diff --git a/homeassistant/components/update/__init__.py b/homeassistant/components/update/__init__.py
index 0a78840e66e..6b30f45b023 100644
--- a/homeassistant/components/update/__init__.py
+++ b/homeassistant/components/update/__init__.py
@@ -26,6 +26,7 @@ from homeassistant.helpers.restore_state import RestoreEntity
 from homeassistant.helpers.typing import ConfigType
 
 from .const import (
+    ATTR_AUTO_UPDATE,
     ATTR_BACKUP,
     ATTR_CURRENT_VERSION,
     ATTR_IN_PROGRESS,
@@ -93,7 +94,7 @@ async def async_setup(hass: HomeAssistant, config: ConfigType) -> bool:
     component.async_register_entity_service(
         SERVICE_SKIP,
         {},
-        UpdateEntity.async_skip.__name__,
+        async_skip,
     )
     websocket_api.async_register_command(hass, websocket_release_notes)
 
@@ -144,6 +145,13 @@ async def async_install(entity: UpdateEntity, service_call: ServiceCall) -> None
     await entity.async_install_with_progress(version, backup)
 
 
+async def async_skip(entity: UpdateEntity, service_call: ServiceCall) -> None:
+    """Service call wrapper to validate the call."""
+    if entity.auto_update:
+        raise HomeAssistantError(f"Skipping update is not supported for {entity.name}")
+    await entity.async_skip()
+
+
 @dataclass
 class UpdateEntityDescription(EntityDescription):
     """A class that describes update entities."""
@@ -156,6 +164,7 @@ class UpdateEntity(RestoreEntity):
     """Representation of an update entity."""
 
     entity_description: UpdateEntityDescription
+    _attr_auto_update: bool = False
     _attr_current_version: str | None = None
     _attr_device_class: UpdateDeviceClass | str | None
     _attr_in_progress: bool | int = False
@@ -168,6 +177,11 @@ class UpdateEntity(RestoreEntity):
     __skipped_version: str | None = None
     __in_progress: bool = False
 
+    @property
+    def auto_update(self) -> bool:
+        """Indicate if the device or service has auto update enabled."""
+        return self._attr_auto_update
+
     @property
     def current_version(self) -> str | None:
         """Version currently in use."""
@@ -329,6 +343,7 @@ class UpdateEntity(RestoreEntity):
             self.__skipped_version = None
 
         return {
+            ATTR_AUTO_UPDATE: self.auto_update,
             ATTR_CURRENT_VERSION: self.current_version,
             ATTR_IN_PROGRESS: in_progress,
             ATTR_LATEST_VERSION: self.latest_version,
diff --git a/homeassistant/components/update/const.py b/homeassistant/components/update/const.py
index 7c70572f458..916d2cbaceb 100644
--- a/homeassistant/components/update/const.py
+++ b/homeassistant/components/update/const.py
@@ -20,6 +20,7 @@ class UpdateEntityFeature(IntEnum):
 SERVICE_INSTALL: Final = "install"
 SERVICE_SKIP: Final = "skip"
 
+ATTR_AUTO_UPDATE: Final = "auto_update"
 ATTR_BACKUP: Final = "backup"
 ATTR_CURRENT_VERSION: Final = "current_version"
 ATTR_IN_PROGRESS: Final = "in_progress"
diff --git a/tests/components/update/test_init.py b/tests/components/update/test_init.py
index c6845f73d0c..b8db7f24f4a 100644
--- a/tests/components/update/test_init.py
+++ b/tests/components/update/test_init.py
@@ -16,6 +16,7 @@ from homeassistant.components.update import (
     UpdateEntityDescription,
 )
 from homeassistant.components.update.const import (
+    ATTR_AUTO_UPDATE,
     ATTR_CURRENT_VERSION,
     ATTR_IN_PROGRESS,
     ATTR_LATEST_VERSION,
@@ -65,6 +66,7 @@ async def test_update(hass: HomeAssistant) -> None:
     assert update.in_progress is False
     assert update.state == STATE_ON
     assert update.state_attributes == {
+        ATTR_AUTO_UPDATE: False,
         ATTR_CURRENT_VERSION: "1.0.0",
         ATTR_IN_PROGRESS: False,
         ATTR_LATEST_VERSION: "1.0.1",
@@ -242,6 +244,46 @@ async def test_entity_with_no_updates(
         )
 
 
+async def test_entity_with_auto_update(
+    hass: HomeAssistant,
+    enable_custom_integrations: None,
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    """Test update entity that has auto update feature."""
+    platform = getattr(hass.components, f"test.{DOMAIN}")
+    platform.init()
+
+    assert await async_setup_component(hass, DOMAIN, {DOMAIN: {CONF_PLATFORM: "test"}})
+    await hass.async_block_till_done()
+
+    state = hass.states.get("update.update_with_auto_update")
+    assert state
+    assert state.state == STATE_ON
+    assert state.attributes[ATTR_CURRENT_VERSION] == "1.0.0"
+    assert state.attributes[ATTR_LATEST_VERSION] == "1.0.1"
+    assert state.attributes[ATTR_SKIPPED_VERSION] is None
+
+    # Should be able to manually install an update even if it can auto update
+    await hass.services.async_call(
+        DOMAIN,
+        SERVICE_INSTALL,
+        {ATTR_ENTITY_ID: "update.update_with_auto_update"},
+        blocking=True,
+    )
+
+    # Should not be to skip the update
+    with pytest.raises(
+        HomeAssistantError,
+        match="Skipping update is not supported for Update with auto update",
+    ):
+        await hass.services.async_call(
+            DOMAIN,
+            SERVICE_SKIP,
+            {ATTR_ENTITY_ID: "update.update_with_auto_update"},
+            blocking=True,
+        )
+
+
 async def test_entity_with_updates_available(
     hass: HomeAssistant,
     enable_custom_integrations: None,
diff --git a/tests/testing_config/custom_components/test/update.py b/tests/testing_config/custom_components/test/update.py
index ce8cd3869f5..fc5ee31246e 100644
--- a/tests/testing_config/custom_components/test/update.py
+++ b/tests/testing_config/custom_components/test/update.py
@@ -20,6 +20,11 @@ _LOGGER = logging.getLogger(__name__)
 class MockUpdateEntity(MockEntity, UpdateEntity):
     """Mock UpdateEntity class."""
 
+    @property
+    def auto_update(self) -> bool:
+        """Indicate if the device or service has auto update enabled."""
+        return self._handle("auto_update")
+
     @property
     def current_version(self) -> str | None:
         """Version currently in use."""
@@ -135,6 +140,14 @@ def init(empty=False):
                 latest_version="1.0.1",
                 supported_features=UpdateEntityFeature.RELEASE_NOTES,
             ),
+            MockUpdateEntity(
+                name="Update with auto update",
+                unique_id="with_auto_update",
+                current_version="1.0.0",
+                latest_version="1.0.1",
+                auto_update=True,
+                supported_features=UpdateEntityFeature.INSTALL,
+            ),
         ]
     )