diff --git a/src/data/entity_registry.ts b/src/data/entity_registry.ts
index 7b6a34a1d3..cbc5459b3b 100644
--- a/src/data/entity_registry.ts
+++ b/src/data/entity_registry.ts
@@ -30,7 +30,6 @@ export interface ExtEntityRegistryEntry extends EntityRegistryEntry {
   device_class?: string;
   original_device_class?: string;
   aliases: string[];
-  options: EntityRegistryOptions | null;
 }
 
 export interface UpdateEntityRegistryEntryResult {
@@ -40,7 +39,6 @@ export interface UpdateEntityRegistryEntryResult {
 }
 
 export interface SensorEntityOptions {
-  precision?: number | null;
   unit_of_measurement?: string | null;
 }
 
@@ -56,12 +54,6 @@ export interface WeatherEntityOptions {
   wind_speed_unit?: string | null;
 }
 
-export interface EntityRegistryOptions {
-  number?: NumberEntityOptions;
-  sensor?: SensorEntityOptions;
-  weather?: WeatherEntityOptions;
-}
-
 export interface EntityRegistryEntryUpdateParams {
   name?: string | null;
   icon?: string | null;
diff --git a/src/panels/config/entities/entity-registry-settings.ts b/src/panels/config/entities/entity-registry-settings.ts
index 60c1f62dc4..d1afbb6b50 100644
--- a/src/panels/config/entities/entity-registry-settings.ts
+++ b/src/panels/config/entities/entity-registry-settings.ts
@@ -63,7 +63,6 @@ import {
   EntityRegistryEntry,
   EntityRegistryEntryUpdateParams,
   ExtEntityRegistryEntry,
-  SensorEntityOptions,
   fetchEntityRegistry,
   removeEntityRegistryEntry,
   updateEntityRegistryEntry,
@@ -127,16 +126,6 @@ const OVERRIDE_WEATHER_UNITS = {
 
 const SWITCH_AS_DOMAINS = ["cover", "fan", "light", "lock", "siren"];
 
-const PRECISIONS = [0, 1, 2, 3, 4, 5, 6];
-
-function precisionLabel(precision: number, _state?: string) {
-  const state_float =
-    _state === undefined || isNaN(parseFloat(_state))
-      ? 0.0
-      : parseFloat(_state);
-  return state_float.toFixed(precision);
-}
-
 @customElement("entity-registry-settings")
 export class EntityRegistrySettings extends SubscribeMixin(LitElement) {
   @property({ attribute: false }) public hass!: HomeAssistant;
@@ -165,8 +154,6 @@ export class EntityRegistrySettings extends SubscribeMixin(LitElement) {
 
   @state() private _unit_of_measurement?: string | null;
 
-  @state() private _precision?: number | null;
-
   @state() private _precipitation_unit?: string | null;
 
   @state() private _pressure_unit?: string | null;
@@ -264,10 +251,6 @@ export class EntityRegistrySettings extends SubscribeMixin(LitElement) {
       this._unit_of_measurement = stateObj?.attributes?.unit_of_measurement;
     }
 
-    if (domain === "sensor") {
-      this._precision = this.entry.options?.sensor?.precision;
-    }
-
     if (domain === "weather") {
       const stateObj: HassEntity | undefined =
         this.hass.states[this.entry.entity_id];
@@ -485,44 +468,6 @@ export class EntityRegistrySettings extends SubscribeMixin(LitElement) {
               </ha-select>
             `
           : ""}
-        ${domain === "sensor" &&
-        // Allow customizing the precision for a sensor with numerical device class,
-        // a unit of measurement or state class
-        ((this._deviceClass &&
-          !["date", "enum", "timestamp"].includes(this._deviceClass)) ||
-          stateObj?.attributes.unit_of_measurement ||
-          stateObj?.attributes.state_class)
-          ? html`
-              <ha-select
-                .label=${this.hass.localize(
-                  "ui.dialogs.entity_registry.editor.precision"
-                )}
-                .value=${this._precision == null
-                  ? "default"
-                  : this._precision.toString()}
-                naturalMenuWidth
-                fixedMenuPosition
-                @selected=${this._precisionChanged}
-                @closed=${stopPropagation}
-              >
-                <mwc-list-item .value=${"default"}
-                  >${this.hass.localize(
-                    "ui.dialogs.entity_registry.editor.precision_default"
-                  )}</mwc-list-item
-                >
-                ${PRECISIONS.map(
-                  (precision) => html`
-                    <mwc-list-item .value=${precision.toString()}>
-                      ${precisionLabel(
-                        precision,
-                        this.hass.states[this.entry.entity_id]?.state
-                      )}
-                    </mwc-list-item>
-                  `
-                )}
-              </ha-select>
-            `
-          : ""}
         ${domain === "weather"
           ? html`
               <ha-select
@@ -948,12 +893,6 @@ export class EntityRegistrySettings extends SubscribeMixin(LitElement) {
     this._precipitation_unit = ev.target.value;
   }
 
-  private _precisionChanged(ev): void {
-    this._error = undefined;
-    this._precision =
-      ev.target.value === "default" ? null : Number(ev.target.value);
-  }
-
   private _pressureUnitChanged(ev): void {
     this._error = undefined;
     this._pressure_unit = ev.target.value;
@@ -1149,16 +1088,7 @@ export class EntityRegistrySettings extends SubscribeMixin(LitElement) {
       stateObj?.attributes?.unit_of_measurement !== this._unit_of_measurement
     ) {
       params.options_domain = domain;
-      params.options = this.entry.options?.[domain] || {};
-      params.options.unit_of_measurement = this._unit_of_measurement;
-    }
-    if (
-      domain === "sensor" &&
-      this.entry.options?.[domain]?.precision !== this._precision
-    ) {
-      params.options_domain = domain;
-      params.options = params.options || this.entry.options?.[domain] || {};
-      (params.options as SensorEntityOptions).precision = this._precision;
+      params.options = { unit_of_measurement: this._unit_of_measurement };
     }
     if (
       domain === "weather" &&
diff --git a/src/translations/en.json b/src/translations/en.json
index e6bb023ac1..4c08100009 100755
--- a/src/translations/en.json
+++ b/src/translations/en.json
@@ -906,8 +906,6 @@
           "entity_id": "Entity ID",
           "unit_of_measurement": "Unit of Measurement",
           "precipitation_unit": "Precipitation unit",
-          "precision": "Precision",
-          "precision_default": "Use default",
           "pressure_unit": "Barometric pressure unit",
           "temperature_unit": "Temperature unit",
           "visibility_unit": "Visibility unit",