diff --git a/homeassistant/components/plugwise/binary_sensor.py b/homeassistant/components/plugwise/binary_sensor.py
index 164135a607b..10e4836f73a 100644
--- a/homeassistant/components/plugwise/binary_sensor.py
+++ b/homeassistant/components/plugwise/binary_sensor.py
@@ -36,6 +36,12 @@ BINARY_SENSORS: tuple[PlugwiseBinarySensorEntityDescription, ...] = (
         icon_off="mdi:hvac-off",
         entity_category=EntityCategory.DIAGNOSTIC,
     ),
+    PlugwiseBinarySensorEntityDescription(
+        key="cooling_enabled",
+        name="Cooling enabled",
+        icon="mdi:snowflake-thermometer",
+        entity_category=EntityCategory.DIAGNOSTIC,
+    ),
     PlugwiseBinarySensorEntityDescription(
         key="dhw_state",
         name="DHW state",
diff --git a/homeassistant/components/plugwise/config_flow.py b/homeassistant/components/plugwise/config_flow.py
index 09b919e9d1d..3bbd5725b29 100644
--- a/homeassistant/components/plugwise/config_flow.py
+++ b/homeassistant/components/plugwise/config_flow.py
@@ -4,9 +4,12 @@ from __future__ import annotations
 from typing import Any
 
 from plugwise.exceptions import (
+    ConnectionFailedError,
     InvalidAuthentication,
     InvalidSetupError,
-    PlugwiseException,
+    InvalidXMLError,
+    ResponseError,
+    UnsupportedDeviceError,
 )
 from plugwise.smile import Smile
 import voluptuous as vol
@@ -32,7 +35,6 @@ from .const import (
     DOMAIN,
     FLOW_SMILE,
     FLOW_STRETCH,
-    LOGGER,
     PW_TYPE,
     SMILE,
     STRETCH,
@@ -175,14 +177,17 @@ class PlugwiseConfigFlow(ConfigFlow, domain=DOMAIN):
 
             try:
                 api = await validate_gw_input(self.hass, user_input)
-            except InvalidSetupError:
-                errors[CONF_BASE] = "invalid_setup"
+            except ConnectionFailedError:
+                errors[CONF_BASE] = "cannot_connect"
             except InvalidAuthentication:
                 errors[CONF_BASE] = "invalid_auth"
-            except PlugwiseException:
-                errors[CONF_BASE] = "cannot_connect"
+            except InvalidSetupError:
+                errors[CONF_BASE] = "invalid_setup"
+            except (InvalidXMLError, ResponseError):
+                errors[CONF_BASE] = "response_error"
+            except UnsupportedDeviceError:
+                errors[CONF_BASE] = "unsupported"
             except Exception:  # pylint: disable=broad-except
-                LOGGER.exception("Unexpected exception")
                 errors[CONF_BASE] = "unknown"
             else:
                 await self.async_set_unique_id(
diff --git a/homeassistant/components/plugwise/coordinator.py b/homeassistant/components/plugwise/coordinator.py
index 6fd44efda84..5e5cab7d816 100644
--- a/homeassistant/components/plugwise/coordinator.py
+++ b/homeassistant/components/plugwise/coordinator.py
@@ -4,7 +4,13 @@ from typing import NamedTuple, cast
 
 from plugwise import Smile
 from plugwise.constants import DeviceData, GatewayData
-from plugwise.exceptions import PlugwiseException, XMLDataMissingError
+from plugwise.exceptions import (
+    ConnectionFailedError,
+    InvalidAuthentication,
+    InvalidXMLError,
+    ResponseError,
+    UnsupportedDeviceError,
+)
 
 from homeassistant.core import HomeAssistant
 from homeassistant.helpers.debounce import Debouncer
@@ -47,12 +53,16 @@ class PlugwiseDataUpdateCoordinator(DataUpdateCoordinator[PlugwiseData]):
         """Fetch data from Plugwise."""
         try:
             data = await self.api.async_update()
-        except XMLDataMissingError as err:
+        except InvalidAuthentication as err:
+            raise UpdateFailed("Authentication failed") from err
+        except (InvalidXMLError, ResponseError) as err:
             raise UpdateFailed(
-                f"No XML data received for: {self.api.smile_name}"
+                "Invalid XML data, or error indication received for the Plugwise Adam/Smile/Stretch"
             ) from err
-        except PlugwiseException as err:
-            raise UpdateFailed(f"Updated failed for: {self.api.smile_name}") from err
+        except UnsupportedDeviceError as err:
+            raise UpdateFailed("Device with unsupported firmware") from err
+        except ConnectionFailedError as err:
+            raise UpdateFailed("Failed to connect") from err
         return PlugwiseData(
             gateway=cast(GatewayData, data[0]),
             devices=cast(dict[str, DeviceData], data[1]),
diff --git a/homeassistant/components/plugwise/gateway.py b/homeassistant/components/plugwise/gateway.py
index 16b6a977569..81cb81e9bbf 100644
--- a/homeassistant/components/plugwise/gateway.py
+++ b/homeassistant/components/plugwise/gateway.py
@@ -1,17 +1,21 @@
 """Plugwise platform for Home Assistant Core."""
 from __future__ import annotations
 
-import asyncio
 from typing import Any
 
-from aiohttp import ClientConnectionError
-from plugwise.exceptions import InvalidAuthentication, PlugwiseException
+from plugwise.exceptions import (
+    ConnectionFailedError,
+    InvalidAuthentication,
+    InvalidXMLError,
+    ResponseError,
+    UnsupportedDeviceError,
+)
 from plugwise.smile import Smile
 
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import CONF_HOST, CONF_PASSWORD, CONF_PORT, CONF_USERNAME
 from homeassistant.core import HomeAssistant, callback
-from homeassistant.exceptions import ConfigEntryNotReady
+from homeassistant.exceptions import ConfigEntryNotReady, HomeAssistantError
 from homeassistant.helpers import device_registry as dr, entity_registry as er
 from homeassistant.helpers.aiohttp_client import async_get_clientsession
 
@@ -42,17 +46,16 @@ async def async_setup_entry_gw(hass: HomeAssistant, entry: ConfigEntry) -> bool:
 
     try:
         connected = await api.connect()
-    except InvalidAuthentication:
-        LOGGER.error("Invalid username or Smile ID")
-        return False
-    except (ClientConnectionError, PlugwiseException) as err:
+    except ConnectionFailedError as err:
+        raise ConfigEntryNotReady("Failed to connect to the Plugwise Smile") from err
+    except InvalidAuthentication as err:
+        raise HomeAssistantError("Invalid username or Smile ID") from err
+    except (InvalidXMLError, ResponseError) as err:
         raise ConfigEntryNotReady(
-            f"Error while communicating to device {api.smile_name}"
-        ) from err
-    except asyncio.TimeoutError as err:
-        raise ConfigEntryNotReady(
-            f"Timeout while connecting to Smile {api.smile_name}"
+            "Error while communicating to the Plugwise Smile"
         ) from err
+    except UnsupportedDeviceError as err:
+        raise HomeAssistantError("Device with unsupported firmware") from err
 
     if not connected:
         raise ConfigEntryNotReady("Unable to connect to Smile")
diff --git a/homeassistant/components/plugwise/manifest.json b/homeassistant/components/plugwise/manifest.json
index 6bb1c941bf3..6a11b47da57 100644
--- a/homeassistant/components/plugwise/manifest.json
+++ b/homeassistant/components/plugwise/manifest.json
@@ -2,7 +2,7 @@
   "domain": "plugwise",
   "name": "Plugwise",
   "documentation": "https://www.home-assistant.io/integrations/plugwise",
-  "requirements": ["plugwise==0.25.7"],
+  "requirements": ["plugwise==0.25.12"],
   "codeowners": ["@CoMPaTech", "@bouwew", "@brefra", "@frenck"],
   "zeroconf": ["_plugwise._tcp.local."],
   "config_flow": true,
diff --git a/homeassistant/components/plugwise/strings.json b/homeassistant/components/plugwise/strings.json
index 7278f6c4414..781a17a1d10 100644
--- a/homeassistant/components/plugwise/strings.json
+++ b/homeassistant/components/plugwise/strings.json
@@ -15,8 +15,10 @@
     "error": {
       "cannot_connect": "[%key:common::config_flow::error::cannot_connect%]",
       "invalid_auth": "[%key:common::config_flow::error::invalid_auth%]",
-      "invalid_setup": "Add your Adam instead of your Anna, see the Home Assistant Plugwise integration documentation for more information",
-      "unknown": "[%key:common::config_flow::error::unknown%]"
+      "invalid_setup": "Add your Adam instead of your Anna, see the documentation",
+      "response_error": "Invalid XML data, or error indication received",
+      "unknown": "[%key:common::config_flow::error::unknown%]",
+      "unsupported": "Device with unsupported firmware"
     },
     "abort": {
       "already_configured": "[%key:common::config_flow::abort::already_configured_service%]",
diff --git a/homeassistant/components/plugwise/translations/en.json b/homeassistant/components/plugwise/translations/en.json
index aa5a318bbff..ecc5af9218d 100644
--- a/homeassistant/components/plugwise/translations/en.json
+++ b/homeassistant/components/plugwise/translations/en.json
@@ -7,8 +7,10 @@
         "error": {
             "cannot_connect": "Failed to connect",
             "invalid_auth": "Invalid authentication",
-            "invalid_setup": "Add your Adam instead of your Anna, see the Home Assistant Plugwise integration documentation for more information",
-            "unknown": "Unexpected error"
+            "invalid_setup": "Add your Adam instead of your Anna, see the documentation",
+            "response_error": "Invalid XML data, or error indication received",
+            "unknown": "Unexpected error",
+            "unsupported": "Device with unsupported firmware"
         },
         "step": {
             "user": {
diff --git a/requirements_all.txt b/requirements_all.txt
index cf2504c8513..e844738a1ab 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -1329,7 +1329,7 @@ plexauth==0.0.6
 plexwebsocket==0.0.13
 
 # homeassistant.components.plugwise
-plugwise==0.25.7
+plugwise==0.25.12
 
 # homeassistant.components.plum_lightpad
 plumlightpad==0.0.11
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 6e96e13f4b9..6eae3f35265 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -956,7 +956,7 @@ plexauth==0.0.6
 plexwebsocket==0.0.13
 
 # homeassistant.components.plugwise
-plugwise==0.25.7
+plugwise==0.25.12
 
 # homeassistant.components.plum_lightpad
 plumlightpad==0.0.11
diff --git a/tests/components/plugwise/fixtures/anna_heatpump_heating/all_data.json b/tests/components/plugwise/fixtures/anna_heatpump_heating/all_data.json
index 546a11b2c68..1dc0fb6f2ad 100644
--- a/tests/components/plugwise/fixtures/anna_heatpump_heating/all_data.json
+++ b/tests/components/plugwise/fixtures/anna_heatpump_heating/all_data.json
@@ -3,7 +3,7 @@
     "smile_name": "Smile Anna",
     "gateway_id": "015ae9ea3f964e668e490fa39da3870b",
     "heater_id": "1cbf783bb11e4a7c8a6843dee3a86927",
-    "cooling_present": true,
+    "cooling_present": false,
     "notifications": {}
   },
   {
@@ -21,10 +21,10 @@
       },
       "available": true,
       "binary_sensors": {
+        "cooling_enabled": false,
         "dhw_state": false,
         "heating_state": true,
         "compressor_state": true,
-        "cooling_state": false,
         "slave_boiler_state": false,
         "flame_state": false
       },
@@ -66,13 +66,11 @@
       "name": "Anna",
       "vendor": "Plugwise",
       "thermostat": {
-        "setpoint_low": 20.5,
-        "setpoint_high": 24.0,
+        "setpoint": 20.5,
         "lower_bound": 4.0,
         "upper_bound": 30.0,
         "resolution": 0.1
       },
-      "available": true,
       "preset_modes": ["no_frost", "home", "away", "asleep", "vacation"],
       "active_preset": "home",
       "available_schedules": ["standaard"],
@@ -81,11 +79,10 @@
       "mode": "auto",
       "sensors": {
         "temperature": 19.3,
+        "setpoint": 20.5,
         "illuminance": 86.0,
         "cooling_activation_outdoor_temperature": 21.0,
-        "cooling_deactivation_threshold": 4.0,
-        "setpoint_low": 20.5,
-        "setpoint_high": 24.0
+        "cooling_deactivation_threshold": 4.0
       }
     }
   }
diff --git a/tests/components/plugwise/fixtures/m_anna_heatpump_cooling/all_data.json b/tests/components/plugwise/fixtures/m_anna_heatpump_cooling/all_data.json
index 6326a02fedb..cb9e340efb8 100644
--- a/tests/components/plugwise/fixtures/m_anna_heatpump_cooling/all_data.json
+++ b/tests/components/plugwise/fixtures/m_anna_heatpump_cooling/all_data.json
@@ -21,6 +21,7 @@
       },
       "available": true,
       "binary_sensors": {
+        "cooling_enabled": true,
         "dhw_state": false,
         "heating_state": false,
         "compressor_state": true,
@@ -72,7 +73,6 @@
         "upper_bound": 30.0,
         "resolution": 0.1
       },
-      "available": true,
       "preset_modes": ["no_frost", "home", "away", "asleep", "vacation"],
       "active_preset": "home",
       "available_schedules": ["standaard"],
diff --git a/tests/components/plugwise/fixtures/m_anna_heatpump_idle/all_data.json b/tests/components/plugwise/fixtures/m_anna_heatpump_idle/all_data.json
index cd2747f423b..0a421be5343 100644
--- a/tests/components/plugwise/fixtures/m_anna_heatpump_idle/all_data.json
+++ b/tests/components/plugwise/fixtures/m_anna_heatpump_idle/all_data.json
@@ -21,6 +21,7 @@
       },
       "available": true,
       "binary_sensors": {
+        "cooling_enabled": true,
         "dhw_state": false,
         "heating_state": false,
         "compressor_state": false,
@@ -72,7 +73,6 @@
         "upper_bound": 30.0,
         "resolution": 0.1
       },
-      "available": true,
       "preset_modes": ["no_frost", "home", "away", "asleep", "vacation"],
       "active_preset": "home",
       "available_schedules": ["standaard"],
diff --git a/tests/components/plugwise/test_binary_sensor.py b/tests/components/plugwise/test_binary_sensor.py
index 1e4df8fb673..f4f2a3f3c5f 100644
--- a/tests/components/plugwise/test_binary_sensor.py
+++ b/tests/components/plugwise/test_binary_sensor.py
@@ -26,7 +26,7 @@ async def test_anna_climate_binary_sensor_entities(
     assert state
     assert state.state == STATE_ON
 
-    state = hass.states.get("binary_sensor.opentherm_cooling")
+    state = hass.states.get("binary_sensor.opentherm_cooling_enabled")
     assert state
     assert state.state == STATE_OFF
 
diff --git a/tests/components/plugwise/test_climate.py b/tests/components/plugwise/test_climate.py
index ad5443a678c..5636523a919 100644
--- a/tests/components/plugwise/test_climate.py
+++ b/tests/components/plugwise/test_climate.py
@@ -202,7 +202,7 @@ async def test_anna_climate_entity_attributes(
     assert state.state == HVACMode.AUTO
     assert state.attributes["hvac_action"] == "heating"
     assert state.attributes["hvac_modes"] == [
-        HVACMode.HEAT_COOL,
+        HVACMode.HEAT,
         HVACMode.AUTO,
     ]
 
@@ -211,9 +211,8 @@ async def test_anna_climate_entity_attributes(
 
     assert state.attributes["current_temperature"] == 19.3
     assert state.attributes["preset_mode"] == "home"
-    assert state.attributes["supported_features"] == 18
-    assert state.attributes["target_temp_high"] == 24.0
-    assert state.attributes["target_temp_low"] == 20.5
+    assert state.attributes["supported_features"] == 17
+    assert state.attributes["temperature"] == 20.5
     assert state.attributes["min_temp"] == 4.0
     assert state.attributes["max_temp"] == 30.0
     assert state.attributes["target_temp_step"] == 0.1
@@ -286,7 +285,7 @@ async def test_anna_climate_entity_climate_changes(
     await hass.services.async_call(
         "climate",
         "set_hvac_mode",
-        {"entity_id": "climate.anna", "hvac_mode": "heat_cool"},
+        {"entity_id": "climate.anna", "hvac_mode": "heat"},
         blocking=True,
     )
 
diff --git a/tests/components/plugwise/test_config_flow.py b/tests/components/plugwise/test_config_flow.py
index 84d2335b16f..b569cb08ddf 100644
--- a/tests/components/plugwise/test_config_flow.py
+++ b/tests/components/plugwise/test_config_flow.py
@@ -5,7 +5,9 @@ from plugwise.exceptions import (
     ConnectionFailedError,
     InvalidAuthentication,
     InvalidSetupError,
-    PlugwiseException,
+    InvalidXMLError,
+    ResponseError,
+    UnsupportedDeviceError,
 )
 import pytest
 
@@ -97,9 +99,12 @@ def mock_smile():
     with patch(
         "homeassistant.components.plugwise.config_flow.Smile",
     ) as smile_mock:
-        smile_mock.PlugwiseException = PlugwiseException
-        smile_mock.InvalidAuthentication = InvalidAuthentication
         smile_mock.ConnectionFailedError = ConnectionFailedError
+        smile_mock.InvalidAuthentication = InvalidAuthentication
+        smile_mock.InvalidSetupError = InvalidSetupError
+        smile_mock.InvalidXMLError = InvalidXMLError
+        smile_mock.ResponseError = ResponseError
+        smile_mock.UnsupportedDeviceError = UnsupportedDeviceError
         smile_mock.return_value.connect.return_value = True
         yield smile_mock.return_value
 
@@ -266,13 +271,15 @@ async def test_zercoconf_discovery_update_configuration(
 
 
 @pytest.mark.parametrize(
-    "side_effect,reason",
+    "side_effect, reason",
     [
+        (ConnectionFailedError, "cannot_connect"),
         (InvalidAuthentication, "invalid_auth"),
         (InvalidSetupError, "invalid_setup"),
-        (ConnectionFailedError, "cannot_connect"),
-        (PlugwiseException, "cannot_connect"),
+        (InvalidXMLError, "response_error"),
+        (ResponseError, "response_error"),
         (RuntimeError, "unknown"),
+        (UnsupportedDeviceError, "unsupported"),
     ],
 )
 async def test_flow_errors(
diff --git a/tests/components/plugwise/test_init.py b/tests/components/plugwise/test_init.py
index 557680cb060..e37ee6b320c 100644
--- a/tests/components/plugwise/test_init.py
+++ b/tests/components/plugwise/test_init.py
@@ -1,12 +1,12 @@
 """Tests for the Plugwise Climate integration."""
-import asyncio
 from unittest.mock import MagicMock
 
-import aiohttp
 from plugwise.exceptions import (
     ConnectionFailedError,
-    PlugwiseException,
-    XMLDataMissingError,
+    InvalidAuthentication,
+    InvalidXMLError,
+    ResponseError,
+    UnsupportedDeviceError,
 )
 import pytest
 
@@ -43,24 +43,52 @@ async def test_load_unload_config_entry(
     assert mock_config_entry.state is ConfigEntryState.NOT_LOADED
 
 
+@pytest.mark.parametrize(
+    "side_effect, entry_state",
+    [
+        (ConnectionFailedError, ConfigEntryState.SETUP_RETRY),
+        (InvalidAuthentication, ConfigEntryState.SETUP_ERROR),
+        (InvalidXMLError, ConfigEntryState.SETUP_RETRY),
+        (ResponseError, ConfigEntryState.SETUP_RETRY),
+        (UnsupportedDeviceError, ConfigEntryState.SETUP_ERROR),
+    ],
+)
+async def test_gateway_config_entry_not_ready(
+    hass: HomeAssistant,
+    mock_config_entry: MockConfigEntry,
+    mock_smile_anna: MagicMock,
+    side_effect: Exception,
+    entry_state: ConfigEntryState,
+) -> None:
+    """Test the Plugwise configuration entry not ready."""
+    mock_smile_anna.connect.side_effect = side_effect
+
+    mock_config_entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(mock_config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert len(mock_smile_anna.connect.mock_calls) == 1
+    assert mock_config_entry.state is entry_state
+
+
 @pytest.mark.parametrize(
     "side_effect",
     [
         (ConnectionFailedError),
-        (PlugwiseException),
-        (XMLDataMissingError),
-        (asyncio.TimeoutError),
-        (aiohttp.ClientConnectionError),
+        (InvalidAuthentication),
+        (InvalidXMLError),
+        (ResponseError),
+        (UnsupportedDeviceError),
     ],
 )
-async def test_config_entry_not_ready(
+async def test_coord_config_entry_not_ready(
     hass: HomeAssistant,
     mock_config_entry: MockConfigEntry,
     mock_smile_anna: MagicMock,
     side_effect: Exception,
 ) -> None:
     """Test the Plugwise configuration entry not ready."""
-    mock_smile_anna.connect.side_effect = side_effect
+    mock_smile_anna.async_update.side_effect = side_effect
 
     mock_config_entry.add_to_hass(hass)
     await hass.config_entries.async_setup(mock_config_entry.entry_id)