diff --git a/homeassistant/components/onewire/__init__.py b/homeassistant/components/onewire/__init__.py
index 753d30e5958..70a0a5fc856 100644
--- a/homeassistant/components/onewire/__init__.py
+++ b/homeassistant/components/onewire/__init__.py
@@ -1,6 +1,8 @@
 """The 1-Wire component."""
 import logging
 
+from pyownet import protocol
+
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.core import HomeAssistant
 from homeassistant.exceptions import ConfigEntryNotReady
@@ -18,7 +20,10 @@ async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
     onewirehub = OneWireHub(hass)
     try:
         await onewirehub.initialize(entry)
-    except CannotConnect as exc:
+    except (
+        CannotConnect,  # Failed to connect to the server
+        protocol.OwnetError,  # Connected to server, but failed to list the devices
+    ) as exc:
         raise ConfigEntryNotReady() from exc
 
     hass.data[DOMAIN][entry.entry_id] = onewirehub
diff --git a/tests/components/onewire/test_init.py b/tests/components/onewire/test_init.py
index e3a3fdcc564..763cdc9c071 100644
--- a/tests/components/onewire/test_init.py
+++ b/tests/components/onewire/test_init.py
@@ -1,6 +1,8 @@
 """Tests for 1-Wire config flow."""
 import logging
+from unittest.mock import MagicMock
 
+from pyownet import protocol
 import pytest
 
 from homeassistant.components.onewire.const import DOMAIN
@@ -19,6 +21,20 @@ async def test_owserver_connect_failure(hass: HomeAssistant, config_entry: Confi
     assert not hass.data.get(DOMAIN)
 
 
+async def test_owserver_listing_failure(
+    hass: HomeAssistant, config_entry: ConfigEntry, owproxy: MagicMock
+):
+    """Test listing failure raises ConfigEntryNotReady."""
+    owproxy.return_value.dir.side_effect = protocol.OwnetError()
+
+    await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert len(hass.config_entries.async_entries(DOMAIN)) == 1
+    assert config_entry.state is ConfigEntryState.SETUP_RETRY
+    assert not hass.data.get(DOMAIN)
+
+
 @pytest.mark.usefixtures("owproxy")
 async def test_unload_entry(hass: HomeAssistant, config_entry: ConfigEntry):
     """Test being able to unload an entry."""