diff --git a/homeassistant/components/iotty/__init__.py b/homeassistant/components/iotty/__init__.py
index c9eb2639348..02e69126492 100644
--- a/homeassistant/components/iotty/__init__.py
+++ b/homeassistant/components/iotty/__init__.py
@@ -6,11 +6,14 @@ import logging
 
 from homeassistant.const import Platform
 from homeassistant.core import HomeAssistant
+from homeassistant.exceptions import ConfigEntryNotReady
 from homeassistant.helpers.config_entry_oauth2_flow import (
+    ImplementationUnavailableError,
     OAuth2Session,
     async_get_config_entry_implementation,
 )
 
+from .const import DOMAIN
 from .coordinator import (
     IottyConfigEntry,
     IottyConfigEntryData,
@@ -26,7 +29,13 @@ async def async_setup_entry(hass: HomeAssistant, entry: IottyConfigEntry) -> boo
     """Set up iotty from a config entry."""
     _LOGGER.debug("async_setup_entry entry_id=%s", entry.entry_id)
 
-    implementation = await async_get_config_entry_implementation(hass, entry)
+    try:
+        implementation = await async_get_config_entry_implementation(hass, entry)
+    except ImplementationUnavailableError as err:
+        raise ConfigEntryNotReady(
+            translation_domain=DOMAIN,
+            translation_key="oauth2_implementation_unavailable",
+        ) from err
     session = OAuth2Session(hass, entry, implementation)
 
     data_update_coordinator = IottyDataUpdateCoordinator(hass, entry, session)
diff --git a/homeassistant/components/iotty/strings.json b/homeassistant/components/iotty/strings.json
index 33176be1235..2e37d0c99f0 100644
--- a/homeassistant/components/iotty/strings.json
+++ b/homeassistant/components/iotty/strings.json
@@ -25,5 +25,10 @@
         "title": "[%key:common::config_flow::title::oauth2_pick_implementation%]"
       }
     }
+  },
+  "exceptions": {
+    "oauth2_implementation_unavailable": {
+      "message": "[%key:common::exceptions::oauth2_implementation_unavailable::message%]"
+    }
   }
 }
diff --git a/tests/components/iotty/test_init.py b/tests/components/iotty/test_init.py
index ee8168fdf2f..5616438e2d4 100644
--- a/tests/components/iotty/test_init.py
+++ b/tests/components/iotty/test_init.py
@@ -1,11 +1,14 @@
 """Tests for the iotty integration."""
 
-from unittest.mock import MagicMock
+from unittest.mock import MagicMock, patch
 
 from homeassistant.components.iotty.const import DOMAIN
 from homeassistant.config_entries import ConfigEntryState
 from homeassistant.core import HomeAssistant
 from homeassistant.helpers import config_entry_oauth2_flow
+from homeassistant.helpers.config_entry_oauth2_flow import (
+    ImplementationUnavailableError,
+)
 
 from tests.common import MockConfigEntry
 
@@ -41,6 +44,23 @@ async def test_load_unload_coordinator_called(
     assert mock_config_entry.state is ConfigEntryState.NOT_LOADED
 
 
+async def test_oauth_implementation_not_available(
+    hass: HomeAssistant,
+    mock_config_entry: MockConfigEntry,
+) -> None:
+    """Test that unavailable OAuth implementation raises ConfigEntryNotReady."""
+    mock_config_entry.add_to_hass(hass)
+
+    with patch(
+        "homeassistant.components.iotty.async_get_config_entry_implementation",
+        side_effect=ImplementationUnavailableError,
+    ):
+        await hass.config_entries.async_setup(mock_config_entry.entry_id)
+        await hass.async_block_till_done()
+
+    assert mock_config_entry.state is ConfigEntryState.SETUP_RETRY
+
+
 async def test_load_unload_iottyproxy_called(
     hass: HomeAssistant,
     mock_config_entry: MockConfigEntry,