diff --git a/homeassistant/components/generic/config_flow.py b/homeassistant/components/generic/config_flow.py
index 6e287c424b9..401b49dad4a 100644
--- a/homeassistant/components/generic/config_flow.py
+++ b/homeassistant/components/generic/config_flow.py
@@ -48,7 +48,7 @@ from homeassistant.const import (
 )
 from homeassistant.core import HomeAssistant
 from homeassistant.data_entry_flow import UnknownFlow
-from homeassistant.exceptions import TemplateError
+from homeassistant.exceptions import HomeAssistantError, TemplateError
 from homeassistant.helpers import config_validation as cv, template as template_helper
 from homeassistant.helpers.httpx_client import get_async_client
 from homeassistant.util import slugify
@@ -292,6 +292,10 @@ async def async_test_stream(
         if err.errno == EIO:  # input/output error
             return {CONF_STREAM_SOURCE: "stream_io_error"}
         raise
+    except HomeAssistantError as err:
+        if "Stream integration is not set up" in str(err):
+            return {CONF_STREAM_SOURCE: "stream_not_set_up"}
+        raise
     return {}
 
 
diff --git a/homeassistant/components/generic/strings.json b/homeassistant/components/generic/strings.json
index 991a36d49cc..b05f17efc8d 100644
--- a/homeassistant/components/generic/strings.json
+++ b/homeassistant/components/generic/strings.json
@@ -15,6 +15,7 @@
       "relative_url": "Relative URLs are not allowed",
       "template_error": "Error rendering template. Review log for more info.",
       "timeout": "Timeout while loading URL",
+      "stream_not_set_up": "The stream integration is not set up. Please ensure that you have 'default_config:' or 'stream:' in your configuration.yaml",
       "stream_no_route_to_host": "Could not find host while trying to connect to stream",
       "stream_io_error": "Input/Output error while trying to connect to stream. Wrong RTSP transport protocol?",
       "stream_not_permitted": "Operation not permitted while trying to connect to stream. Wrong RTSP transport protocol?"
diff --git a/tests/components/generic/test_config_flow.py b/tests/components/generic/test_config_flow.py
index c62142fb4d3..456e41a8d60 100644
--- a/tests/components/generic/test_config_flow.py
+++ b/tests/components/generic/test_config_flow.py
@@ -41,6 +41,7 @@ from homeassistant.const import (
 )
 from homeassistant.core import HomeAssistant
 from homeassistant.data_entry_flow import FlowResultType
+from homeassistant.exceptions import HomeAssistantError
 from homeassistant.helpers import entity_registry as er
 
 from tests.common import MockConfigEntry
@@ -597,7 +598,46 @@ async def test_form_stream_timeout(
 
 
 @respx.mock
-@pytest.mark.usefixtures("fakeimg_png")
+async def test_form_stream_not_set_up(hass: HomeAssistant, user_flow) -> None:
+    """Test we handle if stream has not been set up."""
+    TESTDATA_ONLY_STREAM = TESTDATA.copy()
+    TESTDATA_ONLY_STREAM.pop(CONF_STILL_IMAGE_URL)
+
+    with patch(
+        "homeassistant.components.generic.config_flow.create_stream",
+        side_effect=HomeAssistantError("Stream integration is not set up."),
+    ):
+        result1 = await hass.config_entries.flow.async_configure(
+            user_flow["flow_id"],
+            TESTDATA_ONLY_STREAM,
+        )
+    await hass.async_block_till_done()
+
+    assert result1["type"] is FlowResultType.FORM
+    assert result1["errors"] == {"stream_source": "stream_not_set_up"}
+
+
+@respx.mock
+async def test_form_stream_other_error(hass: HomeAssistant, user_flow) -> None:
+    """Test the unknown error for streams."""
+    TESTDATA_ONLY_STREAM = TESTDATA.copy()
+    TESTDATA_ONLY_STREAM.pop(CONF_STILL_IMAGE_URL)
+
+    with (
+        patch(
+            "homeassistant.components.generic.config_flow.create_stream",
+            side_effect=HomeAssistantError("Some other error."),
+        ),
+        pytest.raises(HomeAssistantError),
+    ):
+        await hass.config_entries.flow.async_configure(
+            user_flow["flow_id"],
+            TESTDATA_ONLY_STREAM,
+        )
+    await hass.async_block_till_done()
+
+
+@respx.mock
 async def test_form_stream_worker_error(
     hass: HomeAssistant, user_flow: ConfigFlowResult
 ) -> None: