diff --git a/homeassistant/components/fritz/coordinator.py b/homeassistant/components/fritz/coordinator.py
index 9e7e1d811be..571214d1d85 100644
--- a/homeassistant/components/fritz/coordinator.py
+++ b/homeassistant/components/fritz/coordinator.py
@@ -8,6 +8,7 @@ from functools import partial
 import logging
 import re
 from typing import Any, TypedDict, cast
+from xml.etree.ElementTree import ParseError
 
 from fritzconnection import FritzConnection
 from fritzconnection.core.exceptions import FritzActionError
@@ -24,7 +25,7 @@ from homeassistant.components.device_tracker import (
 )
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.core import HomeAssistant
-from homeassistant.exceptions import HomeAssistantError
+from homeassistant.exceptions import ConfigEntryNotReady, HomeAssistantError
 from homeassistant.helpers import device_registry as dr, entity_registry as er
 from homeassistant.helpers.device_registry import CONNECTION_NETWORK_MAC
 from homeassistant.helpers.dispatcher import async_dispatcher_send
@@ -226,7 +227,13 @@ class FritzBoxTools(DataUpdateCoordinator[UpdateCoordinatorDataType]):
         self.fritz_guest_wifi = FritzGuestWLAN(fc=self.connection)
         self.fritz_status = FritzStatus(fc=self.connection)
         self.fritz_call = FritzCall(fc=self.connection)
-        info = self.fritz_status.get_device_info()
+        try:
+            info = self.fritz_status.get_device_info()
+        except ParseError as ex:
+            raise ConfigEntryNotReady(
+                translation_domain=DOMAIN,
+                translation_key="error_parse_device_info",
+            ) from ex
 
         _LOGGER.debug(
             "gathered device info of %s %s",
diff --git a/homeassistant/components/fritz/strings.json b/homeassistant/components/fritz/strings.json
index 67326ae4ea2..0ff85b8d5c8 100644
--- a/homeassistant/components/fritz/strings.json
+++ b/homeassistant/components/fritz/strings.json
@@ -185,6 +185,9 @@
     "config_entry_not_found": {
       "message": "Failed to perform action \"{service}\". Config entry for target not found"
     },
+    "error_parse_device_info": {
+      "message": "Error parsing device info. Please check the system event log of your FRITZ!Box for malformed data and clear the event list."
+    },
     "error_refresh_hosts_info": {
       "message": "Error refreshing hosts info"
     },
diff --git a/tests/components/fritz/test_init.py b/tests/components/fritz/test_init.py
index 024160dad68..9d7a23be096 100644
--- a/tests/components/fritz/test_init.py
+++ b/tests/components/fritz/test_init.py
@@ -2,6 +2,7 @@
 
 import re
 from unittest.mock import patch
+from xml.etree.ElementTree import ParseError
 
 from freezegun.api import FrozenDateTimeFactory
 import pytest
@@ -116,6 +117,25 @@ async def test_setup_fail(hass: HomeAssistant, error) -> None:
     assert entry.state is ConfigEntryState.SETUP_RETRY
 
 
+async def test_setup_fail_parse_error(hass: HomeAssistant, fc_class_mock) -> None:
+    """Test setup failure due to parse error while fetching device data."""
+
+    entry = MockConfigEntry(domain=DOMAIN, data=MOCK_USER_DATA)
+    entry.add_to_hass(hass)
+
+    with (
+        patch(
+            "homeassistant.components.fritz.coordinator.FritzStatus.get_device_info"
+        ) as fs_mock,
+    ):
+        fs_mock.side_effect = ParseError("boom")
+        await hass.config_entries.async_setup(entry.entry_id)
+        await hass.async_block_till_done()
+
+    assert entry.state is ConfigEntryState.SETUP_RETRY
+    assert entry.error_reason_translation_key == "error_parse_device_info"
+
+
 async def test_upnp_missing(
     hass: HomeAssistant,
     caplog: pytest.LogCaptureFixture,