diff --git a/src/components/entity/ha-entity-picker.ts b/src/components/entity/ha-entity-picker.ts
index 88353724f2..6401b6cd21 100644
--- a/src/components/entity/ha-entity-picker.ts
+++ b/src/components/entity/ha-entity-picker.ts
@@ -405,9 +405,9 @@ export class HaEntityPicker extends LitElement {
     this._opened = ev.detail.value;
   }
 
-  private _valueChanged(ev: ValueChangedEvent<string>) {
+  private _valueChanged(ev: ValueChangedEvent<string | undefined>) {
     ev.stopPropagation();
-    const newValue = ev.detail.value.trim();
+    const newValue = ev.detail.value?.trim();
 
     if (newValue && newValue.startsWith(CREATE_ID)) {
       const domain = newValue.substring(CREATE_ID.length);
@@ -433,7 +433,7 @@ export class HaEntityPicker extends LitElement {
       : this._states;
   }
 
-  private _setValue(value: string) {
+  private _setValue(value: string | undefined) {
     this.value = value;
     setTimeout(() => {
       fireEvent(this, "value-changed", { value });