diff --git a/CODEOWNERS b/CODEOWNERS
index f8640070f9e..1c94eb3f542 100644
--- a/CODEOWNERS
+++ b/CODEOWNERS
@@ -387,7 +387,7 @@ homeassistant/components/seven_segments/* @fabaff
 homeassistant/components/seventeentrack/* @bachya
 homeassistant/components/sharkiq/* @ajmarks
 homeassistant/components/shell_command/* @home-assistant/core
-homeassistant/components/shelly/* @balloob @bieniu
+homeassistant/components/shelly/* @balloob @bieniu @thecode
 homeassistant/components/shiftr/* @fabaff
 homeassistant/components/shodan/* @fabaff
 homeassistant/components/sighthound/* @robmarkcole
diff --git a/homeassistant/components/shelly/__init__.py b/homeassistant/components/shelly/__init__.py
index 628ee5a53cc..8696a0a23b5 100644
--- a/homeassistant/components/shelly/__init__.py
+++ b/homeassistant/components/shelly/__init__.py
@@ -2,8 +2,8 @@
 import asyncio
 from datetime import timedelta
 import logging
+from socket import gethostbyname
 
-import aiocoap
 import aioshelly
 import async_timeout
 
@@ -14,44 +14,59 @@ from homeassistant.const import (
     CONF_USERNAME,
     EVENT_HOMEASSISTANT_STOP,
 )
-from homeassistant.core import HomeAssistant
+from homeassistant.core import HomeAssistant, callback
 from homeassistant.exceptions import ConfigEntryNotReady
-from homeassistant.helpers import aiohttp_client, device_registry, update_coordinator
+from homeassistant.helpers import (
+    aiohttp_client,
+    device_registry,
+    singleton,
+    update_coordinator,
+)
 
-from .const import COAP_CONTEXT, DATA_CONFIG_ENTRY, DOMAIN
+from .const import DATA_CONFIG_ENTRY, DOMAIN
 
 PLATFORMS = ["binary_sensor", "cover", "light", "sensor", "switch"]
 _LOGGER = logging.getLogger(__name__)
 
 
-async def async_setup(hass: HomeAssistant, config: dict):
-    """Set up the Shelly component."""
-    hass.data[DOMAIN] = {DATA_CONFIG_ENTRY: {}}
-    hass.data[DOMAIN][COAP_CONTEXT] = await aiocoap.Context.create_client_context()
+@singleton.singleton("shelly_coap")
+async def get_coap_context(hass):
+    """Get CoAP context to be used in all Shelly devices."""
+    context = aioshelly.COAP()
+    await context.initialize()
 
-    async def shutdown_listener(*_):
-        """Home Assistant shutdown listener."""
-        await hass.data[DOMAIN][COAP_CONTEXT].shutdown()
+    @callback
+    def shutdown_listener(ev):
+        context.close()
 
     hass.bus.async_listen_once(EVENT_HOMEASSISTANT_STOP, shutdown_listener)
 
+    return context
+
+
+async def async_setup(hass: HomeAssistant, config: dict):
+    """Set up the Shelly component."""
+    hass.data[DOMAIN] = {DATA_CONFIG_ENTRY: {}}
     return True
 
 
 async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry):
     """Set up Shelly from a config entry."""
     temperature_unit = "C" if hass.config.units.is_metric else "F"
+
+    ip_address = await hass.async_add_executor_job(gethostbyname, entry.data[CONF_HOST])
+
     options = aioshelly.ConnectionOptions(
-        entry.data[CONF_HOST],
+        ip_address,
         entry.data.get(CONF_USERNAME),
         entry.data.get(CONF_PASSWORD),
         temperature_unit,
     )
 
-    coap_context = hass.data[DOMAIN][COAP_CONTEXT]
+    coap_context = await get_coap_context(hass)
 
     try:
-        async with async_timeout.timeout(10):
+        async with async_timeout.timeout(5):
             device = await aioshelly.Device.create(
                 aiohttp_client.async_get_clientsession(hass),
                 coap_context,
@@ -78,23 +93,35 @@ class ShellyDeviceWrapper(update_coordinator.DataUpdateCoordinator):
 
     def __init__(self, hass, entry, device: aioshelly.Device):
         """Initialize the Shelly device wrapper."""
+        sleep_mode = device.settings.get("sleep_mode")
+
+        if sleep_mode:
+            sleep_period = sleep_mode["period"]
+            if sleep_mode["unit"] == "h":
+                sleep_period *= 60  # hours to minutes
+
+            update_interval = 1.2 * sleep_period * 60  # minutes to seconds
+        else:
+            update_interval = 2 * device.settings["coiot"]["update_period"]
+
         super().__init__(
             hass,
             _LOGGER,
             name=device.settings["name"] or device.settings["device"]["hostname"],
-            update_interval=timedelta(seconds=5),
+            update_interval=timedelta(seconds=update_interval),
         )
         self.hass = hass
         self.entry = entry
         self.device = device
 
+        self.device.subscribe_updates(self.async_set_updated_data)
+
     async def _async_update_data(self):
         """Fetch data."""
-
         try:
             async with async_timeout.timeout(5):
                 return await self.device.update()
-        except (aiocoap.error.Error, OSError) as err:
+        except OSError as err:
             raise update_coordinator.UpdateFailed("Error fetching data") from err
 
     @property
@@ -122,6 +149,10 @@ class ShellyDeviceWrapper(update_coordinator.DataUpdateCoordinator):
             sw_version=self.device.settings["fw"],
         )
 
+    def shutdown(self):
+        """Shutdown the wrapper."""
+        self.device.shutdown()
+
 
 async def async_unload_entry(hass: HomeAssistant, entry: ConfigEntry):
     """Unload a config entry."""
@@ -134,6 +165,6 @@ async def async_unload_entry(hass: HomeAssistant, entry: ConfigEntry):
         )
     )
     if unload_ok:
-        hass.data[DOMAIN][DATA_CONFIG_ENTRY].pop(entry.entry_id)
+        hass.data[DOMAIN][DATA_CONFIG_ENTRY].pop(entry.entry_id).shutdown()
 
     return unload_ok
diff --git a/homeassistant/components/shelly/config_flow.py b/homeassistant/components/shelly/config_flow.py
index 9076d5b7338..6f79475c0bf 100644
--- a/homeassistant/components/shelly/config_flow.py
+++ b/homeassistant/components/shelly/config_flow.py
@@ -1,8 +1,8 @@
 """Config flow for Shelly integration."""
 import asyncio
 import logging
+from socket import gethostbyname
 
-import aiocoap
 import aiohttp
 import aioshelly
 import async_timeout
@@ -17,6 +17,7 @@ from homeassistant.const import (
 )
 from homeassistant.helpers import aiohttp_client
 
+from .__init__ import get_coap_context
 from .const import DOMAIN  # pylint:disable=unused-import
 
 _LOGGER = logging.getLogger(__name__)
@@ -37,10 +38,13 @@ async def validate_input(hass: core.HomeAssistant, host, data):
 
     Data has the keys from DATA_SCHEMA with values provided by the user.
     """
+    ip_address = await hass.async_add_executor_job(gethostbyname, host)
+
     options = aioshelly.ConnectionOptions(
-        host, data.get(CONF_USERNAME), data.get(CONF_PASSWORD)
+        ip_address, data.get(CONF_USERNAME), data.get(CONF_PASSWORD)
     )
-    coap_context = await aiocoap.Context.create_client_context()
+    coap_context = await get_coap_context(hass)
+
     async with async_timeout.timeout(5):
         device = await aioshelly.Device.create(
             aiohttp_client.async_get_clientsession(hass),
@@ -48,7 +52,7 @@ async def validate_input(hass: core.HomeAssistant, host, data):
             options,
         )
 
-    await coap_context.shutdown()
+    device.shutdown()
 
     # Return info that you want to store in the config entry.
     return {
diff --git a/homeassistant/components/shelly/const.py b/homeassistant/components/shelly/const.py
index b40ada04b30..c17fc28c378 100644
--- a/homeassistant/components/shelly/const.py
+++ b/homeassistant/components/shelly/const.py
@@ -1,5 +1,4 @@
 """Constants for the Shelly integration."""
 
-COAP_CONTEXT = "coap_context"
 DATA_CONFIG_ENTRY = "config_entry"
 DOMAIN = "shelly"
diff --git a/homeassistant/components/shelly/manifest.json b/homeassistant/components/shelly/manifest.json
index 98dcbfda568..82b2e445cb3 100644
--- a/homeassistant/components/shelly/manifest.json
+++ b/homeassistant/components/shelly/manifest.json
@@ -3,7 +3,7 @@
   "name": "Shelly",
   "config_flow": true,
   "documentation": "https://www.home-assistant.io/integrations/shelly",
-  "requirements": ["aioshelly==0.4.0"],
+  "requirements": ["aioshelly==0.5.0"],
   "zeroconf": [{ "type": "_http._tcp.local.", "name": "shelly*" }],
-  "codeowners": ["@balloob", "@bieniu"]
+  "codeowners": ["@balloob", "@bieniu", "@thecode"]
 }
diff --git a/requirements_all.txt b/requirements_all.txt
index 7dd43a13e28..fdf0526290f 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -221,7 +221,7 @@ aiopvpc==2.0.2
 aiopylgtv==0.3.3
 
 # homeassistant.components.shelly
-aioshelly==0.4.0
+aioshelly==0.5.0
 
 # homeassistant.components.switcher_kis
 aioswitcher==1.2.1
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 58df0e5f5e8..69057753ce1 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -137,7 +137,7 @@ aiopvpc==2.0.2
 aiopylgtv==0.3.3
 
 # homeassistant.components.shelly
-aioshelly==0.4.0
+aioshelly==0.5.0
 
 # homeassistant.components.switcher_kis
 aioswitcher==1.2.1
diff --git a/tests/components/shelly/test_config_flow.py b/tests/components/shelly/test_config_flow.py
index ce0c380dd95..1796847bd74 100644
--- a/tests/components/shelly/test_config_flow.py
+++ b/tests/components/shelly/test_config_flow.py
@@ -43,7 +43,6 @@ async def test_form(hass):
         "aioshelly.Device.create",
         new=AsyncMock(
             return_value=Mock(
-                shutdown=AsyncMock(),
                 settings=MOCK_SETTINGS,
             )
         ),
@@ -88,7 +87,6 @@ async def test_title_without_name_and_prefix(hass):
         "aioshelly.Device.create",
         new=AsyncMock(
             return_value=Mock(
-                shutdown=AsyncMock(),
                 settings=settings,
             )
         ),
@@ -137,7 +135,6 @@ async def test_form_auth(hass):
         "aioshelly.Device.create",
         new=AsyncMock(
             return_value=Mock(
-                shutdown=AsyncMock(),
                 settings=MOCK_SETTINGS,
             )
         ),
@@ -309,7 +306,6 @@ async def test_zeroconf(hass):
         "aioshelly.Device.create",
         new=AsyncMock(
             return_value=Mock(
-                shutdown=AsyncMock(),
                 settings=MOCK_SETTINGS,
             )
         ),
@@ -466,7 +462,6 @@ async def test_zeroconf_require_auth(hass):
         "aioshelly.Device.create",
         new=AsyncMock(
             return_value=Mock(
-                shutdown=AsyncMock(),
                 settings=MOCK_SETTINGS,
             )
         ),