diff --git a/homeassistant/components/vesync/__init__.py b/homeassistant/components/vesync/__init__.py
index 133713b33524d1..f7a986ee573e8d 100644
--- a/homeassistant/components/vesync/__init__.py
+++ b/homeassistant/components/vesync/__init__.py
@@ -3,12 +3,16 @@
 import logging
 
 from pyvesync import VeSync
-from pyvesync.utils.errors import VeSyncLoginError
+from pyvesync.utils.errors import (
+    VeSyncAPIResponseError,
+    VeSyncLoginError,
+    VeSyncServerError,
+)
 
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import CONF_PASSWORD, CONF_USERNAME, Platform
 from homeassistant.core import HomeAssistant
-from homeassistant.exceptions import ConfigEntryAuthFailed
+from homeassistant.exceptions import ConfigEntryAuthFailed, ConfigEntryNotReady
 from homeassistant.helpers import config_validation as cv, entity_registry as er
 from homeassistant.helpers.aiohttp_client import async_get_clientsession
 from homeassistant.helpers.device_registry import DeviceEntry
@@ -59,7 +63,17 @@ async def async_setup_entry(hass: HomeAssistant, config_entry: ConfigEntry) -> b
     try:
         await manager.login()
     except VeSyncLoginError as err:
-        raise ConfigEntryAuthFailed from err
+        raise ConfigEntryAuthFailed(
+            translation_domain=DOMAIN, translation_key="invalid_auth"
+        ) from err
+    except VeSyncServerError as err:
+        raise ConfigEntryNotReady(
+            translation_domain=DOMAIN, translation_key="server_error"
+        ) from err
+    except VeSyncAPIResponseError as err:
+        raise ConfigEntryNotReady(
+            translation_domain=DOMAIN, translation_key="api_response_error"
+        ) from err
 
     hass.data[DOMAIN] = {}
     hass.data[DOMAIN][VS_MANAGER] = manager
diff --git a/homeassistant/components/vesync/strings.json b/homeassistant/components/vesync/strings.json
index 6435a9676bbc8a..4f72c6c790a679 100644
--- a/homeassistant/components/vesync/strings.json
+++ b/homeassistant/components/vesync/strings.json
@@ -5,7 +5,9 @@
       "single_instance_allowed": "[%key:common::config_flow::abort::single_instance_allowed%]"
     },
     "error": {
-      "invalid_auth": "[%key:common::config_flow::error::invalid_auth%]"
+      "api_response_error": "API response error",
+      "invalid_auth": "[%key:common::config_flow::error::invalid_auth%]",
+      "server_error": "Server error occurred"
     },
     "step": {
       "reauth_confirm": {
diff --git a/tests/components/vesync/test_init.py b/tests/components/vesync/test_init.py
index 97d27fe221cd12..1e10e2f9faaf1f 100644
--- a/tests/components/vesync/test_init.py
+++ b/tests/components/vesync/test_init.py
@@ -2,8 +2,13 @@
 
 from unittest.mock import AsyncMock, patch
 
+import pytest
 from pyvesync import VeSync
-from pyvesync.utils.errors import VeSyncLoginError
+from pyvesync.utils.errors import (
+    VeSyncAPIResponseError,
+    VeSyncLoginError,
+    VeSyncServerError,
+)
 
 from homeassistant.components.vesync import (
     async_remove_config_entry_device,
@@ -18,21 +23,30 @@
 from tests.common import MockConfigEntry
 
 
-async def test_async_setup_entry__not_login(
+@pytest.mark.parametrize(
+    ("exception", "expected_state"),
+    [
+        (VeSyncLoginError("Mock login failed"), ConfigEntryState.SETUP_ERROR),
+        (VeSyncAPIResponseError("Mock login failed"), ConfigEntryState.SETUP_RETRY),
+        (VeSyncServerError("Mock login failed"), ConfigEntryState.SETUP_RETRY),
+    ],
+)
+async def test_async_setup_entry_login_errors(
     hass: HomeAssistant,
     config_entry: ConfigEntry,
     manager: VeSync,
+    exception: Exception,
+    expected_state: ConfigEntryState,
 ) -> None:
-    """Test setup does not create config entry when not logged in."""
-    manager.login = AsyncMock(side_effect=VeSyncLoginError("Mock login failed"))
+    """Test setup handles different login errors appropriately."""
+    manager.login = AsyncMock(side_effect=exception)
 
     assert not await hass.config_entries.async_setup(config_entry.entry_id)
     await hass.async_block_till_done()
 
     assert manager.login.call_count == 1
     assert len(hass.config_entries.async_entries(DOMAIN)) == 1
-    assert config_entry.state is ConfigEntryState.SETUP_ERROR
-    assert not hass.data.get(DOMAIN)
+    assert config_entry.state is expected_state
 
 
 async def test_async_setup_entry__no_devices(