diff --git a/homeassistant/components/reolink/__init__.py b/homeassistant/components/reolink/__init__.py
index 1caf4e79cd5..2077b4a5e29 100644
--- a/homeassistant/components/reolink/__init__.py
+++ b/homeassistant/components/reolink/__init__.py
@@ -19,7 +19,7 @@ from homeassistant.helpers.device_registry import format_mac
 from homeassistant.helpers.update_coordinator import DataUpdateCoordinator, UpdateFailed
 
 from .const import DOMAIN
-from .exceptions import ReolinkException, UserNotAdmin
+from .exceptions import PasswordIncompatible, ReolinkException, UserNotAdmin
 from .host import ReolinkHost
 
 _LOGGER = logging.getLogger(__name__)
@@ -56,7 +56,7 @@ async def async_setup_entry(hass: HomeAssistant, config_entry: ConfigEntry) -> b
 
     try:
         await host.async_init()
-    except (UserNotAdmin, CredentialsInvalidError) as err:
+    except (UserNotAdmin, CredentialsInvalidError, PasswordIncompatible) as err:
         await host.stop()
         raise ConfigEntryAuthFailed(err) from err
     except (
diff --git a/homeassistant/components/reolink/config_flow.py b/homeassistant/components/reolink/config_flow.py
index be897a69d7d..6d0381b025f 100644
--- a/homeassistant/components/reolink/config_flow.py
+++ b/homeassistant/components/reolink/config_flow.py
@@ -6,6 +6,7 @@ from collections.abc import Mapping
 import logging
 from typing import Any
 
+from reolink_aio.api import ALLOWED_SPECIAL_CHARS
 from reolink_aio.exceptions import ApiError, CredentialsInvalidError, ReolinkError
 import voluptuous as vol
 
@@ -29,7 +30,12 @@ from homeassistant.helpers import config_validation as cv, selector
 from homeassistant.helpers.device_registry import format_mac
 
 from .const import CONF_USE_HTTPS, DOMAIN
-from .exceptions import ReolinkException, ReolinkWebhookException, UserNotAdmin
+from .exceptions import (
+    PasswordIncompatible,
+    ReolinkException,
+    ReolinkWebhookException,
+    UserNotAdmin,
+)
 from .host import ReolinkHost
 from .util import is_connected
 
@@ -206,8 +212,11 @@ class ReolinkFlowHandler(ConfigFlow, domain=DOMAIN):
                 errors[CONF_USERNAME] = "not_admin"
                 placeholders["username"] = host.api.username
                 placeholders["userlevel"] = host.api.user_level
+            except PasswordIncompatible:
+                errors[CONF_PASSWORD] = "password_incompatible"
+                placeholders["special_chars"] = ALLOWED_SPECIAL_CHARS
             except CredentialsInvalidError:
-                errors[CONF_HOST] = "invalid_auth"
+                errors[CONF_PASSWORD] = "invalid_auth"
             except ApiError as err:
                 placeholders["error"] = str(err)
                 errors[CONF_HOST] = "api_error"
diff --git a/homeassistant/components/reolink/exceptions.py b/homeassistant/components/reolink/exceptions.py
index d166b438f31..2a5a955b9e6 100644
--- a/homeassistant/components/reolink/exceptions.py
+++ b/homeassistant/components/reolink/exceptions.py
@@ -17,3 +17,7 @@ class ReolinkWebhookException(ReolinkException):
 
 class UserNotAdmin(ReolinkException):
     """Raised when user is not admin."""
+
+
+class PasswordIncompatible(ReolinkException):
+    """Raised when the password contains special chars that are incompatible."""
diff --git a/homeassistant/components/reolink/host.py b/homeassistant/components/reolink/host.py
index c9989f2c02b..310188b720e 100644
--- a/homeassistant/components/reolink/host.py
+++ b/homeassistant/components/reolink/host.py
@@ -11,7 +11,7 @@ from typing import Any, Literal
 
 import aiohttp
 from aiohttp.web import Request
-from reolink_aio.api import Host
+from reolink_aio.api import ALLOWED_SPECIAL_CHARS, Host
 from reolink_aio.enums import SubType
 from reolink_aio.exceptions import NotSupportedError, ReolinkError, SubscriptionError
 
@@ -31,7 +31,12 @@ from homeassistant.helpers.event import async_call_later
 from homeassistant.helpers.network import NoURLAvailableError, get_url
 
 from .const import CONF_USE_HTTPS, DOMAIN
-from .exceptions import ReolinkSetupException, ReolinkWebhookException, UserNotAdmin
+from .exceptions import (
+    PasswordIncompatible,
+    ReolinkSetupException,
+    ReolinkWebhookException,
+    UserNotAdmin,
+)
 
 DEFAULT_TIMEOUT = 30
 FIRST_ONVIF_TIMEOUT = 10
@@ -123,6 +128,13 @@ class ReolinkHost:
 
     async def async_init(self) -> None:
         """Connect to Reolink host."""
+        if not self._api.valid_password():
+            raise PasswordIncompatible(
+                "Reolink password contains incompatible special character, "
+                "please change the password to only contain characters: "
+                f"a-z, A-Z, 0-9 or {ALLOWED_SPECIAL_CHARS}"
+            )
+
         await self._api.get_host_data()
 
         if self._api.mac_address is None:
diff --git a/homeassistant/components/reolink/strings.json b/homeassistant/components/reolink/strings.json
index 3b9aba84634..bcf1c71934d 100644
--- a/homeassistant/components/reolink/strings.json
+++ b/homeassistant/components/reolink/strings.json
@@ -29,6 +29,7 @@
       "cannot_connect": "Failed to connect, check the IP address of the camera",
       "invalid_auth": "[%key:common::config_flow::error::invalid_auth%]",
       "not_admin": "User needs to be admin, user \"{username}\" has authorisation level \"{userlevel}\"",
+      "password_incompatible": "Password contains incompatible special character, only these characters are allowed: a-z, A-Z, 0-9 or {special_chars}",
       "unknown": "[%key:common::config_flow::error::unknown%]",
       "webhook_exception": "Home Assistant URL is not available, go to Settings > System > Network > Home Assistant URL and correct the URLs, see {more_info}"
     },
diff --git a/tests/components/reolink/test_config_flow.py b/tests/components/reolink/test_config_flow.py
index ba845dc1697..6e57a7924e7 100644
--- a/tests/components/reolink/test_config_flow.py
+++ b/tests/components/reolink/test_config_flow.py
@@ -166,8 +166,23 @@ async def test_config_flow_errors(
 
     assert result["type"] is FlowResultType.FORM
     assert result["step_id"] == "user"
-    assert result["errors"] == {CONF_HOST: "invalid_auth"}
+    assert result["errors"] == {CONF_PASSWORD: "invalid_auth"}
 
+    reolink_connect.valid_password.return_value = False
+    result = await hass.config_entries.flow.async_configure(
+        result["flow_id"],
+        {
+            CONF_USERNAME: TEST_USERNAME,
+            CONF_PASSWORD: TEST_PASSWORD,
+            CONF_HOST: TEST_HOST,
+        },
+    )
+
+    assert result["type"] is FlowResultType.FORM
+    assert result["step_id"] == "user"
+    assert result["errors"] == {CONF_PASSWORD: "password_incompatible"}
+
+    reolink_connect.valid_password.return_value = True
     reolink_connect.get_host_data.side_effect = ApiError("Test error")
     result = await hass.config_entries.flow.async_configure(
         result["flow_id"],