diff --git a/homeassistant/components/lifx/config_flow.py b/homeassistant/components/lifx/config_flow.py
index fa83ff5c427..56a88c89806 100644
--- a/homeassistant/components/lifx/config_flow.py
+++ b/homeassistant/components/lifx/config_flow.py
@@ -119,9 +119,10 @@ class ConfigFlow(config_entries.ConfigFlow, domain=DOMAIN):
         assert self._discovered_device is not None
         discovered = self._discovered_device
         _LOGGER.debug(
-            "Confirming discovery: %s with serial %s",
+            "Confirming discovery of %s (%s) [%s]",
             discovered.label,
-            self.unique_id,
+            discovered.group,
+            discovered.mac_addr,
         )
         if user_input is not None or self._async_discovered_pending_migration():
             return self._async_create_entry_from_device(discovered)
@@ -130,8 +131,7 @@ class ConfigFlow(config_entries.ConfigFlow, domain=DOMAIN):
         self._set_confirm_only()
         placeholders = {
             "label": discovered.label,
-            "host": discovered.ip_addr,
-            "serial": self.unique_id,
+            "group": discovered.group,
         }
         self.context["title_placeholders"] = placeholders
         return self.async_show_form(
@@ -224,11 +224,13 @@ class ConfigFlow(config_entries.ConfigFlow, domain=DOMAIN):
             # get_hostfirmware required for MAC address offset
             # get_version required for lifx_features()
             # get_label required to log the name of the device
+            # get_group required to populate suggested areas
             messages = await asyncio.gather(
                 *[
                     async_execute_lifx(device.get_hostfirmware),
                     async_execute_lifx(device.get_version),
                     async_execute_lifx(device.get_label),
+                    async_execute_lifx(device.get_group),
                 ]
             )
         except asyncio.TimeoutError:
@@ -237,7 +239,7 @@ class ConfigFlow(config_entries.ConfigFlow, domain=DOMAIN):
             connection.async_stop()
         if (
             messages is None
-            or len(messages) != 3
+            or len(messages) != 4
             or lifx_features(device)["relays"] is True
             or device.host_firmware_version is None
         ):
diff --git a/homeassistant/components/lifx/coordinator.py b/homeassistant/components/lifx/coordinator.py
index 9343c3b7dad..1f01f9859c7 100644
--- a/homeassistant/components/lifx/coordinator.py
+++ b/homeassistant/components/lifx/coordinator.py
@@ -173,6 +173,8 @@ class LIFXUpdateCoordinator(DataUpdateCoordinator):
                 self.device.get_hostfirmware()
             if self.device.product is None:
                 self.device.get_version()
+            if self.device.group is None:
+                self.device.get_group()
 
             response = await async_execute_lifx(self.device.get_color)
 
diff --git a/homeassistant/components/lifx/entity.py b/homeassistant/components/lifx/entity.py
index a500e353fbf..63996d60027 100644
--- a/homeassistant/components/lifx/entity.py
+++ b/homeassistant/components/lifx/entity.py
@@ -25,6 +25,7 @@ class LIFXEntity(CoordinatorEntity[LIFXUpdateCoordinator]):
             name=coordinator.label,
             model=products.product_map.get(self.bulb.product, "LIFX Bulb"),
             sw_version=self.bulb.host_firmware_version,
+            suggested_area=self.bulb.group,
         )
 
 
@@ -42,4 +43,5 @@ class LIFXSensorEntity(CoordinatorEntity[LIFXSensorUpdateCoordinator]):
             name=coordinator.parent.label,
             model=products.product_map.get(self.bulb.product, "LIFX Bulb"),
             sw_version=self.bulb.host_firmware_version,
+            suggested_area=self.bulb.group,
         )
diff --git a/homeassistant/components/lifx/strings.json b/homeassistant/components/lifx/strings.json
index b83ae9c1609..45de5ebe3cf 100644
--- a/homeassistant/components/lifx/strings.json
+++ b/homeassistant/components/lifx/strings.json
@@ -1,6 +1,6 @@
 {
   "config": {
-    "flow_title": "{label} ({host}) {serial}",
+    "flow_title": "{label} ({group})",
     "step": {
       "user": {
         "description": "If you leave the host empty, discovery will be used to find devices.",
@@ -14,7 +14,7 @@
         }
       },
       "discovery_confirm": {
-        "description": "Do you want to setup {label} ({host}) {serial}?"
+        "description": "Do you want to setup {label} ({group})?"
       }
     },
     "error": {
diff --git a/homeassistant/components/lifx/translations/en.json b/homeassistant/components/lifx/translations/en.json
index 119259457a7..96f97f2e91e 100644
--- a/homeassistant/components/lifx/translations/en.json
+++ b/homeassistant/components/lifx/translations/en.json
@@ -8,10 +8,10 @@
         "error": {
             "cannot_connect": "Failed to connect"
         },
-        "flow_title": "{label} ({host}) {serial}",
+        "flow_title": "{label} ({group})",
         "step": {
             "discovery_confirm": {
-                "description": "Do you want to setup {label} ({host}) {serial}?"
+                "description": "Do you want to setup {label} ({group})?"
             },
             "pick_device": {
                 "data": {
diff --git a/tests/components/lifx/__init__.py b/tests/components/lifx/__init__.py
index bb861c4a683..0278b8ec3a7 100644
--- a/tests/components/lifx/__init__.py
+++ b/tests/components/lifx/__init__.py
@@ -14,6 +14,7 @@ MODULE = "homeassistant.components.lifx"
 MODULE_CONFIG_FLOW = "homeassistant.components.lifx.config_flow"
 IP_ADDRESS = "127.0.0.1"
 LABEL = "My Bulb"
+GROUP = "My Group"
 SERIAL = "aa:bb:cc:dd:ee:cc"
 MAC_ADDRESS = "aa:bb:cc:dd:ee:cd"
 DEFAULT_ENTRY_TITLE = LABEL
@@ -81,6 +82,7 @@ def _mocked_bulb() -> Light:
     bulb = Light(asyncio.get_running_loop(), SERIAL, IP_ADDRESS)
     bulb.host_firmware_version = "3.00"
     bulb.label = LABEL
+    bulb.group = GROUP
     bulb.color = [1, 2, 3, 4]
     bulb.power_level = 0
     bulb.fire_and_forget = AsyncMock()
@@ -88,6 +90,7 @@ def _mocked_bulb() -> Light:
     bulb.try_sending = AsyncMock()
     bulb.set_infrared = MockLifxCommand(bulb)
     bulb.get_label = MockLifxCommand(bulb)
+    bulb.get_group = MockLifxCommand(bulb)
     bulb.get_color = MockLifxCommand(bulb)
     bulb.set_power = MockLifxCommand(bulb)
     bulb.set_color = MockLifxCommand(bulb)
diff --git a/tests/components/lifx/test_config_flow.py b/tests/components/lifx/test_config_flow.py
index c9f069d8660..d82209e61b6 100644
--- a/tests/components/lifx/test_config_flow.py
+++ b/tests/components/lifx/test_config_flow.py
@@ -11,6 +11,8 @@ from homeassistant.components.lifx.const import CONF_SERIAL
 from homeassistant.const import CONF_DEVICE, CONF_HOST
 from homeassistant.core import HomeAssistant
 from homeassistant.data_entry_flow import FlowResultType
+from homeassistant.helpers import device_registry as dr, entity_registry as er
+from homeassistant.setup import async_setup_component
 
 from . import (
     DEFAULT_ENTRY_TITLE,
@@ -19,9 +21,11 @@ from . import (
     MAC_ADDRESS,
     MODULE,
     SERIAL,
+    _mocked_bulb,
     _mocked_failing_bulb,
     _mocked_relay,
     _patch_config_flow_try_connect,
+    _patch_device,
     _patch_discovery,
 )
 
@@ -523,3 +527,41 @@ async def test_refuse_relays(hass: HomeAssistant):
         await hass.async_block_till_done()
     assert result2["type"] == "form"
     assert result2["errors"] == {"base": "cannot_connect"}
+
+
+async def test_suggested_area(hass: HomeAssistant) -> None:
+    """Test suggested area is populated from lifx group label."""
+
+    class MockLifxCommandGetGroup:
+        """Mock the get_group method that gets the group name from the bulb."""
+
+        def __init__(self, bulb, **kwargs):
+            """Init command."""
+            self.bulb = bulb
+            self.lifx_group = kwargs.get("lifx_group")
+
+        def __call__(self, *args, **kwargs):
+            """Call command."""
+            self.bulb.group = self.lifx_group
+
+    config_entry = MockConfigEntry(
+        domain=DOMAIN, data={CONF_HOST: "1.2.3.4"}, unique_id=SERIAL
+    )
+    config_entry.add_to_hass(hass)
+    bulb = _mocked_bulb()
+    bulb.group = None
+    bulb.get_group = MockLifxCommandGetGroup(bulb, lifx_group="My LIFX Group")
+
+    with _patch_discovery(device=bulb), _patch_config_flow_try_connect(
+        device=bulb
+    ), _patch_device(device=bulb):
+        await async_setup_component(hass, DOMAIN, {DOMAIN: {}})
+        await hass.async_block_till_done()
+
+    entity_registry = er.async_get(hass)
+    entity_id = "light.my_bulb"
+    entity = entity_registry.async_get(entity_id)
+
+    device_registry = dr.async_get(hass)
+    device = device_registry.async_get(entity.device_id)
+    assert device.suggested_area == "My LIFX Group"