diff --git a/homeassistant/components/zwave_js/config_flow.py b/homeassistant/components/zwave_js/config_flow.py
index 20ebe94c00e..1337331bfb6 100644
--- a/homeassistant/components/zwave_js/config_flow.py
+++ b/homeassistant/components/zwave_js/config_flow.py
@@ -23,7 +23,6 @@ from homeassistant.config_entries import (
     SOURCE_USB,
     ConfigEntry,
     ConfigEntryBaseFlow,
-    ConfigEntryState,
     ConfigFlow,
     ConfigFlowResult,
     OptionsFlow,
@@ -787,7 +786,21 @@ class OptionsFlowHandler(BaseZwaveJSFlow, OptionsFlow):
                     {CONF_USE_ADDON: self.config_entry.data.get(CONF_USE_ADDON, True)}
                 ),
             )
+
         if not user_input[CONF_USE_ADDON]:
+            if self.config_entry.data.get(CONF_USE_ADDON):
+                # Unload the config entry before stopping the add-on.
+                await self.hass.config_entries.async_unload(self.config_entry.entry_id)
+                addon_manager = get_addon_manager(self.hass)
+                _LOGGER.debug("Stopping Z-Wave JS add-on")
+                try:
+                    await addon_manager.async_stop_addon()
+                except AddonError as err:
+                    _LOGGER.error(err)
+                    self.hass.config_entries.async_schedule_reload(
+                        self.config_entry.entry_id
+                    )
+                    raise AbortFlow("addon_stop_failed") from err
             return await self.async_step_manual()
 
         addon_info = await self._async_get_addon_info()
@@ -840,10 +853,7 @@ class OptionsFlowHandler(BaseZwaveJSFlow, OptionsFlow):
             if addon_info.state == AddonState.RUNNING and not self.restart_addon:
                 return await self.async_step_finish_addon_setup()
 
-            if (
-                self.config_entry.data.get(CONF_USE_ADDON)
-                and self.config_entry.state == ConfigEntryState.LOADED
-            ):
+            if self.config_entry.data.get(CONF_USE_ADDON):
                 # Disconnect integration before restarting add-on.
                 await self.hass.config_entries.async_unload(self.config_entry.entry_id)
 
diff --git a/homeassistant/components/zwave_js/strings.json b/homeassistant/components/zwave_js/strings.json
index 8f23fee4447..644d829b032 100644
--- a/homeassistant/components/zwave_js/strings.json
+++ b/homeassistant/components/zwave_js/strings.json
@@ -214,6 +214,7 @@
       "addon_install_failed": "[%key:component::zwave_js::config::abort::addon_install_failed%]",
       "addon_set_config_failed": "[%key:component::zwave_js::config::abort::addon_set_config_failed%]",
       "addon_start_failed": "[%key:component::zwave_js::config::abort::addon_start_failed%]",
+      "addon_stop_failed": "Failed to stop the Z-Wave add-on.",
       "already_configured": "[%key:common::config_flow::abort::already_configured_device%]",
       "cannot_connect": "[%key:common::config_flow::error::cannot_connect%]",
       "different_device": "The connected USB device is not the same as previously configured for this config entry. Please instead create a new config entry for the new device."
diff --git a/tests/components/zwave_js/test_config_flow.py b/tests/components/zwave_js/test_config_flow.py
index f62ae9c740b..fe1a665c4b0 100644
--- a/tests/components/zwave_js/test_config_flow.py
+++ b/tests/components/zwave_js/test_config_flow.py
@@ -70,6 +70,15 @@ def setup_entry_fixture() -> Generator[AsyncMock]:
         yield mock_setup_entry
 
 
+@pytest.fixture(name="unload_entry")
+def unload_entry_fixture() -> Generator[AsyncMock]:
+    """Mock entry unload."""
+    with patch(
+        "homeassistant.components.zwave_js.async_unload_entry", return_value=True
+    ) as mock_unload_entry:
+        yield mock_unload_entry
+
+
 @pytest.fixture(name="supervisor")
 def mock_supervisor_fixture() -> Generator[None]:
     """Mock Supervisor."""
@@ -2038,6 +2047,104 @@ async def test_options_not_addon(
     assert client.disconnect.call_count == 1
 
 
+@pytest.mark.usefixtures("supervisor")
+async def test_options_not_addon_with_addon(
+    hass: HomeAssistant,
+    setup_entry: AsyncMock,
+    unload_entry: AsyncMock,
+    integration: MockConfigEntry,
+    stop_addon: AsyncMock,
+) -> None:
+    """Test options flow opting out of add-on on Supervisor with add-on."""
+    entry = integration
+    hass.config_entries.async_update_entry(
+        entry,
+        data={**entry.data, "url": "ws://host1:3001", "use_addon": True},
+        unique_id="1234",
+    )
+
+    assert entry.state is config_entries.ConfigEntryState.LOADED
+    assert unload_entry.call_count == 0
+    setup_entry.reset_mock()
+
+    result = await hass.config_entries.options.async_init(entry.entry_id)
+
+    assert result["type"] is FlowResultType.FORM
+    assert result["step_id"] == "on_supervisor"
+
+    result = await hass.config_entries.options.async_configure(
+        result["flow_id"], {"use_addon": False}
+    )
+
+    assert entry.state is config_entries.ConfigEntryState.NOT_LOADED
+    assert setup_entry.call_count == 0
+    assert unload_entry.call_count == 1
+    assert stop_addon.call_count == 1
+    assert stop_addon.call_args == call("core_zwave_js")
+
+    assert result["type"] is FlowResultType.FORM
+    assert result["step_id"] == "manual"
+
+    result = await hass.config_entries.options.async_configure(
+        result["flow_id"],
+        {
+            "url": "ws://localhost:3000",
+        },
+    )
+    await hass.async_block_till_done()
+
+    assert result["type"] is FlowResultType.CREATE_ENTRY
+    assert entry.data["url"] == "ws://localhost:3000"
+    assert entry.data["use_addon"] is False
+    assert entry.data["integration_created_addon"] is False
+    assert entry.state is config_entries.ConfigEntryState.LOADED
+    assert setup_entry.call_count == 1
+    assert unload_entry.call_count == 1
+
+
+@pytest.mark.usefixtures("supervisor")
+async def test_options_not_addon_with_addon_stop_fail(
+    hass: HomeAssistant,
+    setup_entry: AsyncMock,
+    unload_entry: AsyncMock,
+    integration: MockConfigEntry,
+    stop_addon: AsyncMock,
+) -> None:
+    """Test options flow opting out of add-on and add-on stop error."""
+    stop_addon.side_effect = SupervisorError("Boom!")
+    entry = integration
+    hass.config_entries.async_update_entry(
+        entry,
+        data={**entry.data, "url": "ws://host1:3001", "use_addon": True},
+        unique_id="1234",
+    )
+
+    assert entry.state is config_entries.ConfigEntryState.LOADED
+    assert unload_entry.call_count == 0
+    setup_entry.reset_mock()
+
+    result = await hass.config_entries.options.async_init(entry.entry_id)
+
+    assert result["type"] is FlowResultType.FORM
+    assert result["step_id"] == "on_supervisor"
+
+    result = await hass.config_entries.options.async_configure(
+        result["flow_id"], {"use_addon": False}
+    )
+    await hass.async_block_till_done()
+
+    assert stop_addon.call_count == 1
+    assert stop_addon.call_args == call("core_zwave_js")
+
+    assert result["type"] is FlowResultType.ABORT
+    assert result["reason"] == "addon_stop_failed"
+    assert entry.data["url"] == "ws://host1:3001"
+    assert entry.data["use_addon"] is True
+    assert entry.state is config_entries.ConfigEntryState.LOADED
+    assert setup_entry.call_count == 1
+    assert unload_entry.call_count == 1
+
+
 @pytest.mark.parametrize(
     (
         "discovery_info",