diff --git a/homeassistant/components/daikin/config_flow.py b/homeassistant/components/daikin/config_flow.py
index 43d169e3440..18447c56d18 100644
--- a/homeassistant/components/daikin/config_flow.py
+++ b/homeassistant/components/daikin/config_flow.py
@@ -5,7 +5,7 @@ from uuid import uuid4
 
 from aiohttp import ClientError, web_exceptions
 from async_timeout import timeout
-from pydaikin.daikin_base import Appliance
+from pydaikin.daikin_base import Appliance, DaikinException
 from pydaikin.discovery import Discovery
 import voluptuous as vol
 
@@ -88,6 +88,13 @@ class FlowHandler(config_entries.ConfigFlow, domain=DOMAIN):
                 data_schema=self.schema,
                 errors={"base": "invalid_auth"},
             )
+        except DaikinException as daikin_exp:
+            _LOGGER.error(daikin_exp)
+            return self.async_show_form(
+                step_id="user",
+                data_schema=self.schema,
+                errors={"base": "unknown"},
+            )
         except Exception:  # pylint: disable=broad-except
             _LOGGER.exception("Unexpected error creating device")
             return self.async_show_form(
diff --git a/homeassistant/components/daikin/manifest.json b/homeassistant/components/daikin/manifest.json
index f34dc8edc57..2a1619594ba 100644
--- a/homeassistant/components/daikin/manifest.json
+++ b/homeassistant/components/daikin/manifest.json
@@ -3,7 +3,7 @@
   "name": "Daikin AC",
   "config_flow": true,
   "documentation": "https://www.home-assistant.io/integrations/daikin",
-  "requirements": ["pydaikin==2.4.4"],
+  "requirements": ["pydaikin==2.6.0"],
   "codeowners": ["@fredrike"],
   "zeroconf": ["_dkapi._tcp.local."],
   "quality_scale": "platinum",
diff --git a/requirements_all.txt b/requirements_all.txt
index f93ee194f9c..71c6135eeae 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -1414,7 +1414,7 @@ pycsspeechtts==1.0.4
 # pycups==1.9.73
 
 # homeassistant.components.daikin
-pydaikin==2.4.4
+pydaikin==2.6.0
 
 # homeassistant.components.danfoss_air
 pydanfossair==0.1.0
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 67765b7a649..c47a70b1a39 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -829,7 +829,7 @@ pycomfoconnect==0.4
 pycoolmasternet-async==0.1.2
 
 # homeassistant.components.daikin
-pydaikin==2.4.4
+pydaikin==2.6.0
 
 # homeassistant.components.deconz
 pydeconz==84
diff --git a/tests/components/daikin/test_config_flow.py b/tests/components/daikin/test_config_flow.py
index 91ea79f4aa7..f39d117ed39 100644
--- a/tests/components/daikin/test_config_flow.py
+++ b/tests/components/daikin/test_config_flow.py
@@ -4,6 +4,7 @@ import asyncio
 from unittest.mock import PropertyMock, patch
 
 from aiohttp import ClientError, web_exceptions
+from pydaikin.exceptions import DaikinException
 import pytest
 
 from homeassistant.components.daikin.const import KEY_MAC
@@ -85,6 +86,7 @@ async def test_abort_if_already_setup(hass, mock_daikin):
         (asyncio.TimeoutError, "cannot_connect"),
         (ClientError, "cannot_connect"),
         (web_exceptions.HTTPForbidden, "invalid_auth"),
+        (DaikinException, "unknown"),
         (Exception, "unknown"),
     ],
 )