistant.helpers.update_coordinator import DataUpdateCoordinator, UpdateFailed
 from homeassistant.util import dt as dt_util
@@ -101,7 +102,11 @@ class FeedReaderCoordinator(
 
     async def async_setup(self) -> None:
         """Set up the feed manager."""
-        feed = await self._async_fetch_feed()
+        try:
+            feed = await self._async_fetch_feed()
+        except UpdateFailed as err:
+            raise ConfigEntryNotReady from err
+
         self.logger.debug("Feed data fetched from %s : %s", self.url, feed["feed"])
         if feed_author := feed["feed"].get("author"):
             self.feed_author = html.unescape(feed_author)
diff --git a/tests/components/feedreader/test_init.py b/tests/components/feedreader/test_init.py
index bc7a66dc86e..9a2575bf591 100644
--- a/tests/components/feedreader/test_init.py
+++ b/tests/components/feedreader/test_init.py
@@ -11,6 +11,7 @@ from freezegun.api import FrozenDateTimeFactory
 import pytest
 
 from homeassistant.components.feedreader.const import DOMAIN
+from homeassistant.config_entries import ConfigEntryState
 from homeassistant.core import Event, HomeAssistant
 from homeassistant.helpers import device_registry as dr
 import homeassistant.util.dt as dt_util
@@ -52,6 +53,23 @@ async def test_setup(
     assert not events
 
 
+async def test_setup_error(
+    hass: HomeAssistant,
+    feed_one_event,
+) -> None:
+    """Test setup error."""
+    entry = create_mock_entry(VALID_CONFIG_DEFAULT)
+    entry.add_to_hass(hass)
+    with patch(
+        "homeassistant.components.feedreader.coordinator.feedparser.http.get"
+    ) as feedreader:
+        feedreader.side_effect = urllib.error.URLError("Test")
+        feedreader.return_value = feed_one_event
+        await hass.config_entries.async_setup(entry.entry_id)
+
+    assert entry.state is ConfigEntryState.SETUP_RETRY
+
+
 async def test_storage_data_writing(
     hass: HomeAssistant,
     events: list[Event],