diff --git a/homeassistant/components/aemet/__init__.py b/homeassistant/components/aemet/__init__.py
index bcddce5868c..13e636b2196 100644
--- a/homeassistant/components/aemet/__init__.py
+++ b/homeassistant/components/aemet/__init__.py
@@ -1,5 +1,6 @@
 """The AEMET OpenData component."""
 
+import asyncio
 import logging
 
 from aemet_opendata.exceptions import TownNotFound
@@ -8,6 +9,7 @@ from aemet_opendata.interface import AEMET, ConnectionOptions
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import CONF_API_KEY, CONF_LATITUDE, CONF_LONGITUDE, CONF_NAME
 from homeassistant.core import HomeAssistant
+from homeassistant.exceptions import ConfigEntryNotReady
 from homeassistant.helpers import aiohttp_client
 
 from .const import (
@@ -37,6 +39,8 @@ async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
     except TownNotFound as err:
         _LOGGER.error(err)
         return False
+    except asyncio.TimeoutError as err:
+        raise ConfigEntryNotReady("AEMET OpenData API timed out") from err
 
     weather_coordinator = WeatherUpdateCoordinator(hass, aemet)
     await weather_coordinator.async_config_entry_first_refresh()
diff --git a/tests/components/aemet/test_init.py b/tests/components/aemet/test_init.py
index 5055575e3fe..9389acf07c9 100644
--- a/tests/components/aemet/test_init.py
+++ b/tests/components/aemet/test_init.py
@@ -1,4 +1,5 @@
 """Define tests for the AEMET OpenData init."""
+import asyncio
 from unittest.mock import patch
 
 from freezegun.api import FrozenDateTimeFactory
@@ -70,3 +71,29 @@ async def test_init_town_not_found(
         config_entry.add_to_hass(hass)
 
         assert await hass.config_entries.async_setup(config_entry.entry_id) is False
+
+
+async def test_init_api_timeout(
+    hass: HomeAssistant,
+    freezer: FrozenDateTimeFactory,
+) -> None:
+    """Test API timeouts when loading the AEMET integration."""
+
+    hass.config.set_time_zone("UTC")
+    freezer.move_to("2021-01-09 12:00:00+00:00")
+    with patch(
+        "homeassistant.components.aemet.AEMET.api_call",
+        side_effect=asyncio.TimeoutError,
+    ):
+        config_entry = MockConfigEntry(
+            domain=DOMAIN,
+            data={
+                CONF_API_KEY: "api-key",
+                CONF_LATITUDE: "0.0",
+                CONF_LONGITUDE: "0.0",
+                CONF_NAME: "AEMET",
+            },
+        )
+        config_entry.add_to_hass(hass)
+
+        assert await hass.config_entries.async_setup(config_entry.entry_id) is False