diff --git a/.coveragerc b/.coveragerc
index 4dc3df0ba41..64acaa2d8e7 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -542,15 +542,12 @@ omit =
     homeassistant/components/lastfm/sensor.py
     homeassistant/components/launch_library/const.py
     homeassistant/components/launch_library/sensor.py
-    homeassistant/components/lcn/__init__.py
     homeassistant/components/lcn/binary_sensor.py
     homeassistant/components/lcn/climate.py
-    homeassistant/components/lcn/const.py
     homeassistant/components/lcn/cover.py
     homeassistant/components/lcn/helpers.py
     homeassistant/components/lcn/light.py
     homeassistant/components/lcn/scene.py
-    homeassistant/components/lcn/schemas.py
     homeassistant/components/lcn/sensor.py
     homeassistant/components/lcn/services.py
     homeassistant/components/lcn/switch.py
diff --git a/tests/components/lcn/conftest.py b/tests/components/lcn/conftest.py
new file mode 100644
index 00000000000..aae4acfa914
--- /dev/null
+++ b/tests/components/lcn/conftest.py
@@ -0,0 +1,97 @@
+"""Test configuration and mocks for LCN component."""
+import json
+from unittest.mock import AsyncMock, patch
+
+import pypck
+from pypck.connection import PchkConnectionManager
+import pypck.module
+from pypck.module import GroupConnection, ModuleConnection
+import pytest
+
+from homeassistant.components.lcn.const import DOMAIN
+from homeassistant.const import CONF_HOST
+from homeassistant.setup import async_setup_component
+
+from tests.common import MockConfigEntry, load_fixture
+
+
+class MockModuleConnection(ModuleConnection):
+    """Fake a LCN module connection."""
+
+    status_request_handler = AsyncMock()
+    activate_status_request_handler = AsyncMock()
+    cancel_status_request_handler = AsyncMock()
+    send_command = AsyncMock(return_value=True)
+
+
+class MockGroupConnection(GroupConnection):
+    """Fake a LCN group connection."""
+
+    send_command = AsyncMock(return_value=True)
+
+
+class MockPchkConnectionManager(PchkConnectionManager):
+    """Fake connection handler."""
+
+    async def async_connect(self, timeout=30):
+        """Mock establishing a connection to PCHK."""
+        self.authentication_completed_future.set_result(True)
+        self.license_error_future.set_result(True)
+        self.segment_scan_completed_event.set()
+
+    async def async_close(self):
+        """Mock closing a connection to PCHK."""
+
+    @patch.object(pypck.connection, "ModuleConnection", MockModuleConnection)
+    @patch.object(pypck.connection, "GroupConnection", MockGroupConnection)
+    def get_address_conn(self, addr):
+        """Get LCN address connection."""
+        return super().get_address_conn(addr, request_serials=False)
+
+    send_command = AsyncMock()
+
+
+def create_config_entry(name):
+    """Set up config entries with configuration data."""
+    fixture_filename = f"lcn/config_entry_{name}.json"
+    entry_data = json.loads(load_fixture(fixture_filename))
+    options = {}
+
+    title = entry_data[CONF_HOST]
+    unique_id = fixture_filename
+    entry = MockConfigEntry(
+        domain=DOMAIN,
+        title=title,
+        unique_id=unique_id,
+        data=entry_data,
+        options=options,
+    )
+    return entry
+
+
+@pytest.fixture(name="entry")
+def create_config_entry_pchk():
+    """Return one specific config entry."""
+    return create_config_entry("pchk")
+
+
+@pytest.fixture(name="entry2")
+def create_config_entry_myhome():
+    """Return one specific config entry."""
+    return create_config_entry("myhome")
+
+
+async def init_integration(hass, entry):
+    """Set up the LCN integration in Home Assistant."""
+    entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(entry.entry_id)
+    await hass.async_block_till_done()
+
+
+async def setup_component(hass):
+    """Set up the LCN component."""
+    fixture_filename = "lcn/config.json"
+    config_data = json.loads(load_fixture(fixture_filename))
+
+    await async_setup_component(hass, DOMAIN, config_data)
+    await hass.async_block_till_done()
diff --git a/tests/components/lcn/test_init.py b/tests/components/lcn/test_init.py
new file mode 100644
index 00000000000..eef02b681d8
--- /dev/null
+++ b/tests/components/lcn/test_init.py
@@ -0,0 +1,106 @@
+"""Test init of LCN integration."""
+from unittest.mock import patch
+
+from pypck.connection import (
+    PchkAuthenticationError,
+    PchkConnectionManager,
+    PchkLicenseError,
+)
+
+from homeassistant import config_entries
+from homeassistant.components.lcn.const import DOMAIN
+from homeassistant.config_entries import ConfigEntryState
+from homeassistant.helpers import entity_registry as er
+from homeassistant.setup import async_setup_component
+
+from .conftest import MockPchkConnectionManager, init_integration, setup_component
+
+
+@patch("pypck.connection.PchkConnectionManager", MockPchkConnectionManager)
+async def test_async_setup_entry(hass, entry):
+    """Test a successful setup entry and unload of entry."""
+    await init_integration(hass, entry)
+    assert len(hass.config_entries.async_entries(DOMAIN)) == 1
+    assert entry.state == ConfigEntryState.LOADED
+
+    assert await hass.config_entries.async_unload(entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert entry.state == ConfigEntryState.NOT_LOADED
+    assert not hass.data.get(DOMAIN)
+
+
+@patch("pypck.connection.PchkConnectionManager", MockPchkConnectionManager)
+async def test_async_setup_multiple_entries(hass, entry, entry2):
+    """Test a successful setup and unload of multiple entries."""
+    for config_entry in (entry, entry2):
+        await init_integration(hass, config_entry)
+        assert config_entry.state == ConfigEntryState.LOADED
+        await hass.async_block_till_done()
+
+    assert len(hass.config_entries.async_entries(DOMAIN)) == 2
+
+    for config_entry in (entry, entry2):
+        assert await hass.config_entries.async_unload(config_entry.entry_id)
+        await hass.async_block_till_done()
+
+        assert config_entry.state == ConfigEntryState.NOT_LOADED
+
+    assert not hass.data.get(DOMAIN)
+
+
+@patch("pypck.connection.PchkConnectionManager", MockPchkConnectionManager)
+async def test_async_setup_entry_update(hass, entry):
+    """Test a successful setup entry if entry with same id already exists."""
+    # setup first entry
+    entry.source = config_entries.SOURCE_IMPORT
+
+    # create dummy entity for LCN platform as an orphan
+    entity_registry = await er.async_get_registry(hass)
+    dummy_entity = entity_registry.async_get_or_create(
+        "switch", DOMAIN, "dummy", config_entry=entry
+    )
+    assert dummy_entity in entity_registry.entities.values()
+
+    # add entity to hass and setup (should cleanup dummy entity)
+    entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert dummy_entity not in entity_registry.entities.values()
+
+
+async def test_async_setup_entry_raises_authentication_error(hass, entry):
+    """Test that an authentication error is handled properly."""
+    with patch.object(
+        PchkConnectionManager, "async_connect", side_effect=PchkAuthenticationError
+    ):
+        await init_integration(hass, entry)
+    assert entry.state == ConfigEntryState.SETUP_ERROR
+
+
+async def test_async_setup_entry_raises_license_error(hass, entry):
+    """Test that an authentication error is handled properly."""
+    with patch.object(
+        PchkConnectionManager, "async_connect", side_effect=PchkLicenseError
+    ):
+        await init_integration(hass, entry)
+    assert entry.state == ConfigEntryState.SETUP_ERROR
+
+
+async def test_async_setup_entry_raises_timeout_error(hass, entry):
+    """Test that an authentication error is handled properly."""
+    with patch.object(PchkConnectionManager, "async_connect", side_effect=TimeoutError):
+        await init_integration(hass, entry)
+    assert entry.state == ConfigEntryState.SETUP_ERROR
+
+
+@patch("pypck.connection.PchkConnectionManager", MockPchkConnectionManager)
+async def test_async_setup_from_configuration_yaml(hass):
+    """Test a successful setup using data from configuration.yaml."""
+    await async_setup_component(hass, "persistent_notification", {})
+
+    with patch("homeassistant.components.lcn.async_setup_entry") as async_setup_entry:
+        await setup_component(hass)
+
+        assert async_setup_entry.await_count == 2
diff --git a/tests/fixtures/lcn/config.json b/tests/fixtures/lcn/config.json
new file mode 100644
index 00000000000..50a1ca05e29
--- /dev/null
+++ b/tests/fixtures/lcn/config.json
@@ -0,0 +1,31 @@
+{
+  "lcn": {
+    "connections": [
+      {
+        "host": "192.168.2.41",
+        "port": 4114,
+        "username": "lcn",
+        "password": "lcn",
+        "sk_num_tries": 0,
+        "dim_mode": "steps200",
+        "name": "pchk"
+      },
+      {
+        "name": "myhome",
+        "host": "192.168.2.42",
+        "port": 4114,
+        "username": "lcn",
+        "password": "lcn",
+        "sk_num_tries": 0,
+        "dim_mode": "steps200"
+      }
+    ],
+    "switches": [
+      {
+        "name": "Switch_Output1",
+        "address": "s0.m7",
+        "output": "output1"
+      }
+    ]
+  }
+}
diff --git a/tests/fixtures/lcn/config_entry_myhome.json b/tests/fixtures/lcn/config_entry_myhome.json
new file mode 100644
index 00000000000..8ab59d0087d
--- /dev/null
+++ b/tests/fixtures/lcn/config_entry_myhome.json
@@ -0,0 +1,11 @@
+{
+  "host": "myhome",
+  "ip_address": "192.168.2.42",
+  "port": 4114,
+  "username": "lcn",
+  "password": "lcn",
+  "sk_num_tries": 0,
+  "dim_mode": "STEPS200",
+  "devices": [],
+  "entities": []
+}
diff --git a/tests/fixtures/lcn/config_entry_pchk.json b/tests/fixtures/lcn/config_entry_pchk.json
new file mode 100644
index 00000000000..3058389a95d
--- /dev/null
+++ b/tests/fixtures/lcn/config_entry_pchk.json
@@ -0,0 +1,29 @@
+{
+  "host": "pchk",
+  "ip_address": "192.168.2.41",
+  "port": 4114,
+  "username": "lcn",
+  "password": "lcn",
+  "sk_num_tries": 0,
+  "dim_mode": "STEPS200",
+  "devices": [
+    {
+      "address": [0, 7, false],
+      "name": "",
+      "hardware_serial": -1,
+      "software_serial": -1,
+      "hardware_type": -1
+    }
+  ],
+  "entities": [
+    {
+      "address": [0, 7, false],
+      "name": "Switch_Output1",
+      "resource": "output1",
+      "domain": "switch",
+      "domain_data": {
+        "output": "OUTPUT1"
+      }
+    }
+  ]
+}