diff --git a/homeassistant/components/smartthings/__init__.py b/homeassistant/components/smartthings/__init__.py
index b78d2695370..0cb64fe4a33 100644
--- a/homeassistant/components/smartthings/__init__.py
+++ b/homeassistant/components/smartthings/__init__.py
@@ -32,6 +32,7 @@ from homeassistant.const import (
     ATTR_HW_VERSION,
     ATTR_MANUFACTURER,
     ATTR_MODEL,
+    ATTR_SUGGESTED_AREA,
     ATTR_SW_VERSION,
     ATTR_VIA_DEVICE,
     CONF_ACCESS_TOKEN,
@@ -454,14 +455,24 @@ def create_devices(
                     ATTR_SW_VERSION: viper.software_version,
                 }
             )
+        if (
+            device_registry.async_get_device({(DOMAIN, device.device.device_id)})
+            is None
+        ):
+            kwargs.update(
+                {
+                    ATTR_SUGGESTED_AREA: (
+                        rooms.get(device.device.room_id)
+                        if device.device.room_id
+                        else None
+                    )
+                }
+            )
         device_registry.async_get_or_create(
             config_entry_id=entry.entry_id,
             identifiers={(DOMAIN, device.device.device_id)},
             configuration_url="https://account.smartthings.com",
             name=device.device.label,
-            suggested_area=(
-                rooms.get(device.device.room_id) if device.device.room_id else None
-            ),
             **kwargs,
         )
 
diff --git a/tests/components/smartthings/test_init.py b/tests/components/smartthings/test_init.py
index 1d4b124c60d..fcb962449bf 100644
--- a/tests/components/smartthings/test_init.py
+++ b/tests/components/smartthings/test_init.py
@@ -59,6 +59,37 @@ async def test_devices(
     assert device == snapshot
 
 
+@pytest.mark.parametrize("device_fixture", ["da_ac_rac_000001"])
+async def test_device_not_resetting_area(
+    hass: HomeAssistant,
+    snapshot: SnapshotAssertion,
+    devices: AsyncMock,
+    mock_config_entry: MockConfigEntry,
+    device_registry: dr.DeviceRegistry,
+) -> None:
+    """Test device not resetting area."""
+    await setup_integration(hass, mock_config_entry)
+
+    device_id = devices.get_devices.return_value[0].device_id
+
+    device = device_registry.async_get_device({(DOMAIN, device_id)})
+
+    assert device.area_id == "theater"
+
+    device_registry.async_update_device(device_id=device.id, area_id=None)
+    await hass.async_block_till_done()
+
+    device = device_registry.async_get_device({(DOMAIN, device_id)})
+
+    assert device.area_id is None
+
+    await hass.config_entries.async_reload(mock_config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    device = device_registry.async_get_device({(DOMAIN, device_id)})
+    assert device.area_id is None
+
+
 @pytest.mark.parametrize("device_fixture", ["button"])
 async def test_button_event(
     hass: HomeAssistant,