diff --git a/homeassistant/components/esphome/config_flow.py b/homeassistant/components/esphome/config_flow.py
index fc81dfdbc432..9fcad5aa4f1c 100644
--- a/homeassistant/components/esphome/config_flow.py
+++ b/homeassistant/components/esphome/config_flow.py
@@ -500,6 +500,16 @@ class EsphomeFlowHandler(ConfigFlow, domain=DOMAIN):
     ) -> ConfigFlowResult:
         """Handle creating a new entry by removing the old one and creating new."""
         assert self._entry_with_name_conflict is not None
+        if self.source in (SOURCE_REAUTH, SOURCE_RECONFIGURE):
+            return self.async_update_reload_and_abort(
+                self._entry_with_name_conflict,
+                title=self._name,
+                unique_id=self.unique_id,
+                data=self._async_make_config_data(),
+                options={
+                    CONF_ALLOW_SERVICE_CALLS: DEFAULT_NEW_CONFIG_ALLOW_ALLOW_SERVICE_CALLS,
+                },
+            )
         await self.hass.config_entries.async_remove(
             self._entry_with_name_conflict.entry_id
         )
diff --git a/tests/components/esphome/test_config_flow.py b/tests/components/esphome/test_config_flow.py
index fb7458a1a5b7..0dbab47b6f56 100644
--- a/tests/components/esphome/test_config_flow.py
+++ b/tests/components/esphome/test_config_flow.py
@@ -2208,7 +2208,6 @@ async def test_user_flow_name_conflict_overwrite(
         result["flow_id"], user_input={"next_step_id": "name_conflict_overwrite"}
     )
     assert result["type"] is FlowResultType.CREATE_ENTRY
-
     assert result["data"] == {
         CONF_HOST: "127.0.0.1",
         CONF_PORT: 6053,
@@ -2572,16 +2571,15 @@ async def test_reconfig_name_conflict_overwrite(
     result = await hass.config_entries.flow.async_configure(
         result["flow_id"], user_input={"next_step_id": "name_conflict_overwrite"}
     )
-    assert result["type"] is FlowResultType.CREATE_ENTRY
+    assert result["type"] is FlowResultType.ABORT
+    assert result["reason"] == "reconfigure_successful"
 
-    assert result["data"] == {
-        CONF_HOST: "127.0.0.2",
-        CONF_PORT: 6053,
-        CONF_PASSWORD: "",
-        CONF_NOISE_PSK: "",
-        CONF_DEVICE_NAME: "test",
-    }
-    assert result["context"]["unique_id"] == "11:22:33:44:55:bb"
+    assert (
+        hass.config_entries.async_entry_for_domain_unique_id(
+            DOMAIN, "11:22:33:44:55:bb"
+        )
+        is not None
+    )
     assert (
         hass.config_entries.async_entry_for_domain_unique_id(
             DOMAIN, "11:22:33:44:55:aa"