diff --git a/homeassistant/components/google_sheets/__init__.py b/homeassistant/components/google_sheets/__init__.py
index ff0ce62ec24..99981348151 100644
--- a/homeassistant/components/google_sheets/__init__.py
+++ b/homeassistant/components/google_sheets/__init__.py
@@ -7,7 +7,12 @@ import aiohttp
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import CONF_TOKEN
 from homeassistant.core import HomeAssistant
-from homeassistant.exceptions import ConfigEntryAuthFailed, ConfigEntryNotReady
+from homeassistant.exceptions import (
+    ConfigEntryAuthFailed,
+    ConfigEntryNotReady,
+    OAuth2TokenRequestError,
+    OAuth2TokenRequestReauthError,
+)
 from homeassistant.helpers import config_validation as cv
 from homeassistant.helpers.config_entry_oauth2_flow import (
     OAuth2Session,
@@ -39,11 +44,11 @@ async def async_setup_entry(
     session = OAuth2Session(hass, entry, implementation)
     try:
         await session.async_ensure_token_valid()
-    except aiohttp.ClientResponseError as err:
-        if 400 <= err.status < 500:
-            raise ConfigEntryAuthFailed(
-                "OAuth session is not valid, reauth required"
-            ) from err
+    except OAuth2TokenRequestReauthError as err:
+        raise ConfigEntryAuthFailed(
+            "OAuth session is not valid, reauth required"
+        ) from err
+    except OAuth2TokenRequestError as err:
         raise ConfigEntryNotReady from err
     except aiohttp.ClientError as err:
         raise ConfigEntryNotReady from err
diff --git a/tests/components/google_sheets/test_init.py b/tests/components/google_sheets/test_init.py
index e3fa4842f19..7bb7369c7b5 100644
--- a/tests/components/google_sheets/test_init.py
+++ b/tests/components/google_sheets/test_init.py
@@ -4,7 +4,7 @@ from collections.abc import Awaitable, Callable, Coroutine
 import http
 import time
 from typing import Any
-from unittest.mock import patch
+from unittest.mock import Mock, patch
 
 from freezegun import freeze_time
 from gspread.exceptions import APIError
@@ -29,7 +29,12 @@ from homeassistant.components.google_sheets.services import (
 )
 from homeassistant.config_entries import ConfigEntryState
 from homeassistant.core import HomeAssistant
-from homeassistant.exceptions import HomeAssistantError, ServiceValidationError
+from homeassistant.exceptions import (
+    HomeAssistantError,
+    OAuth2TokenRequestReauthError,
+    OAuth2TokenRequestTransientError,
+    ServiceValidationError,
+)
 from homeassistant.setup import async_setup_component
 
 from tests.common import MockConfigEntry
@@ -199,6 +204,64 @@ async def test_expired_token_refresh_failure(
     assert entries[0].state is expected_state
 
 
+async def test_setup_oauth_reauth_error(
+    hass: HomeAssistant, config_entry: MockConfigEntry
+) -> None:
+    """Test a token refresh reauth error puts the config entry in setup error state."""
+    config_entry.add_to_hass(hass)
+
+    assert await async_setup_component(hass, APPLICATION_CREDENTIALS_DOMAIN, {})
+    await async_import_client_credential(
+        hass,
+        DOMAIN,
+        ClientCredential("client-id", "client-secret"),
+        DOMAIN,
+    )
+
+    with (
+        patch.object(config_entry, "async_start_reauth") as mock_async_start_reauth,
+        patch(
+            "homeassistant.components.google_sheets.OAuth2Session.async_ensure_token_valid",
+            side_effect=OAuth2TokenRequestReauthError(
+                domain=DOMAIN, request_info=Mock()
+            ),
+        ),
+    ):
+        await hass.config_entries.async_setup(config_entry.entry_id)
+
+    await hass.async_block_till_done()
+
+    assert config_entry.state is ConfigEntryState.SETUP_ERROR
+    mock_async_start_reauth.assert_called_once_with(hass)
+
+
+async def test_setup_oauth_transient_error(
+    hass: HomeAssistant, config_entry: MockConfigEntry
+) -> None:
+    """Test a token refresh transient error sets the config entry to retry setup."""
+    config_entry.add_to_hass(hass)
+
+    assert await async_setup_component(hass, APPLICATION_CREDENTIALS_DOMAIN, {})
+    await async_import_client_credential(
+        hass,
+        DOMAIN,
+        ClientCredential("client-id", "client-secret"),
+        DOMAIN,
+    )
+
+    with patch(
+        "homeassistant.components.google_sheets.OAuth2Session.async_ensure_token_valid",
+        side_effect=OAuth2TokenRequestTransientError(
+            domain=DOMAIN, request_info=Mock()
+        ),
+    ):
+        await hass.config_entries.async_setup(config_entry.entry_id)
+
+    await hass.async_block_till_done()
+
+    assert config_entry.state is ConfigEntryState.SETUP_RETRY
+
+
 @pytest.mark.parametrize(
     ("add_created_column_param", "expected_row"),
     [