diff --git a/homeassistant/helpers/device_registry.py b/homeassistant/helpers/device_registry.py
index 5c066967437..d090e571a8b 100644
--- a/homeassistant/helpers/device_registry.py
+++ b/homeassistant/helpers/device_registry.py
@@ -219,6 +219,14 @@ class DeviceRegistry:
 
         return new
 
+    def _async_remove_device(self, device_id):
+        del self.devices[device_id]
+        self.hass.bus.async_fire(EVENT_DEVICE_REGISTRY_UPDATED, {
+            'action': 'remove',
+            'device_id': device_id,
+        })
+        self.async_schedule_save()
+
     async def async_load(self):
         """Load the device registry."""
         data = await self._store.async_load()
@@ -278,10 +286,15 @@ class DeviceRegistry:
     @callback
     def async_clear_config_entry(self, config_entry_id):
         """Clear config entry from registry entries."""
+        remove = []
         for dev_id, device in self.devices.items():
-            if config_entry_id in device.config_entries:
+            if device.config_entries == {config_entry_id}:
+                remove.append(dev_id)
+            else:
                 self._async_update_device(
                     dev_id, remove_config_entry_id=config_entry_id)
+        for dev_id in remove:
+            self._async_remove_device(dev_id)
 
     @callback
     def async_clear_area_id(self, area_id: str) -> None:
diff --git a/homeassistant/helpers/entity_registry.py b/homeassistant/helpers/entity_registry.py
index 0a0c441b9cf..2fb32d5214e 100644
--- a/homeassistant/helpers/entity_registry.py
+++ b/homeassistant/helpers/entity_registry.py
@@ -302,9 +302,11 @@ class EntityRegistry:
     @callback
     def async_clear_config_entry(self, config_entry):
         """Clear config entry from registry entries."""
-        for entity_id, entry in self.entities.items():
-            if config_entry == entry.config_entry_id:
-                self._async_update_entity(entity_id, config_entry_id=None)
+        for entity_id in [
+                entity_id
+                for entity_id, entry in self.entities.items()
+                if config_entry == entry.config_entry_id]:
+            self.async_remove(entity_id)
 
 
 @bind_hass
diff --git a/tests/helpers/test_device_registry.py b/tests/helpers/test_device_registry.py
index 4b08bf960bf..444bd44133b 100644
--- a/tests/helpers/test_device_registry.py
+++ b/tests/helpers/test_device_registry.py
@@ -211,10 +211,10 @@ async def test_removing_config_entries(hass, registry, update_events):
 
     registry.async_clear_config_entry('123')
     entry = registry.async_get_device({('bridgeid', '0123')}, set())
-    entry3 = registry.async_get_device({('bridgeid', '4567')}, set())
+    entry3_removed = registry.async_get_device({('bridgeid', '4567')}, set())
 
     assert entry.config_entries == {'456'}
-    assert entry3.config_entries == set()
+    assert entry3_removed is None
 
     await hass.async_block_till_done()
 
@@ -227,7 +227,7 @@ async def test_removing_config_entries(hass, registry, update_events):
     assert update_events[2]['device_id'] == entry3.id
     assert update_events[3]['action'] == 'update'
     assert update_events[3]['device_id'] == entry.id
-    assert update_events[4]['action'] == 'update'
+    assert update_events[4]['action'] == 'remove'
     assert update_events[4]['device_id'] == entry3.id
 
 
diff --git a/tests/helpers/test_entity_registry.py b/tests/helpers/test_entity_registry.py
index 3af9394a202..61d3af6e6f2 100644
--- a/tests/helpers/test_entity_registry.py
+++ b/tests/helpers/test_entity_registry.py
@@ -213,15 +213,14 @@ async def test_removing_config_entry_id(hass, registry, update_events):
     assert entry.config_entry_id == 'mock-id-1'
     registry.async_clear_config_entry('mock-id-1')
 
-    entry = registry.entities[entry.entity_id]
-    assert entry.config_entry_id is None
+    assert not registry.entities
 
     await hass.async_block_till_done()
 
     assert len(update_events) == 2
     assert update_events[0]['action'] == 'create'
     assert update_events[0]['entity_id'] == entry.entity_id
-    assert update_events[1]['action'] == 'update'
+    assert update_events[1]['action'] == 'remove'
     assert update_events[1]['entity_id'] == entry.entity_id
 
 
diff --git a/tests/test_config_entries.py b/tests/test_config_entries.py
index 9de31a6d5ca..752cb5eb277 100644
--- a/tests/test_config_entries.py
+++ b/tests/test_config_entries.py
@@ -261,9 +261,9 @@ async def test_remove_entry(hass, manager):
     # Just Group all_lights
     assert len(hass.states.async_all()) == 1
 
-    # Check that entity registry entry no longer references config_entry_id
-    entity_entry = list(ent_reg.entities.values())[0]
-    assert entity_entry.config_entry_id is None
+    # Check that entity registry entry has been removed
+    entity_entry_list = list(ent_reg.entities.values())
+    assert not entity_entry_list
 
 
 async def test_remove_entry_handles_callback_error(hass, manager):