diff --git a/homeassistant/components/esphome/coordinator.py b/homeassistant/components/esphome/coordinator.py
index b31a74dcf3f..99ae6d38a9d 100644
--- a/homeassistant/components/esphome/coordinator.py
+++ b/homeassistant/components/esphome/coordinator.py
@@ -5,43 +5,38 @@ from __future__ import annotations
 from datetime import timedelta
 import logging
 
-import aiohttp
 from awesomeversion import AwesomeVersion
 from esphome_dashboard_api import ConfiguredDevice, ESPHomeDashboardAPI
 
 from homeassistant.core import HomeAssistant
+from homeassistant.helpers.aiohttp_client import async_get_clientsession
 from homeassistant.helpers.update_coordinator import DataUpdateCoordinator
 
 _LOGGER = logging.getLogger(__name__)
 
 MIN_VERSION_SUPPORTS_UPDATE = AwesomeVersion("2023.1.0")
+REFRESH_INTERVAL = timedelta(minutes=5)
 
 
 class ESPHomeDashboardCoordinator(DataUpdateCoordinator[dict[str, ConfiguredDevice]]):
     """Class to interact with the ESPHome dashboard."""
 
-    def __init__(
-        self,
-        hass: HomeAssistant,
-        addon_slug: str,
-        url: str,
-        session: aiohttp.ClientSession,
-    ) -> None:
-        """Initialize."""
+    def __init__(self, hass: HomeAssistant, addon_slug: str, url: str) -> None:
+        """Initialize the dashboard coordinator."""
         super().__init__(
             hass,
             _LOGGER,
             config_entry=None,
             name="ESPHome Dashboard",
-            update_interval=timedelta(minutes=5),
+            update_interval=REFRESH_INTERVAL,
             always_update=False,
         )
         self.addon_slug = addon_slug
         self.url = url
-        self.api = ESPHomeDashboardAPI(url, session)
+        self.api = ESPHomeDashboardAPI(url, async_get_clientsession(hass))
         self.supports_update: bool | None = None
 
-    async def _async_update_data(self) -> dict:
+    async def _async_update_data(self) -> dict[str, ConfiguredDevice]:
         """Fetch device data."""
         devices = await self.api.get_devices()
         configured_devices = devices["configured"]
diff --git a/homeassistant/components/esphome/dashboard.py b/homeassistant/components/esphome/dashboard.py
index bbe4698f278..5f879edf005 100644
--- a/homeassistant/components/esphome/dashboard.py
+++ b/homeassistant/components/esphome/dashboard.py
@@ -9,7 +9,6 @@ from typing import Any
 from homeassistant.config_entries import SOURCE_REAUTH
 from homeassistant.const import EVENT_HOMEASSISTANT_STOP
 from homeassistant.core import CALLBACK_TYPE, Event, HomeAssistant, callback
-from homeassistant.helpers.aiohttp_client import async_get_clientsession
 from homeassistant.helpers.hassio import is_hassio
 from homeassistant.helpers.singleton import singleton
 from homeassistant.helpers.storage import Store
@@ -104,9 +103,7 @@ class ESPHomeDashboardManager:
                 self._cancel_shutdown = None
             self._current_dashboard = None
 
-        dashboard = ESPHomeDashboardCoordinator(
-            hass, addon_slug, url, async_get_clientsession(hass)
-        )
+        dashboard = ESPHomeDashboardCoordinator(hass, addon_slug, url)
         await dashboard.async_request_refresh()
 
         self._current_dashboard = dashboard
diff --git a/homeassistant/components/esphome/update.py b/homeassistant/components/esphome/update.py
index d2c8d9dc3d0..a92204a80d2 100644
--- a/homeassistant/components/esphome/update.py
+++ b/homeassistant/components/esphome/update.py
@@ -70,7 +70,6 @@ async def async_setup_entry(
     @callback
     def _async_setup_update_entity() -> None:
         """Set up the update entity."""
-        nonlocal unsubs
         assert dashboard is not None
         # Keep listening until device is available
         if not entry_data.available or not dashboard.last_update_success:
@@ -95,10 +94,12 @@ async def async_setup_entry(
         _async_setup_update_entity()
         return
 
-    unsubs = [
-        entry_data.async_subscribe_device_updated(_async_setup_update_entity),
-        dashboard.async_add_listener(_async_setup_update_entity),
-    ]
+    unsubs.extend(
+        [
+            entry_data.async_subscribe_device_updated(_async_setup_update_entity),
+            dashboard.async_add_listener(_async_setup_update_entity),
+        ]
+    )
 
 
 class ESPHomeDashboardUpdateEntity(
diff --git a/tests/components/esphome/test_dashboard.py b/tests/components/esphome/test_dashboard.py
index 5fa53dc7f75..99bdd5b5f47 100644
--- a/tests/components/esphome/test_dashboard.py
+++ b/tests/components/esphome/test_dashboard.py
@@ -1,26 +1,46 @@
 """Test ESPHome dashboard features."""
 
+from datetime import datetime
 from typing import Any
 from unittest.mock import patch
 
-from aioesphomeapi import DeviceInfo, InvalidAuthAPIError
+from aioesphomeapi import APIClient, DeviceInfo, InvalidAuthAPIError
 import pytest
 
 from homeassistant.components.esphome import CONF_NOISE_PSK, DOMAIN, dashboard
+from homeassistant.components.esphome.coordinator import REFRESH_INTERVAL
 from homeassistant.config_entries import ConfigEntryState
 from homeassistant.core import HomeAssistant
 from homeassistant.data_entry_flow import FlowResultType
 from homeassistant.setup import async_setup_component
+from homeassistant.util import dt as dt_util
 
 from . import VALID_NOISE_PSK
+from .conftest import MockESPHomeDeviceType
 
-from tests.common import MockConfigEntry
+from tests.common import MockConfigEntry, async_fire_time_changed
 
 
+class MockDashboardRefresh:
+    """Mock dashboard refresh."""
+
+    def __init__(self, hass: HomeAssistant) -> None:
+        """Initialize the mock dashboard refresh."""
+        self.hass = hass
+        self.last_time: datetime | None = None
+
+    async def async_refresh(self) -> None:
+        """Refresh the dashboard."""
+        if self.last_time is None:
+            self.last_time = dt_util.utcnow()
+        self.last_time += REFRESH_INTERVAL
+        async_fire_time_changed(self.hass, self.last_time)
+        await self.hass.async_block_till_done()
+
+
+@pytest.mark.usefixtures("init_integration", "mock_dashboard")
 async def test_dashboard_storage(
     hass: HomeAssistant,
-    init_integration,
-    mock_dashboard: dict[str, Any],
     hass_storage: dict[str, Any],
 ) -> None:
     """Test dashboard storage."""
@@ -165,8 +185,9 @@ async def test_setup_dashboard_fails_when_already_setup(
     assert len(mock_setup.mock_calls) == 1
 
 
+@pytest.mark.usefixtures("mock_dashboard")
 async def test_new_info_reload_config_entries(
-    hass: HomeAssistant, init_integration, mock_dashboard
+    hass: HomeAssistant, init_integration: MockConfigEntry
 ) -> None:
     """Test config entries are reloaded when new info is set."""
     assert init_integration.state is ConfigEntryState.LOADED
@@ -185,7 +206,10 @@ async def test_new_info_reload_config_entries(
 
 
 async def test_new_dashboard_fix_reauth(
-    hass: HomeAssistant, mock_client, mock_config_entry: MockConfigEntry, mock_dashboard
+    hass: HomeAssistant,
+    mock_client: APIClient,
+    mock_config_entry: MockConfigEntry,
+    mock_dashboard: dict[str, Any],
 ) -> None:
     """Test config entries waiting for reauth are triggered."""
     mock_client.device_info.side_effect = (
@@ -209,7 +233,7 @@ async def test_new_dashboard_fix_reauth(
         }
     )
 
-    await dashboard.async_get_dashboard(hass).async_refresh()
+    await MockDashboardRefresh(hass).async_refresh()
 
     with (
         patch(
@@ -229,15 +253,29 @@ async def test_new_dashboard_fix_reauth(
 
 
 async def test_dashboard_supports_update(
-    hass: HomeAssistant, mock_dashboard: dict[str, Any]
+    hass: HomeAssistant,
+    mock_dashboard: dict[str, Any],
+    mock_client: APIClient,
+    mock_esphome_device: MockESPHomeDeviceType,
 ) -> None:
     """Test dashboard supports update."""
     dash = dashboard.async_get_dashboard(hass)
+    mock_refresh = MockDashboardRefresh(hass)
+
+    entity_info = []
+    states = []
+    user_service = []
+    await mock_esphome_device(
+        mock_client=mock_client,
+        entity_info=entity_info,
+        user_service=user_service,
+        states=states,
+    )
 
     # No data
     assert not dash.supports_update
 
-    await dash.async_refresh()
+    await mock_refresh.async_refresh()
     assert dash.supports_update is None
 
     # supported version
@@ -248,12 +286,44 @@ async def test_dashboard_supports_update(
             "current_version": "2023.2.0-dev",
         }
     )
-    await dash.async_refresh()
+
+    await mock_refresh.async_refresh()
     assert dash.supports_update is True
 
-    # unsupported version
-    dash.supports_update = None
-    mock_dashboard["configured"][0]["current_version"] = "2023.1.0"
-    await dash.async_refresh()
 
+async def test_dashboard_unsupported_version(
+    hass: HomeAssistant,
+    mock_dashboard: dict[str, Any],
+    mock_client: APIClient,
+    mock_esphome_device: MockESPHomeDeviceType,
+) -> None:
+    """Test dashboard with unsupported version."""
+    dash = dashboard.async_get_dashboard(hass)
+    mock_refresh = MockDashboardRefresh(hass)
+
+    entity_info = []
+    states = []
+    user_service = []
+    await mock_esphome_device(
+        mock_client=mock_client,
+        entity_info=entity_info,
+        user_service=user_service,
+        states=states,
+    )
+
+    # No data
+    assert not dash.supports_update
+
+    await mock_refresh.async_refresh()
+    assert dash.supports_update is None
+
+    # unsupported version
+    mock_dashboard["configured"].append(
+        {
+            "name": "test",
+            "configuration": "test.yaml",
+            "current_version": "2023.1.0",
+        }
+    )
+    await mock_refresh.async_refresh()
     assert dash.supports_update is False