diff --git a/homeassistant/bootstrap.py b/homeassistant/bootstrap.py
index ffcd1b7f3cf..32a7384c350 100644
--- a/homeassistant/bootstrap.py
+++ b/homeassistant/bootstrap.py
@@ -422,4 +422,5 @@ async def _async_set_up_integrations(
         await async_setup_multi_components(stage_2_domains)
 
     # Wrap up startup
+    _LOGGER.debug("Waiting for startup to wrap up")
     await hass.async_block_till_done()
diff --git a/homeassistant/setup.py b/homeassistant/setup.py
index 70321d364b8..9c20216d4ec 100644
--- a/homeassistant/setup.py
+++ b/homeassistant/setup.py
@@ -19,6 +19,9 @@ DATA_SETUP = "setup_tasks"
 DATA_DEPS_REQS = "deps_reqs_processed"
 
 SLOW_SETUP_WARNING = 10
+# Since a pip install can run, we wait
+# 30 minutes to timeout
+SLOW_SETUP_MAX_WAIT = 1800
 
 
 def setup_component(hass: core.HomeAssistant, domain: str, config: ConfigType) -> bool:
@@ -167,16 +170,28 @@ async def _async_setup_component(
 
     try:
         if hasattr(component, "async_setup"):
-            result = await component.async_setup(  # type: ignore
+            task = component.async_setup(  # type: ignore
                 hass, processed_config
             )
         elif hasattr(component, "setup"):
-            result = await hass.async_add_executor_job(
-                component.setup, hass, processed_config  # type: ignore
+            # This should not be replaced with hass.async_add_executor_job because
+            # we don't want to track this task in case it blocks startup.
+            task = hass.loop.run_in_executor(
+                None, component.setup, hass, processed_config  # type: ignore
             )
         else:
             log_error("No setup function defined.")
             return False
+
+        result = await asyncio.wait_for(task, SLOW_SETUP_MAX_WAIT)
+    except asyncio.TimeoutError:
+        _LOGGER.error(
+            "Setup of %s is taking longer than %s seconds."
+            " Startup will proceed without waiting any longer.",
+            domain,
+            SLOW_SETUP_MAX_WAIT,
+        )
+        return False
     except Exception:  # pylint: disable=broad-except
         _LOGGER.exception("Error during setup of component %s", domain)
         async_notify_setup_error(hass, domain, integration.documentation)
diff --git a/tests/helpers/test_entity_platform.py b/tests/helpers/test_entity_platform.py
index eb24ea971a7..039f83d7031 100644
--- a/tests/helpers/test_entity_platform.py
+++ b/tests/helpers/test_entity_platform.py
@@ -187,8 +187,8 @@ async def test_platform_warn_slow_setup(hass):
         assert mock_call.called
 
         # mock_calls[0] is the warning message for component setup
-        # mock_calls[3] is the warning message for platform setup
-        timeout, logger_method = mock_call.mock_calls[3][1][:2]
+        # mock_calls[5] is the warning message for platform setup
+        timeout, logger_method = mock_call.mock_calls[5][1][:2]
 
         assert timeout == entity_platform.SLOW_SETUP_WARNING
         assert logger_method == _LOGGER.warning
diff --git a/tests/test_setup.py b/tests/test_setup.py
index 4197fe7370a..820b0c4db23 100644
--- a/tests/test_setup.py
+++ b/tests/test_setup.py
@@ -489,13 +489,16 @@ async def test_component_warn_slow_setup(hass):
         result = await setup.async_setup_component(hass, "test_component1", {})
         assert result
         assert mock_call.called
-        assert len(mock_call.mock_calls) == 3
 
+        assert len(mock_call.mock_calls) == 5
         timeout, logger_method = mock_call.mock_calls[0][1][:2]
 
         assert timeout == setup.SLOW_SETUP_WARNING
         assert logger_method == setup._LOGGER.warning
 
+        timeout, function = mock_call.mock_calls[1][1][:2]
+        assert timeout == setup.SLOW_SETUP_MAX_WAIT
+
         assert mock_call().cancel.called
 
 
@@ -507,7 +510,26 @@ async def test_platform_no_warn_slow(hass):
     with patch.object(hass.loop, "call_later") as mock_call:
         result = await setup.async_setup_component(hass, "test_component1", {})
         assert result
-        assert not mock_call.called
+        timeout, function = mock_call.mock_calls[0][1][:2]
+        assert timeout == setup.SLOW_SETUP_MAX_WAIT
+
+
+async def test_platform_error_slow_setup(hass, caplog):
+    """Don't block startup more than SLOW_SETUP_MAX_WAIT."""
+
+    with patch.object(setup, "SLOW_SETUP_MAX_WAIT", 1):
+        called = []
+
+        async def async_setup(*args):
+            """Tracking Setup."""
+            called.append(1)
+            await asyncio.sleep(2)
+
+        mock_integration(hass, MockModule("test_component1", async_setup=async_setup))
+        result = await setup.async_setup_component(hass, "test_component1", {})
+        assert len(called) == 1
+        assert not result
+        assert "test_component1 is taking longer than 1 seconds" in caplog.text
 
 
 async def test_when_setup_already_loaded(hass):