diff --git a/homeassistant/components/airzone_cloud/manifest.json b/homeassistant/components/airzone_cloud/manifest.json
index b1d3400c9be..8bfc5bb8d21 100644
--- a/homeassistant/components/airzone_cloud/manifest.json
+++ b/homeassistant/components/airzone_cloud/manifest.json
@@ -6,5 +6,5 @@
   "documentation": "https://www.home-assistant.io/integrations/airzone_cloud",
   "iot_class": "cloud_push",
   "loggers": ["aioairzone_cloud"],
-  "requirements": ["aioairzone-cloud==0.6.6"]
+  "requirements": ["aioairzone-cloud==0.6.7"]
 }
diff --git a/requirements_all.txt b/requirements_all.txt
index 782a5708ef1..1a6fee424d4 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -176,7 +176,7 @@ aio-georss-gdacs==0.10
 aioairq==0.3.2
 
 # homeassistant.components.airzone_cloud
-aioairzone-cloud==0.6.6
+aioairzone-cloud==0.6.7
 
 # homeassistant.components.airzone
 aioairzone==0.9.5
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 6004c059db6..64e10858bd1 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -164,7 +164,7 @@ aio-georss-gdacs==0.10
 aioairq==0.3.2
 
 # homeassistant.components.airzone_cloud
-aioairzone-cloud==0.6.6
+aioairzone-cloud==0.6.7
 
 # homeassistant.components.airzone
 aioairzone==0.9.5
diff --git a/tests/components/airzone_cloud/test_init.py b/tests/components/airzone_cloud/test_init.py
index b5b4bcebaa8..6cab0be6e7c 100644
--- a/tests/components/airzone_cloud/test_init.py
+++ b/tests/components/airzone_cloud/test_init.py
@@ -2,6 +2,8 @@
 
 from unittest.mock import patch
 
+from aioairzone_cloud.exceptions import AirzoneTimeout
+
 from homeassistant.components.airzone_cloud.const import DOMAIN
 from homeassistant.config_entries import ConfigEntryState
 from homeassistant.core import HomeAssistant
@@ -50,3 +52,20 @@ async def test_unload_entry(hass: HomeAssistant) -> None:
         await hass.config_entries.async_unload(config_entry.entry_id)
         await hass.async_block_till_done()
         assert config_entry.state is ConfigEntryState.NOT_LOADED
+
+
+async def test_init_api_timeout(hass: HomeAssistant) -> None:
+    """Test API timeouts when loading the Airzone Cloud integration."""
+
+    with patch(
+        "homeassistant.components.airzone_cloud.AirzoneCloudApi.login",
+        side_effect=AirzoneTimeout,
+    ):
+        config_entry = MockConfigEntry(
+            data=CONFIG,
+            domain=DOMAIN,
+            unique_id="airzone_cloud_unique_id",
+        )
+        config_entry.add_to_hass(hass)
+
+        assert await hass.config_entries.async_setup(config_entry.entry_id) is False