diff --git a/src/components/entity/ha-entities-picker.ts b/src/components/entity/ha-entities-picker.ts
index 44d9608967..6e8f18a08f 100644
--- a/src/components/entity/ha-entities-picker.ts
+++ b/src/components/entity/ha-entities-picker.ts
@@ -1,10 +1,9 @@
-import type { HassEntity } from "home-assistant-js-websocket";
 import { css, html, LitElement, nothing } from "lit";
 import { customElement, property } from "lit/decorators";
 import memoizeOne from "memoize-one";
 import { fireEvent } from "../../common/dom/fire_event";
 import { isValidEntityId } from "../../common/entity/valid_entity_id";
-import type { ValueChangedEvent, HomeAssistant } from "../../types";
+import type { HomeAssistant, ValueChangedEvent } from "../../types";
 import "./ha-entity-picker";
 import type { HaEntityPickerEntityFilterFunc } from "./ha-entity-picker";
 
@@ -98,10 +97,7 @@ class HaEntitiesPickerLight extends LitElement {
               .excludeEntities=${this.excludeEntities}
               .includeDeviceClasses=${this.includeDeviceClasses}
               .includeUnitOfMeasurement=${this.includeUnitOfMeasurement}
-              .entityFilter=${this._getEntityFilter(
-                this.value,
-                this.entityFilter
-              )}
+              .entityFilter=${this.entityFilter}
               .value=${entityId}
               .label=${this.pickedEntityLabel}
               .disabled=${this.disabled}
@@ -118,10 +114,13 @@ class HaEntitiesPickerLight extends LitElement {
           .includeDomains=${this.includeDomains}
           .excludeDomains=${this.excludeDomains}
           .includeEntities=${this.includeEntities}
-          .excludeEntities=${this.excludeEntities}
+          .excludeEntities=${this._excludeEntities(
+            this.value,
+            this.excludeEntities
+          )}
           .includeDeviceClasses=${this.includeDeviceClasses}
           .includeUnitOfMeasurement=${this.includeUnitOfMeasurement}
-          .entityFilter=${this._getEntityFilter(this.value, this.entityFilter)}
+          .entityFilter=${this.entityFilter}
           .label=${this.pickEntityLabel}
           .helper=${this.helper}
           .disabled=${this.disabled}
@@ -133,14 +132,16 @@ class HaEntitiesPickerLight extends LitElement {
     `;
   }
 
-  private _getEntityFilter = memoizeOne(
+  private _excludeEntities = memoizeOne(
     (
       value: string[] | undefined,
-      entityFilter: HaEntityPickerEntityFilterFunc | undefined
-    ): HaEntityPickerEntityFilterFunc =>
-      (stateObj: HassEntity) =>
-        (!value || !value.includes(stateObj.entity_id)) &&
-        (!entityFilter || entityFilter(stateObj))
+      excludeEntities: string[] | undefined
+    ): string[] | undefined => {
+      if (value === undefined) {
+        return excludeEntities;
+      }
+      return [...(excludeEntities || []), ...value];
+    }
   );
 
   private get _currentEntities() {
diff --git a/src/components/entity/ha-entity-picker.ts b/src/components/entity/ha-entity-picker.ts
index 6401b6cd21..b169b7b605 100644
--- a/src/components/entity/ha-entity-picker.ts
+++ b/src/components/entity/ha-entity-picker.ts
@@ -87,7 +87,7 @@ export class HaEntityPicker extends LitElement {
   public includeUnitOfMeasurement?: string[];
 
   /**
-   * List of allowed entities to show. Will ignore all other filters.
+   * List of allowed entities to show.
    * @type {Array}
    * @attr include-entities
    */
@@ -220,30 +220,13 @@ export class HaEntityPicker extends LitElement {
 
       if (includeEntities) {
         entityIds = entityIds.filter((entityId) =>
-          this.includeEntities!.includes(entityId)
+          includeEntities.includes(entityId)
         );
-
-        return entityIds
-          .map((key) => {
-            const friendly_name = computeStateName(hass!.states[key]) || key;
-            return {
-              ...hass!.states[key],
-              friendly_name,
-              strings: [key, friendly_name],
-            };
-          })
-          .sort((entityA, entityB) =>
-            caseInsensitiveStringCompare(
-              entityA.friendly_name,
-              entityB.friendly_name,
-              this.hass.locale.language
-            )
-          );
       }
 
       if (excludeEntities) {
         entityIds = entityIds.filter(
-          (entityId) => !excludeEntities!.includes(entityId)
+          (entityId) => !excludeEntities.includes(entityId)
         );
       }