diff --git a/homeassistant/components/device_tracker/__init__.py b/homeassistant/components/device_tracker/__init__.py
index d10afe92b2c..86190d28b76 100644
--- a/homeassistant/components/device_tracker/__init__.py
+++ b/homeassistant/components/device_tracker/__init__.py
@@ -35,8 +35,7 @@ import homeassistant.util.dt as dt_util
 
 from homeassistant.helpers.event import track_utc_time_change
 from homeassistant.const import (
-    ATTR_ENTITY_PICTURE, DEVICE_DEFAULT_NAME, STATE_HOME, STATE_NOT_HOME,
-    STATE_UNKNOWN)
+    ATTR_ENTITY_PICTURE, DEVICE_DEFAULT_NAME, STATE_HOME, STATE_NOT_HOME)
 
 DOMAIN = "device_tracker"
 DEPENDENCIES = []
@@ -91,7 +90,7 @@ def setup(hass, config):
     track_new = util.convert(conf.get(CONF_TRACK_NEW), bool,
                              DEFAULT_CONF_TRACK_NEW)
 
-    devices = load_config(yaml_path, hass, consider_home)
+    devices = load_config(yaml_path, hass, timedelta(seconds=consider_home))
     tracker = DeviceTracker(hass, consider_home, track_new, devices)
 
     def setup_platform(p_type, p_config, disc_info=None):
@@ -145,10 +144,15 @@ class DeviceTracker(object):
         self.track_new = track_new
         self.lock = threading.Lock()
 
+        entity_ids = []
         for device in devices:
             if device.track:
+                entity_ids.append(device.entity_id)
                 device.update_ha_state()
 
+        self.group = group.setup_group(hass, GROUP_NAME_ALL_DEVICES,
+                                       entity_ids, False)
+
     # pylint: disable=too-many-arguments
     def see(self, mac=None, dev_id=None, host_name=None, location_name=None,
             gps=None):
@@ -183,6 +187,8 @@ class DeviceTracker(object):
             if device.track:
                 device.update_ha_state()
 
+            self.group.update_tracked_entity_ids(
+                list(self.group.tracking) + [device.entity_id])
             update_config(self.hass.config.path(YAML_DEVICES), dev_id, device)
 
     def update_stale(self, now):
@@ -204,7 +210,7 @@ class Device(Entity):
 
     # Track if the last update of this device was HOME
     last_update_home = False
-    _state = STATE_UNKNOWN
+    _state = STATE_NOT_HOME
 
     def __init__(self, hass, consider_home, track, dev_id, mac, name=None,
                  picture=None, away_hide=False):
diff --git a/tests/components/device_tracker/test_init.py b/tests/components/device_tracker/test_init.py
index f71f01ca570..2b7e18d8b3b 100644
--- a/tests/components/device_tracker/test_init.py
+++ b/tests/components/device_tracker/test_init.py
@@ -14,8 +14,8 @@ from homeassistant.config import load_yaml_config_file
 from homeassistant.loader import get_component
 import homeassistant.util.dt as dt_util
 from homeassistant.const import (
-    ATTR_ENTITY_PICTURE, ATTR_HIDDEN, STATE_HOME, STATE_NOT_HOME,
-    CONF_PLATFORM, ATTR_FRIENDLY_NAME)
+    ATTR_ENTITY_ID, ATTR_ENTITY_PICTURE, ATTR_FRIENDLY_NAME, ATTR_HIDDEN,
+    STATE_HOME, STATE_NOT_HOME, CONF_PLATFORM, )
 import homeassistant.components.device_tracker as device_tracker
 
 from tests.common import (
@@ -193,3 +193,23 @@ class TestComponentsDeviceTracker(unittest.TestCase):
 
         self.assertTrue(self.hass.states.get(entity_id)
                             .attributes.get(ATTR_HIDDEN))
+
+    def test_group_all_devices(self):
+        dev_id = 'test_entity'
+        entity_id = device_tracker.ENTITY_ID_FORMAT.format(dev_id)
+        device = device_tracker.Device(
+            self.hass, timedelta(seconds=180), True, dev_id, None,
+            away_hide=True)
+        device_tracker.update_config(self.yaml_devices, dev_id, device)
+
+        scanner = get_component('device_tracker.test').SCANNER
+        scanner.reset()
+
+        self.assertTrue(device_tracker.setup(self.hass, {
+            device_tracker.DOMAIN: {CONF_PLATFORM: 'test'}}))
+
+        state = self.hass.states.get(device_tracker.ENTITY_ID_ALL_DEVICES)
+        self.assertIsNotNone(state)
+        self.assertEqual(STATE_NOT_HOME, state.state)
+        self.assertSequenceEqual((entity_id,),
+                                 state.attributes.get(ATTR_ENTITY_ID))