diff --git a/homeassistant/components/xbox/__init__.py b/homeassistant/components/xbox/__init__.py
index 62e1c63129a..7889fafcc9e 100644
--- a/homeassistant/components/xbox/__init__.py
+++ b/homeassistant/components/xbox/__init__.py
@@ -54,6 +54,7 @@ async def async_setup_entry(hass: HomeAssistant, entry: XboxConfigEntry) -> bool
 
     await hass.config_entries.async_forward_entry_setups(entry, PLATFORMS)
 
+    await async_migrate_unique_id(hass, entry)
     return True
 
 
@@ -61,3 +62,28 @@ async def async_unload_entry(hass: HomeAssistant, entry: XboxConfigEntry) -> boo
     """Unload a config entry."""
 
     return await hass.config_entries.async_unload_platforms(entry, PLATFORMS)
+
+
+async def async_migrate_unique_id(hass: HomeAssistant, entry: XboxConfigEntry) -> bool:
+    """Migrate config entry.
+
+    Migration requires runtime data
+    """
+
+    if entry.version == 1 and entry.minor_version < 2:
+        # Migrate unique_id from `xbox` to account xuid and
+        # change generic entry name to user's gamertag
+        return hass.config_entries.async_update_entry(
+            entry,
+            unique_id=entry.runtime_data.client.xuid,
+            title=(
+                entry.runtime_data.data.presence[
+                    entry.runtime_data.client.xuid
+                ].gamertag
+                if entry.title == "Home Assistant Cloud"
+                else entry.title
+            ),
+            minor_version=2,
+        )
+
+    return True
diff --git a/homeassistant/components/xbox/config_flow.py b/homeassistant/components/xbox/config_flow.py
index 86157be5d7f..f50be700a3b 100644
--- a/homeassistant/components/xbox/config_flow.py
+++ b/homeassistant/components/xbox/config_flow.py
@@ -3,6 +3,11 @@
 import logging
 from typing import Any
 
+from xbox.webapi.api.client import XboxLiveClient
+from xbox.webapi.authentication.manager import AuthenticationManager
+from xbox.webapi.authentication.models import OAuth2TokenResponse
+from xbox.webapi.common.signed_session import SignedSession
+
 from homeassistant.config_entries import ConfigFlowResult
 from homeassistant.helpers import config_entry_oauth2_flow
 
@@ -16,6 +21,8 @@ class OAuth2FlowHandler(
 
     DOMAIN = DOMAIN
 
+    MINOR_VERSION = 2
+
     @property
     def logger(self) -> logging.Logger:
         """Return logger."""
@@ -31,9 +38,23 @@ class OAuth2FlowHandler(
         self, user_input: dict[str, Any] | None = None
     ) -> ConfigFlowResult:
         """Handle a flow start."""
-        await self.async_set_unique_id(DOMAIN)
 
         if self._async_current_entries():
             return self.async_abort(reason="single_instance_allowed")
 
         return await super().async_step_user(user_input)
+
+    async def async_oauth_create_entry(self, data: dict) -> ConfigFlowResult:
+        """Create an entry for the flow."""
+
+        async with SignedSession() as session:
+            auth = AuthenticationManager(session, "", "", "")
+            auth.oauth = OAuth2TokenResponse(**data["token"])
+            await auth.refresh_tokens()
+
+            client = XboxLiveClient(auth)
+
+            me = await client.people.get_friends_own_batch([client.xuid])
+
+        await self.async_set_unique_id(client.xuid)
+        return self.async_create_entry(title=me.people[0].gamertag, data=data)
diff --git a/tests/components/xbox/conftest.py b/tests/components/xbox/conftest.py
index 090d8d49f2f..e6ad579e0c2 100644
--- a/tests/components/xbox/conftest.py
+++ b/tests/components/xbox/conftest.py
@@ -65,17 +65,36 @@ def mock_config_entry() -> MockConfigEntry:
                 "user_id": "AAAAAAAAAAAAAAAAAAAAA",
             },
         },
-        unique_id="xbox",
     )
 
 
+@pytest.fixture(name="authentication_manager")
+def mock_authentication_manager() -> Generator[AsyncMock]:
+    """Mock xbox-webapi AuthenticationManager."""
+
+    with (
+        patch(
+            "homeassistant.components.xbox.config_flow.AuthenticationManager",
+            autospec=True,
+        ) as mock_client,
+    ):
+        client = mock_client.return_value
+
+        yield client
+
+
 @pytest.fixture(name="signed_session")
 def mock_signed_session() -> Generator[AsyncMock]:
     """Mock xbox-webapi SignedSession."""
 
-    with patch(
-        "homeassistant.components.xbox.SignedSession", autospec=True
-    ) as mock_client:
+    with (
+        patch(
+            "homeassistant.components.xbox.SignedSession", autospec=True
+        ) as mock_client,
+        patch(
+            "homeassistant.components.xbox.config_flow.SignedSession", new=mock_client
+        ),
+    ):
         client = mock_client.return_value
 
         yield client
@@ -85,9 +104,14 @@ def mock_signed_session() -> Generator[AsyncMock]:
 def mock_xbox_live_client(signed_session) -> Generator[AsyncMock]:
     """Mock xbox-webapi XboxLiveClient."""
 
-    with patch(
-        "homeassistant.components.xbox.XboxLiveClient", autospec=True
-    ) as mock_client:
+    with (
+        patch(
+            "homeassistant.components.xbox.XboxLiveClient", autospec=True
+        ) as mock_client,
+        patch(
+            "homeassistant.components.xbox.config_flow.XboxLiveClient", new=mock_client
+        ),
+    ):
         client = mock_client.return_value
 
         client.smartglass = AsyncMock()
@@ -110,4 +134,7 @@ def mock_xbox_live_client(signed_session) -> Generator[AsyncMock]:
         client.people.get_friends_own.return_value = PeopleResponse(
             **load_json_object_fixture("people_friends_own.json", DOMAIN)
         )
+
+        client.xuid = "271958441785640"
+
         yield client
diff --git a/tests/components/xbox/test_config_flow.py b/tests/components/xbox/test_config_flow.py
index 533b2359ad3..66c92d7e807 100644
--- a/tests/components/xbox/test_config_flow.py
+++ b/tests/components/xbox/test_config_flow.py
@@ -29,7 +29,11 @@ async def test_abort_if_existing_entry(hass: HomeAssistant) -> None:
     assert result["reason"] == "single_instance_allowed"
 
 
-@pytest.mark.usefixtures("current_request_with_host")
+@pytest.mark.usefixtures(
+    "current_request_with_host",
+    "xbox_live_client",
+    "authentication_manager",
+)
 async def test_full_flow(
     hass: HomeAssistant,
     hass_client_no_auth: ClientSessionGenerator,
@@ -68,13 +72,57 @@ async def test_full_flow(
             "access_token": "mock-access-token",
             "type": "Bearer",
             "expires_in": 60,
+            "scope": "XboxLive.signin XboxLive.offline_access",
+            "service": "xbox",
+            "token_type": "bearer",
+            "user_id": "AAAAAAAAAAAAAAAAAAAAA",
         },
     )
 
     with patch(
         "homeassistant.components.xbox.async_setup_entry", return_value=True
     ) as mock_setup:
-        await hass.config_entries.flow.async_configure(result["flow_id"])
+        result = await hass.config_entries.flow.async_configure(result["flow_id"])
 
+    assert result["result"].unique_id == "271958441785640"
+    assert result["result"].title == "GSR Ae"
     assert len(hass.config_entries.async_entries(DOMAIN)) == 1
     assert len(mock_setup.mock_calls) == 1
+
+
+@pytest.mark.usefixtures("xbox_live_client")
+async def test_unique_id_migration(
+    hass: HomeAssistant,
+) -> None:
+    """Test config entry unique_id migration."""
+    config_entry = MockConfigEntry(
+        domain=DOMAIN,
+        title="Home Assistant Cloud",
+        data={
+            "auth_implementation": "cloud",
+            "token": {
+                "access_token": "1234567890",
+                "expires_at": 1760697327.7298331,
+                "expires_in": 3600,
+                "refresh_token": "0987654321",
+                "scope": "XboxLive.signin XboxLive.offline_access",
+                "service": "xbox",
+                "token_type": "bearer",
+                "user_id": "AAAAAAAAAAAAAAAAAAAAA",
+            },
+        },
+        unique_id=DOMAIN,
+        version=1,
+        minor_version=1,
+    )
+
+    config_entry.add_to_hass(hass)
+
+    await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    assert config_entry.state is config_entries.ConfigEntryState.LOADED
+    assert config_entry.version == 1
+    assert config_entry.minor_version == 2
+    assert config_entry.unique_id == "271958441785640"
+    assert config_entry.title == "GSR Ae"