diff --git a/.coveragerc b/.coveragerc
index 507c216d0fe..671753666a6 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -576,6 +576,7 @@ omit =
     homeassistant/components/lametric/*
     homeassistant/components/lannouncer/notify.py
     homeassistant/components/lastfm/sensor.py
+    homeassistant/components/launch_library/__init__.py
     homeassistant/components/launch_library/const.py
     homeassistant/components/launch_library/sensor.py
     homeassistant/components/lcn/binary_sensor.py
diff --git a/CODEOWNERS b/CODEOWNERS
index 999430d0f3b..10100d1c21c 100644
--- a/CODEOWNERS
+++ b/CODEOWNERS
@@ -489,7 +489,8 @@ tests/components/kraken/* @eifinger
 homeassistant/components/kulersky/* @emlove
 tests/components/kulersky/* @emlove
 homeassistant/components/lametric/* @robbiet480
-homeassistant/components/launch_library/* @ludeeus
+homeassistant/components/launch_library/* @ludeeus @DurgNomis-drol
+tests/components/launch_library/* @ludeeus @DurgNomis-drol
 homeassistant/components/lcn/* @alengwenus
 tests/components/lcn/* @alengwenus
 homeassistant/components/lg_netcast/* @Drafteed
diff --git a/homeassistant/components/launch_library/__init__.py b/homeassistant/components/launch_library/__init__.py
index ba4b78ab31f..db4512b0885 100644
--- a/homeassistant/components/launch_library/__init__.py
+++ b/homeassistant/components/launch_library/__init__.py
@@ -1 +1,55 @@
 """The launch_library component."""
+from datetime import timedelta
+import logging
+
+from pylaunches import PyLaunches, PyLaunchesException
+
+from homeassistant.config_entries import ConfigEntry
+from homeassistant.const import Platform
+from homeassistant.core import HomeAssistant
+from homeassistant.helpers.aiohttp_client import async_get_clientsession
+from homeassistant.helpers.update_coordinator import DataUpdateCoordinator, UpdateFailed
+
+from .const import DOMAIN
+
+_LOGGER = logging.getLogger(__name__)
+
+PLATFORMS = [Platform.SENSOR]
+
+
+async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+    """Set up this integration using UI."""
+
+    hass.data.setdefault(DOMAIN, {})
+
+    session = async_get_clientsession(hass)
+    launches = PyLaunches(session)
+
+    async def async_update():
+        try:
+            return await launches.upcoming_launches()
+        except PyLaunchesException as ex:
+            raise UpdateFailed(ex) from ex
+
+    coordinator = DataUpdateCoordinator(
+        hass,
+        _LOGGER,
+        name=DOMAIN,
+        update_method=async_update,
+        update_interval=timedelta(hours=1),
+    )
+
+    await coordinator.async_config_entry_first_refresh()
+
+    hass.data[DOMAIN] = coordinator
+
+    hass.config_entries.async_setup_platforms(entry, PLATFORMS)
+
+    return True
+
+
+async def async_unload_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+    """Handle removal of an entry."""
+    if unload_ok := await hass.config_entries.async_unload_platforms(entry, PLATFORMS):
+        del hass.data[DOMAIN]
+    return unload_ok
diff --git a/homeassistant/components/launch_library/config_flow.py b/homeassistant/components/launch_library/config_flow.py
new file mode 100644
index 00000000000..2cc668c8e35
--- /dev/null
+++ b/homeassistant/components/launch_library/config_flow.py
@@ -0,0 +1,27 @@
+"""Config flow to configure launch library component."""
+from homeassistant import config_entries
+from homeassistant.const import CONF_NAME
+from homeassistant.data_entry_flow import FlowResult
+
+from .const import DOMAIN
+
+
+class LaunchLibraryFlowHandler(config_entries.ConfigFlow, domain=DOMAIN):
+    """Config flow for Launch Library component."""
+
+    VERSION = 1
+
+    async def async_step_user(self, user_input=None) -> FlowResult:
+        """Handle a flow initialized by the user."""
+        # Check if already configured
+        if self._async_current_entries():
+            return self.async_abort(reason="single_instance_allowed")
+
+        if user_input is not None:
+            return self.async_create_entry(title="Launch Library", data=user_input)
+
+        return self.async_show_form(step_id="user")
+
+    async def async_step_import(self, conf: dict) -> FlowResult:
+        """Import a configuration from config.yaml."""
+        return await self.async_step_user(user_input={CONF_NAME: conf[CONF_NAME]})
diff --git a/homeassistant/components/launch_library/const.py b/homeassistant/components/launch_library/const.py
index 0d6e4f22f76..b0924bfc107 100644
--- a/homeassistant/components/launch_library/const.py
+++ b/homeassistant/components/launch_library/const.py
@@ -1,5 +1,7 @@
 """Constants for launch_library."""
 
+DOMAIN = "launch_library"
+
 ATTR_AGENCY = "agency"
 ATTR_AGENCY_COUNTRY_CODE = "agency_country_code"
 ATTR_LAUNCH_TIME = "launch_time"
diff --git a/homeassistant/components/launch_library/manifest.json b/homeassistant/components/launch_library/manifest.json
index fee5aeea0fe..8d3a6fa2814 100644
--- a/homeassistant/components/launch_library/manifest.json
+++ b/homeassistant/components/launch_library/manifest.json
@@ -1,8 +1,9 @@
 {
   "domain": "launch_library",
   "name": "Launch Library",
+  "config_flow": true,
   "documentation": "https://www.home-assistant.io/integrations/launch_library",
   "requirements": ["pylaunches==1.2.0"],
-  "codeowners": ["@ludeeus"],
+  "codeowners": ["@ludeeus", "@DurgNomis-drol"],
   "iot_class": "cloud_polling"
 }
diff --git a/homeassistant/components/launch_library/sensor.py b/homeassistant/components/launch_library/sensor.py
index 205c815ef42..b93c33daa1c 100644
--- a/homeassistant/components/launch_library/sensor.py
+++ b/homeassistant/components/launch_library/sensor.py
@@ -1,19 +1,23 @@
-"""A sensor platform that give you information about the next space launch."""
+"""Support for Launch Library sensors."""
 from __future__ import annotations
 
-from datetime import timedelta
 import logging
+from typing import Any
 
-from pylaunches import PyLaunches, PyLaunchesException
+from pylaunches.objects.launch import Launch
 import voluptuous as vol
 
 from homeassistant.components.sensor import PLATFORM_SCHEMA, SensorEntity
-from homeassistant.const import ATTR_ATTRIBUTION, CONF_NAME
-from homeassistant.core import HomeAssistant
-from homeassistant.helpers.aiohttp_client import async_get_clientsession
+from homeassistant.config_entries import SOURCE_IMPORT, ConfigEntry
+from homeassistant.const import CONF_NAME
+from homeassistant.core import HomeAssistant, callback
 import homeassistant.helpers.config_validation as cv
 from homeassistant.helpers.entity_platform import AddEntitiesCallback
 from homeassistant.helpers.typing import ConfigType, DiscoveryInfoType
+from homeassistant.helpers.update_coordinator import (
+    CoordinatorEntity,
+    DataUpdateCoordinator,
+)
 
 from .const import (
     ATTR_AGENCY,
@@ -22,11 +26,11 @@ from .const import (
     ATTR_STREAM,
     ATTRIBUTION,
     DEFAULT_NAME,
+    DOMAIN,
 )
 
 _LOGGER = logging.getLogger(__name__)
 
-SCAN_INTERVAL = timedelta(hours=1)
 
 PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend(
     {vol.Optional(CONF_NAME, default=DEFAULT_NAME): cv.string}
@@ -39,39 +43,86 @@ async def async_setup_platform(
     async_add_entities: AddEntitiesCallback,
     discovery_info: DiscoveryInfoType | None = None,
 ) -> None:
-    """Create the launch sensor."""
-    name = config[CONF_NAME]
-    session = async_get_clientsession(hass)
-    launches = PyLaunches(session)
-
-    async_add_entities([LaunchLibrarySensor(launches, name)], True)
+    """Import Launch Library configuration from yaml."""
+    _LOGGER.warning(
+        "Configuration of the launch_library platform in YAML is deprecated and will be "
+        "removed in Home Assistant 2022.4; Your existing configuration "
+        "has been imported into the UI automatically and can be safely removed "
+        "from your configuration.yaml file"
+    )
+    hass.async_create_task(
+        hass.config_entries.flow.async_init(
+            DOMAIN,
+            context={"source": SOURCE_IMPORT},
+            data=config,
+        )
+    )
 
 
-class LaunchLibrarySensor(SensorEntity):
-    """Representation of a launch_library Sensor."""
+async def async_setup_entry(
+    hass: HomeAssistant,
+    entry: ConfigEntry,
+    async_add_entities: AddEntitiesCallback,
+) -> None:
+    """Set up the sensor platform."""
 
-    _attr_icon = "mdi:rocket"
+    name = entry.data.get(CONF_NAME, DEFAULT_NAME)
 
-    def __init__(self, api: PyLaunches, name: str) -> None:
-        """Initialize the sensor."""
-        self.api = api
+    coordinator = hass.data[DOMAIN]
+
+    async_add_entities(
+        [
+            NextLaunchSensor(coordinator, entry.entry_id, name),
+        ]
+    )
+
+
+class NextLaunchSensor(CoordinatorEntity, SensorEntity):
+    """Representation of the next launch sensor."""
+
+    _attr_attribution = ATTRIBUTION
+    _attr_icon = "mdi:rocket-launch"
+    _next_launch: Launch | None = None
+
+    def __init__(
+        self, coordinator: DataUpdateCoordinator, entry_id: str, name: str
+    ) -> None:
+        """Initialize a Launch Library entity."""
+        super().__init__(coordinator)
         self._attr_name = name
+        self._attr_unique_id = f"{entry_id}_next_launch"
 
-    async def async_update(self) -> None:
-        """Get the latest data."""
-        try:
-            launches = await self.api.upcoming_launches()
-        except PyLaunchesException as exception:
-            _LOGGER.error("Error getting data, %s", exception)
-            self._attr_available = False
-        else:
-            if next_launch := next((launch for launch in launches), None):
-                self._attr_available = True
-                self._attr_native_value = next_launch.name
-                self._attr_extra_state_attributes = {
-                    ATTR_LAUNCH_TIME: next_launch.net,
-                    ATTR_AGENCY: next_launch.launch_service_provider.name,
-                    ATTR_AGENCY_COUNTRY_CODE: next_launch.pad.location.country_code,
-                    ATTR_STREAM: next_launch.webcast_live,
-                    ATTR_ATTRIBUTION: ATTRIBUTION,
-                }
+    @property
+    def native_value(self) -> str | None:
+        """Return the state of the sensor."""
+        if self._next_launch is None:
+            return None
+        return self._next_launch.name
+
+    @property
+    def available(self) -> bool:
+        """Return if the sensor is available."""
+        return super().available and self._next_launch is not None
+
+    @property
+    def extra_state_attributes(self) -> dict[str, Any] | None:
+        """Return the attributes of the sensor."""
+        if self._next_launch is None:
+            return None
+        return {
+            ATTR_LAUNCH_TIME: self._next_launch.net,
+            ATTR_AGENCY: self._next_launch.launch_service_provider.name,
+            ATTR_AGENCY_COUNTRY_CODE: self._next_launch.pad.location.country_code,
+            ATTR_STREAM: self._next_launch.webcast_live,
+        }
+
+    @callback
+    def _handle_coordinator_update(self) -> None:
+        """Handle updated data from the coordinator."""
+        self._next_launch = next((launch for launch in self.coordinator.data), None)
+        super()._handle_coordinator_update()
+
+    async def async_added_to_hass(self) -> None:
+        """When entity is added to hass."""
+        await super().async_added_to_hass()
+        self._handle_coordinator_update()
diff --git a/homeassistant/components/launch_library/strings.json b/homeassistant/components/launch_library/strings.json
new file mode 100644
index 00000000000..678fc7c6f4f
--- /dev/null
+++ b/homeassistant/components/launch_library/strings.json
@@ -0,0 +1,12 @@
+{
+  "config": {
+    "step": {
+      "user": {
+        "description": "Do you want to configure the Launch Library?"
+      }
+    },
+    "abort": {
+      "single_instance_allowed": "[%key:common::config_flow::abort::single_instance_allowed%]"
+    }
+  }
+}
\ No newline at end of file
diff --git a/homeassistant/components/launch_library/translations/en.json b/homeassistant/components/launch_library/translations/en.json
new file mode 100644
index 00000000000..2baddafbeed
--- /dev/null
+++ b/homeassistant/components/launch_library/translations/en.json
@@ -0,0 +1,12 @@
+{
+    "config": {
+        "abort": {
+            "single_instance_allowed": "Already configured. Only a single configuration possible."
+        },
+        "step": {
+            "user": {
+                "description": "Do you want to configure the Launch Library?"
+            }
+        }
+    }
+}
\ No newline at end of file
diff --git a/homeassistant/generated/config_flows.py b/homeassistant/generated/config_flows.py
index 49166a5cb73..7e3a66a073a 100644
--- a/homeassistant/generated/config_flows.py
+++ b/homeassistant/generated/config_flows.py
@@ -166,6 +166,7 @@ FLOWS = [
     "kostal_plenticore",
     "kraken",
     "kulersky",
+    "launch_library",
     "life360",
     "lifx",
     "litejet",
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 6f104944679..5ed608d86b7 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -1004,6 +1004,9 @@ pykulersky==0.5.2
 # homeassistant.components.lastfm
 pylast==4.2.1
 
+# homeassistant.components.launch_library
+pylaunches==1.2.0
+
 # homeassistant.components.forked_daapd
 pylibrespot-java==0.1.0
 
diff --git a/tests/components/launch_library/__init__.py b/tests/components/launch_library/__init__.py
new file mode 100644
index 00000000000..f6264de1914
--- /dev/null
+++ b/tests/components/launch_library/__init__.py
@@ -0,0 +1 @@
+"""Tests for the launch_library component."""
diff --git a/tests/components/launch_library/test_config_flow.py b/tests/components/launch_library/test_config_flow.py
new file mode 100644
index 00000000000..f60ee76d0f7
--- /dev/null
+++ b/tests/components/launch_library/test_config_flow.py
@@ -0,0 +1,64 @@
+"""Test launch_library config flow."""
+from unittest.mock import patch
+
+from homeassistant import data_entry_flow
+from homeassistant.components.launch_library.const import DEFAULT_NAME, DOMAIN
+from homeassistant.config_entries import SOURCE_IMPORT, SOURCE_USER
+from homeassistant.const import CONF_NAME
+
+from tests.common import MockConfigEntry
+
+
+async def test_import(hass):
+    """Test entry will be imported."""
+
+    imported_config = {CONF_NAME: DEFAULT_NAME}
+
+    with patch(
+        "homeassistant.components.launch_library.async_setup_entry", return_value=True
+    ):
+
+        result = await hass.config_entries.flow.async_init(
+            DOMAIN, context={"source": SOURCE_IMPORT}, data=imported_config
+        )
+        assert result.get("type") == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+        assert result.get("result").data == imported_config
+
+
+async def test_create_entry(hass):
+    """Test we can finish a config flow."""
+
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_USER}
+    )
+
+    assert result.get("type") == data_entry_flow.RESULT_TYPE_FORM
+    assert result.get("step_id") == SOURCE_USER
+
+    with patch(
+        "homeassistant.components.launch_library.async_setup_entry", return_value=True
+    ):
+
+        result = await hass.config_entries.flow.async_configure(
+            result["flow_id"],
+            {},
+        )
+
+        assert result.get("type") == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+        assert result.get("result").data == {}
+
+
+async def test_integration_already_exists(hass):
+    """Test we only allow a single config flow."""
+
+    MockConfigEntry(
+        domain=DOMAIN,
+        data={},
+    ).add_to_hass(hass)
+
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_USER}, data={}
+    )
+
+    assert result.get("type") == data_entry_flow.RESULT_TYPE_ABORT
+    assert result.get("reason") == "single_instance_allowed"