diff --git a/tests/test_bootstrap.py b/tests/test_bootstrap.py
index f9c8647bd6e..9599e249f40 100644
--- a/tests/test_bootstrap.py
+++ b/tests/test_bootstrap.py
@@ -1067,3 +1067,48 @@ async def test_bootstrap_does_not_preload_stage_1_integrations() -> None:
     # as a side effect of importing the pre-imports
     for integration in bootstrap.STAGE_1_INTEGRATIONS:
         assert f"homeassistant.components.{integration}" not in decoded_stdout
+
+
+@pytest.mark.parametrize("load_registries", [False])
+async def test_cancellation_does_not_leak_upward_from_async_setup(
+    hass: HomeAssistant,
+    caplog: pytest.LogCaptureFixture,
+    enable_custom_integrations: None,
+) -> None:
+    """Test setting up an integration that raises asyncio.CancelledError."""
+    await bootstrap.async_setup_multi_components(
+        hass, {"test_package_raises_cancelled_error"}, {}
+    )
+    await hass.async_block_till_done()
+
+    assert (
+        "Error during setup of component test_package_raises_cancelled_error"
+        in caplog.text
+    )
+
+
+@pytest.mark.parametrize("load_registries", [False])
+async def test_cancellation_does_not_leak_upward_from_async_setup_entry(
+    hass: HomeAssistant,
+    caplog: pytest.LogCaptureFixture,
+    enable_custom_integrations: None,
+) -> None:
+    """Test setting up an integration that raises asyncio.CancelledError."""
+    entry = MockConfigEntry(
+        domain="test_package_raises_cancelled_error_config_entry", data={}
+    )
+    entry.add_to_hass(hass)
+    await bootstrap.async_setup_multi_components(
+        hass, {"test_package_raises_cancelled_error_config_entry"}, {}
+    )
+    await hass.async_block_till_done()
+
+    await bootstrap.async_setup_multi_components(hass, {"test_package"}, {})
+    await hass.async_block_till_done()
+    assert (
+        "Error setting up entry Mock Title for test_package_raises_cancelled_error_config_entry"
+        in caplog.text
+    )
+
+    assert "test_package" in hass.config.components
+    assert "test_package_raises_cancelled_error_config_entry" in hass.config.components
diff --git a/tests/testing_config/custom_components/test_package_raises_cancelled_error/__init__.py b/tests/testing_config/custom_components/test_package_raises_cancelled_error/__init__.py
new file mode 100644
index 00000000000..e77df90a00b
--- /dev/null
+++ b/tests/testing_config/custom_components/test_package_raises_cancelled_error/__init__.py
@@ -0,0 +1,8 @@
+"""Provide a mock package component."""
+import asyncio
+
+
+async def async_setup(hass, config):
+    """Mock a successful setup."""
+    asyncio.current_task().cancel()
+    await asyncio.sleep(0)
diff --git a/tests/testing_config/custom_components/test_package_raises_cancelled_error/manifest.json b/tests/testing_config/custom_components/test_package_raises_cancelled_error/manifest.json
new file mode 100644
index 00000000000..930c4d2ae9e
--- /dev/null
+++ b/tests/testing_config/custom_components/test_package_raises_cancelled_error/manifest.json
@@ -0,0 +1,10 @@
+{
+  "domain": "test_package_raises_cancelled_error",
+  "name": "Test Package that raises asyncio.CancelledError",
+  "documentation": "http://test-package.io",
+  "requirements": [],
+  "dependencies": [],
+  "codeowners": [],
+  "config_flow": false,
+  "version": "1.2.3"
+}
diff --git a/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/__init__.py b/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/__init__.py
new file mode 100644
index 00000000000..1283e79f21b
--- /dev/null
+++ b/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/__init__.py
@@ -0,0 +1,13 @@
+"""Provide a mock package component."""
+import asyncio
+
+
+async def async_setup(hass, config):
+    """Mock a successful setup."""
+    return True
+
+
+async def async_setup_entry(hass, entry):
+    """Mock an unsuccessful entry setup."""
+    asyncio.current_task().cancel()
+    await asyncio.sleep(0)
diff --git a/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/config_flow.py b/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/config_flow.py
new file mode 100644
index 00000000000..7277bac343d
--- /dev/null
+++ b/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/config_flow.py
@@ -0,0 +1,17 @@
+"""Config flow."""
+
+from homeassistant.config_entries import ConfigFlow
+from homeassistant.core import HomeAssistant
+
+
+class MockConfigFlow(
+    ConfigFlow, domain="test_package_raises_cancelled_error_config_entry"
+):
+    """Mock config flow."""
+
+    pass
+
+
+async def _async_has_devices(hass: HomeAssistant) -> bool:
+    """Return if there are devices that can be discovered."""
+    return True
diff --git a/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/manifest.json b/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/manifest.json
new file mode 100644
index 00000000000..2ce303ca687
--- /dev/null
+++ b/tests/testing_config/custom_components/test_package_raises_cancelled_error_config_entry/manifest.json
@@ -0,0 +1,10 @@
+{
+  "domain": "test_package_raises_cancelled_error_config_entry",
+  "name": "Test Package that raises asyncio.CancelledError in async_setup_entry",
+  "documentation": "http://test-package.io",
+  "requirements": [],
+  "dependencies": [],
+  "codeowners": [],
+  "config_flow": true,
+  "version": "1.2.3"
+}