diff --git a/homeassistant/components/satel_integra/client.py b/homeassistant/components/satel_integra/client.py
index 1a78e11ee0b4..c4ad59af7b03 100644
--- a/homeassistant/components/satel_integra/client.py
+++ b/homeassistant/components/satel_integra/client.py
@@ -6,6 +6,7 @@ from satel_integra import AsyncSatel
 from satel_integra.exceptions import (
     SatelConnectFailedError,
     SatelConnectionInitializationError,
+    SatelMonitoringStartError,
     SatelPanelBusyError,
 )
 
@@ -107,7 +108,13 @@ class SatelClient:
             output_changed_callback=outputs_update_callback,
         )
 
-        await self.controller.start(enable_monitoring=True)
+        try:
+            await self.controller.start(enable_monitoring=True)
+        except SatelMonitoringStartError as ex:
+            raise ConfigEntryNotReady(
+                translation_domain=DOMAIN,
+                translation_key="monitoring_start_failed",
+            ) from ex
 
     async def async_close(self) -> None:
         """Close the connection."""
diff --git a/homeassistant/components/satel_integra/strings.json b/homeassistant/components/satel_integra/strings.json
index 33b834b131fb..fc8e456a4909 100644
--- a/homeassistant/components/satel_integra/strings.json
+++ b/homeassistant/components/satel_integra/strings.json
@@ -208,6 +208,9 @@
     "missing_output_access_code": {
       "message": "Cannot control switchable outputs because no user code is configured for this Satel Integra entry. Configure a code in the integration options to enable output control."
     },
+    "monitoring_start_failed": {
+      "message": "Connected to the alarm panel, but the panel did not confirm the request to start sending status updates."
+    },
     "panel_busy": {
       "message": "[%key:component::satel_integra::config::error::panel_busy%]"
     }
diff --git a/tests/components/satel_integra/test_init.py b/tests/components/satel_integra/test_init.py
index 8bb43d342788..97257d256c7e 100644
--- a/tests/components/satel_integra/test_init.py
+++ b/tests/components/satel_integra/test_init.py
@@ -7,6 +7,7 @@ import pytest
 from satel_integra import (
     SatelConnectFailedError,
     SatelConnectionInitializationError,
+    SatelMonitoringStartError,
     SatelPanelBusyError,
     SatelUnexpectedResponseError,
 )
@@ -265,3 +266,21 @@ async def test_setup_exceptions(
     mock_satel.connect.side_effect = exception
     await setup_integration(hass, mock_config_entry)
     assert mock_config_entry.state is expected_state
+
+
+async def test_monitoring_start_error(
+    hass: HomeAssistant,
+    mock_satel: AsyncMock,
+    mock_config_entry: MockConfigEntry,
+) -> None:
+    """Test setup is retried when monitoring fails to start."""
+    mock_satel.start.side_effect = SatelMonitoringStartError
+
+    await setup_integration(hass, mock_config_entry)
+
+    assert mock_config_entry.state is ConfigEntryState.SETUP_RETRY
+    assert mock_config_entry.reason == (
+        "Connected to the alarm panel, but the panel did not confirm the request to start sending status updates"
+    )
+    mock_satel.start.assert_awaited_once_with(enable_monitoring=True)
+    mock_satel.read_panel_info.assert_not_awaited()