diff --git a/src/data/energy.ts b/src/data/energy.ts
index ff7000e962..b647807a9d 100644
--- a/src/data/energy.ts
+++ b/src/data/energy.ts
@@ -96,6 +96,7 @@ export interface DeviceConsumptionEnergyPreference {
   // This is an ever increasing value
   stat_consumption: string;
   name?: string;
+  included_in_stat?: string;
 }
 
 export interface FlowFromGridSourceEnergyPreference {
diff --git a/src/panels/config/energy/components/ha-energy-device-settings.ts b/src/panels/config/energy/components/ha-energy-device-settings.ts
index ae09836423..59d28b8a23 100644
--- a/src/panels/config/energy/components/ha-energy-device-settings.ts
+++ b/src/panels/config/energy/components/ha-energy-device-settings.ts
@@ -147,6 +147,7 @@ export class EnergyDeviceSettings extends LitElement {
     const origDevice: DeviceConsumptionEnergyPreference =
       ev.currentTarget.closest(".row").device;
     showEnergySettingsDeviceDialog(this, {
+      statsMetadata: this.statsMetadata,
       device: { ...origDevice },
       device_consumptions: this.preferences
         .device_consumption as DeviceConsumptionEnergyPreference[],
@@ -163,6 +164,7 @@ export class EnergyDeviceSettings extends LitElement {
 
   private _addDevice() {
     showEnergySettingsDeviceDialog(this, {
+      statsMetadata: this.statsMetadata,
       device_consumptions: this.preferences
         .device_consumption as DeviceConsumptionEnergyPreference[],
       saveCallback: async (device) => {
@@ -188,12 +190,21 @@ export class EnergyDeviceSettings extends LitElement {
     }
 
     try {
-      await this._savePreferences({
+      const newPrefs = {
         ...this.preferences,
         device_consumption: this.preferences.device_consumption.filter(
           (device) => device !== deviceToDelete
         ),
+      };
+      newPrefs.device_consumption.forEach((d, idx) => {
+        if (d.included_in_stat === deviceToDelete.stat_consumption) {
+          newPrefs.device_consumption[idx] = {
+            ...newPrefs.device_consumption[idx],
+          };
+          delete newPrefs.device_consumption[idx].included_in_stat;
+        }
       });
+      await this._savePreferences(newPrefs);
     } catch (err: any) {
       showAlertDialog(this, { title: `Failed to save config: ${err.message}` });
     }
diff --git a/src/panels/config/energy/dialogs/dialog-energy-device-settings.ts b/src/panels/config/energy/dialogs/dialog-energy-device-settings.ts
index b58f5f4c46..cb190faf13 100644
--- a/src/panels/config/energy/dialogs/dialog-energy-device-settings.ts
+++ b/src/panels/config/energy/dialogs/dialog-energy-device-settings.ts
@@ -4,13 +4,16 @@ import type { CSSResultGroup } from "lit";
 import { css, html, LitElement, nothing } from "lit";
 import { customElement, property, state } from "lit/decorators";
 import { fireEvent } from "../../../../common/dom/fire_event";
+import { stopPropagation } from "../../../../common/dom/stop_propagation";
 import "../../../../components/entity/ha-entity-picker";
 import "../../../../components/entity/ha-statistic-picker";
 import "../../../../components/ha-dialog";
 import "../../../../components/ha-formfield";
 import "../../../../components/ha-radio";
+import "../../../../components/ha-select";
 import type { DeviceConsumptionEnergyPreference } from "../../../../data/energy";
 import { energyStatisticHelpUrl } from "../../../../data/energy";
+import { getStatisticLabel } from "../../../../data/recorder";
 import { getSensorDeviceClassConvertibleUnits } from "../../../../data/sensor";
 import type { HassDialog } from "../../../../dialogs/make-dialog-manager";
 import { haStyleDialog } from "../../../../resources/styles";
@@ -36,19 +39,45 @@ export class DialogEnergyDeviceSettings
 
   private _excludeList?: string[];
 
+  private _possibleParents: DeviceConsumptionEnergyPreference[] = [];
+
   public async showDialog(
     params: EnergySettingsDeviceDialogParams
   ): Promise<void> {
     this._params = params;
+    this._device = this._params.device;
+    this._computePossibleParents();
     this._energy_units = (
       await getSensorDeviceClassConvertibleUnits(this.hass, "energy")
     ).units;
-    this._device = this._params.device;
     this._excludeList = this._params.device_consumptions
       .map((entry) => entry.stat_consumption)
       .filter((id) => id !== this._device?.stat_consumption);
   }
 
+  private _computePossibleParents() {
+    if (!this._device || !this._params) {
+      this._possibleParents = [];
+      return;
+    }
+    const children: string[] = [];
+    const devices = this._params.device_consumptions;
+    function getChildren(stat) {
+      devices.forEach((d) => {
+        if (d.included_in_stat === stat) {
+          children.push(d.stat_consumption);
+          getChildren(d.stat_consumption);
+        }
+      });
+    }
+    getChildren(this._device.stat_consumption);
+    this._possibleParents = this._params.device_consumptions.filter(
+      (d) =>
+        d.stat_consumption !== this._device!.stat_consumption &&
+        !children.includes(d.stat_consumption)
+    );
+  }
+
   public closeDialog() {
     this._params = undefined;
     this._device = undefined;
@@ -105,10 +134,46 @@ export class DialogEnergyDeviceSettings
           type="text"
           .disabled=${!this._device}
           .value=${this._device?.name || ""}
+          .placeholder=${this._device
+            ? getStatisticLabel(
+                this.hass,
+                this._device.stat_consumption,
+                this._params?.statsMetadata?.[this._device.stat_consumption]
+              )
+            : ""}
           @input=${this._nameChanged}
         >
         </ha-textfield>
 
+        <ha-select
+          .label=${this.hass.localize(
+            "ui.panel.config.energy.device_consumption.dialog.included_in_device"
+          )}
+          .value=${this._device?.included_in_stat || ""}
+          .helper=${this.hass.localize(
+            "ui.panel.config.energy.device_consumption.dialog.included_in_device_helper"
+          )}
+          .disabled=${!this._device}
+          @selected=${this._parentSelected}
+          @closed=${stopPropagation}
+          fixedMenuPosition
+          naturalMenuWidth
+          clearable
+        >
+          ${this._possibleParents.map(
+            (stat) => html`
+              <mwc-list-item .value=${stat.stat_consumption}
+                >${stat.name ||
+                getStatisticLabel(
+                  this.hass,
+                  stat.stat_consumption,
+                  this._params?.statsMetadata?.[stat.stat_consumption]
+                )}</mwc-list-item
+              >
+            `
+          )}
+        </ha-select>
+
         <mwc-button @click=${this.closeDialog} slot="secondaryAction">
           ${this.hass.localize("ui.common.cancel")}
         </mwc-button>
@@ -129,6 +194,7 @@ export class DialogEnergyDeviceSettings
       return;
     }
     this._device = { stat_consumption: ev.detail.value };
+    this._computePossibleParents();
   }
 
   private _nameChanged(ev) {
@@ -142,6 +208,17 @@ export class DialogEnergyDeviceSettings
     this._device = newDevice;
   }
 
+  private _parentSelected(ev) {
+    const newDevice = {
+      ...this._device!,
+      included_in_stat: ev.target!.value,
+    } as DeviceConsumptionEnergyPreference;
+    if (!newDevice.included_in_stat) {
+      delete newDevice.included_in_stat;
+    }
+    this._device = newDevice;
+  }
+
   private async _save() {
     try {
       await this._params!.saveCallback(this._device!);
@@ -158,6 +235,10 @@ export class DialogEnergyDeviceSettings
         ha-statistic-picker {
           width: 100%;
         }
+        ha-select {
+          margin-top: 16px;
+          width: 100%;
+        }
         ha-textfield {
           margin-top: 16px;
           width: 100%;
diff --git a/src/panels/config/energy/dialogs/show-dialogs-energy.ts b/src/panels/config/energy/dialogs/show-dialogs-energy.ts
index 55092f461a..f85dc549e6 100644
--- a/src/panels/config/energy/dialogs/show-dialogs-energy.ts
+++ b/src/panels/config/energy/dialogs/show-dialogs-energy.ts
@@ -72,6 +72,7 @@ export interface EnergySettingsWaterDialogParams {
 export interface EnergySettingsDeviceDialogParams {
   device?: DeviceConsumptionEnergyPreference;
   device_consumptions: DeviceConsumptionEnergyPreference[];
+  statsMetadata?: Record<string, StatisticsMetaData>;
   saveCallback: (device: DeviceConsumptionEnergyPreference) => Promise<void>;
 }
 
diff --git a/src/panels/lovelace/cards/energy/hui-energy-devices-detail-graph-card.ts b/src/panels/lovelace/cards/energy/hui-energy-devices-detail-graph-card.ts
index c3e64acad6..f36f39a9de 100644
--- a/src/panels/lovelace/cards/energy/hui-energy-devices-detail-graph-card.ts
+++ b/src/panels/lovelace/cards/energy/hui-energy-devices-detail-graph-card.ts
@@ -216,6 +216,16 @@ export class HuiEnergyDevicesDetailGraphCard
 
     const computedStyle = getComputedStyle(this);
 
+    const devices = energyData.prefs.device_consumption;
+
+    const childMap: Record<string, string[]> = {};
+    devices.forEach((d) => {
+      if (d.included_in_stat) {
+        childMap[d.included_in_stat] = childMap[d.included_in_stat] || [];
+        childMap[d.included_in_stat].push(d.stat_consumption);
+      }
+    });
+
     const growthValues = {};
     energyData.prefs.device_consumption.forEach((device) => {
       const value =
@@ -225,11 +235,22 @@ export class HuiEnergyDevicesDetailGraphCard
 
       growthValues[device.stat_consumption] = value;
     });
+    const growthValuesExChildren = {};
+    energyData.prefs.device_consumption.forEach((device) => {
+      growthValuesExChildren[device.stat_consumption] = (
+        childMap[device.stat_consumption] || []
+      ).reduce(
+        (acc, child) => acc - growthValues[child],
+        growthValues[device.stat_consumption]
+      );
+    });
 
     const sorted_devices = energyData.prefs.device_consumption.map(
       (device) => device.stat_consumption
     );
-    sorted_devices.sort((a, b) => growthValues[b] - growthValues[a]);
+    sorted_devices.sort(
+      (a, b) => growthValuesExChildren[b] - growthValuesExChildren[a]
+    );
 
     const datasets: BarSeriesOption[] = [];
 
@@ -254,6 +275,7 @@ export class HuiEnergyDevicesDetailGraphCard
         energyData.statsMetadata,
         energyData.prefs.device_consumption,
         sorted_devices,
+        childMap,
         true
       );
 
@@ -268,25 +290,24 @@ export class HuiEnergyDevicesDetailGraphCard
         );
         datasets.push(untrackedCompareData);
       }
-    } else {
-      // add empty dataset so compare bars are first
-      // `stack: devices` so it doesn't take up space yet
-      const firstId =
-        energyData.prefs.device_consumption[0]?.stat_consumption ?? "untracked";
-      datasets.push({
-        id: "compare-" + firstId,
-        type: "bar",
-        stack: "devices",
-        data: [],
-      });
     }
 
+    // add empty dataset so compare bars are first
+    // `stack: devices` so it doesn't take up space yet
+    datasets.push({
+      id: "compare-placeholder",
+      type: "bar",
+      stack: energyData.statsCompare ? "devicesCompare" : "devices",
+      data: [],
+    });
+
     const processedData = this._processDataSet(
       computedStyle,
       data,
       energyData.statsMetadata,
       energyData.prefs.device_consumption,
-      sorted_devices
+      sorted_devices,
+      childMap
     );
 
     datasets.push(...processedData);
@@ -377,6 +398,7 @@ export class HuiEnergyDevicesDetailGraphCard
     statisticsMetaData: Record<string, StatisticsMetaData>,
     devices: DeviceConsumptionEnergyPreference[],
     sorted_devices: string[],
+    childMap: Record<string, string[]>,
     compare = false
   ) {
     const data: BarSeriesOption[] = [];
@@ -400,7 +422,7 @@ export class HuiEnergyDevicesDetailGraphCard
 
       const consumptionData: BarSeriesOption["data"] = [];
 
-      // Process gas consumption data.
+      // Process device consumption data.
       if (source.stat_consumption in statistics) {
         const stats = statistics[source.stat_consumption];
 
@@ -415,7 +437,15 @@ export class HuiEnergyDevicesDetailGraphCard
           if (prevStart === point.start) {
             continue;
           }
-          const dataPoint = [point.start, point.change];
+          let sumChildren = 0;
+          const children = childMap[source.stat_consumption] || [];
+          children.forEach((c) => {
+            const cStats = statistics[c];
+            sumChildren +=
+              cStats?.find((cStat) => cStat.start === point.start)?.change || 0;
+          });
+
+          const dataPoint = [point.start, point.change - sumChildren];
           if (compare) {
             dataPoint[2] = dataPoint[0];
             dataPoint[0] = compareTransform(new Date(point.start)).getTime();
@@ -425,6 +455,17 @@ export class HuiEnergyDevicesDetailGraphCard
         }
       }
 
+      const name =
+        (source.name ||
+          getStatisticLabel(
+            this.hass,
+            source.stat_consumption,
+            statisticsMetaData[source.stat_consumption]
+          )) +
+        (source.stat_consumption in childMap
+          ? ` (${this.hass.localize("ui.panel.lovelace.cards.energy.energy_devices_detail_graph.untracked")})`
+          : "");
+
       data.push({
         type: "bar",
         cursor: "default",
@@ -432,13 +473,7 @@ export class HuiEnergyDevicesDetailGraphCard
         id: compare
           ? `compare-${source.stat_consumption}-${order}`
           : `${source.stat_consumption}-${order}`,
-        name:
-          source.name ||
-          getStatisticLabel(
-            this.hass,
-            source.stat_consumption,
-            statisticsMetaData[source.stat_consumption]
-          ),
+        name,
         itemStyle: {
           borderColor: compare ? color + "7F" : color,
         },
@@ -451,16 +486,17 @@ export class HuiEnergyDevicesDetailGraphCard
     return sorted_devices
       .map(
         (device) =>
-          data.find((d) => {
-            const id = (d.id as string)
-              .replace(/^compare-/, "") // Remove compare- prefix
-              .replace(/-\d+$/, ""); // Remove numeric suffix
-            return id === device;
-          })!
+          data.find((d) => this._getStatIdFromId(d.id as string) === device)!
       )
       .filter(Boolean);
   }
 
+  private _getStatIdFromId(id: string): string {
+    return id
+      .replace(/^compare-/, "") // Remove compare- prefix
+      .replace(/-\d+$/, ""); // Remove numeric suffix
+  }
+
   static styles = css`
     .card-header {
       padding-bottom: 0;
diff --git a/src/translations/en.json b/src/translations/en.json
index 70b3e537a5..1896421fa2 100644
--- a/src/translations/en.json
+++ b/src/translations/en.json
@@ -2897,7 +2897,9 @@
               "header": "Add a device",
               "display_name": "Display name",
               "device_consumption_energy": "Device energy consumption",
-              "selected_stat_intro": "Select the energy sensor that measures the device's energy usage in either of {unit}."
+              "selected_stat_intro": "Select the energy sensor that measures the device's energy usage in either of {unit}.",
+              "included_in_device": "Upstream device",
+              "included_in_device_helper": "If this device is already counted by another device (such as a smart switch measured by a smart breaker), selecting the upstream device prevents duplicate energy tracking."
             }
           }
         },
@@ -6422,7 +6424,8 @@
               "previous_energy_usage": "Previous energy usage"
             },
             "energy_devices_detail_graph": {
-              "untracked_consumption": "Untracked consumption"
+              "untracked_consumption": "Untracked consumption",
+              "untracked": "untracked"
             },
             "carbon_consumed_gauge": {
               "card_indicates_energy_used": "This card indicates how much of the electricity consumed by your home was generated using non-fossil fuels like solar, wind, and nuclear. The higher, the better!",