diff --git a/src/panels/config/devices/ha-config-device-page.ts b/src/panels/config/devices/ha-config-device-page.ts
index 9d625e4f09..18813f5141 100644
--- a/src/panels/config/devices/ha-config-device-page.ts
+++ b/src/panels/config/devices/ha-config-device-page.ts
@@ -1224,6 +1224,7 @@ export class HaConfigDevicePage extends LitElement {
             ),
             text: err.message,
           });
+          return;
         }
 
         if (
@@ -1251,16 +1252,32 @@ export class HaConfigDevicePage extends LitElement {
 
         const updateProms = entities.map((entity) => {
           const name = entity.name || entity.stateName;
-          let newEntityId: string | null = null;
-          let newName: string | null = null;
+          let newEntityId: string | undefined;
+          let newName: string | null | undefined;
 
-          if (name && name.includes(oldDeviceName)) {
+          let shouldUpdateName: boolean;
+          let shouldUpdateEntityId = false;
+
+          if (entity.has_entity_name && !entity.name) {
+            shouldUpdateName = false;
+          } else if (
+            entity.has_entity_name &&
+            (entity.name === oldDeviceName || entity.name === newDeviceName)
+          ) {
+            shouldUpdateName = true;
+            // clear name if it matches the device name and it uses the device name (entity naming)
+            newName = null;
+          } else if (name && name.includes(oldDeviceName)) {
+            shouldUpdateName = true;
             newName = name.replace(oldDeviceName, newDeviceName);
+          } else {
+            shouldUpdateName = false;
           }
 
           if (renameEntityid) {
             const oldSearch = slugify(oldDeviceName);
             if (entity.entity_id.includes(oldSearch)) {
+              shouldUpdateEntityId = true;
               newEntityId = entity.entity_id.replace(
                 oldSearch,
                 slugify(newDeviceName)
@@ -1268,13 +1285,13 @@ export class HaConfigDevicePage extends LitElement {
             }
           }
 
-          if (!newName && !newEntityId) {
+          if (newName === undefined && newEntityId === undefined) {
             return undefined;
           }
 
           return updateEntityRegistryEntry(this.hass!, entity.entity_id, {
-            name: newName || name,
-            new_entity_id: newEntityId || entity.entity_id,
+            name: shouldUpdateName ? newName : undefined,
+            new_entity_id: shouldUpdateEntityId ? newEntityId : undefined,
           });
         });
         await Promise.all(updateProms);