diff --git a/tests/components/conversation/snapshots/test_default_agent.ambr b/tests/components/conversation/snapshots/test_default_agent.ambr
index 7cdc239363d..d015b19ddc1 100644
--- a/tests/components/conversation/snapshots/test_default_agent.ambr
+++ b/tests/components/conversation/snapshots/test_default_agent.ambr
@@ -351,24 +351,14 @@
       'card': dict({
       }),
       'data': dict({
-        'failed': list([
-        ]),
-        'success': list([
-          dict({
-            'id': 'light.kitchen',
-            'name': 'kitchen light',
-            'type': <IntentResponseTargetType.ENTITY: 'entity'>,
-          }),
-        ]),
-        'targets': list([
-        ]),
+        'code': 'no_valid_targets',
       }),
       'language': 'en',
-      'response_type': 'action_done',
+      'response_type': 'error',
       'speech': dict({
         'plain': dict({
           'extra_data': None,
-          'speech': 'Turned on the light',
+          'speech': 'Sorry, I am not aware of any device called my cool light',
         }),
       }),
     }),
@@ -474,6 +464,96 @@
     }),
   })
 # ---
+# name: test_intent_entity_fail_if_unexposed
+  dict({
+    'conversation_id': None,
+    'response': dict({
+      'card': dict({
+      }),
+      'data': dict({
+        'code': 'no_valid_targets',
+      }),
+      'language': 'en',
+      'response_type': 'error',
+      'speech': dict({
+        'plain': dict({
+          'extra_data': None,
+          'speech': 'Sorry, I am not aware of any device called kitchen light',
+        }),
+      }),
+    }),
+  })
+# ---
+# name: test_intent_entity_remove_custom_name
+  dict({
+    'conversation_id': None,
+    'response': dict({
+      'card': dict({
+      }),
+      'data': dict({
+        'code': 'no_valid_targets',
+      }),
+      'language': 'en',
+      'response_type': 'error',
+      'speech': dict({
+        'plain': dict({
+          'extra_data': None,
+          'speech': 'Sorry, I am not aware of any device called kitchen light',
+        }),
+      }),
+    }),
+  })
+# ---
+# name: test_intent_entity_remove_custom_name.1
+  dict({
+    'conversation_id': None,
+    'response': dict({
+      'card': dict({
+      }),
+      'data': dict({
+        'failed': list([
+        ]),
+        'success': list([
+          dict({
+            'id': 'light.kitchen',
+            'name': 'kitchen light',
+            'type': <IntentResponseTargetType.ENTITY: 'entity'>,
+          }),
+        ]),
+        'targets': list([
+        ]),
+      }),
+      'language': 'en',
+      'response_type': 'action_done',
+      'speech': dict({
+        'plain': dict({
+          'extra_data': None,
+          'speech': 'Turned on the light',
+        }),
+      }),
+    }),
+  })
+# ---
+# name: test_intent_entity_remove_custom_name.2
+  dict({
+    'conversation_id': None,
+    'response': dict({
+      'card': dict({
+      }),
+      'data': dict({
+        'code': 'no_valid_targets',
+      }),
+      'language': 'en',
+      'response_type': 'error',
+      'speech': dict({
+        'plain': dict({
+          'extra_data': None,
+          'speech': 'Sorry, I am not aware of any device called renamed light',
+        }),
+      }),
+    }),
+  })
+# ---
 # name: test_intent_entity_renamed
   dict({
     'conversation_id': None,
diff --git a/tests/components/conversation/test_default_agent.py b/tests/components/conversation/test_default_agent.py
index 0d547e98641..d227625e7ce 100644
--- a/tests/components/conversation/test_default_agent.py
+++ b/tests/components/conversation/test_default_agent.py
@@ -1558,6 +1558,31 @@ async def test_intent_entity_renamed(
     assert data == snapshot
     assert data["response"]["response_type"] == "action_done"
 
+
+async def test_intent_entity_remove_custom_name(
+    hass: HomeAssistant,
+    init_components,
+    entity_registry: er.EntityRegistry,
+    snapshot: SnapshotAssertion,
+) -> None:
+    """Test that removing a custom name allows targeting the entity by its auto-generated name again."""
+    context = Context()
+    entity = MockLight("kitchen light", STATE_ON)
+    entity._attr_unique_id = "1234"
+    entity.entity_id = "light.kitchen"
+    setup_test_component_platform(hass, LIGHT_DOMAIN, [entity])
+
+    assert await async_setup_component(
+        hass,
+        LIGHT_DOMAIN,
+        {LIGHT_DOMAIN: [{"platform": "test"}]},
+    )
+    await hass.async_block_till_done()
+
+    calls = async_mock_service(hass, LIGHT_DOMAIN, "turn_on")
+
+    # Should fail with auto-generated name
+    entity_registry.async_update_entity("light.kitchen", name="renamed light")
     result = await conversation.async_converse(
         hass, "turn on kitchen light", None, context
     )
@@ -1578,6 +1603,7 @@ async def test_intent_entity_renamed(
 
     assert data == snapshot
     assert data["response"]["response_type"] == "action_done"
+    assert len(calls) == 1
 
     result = await conversation.async_converse(
         hass, "turn on renamed light", None, context
@@ -1588,6 +1614,42 @@ async def test_intent_entity_renamed(
     assert data["response"]["response_type"] == "error"
 
 
+async def test_intent_entity_fail_if_unexposed(
+    hass: HomeAssistant,
+    init_components,
+    entity_registry: er.EntityRegistry,
+    snapshot: SnapshotAssertion,
+) -> None:
+    """Test that an entity is not usable if unexposed."""
+    context = Context()
+    entity = MockLight("kitchen light", STATE_ON)
+    entity._attr_unique_id = "1234"
+    entity.entity_id = "light.kitchen"
+    setup_test_component_platform(hass, LIGHT_DOMAIN, [entity])
+
+    assert await async_setup_component(
+        hass,
+        LIGHT_DOMAIN,
+        {LIGHT_DOMAIN: [{"platform": "test"}]},
+    )
+    await hass.async_block_till_done()
+
+    calls = async_mock_service(hass, LIGHT_DOMAIN, "turn_on")
+
+    # Unexpose the entity
+    expose_entity(hass, "light.kitchen", False)
+    await hass.async_block_till_done(wait_background_tasks=True)
+
+    result = await conversation.async_converse(
+        hass, "turn on kitchen light", None, context
+    )
+
+    data = result.as_dict()
+    assert data == snapshot
+    assert data["response"]["response_type"] == "error"
+    assert len(calls) == 0
+
+
 async def test_intent_entity_exposed(
     hass: HomeAssistant,
     init_components,
@@ -1611,52 +1673,12 @@ async def test_intent_entity_exposed(
         {LIGHT_DOMAIN: [{"platform": "test"}]},
     )
     await hass.async_block_till_done()
-    entity_registry.async_update_entity("light.kitchen", aliases={"my cool light"})
-    await hass.async_block_till_done()
 
     calls = async_mock_service(hass, LIGHT_DOMAIN, "turn_on")
-    result = await conversation.async_converse(
-        hass, "turn on kitchen light", None, context
-    )
 
-    assert len(calls) == 1
-    data = result.as_dict()
-
-    assert data == snapshot
-    assert data["response"]["response_type"] == "action_done"
-
-    calls.clear()
-    result = await conversation.async_converse(
-        hass, "turn on my cool light", None, context
-    )
-
-    assert len(calls) == 1
-    data = result.as_dict()
-
-    assert data == snapshot
-    assert data["response"]["response_type"] == "action_done"
-
-    # Unexpose the entity
+    # Unexpose, then expose the entity
     expose_entity(hass, "light.kitchen", False)
-    await hass.async_block_till_done(wait_background_tasks=True)
-
-    result = await conversation.async_converse(
-        hass, "turn on kitchen light", None, context
-    )
-
-    data = result.as_dict()
-    assert data == snapshot
-    assert data["response"]["response_type"] == "error"
-
-    result = await conversation.async_converse(
-        hass, "turn on my cool light", None, context
-    )
-
-    data = result.as_dict()
-    assert data == snapshot
-    assert data["response"]["response_type"] == "error"
-
-    # Now expose the entity
+    await hass.async_block_till_done()
     expose_entity(hass, "light.kitchen", True)
     await hass.async_block_till_done()
 
@@ -1664,18 +1686,10 @@ async def test_intent_entity_exposed(
         hass, "turn on kitchen light", None, context
     )
 
-    data = result.as_dict()
-
-    assert data == snapshot
-    assert data["response"]["response_type"] == "action_done"
-
-    result = await conversation.async_converse(
-        hass, "turn on my cool light", None, context
-    )
-
     data = result.as_dict()
     assert data == snapshot
     assert data["response"]["response_type"] == "action_done"
+    assert len(calls) == 1
 
 
 async def test_intent_conversion_not_expose_new(