diff --git a/homeassistant/components/aladdin_connect/__init__.py b/homeassistant/components/aladdin_connect/__init__.py
index 48bedafdd1a..2af0f4e8859 100644
--- a/homeassistant/components/aladdin_connect/__init__.py
+++ b/homeassistant/components/aladdin_connect/__init__.py
@@ -2,10 +2,12 @@
 
 from __future__ import annotations
 
+import aiohttp
 from genie_partner_sdk.client import AladdinConnectClient
 
 from homeassistant.const import Platform
 from homeassistant.core import HomeAssistant
+from homeassistant.exceptions import ConfigEntryAuthFailed, ConfigEntryNotReady
 from homeassistant.helpers import (
     aiohttp_client,
     config_entry_oauth2_flow,
@@ -31,11 +33,27 @@ async def async_setup_entry(
 
     session = config_entry_oauth2_flow.OAuth2Session(hass, entry, implementation)
 
+    try:
+        await session.async_ensure_token_valid()
+    except aiohttp.ClientResponseError as err:
+        if 400 <= err.status < 500:
+            raise ConfigEntryAuthFailed(err) from err
+        raise ConfigEntryNotReady from err
+    except aiohttp.ClientError as err:
+        raise ConfigEntryNotReady from err
+
     client = AladdinConnectClient(
         api.AsyncConfigEntryAuth(aiohttp_client.async_get_clientsession(hass), session)
     )
 
-    doors = await client.get_doors()
+    try:
+        doors = await client.get_doors()
+    except aiohttp.ClientResponseError as err:
+        if 400 <= err.status < 500:
+            raise ConfigEntryAuthFailed(err) from err
+        raise ConfigEntryNotReady from err
+    except aiohttp.ClientError as err:
+        raise ConfigEntryNotReady from err
 
     entry.runtime_data = {
         door.unique_id: AladdinConnectCoordinator(hass, entry, client, door)
diff --git a/homeassistant/components/aladdin_connect/api.py b/homeassistant/components/aladdin_connect/api.py
index ea46bf69f4a..481aa06be65 100644
--- a/homeassistant/components/aladdin_connect/api.py
+++ b/homeassistant/components/aladdin_connect/api.py
@@ -11,6 +11,18 @@ API_URL = "https://twdvzuefzh.execute-api.us-east-2.amazonaws.com/v1"
 API_KEY = "k6QaiQmcTm2zfaNns5L1Z8duBtJmhDOW8JawlCC3"
 
 
+class AsyncConfigFlowAuth(Auth):
+    """Provide Aladdin Connect Genie authentication for config flow validation."""
+
+    def __init__(self, websession: ClientSession, access_token: str) -> None:
+        """Initialize Aladdin Connect Genie auth."""
+        super().__init__(websession, API_URL, access_token, API_KEY)
+
+    async def async_get_access_token(self) -> str:
+        """Return the access token."""
+        return self.access_token
+
+
 class AsyncConfigEntryAuth(Auth):
     """Provide Aladdin Connect Genie authentication tied to an OAuth2 based config entry."""
 
diff --git a/homeassistant/components/aladdin_connect/config_flow.py b/homeassistant/components/aladdin_connect/config_flow.py
index dab801d4712..66aa67ffd01 100644
--- a/homeassistant/components/aladdin_connect/config_flow.py
+++ b/homeassistant/components/aladdin_connect/config_flow.py
@@ -4,12 +4,14 @@ from collections.abc import Mapping
 import logging
 from typing import Any
 
+from genie_partner_sdk.client import AladdinConnectClient
 import jwt
 import voluptuous as vol
 
 from homeassistant.config_entries import SOURCE_REAUTH, ConfigFlowResult
-from homeassistant.helpers import config_entry_oauth2_flow
+from homeassistant.helpers import aiohttp_client, config_entry_oauth2_flow
 
+from .api import AsyncConfigFlowAuth
 from .const import CONFIG_FLOW_MINOR_VERSION, CONFIG_FLOW_VERSION, DOMAIN
 
 
@@ -52,11 +54,25 @@ class OAuth2FlowHandler(
 
     async def async_oauth_create_entry(self, data: dict) -> ConfigFlowResult:
         """Create an oauth config entry or update existing entry for reauth."""
-        # Extract the user ID from the JWT token's 'sub' field
-        token = jwt.decode(
-            data["token"]["access_token"], options={"verify_signature": False}
+        try:
+            token = jwt.decode(
+                data["token"]["access_token"], options={"verify_signature": False}
+            )
+            user_id = token["sub"]
+        except jwt.DecodeError, KeyError:
+            return self.async_abort(reason="oauth_error")
+
+        client = AladdinConnectClient(
+            AsyncConfigFlowAuth(
+                aiohttp_client.async_get_clientsession(self.hass),
+                data["token"]["access_token"],
+            )
         )
-        user_id = token["sub"]
+        try:
+            await client.get_doors()
+        except Exception:  # noqa: BLE001
+            return self.async_abort(reason="cannot_connect")
+
         await self.async_set_unique_id(user_id)
 
         if self.source == SOURCE_REAUTH:
diff --git a/homeassistant/components/aladdin_connect/quality_scale.yaml b/homeassistant/components/aladdin_connect/quality_scale.yaml
index 88d454a5532..d857f1dcdc2 100644
--- a/homeassistant/components/aladdin_connect/quality_scale.yaml
+++ b/homeassistant/components/aladdin_connect/quality_scale.yaml
@@ -7,39 +7,31 @@ rules:
   brands: done
   common-modules: done
   config-flow: done
-  config-flow-test-coverage: todo
+  config-flow-test-coverage: done
   dependency-transparency: done
   docs-actions:
     status: exempt
     comment: Integration does not register any service actions.
   docs-high-level-description: done
-  docs-installation-instructions:
-    status: todo
-    comment: Documentation needs to be created.
-  docs-removal-instructions:
-    status: todo
-    comment: Documentation needs to be created.
+  docs-installation-instructions: done
+  docs-removal-instructions: done
   entity-event-setup:
     status: exempt
     comment: Integration does not subscribe to external events.
   entity-unique-id: done
   has-entity-name: done
   runtime-data: done
-  test-before-configure:
-    status: todo
-    comment: Config flow does not currently test connection during setup.
-  test-before-setup: todo
+  test-before-configure: done
+  test-before-setup: done
   unique-config-entry: done
 
   # Silver
   action-exceptions: todo
   config-entry-unloading: done
   docs-configuration-parameters:
-    status: todo
-    comment: Documentation needs to be created.
-  docs-installation-parameters:
-    status: todo
-    comment: Documentation needs to be created.
+    status: exempt
+    comment: Integration does not have an options flow.
+  docs-installation-parameters: done
   entity-unavailable: todo
   integration-owner: done
   log-when-unavailable: todo
@@ -52,29 +44,17 @@ rules:
   # Gold
   devices: done
   diagnostics: todo
-  discovery: todo
-  discovery-update-info: todo
-  docs-data-update:
-    status: todo
-    comment: Documentation needs to be created.
-  docs-examples:
-    status: todo
-    comment: Documentation needs to be created.
-  docs-known-limitations:
-    status: todo
-    comment: Documentation needs to be created.
-  docs-supported-devices:
-    status: todo
-    comment: Documentation needs to be created.
-  docs-supported-functions:
-    status: todo
-    comment: Documentation needs to be created.
-  docs-troubleshooting:
-    status: todo
-    comment: Documentation needs to be created.
-  docs-use-cases:
-    status: todo
-    comment: Documentation needs to be created.
+  discovery: done
+  discovery-update-info:
+    status: exempt
+    comment: Integration connects via the cloud and not locally.
+  docs-data-update: done
+  docs-examples: done
+  docs-known-limitations: done
+  docs-supported-devices: done
+  docs-supported-functions: done
+  docs-troubleshooting: done
+  docs-use-cases: done
   dynamic-devices: todo
   entity-category: done
   entity-device-class: done
@@ -86,7 +66,7 @@ rules:
   repair-issues: todo
   stale-devices:
     status: todo
-    comment: Stale devices can be done dynamically
+    comment: We can automatically remove removed devices
 
   # Platinum
   async-dependency: todo
diff --git a/homeassistant/components/aladdin_connect/strings.json b/homeassistant/components/aladdin_connect/strings.json
index bac173a5632..d8a12ae5ba7 100644
--- a/homeassistant/components/aladdin_connect/strings.json
+++ b/homeassistant/components/aladdin_connect/strings.json
@@ -4,6 +4,7 @@
       "already_configured": "[%key:common::config_flow::abort::already_configured_account%]",
       "already_in_progress": "[%key:common::config_flow::abort::already_in_progress%]",
       "authorize_url_timeout": "[%key:common::config_flow::abort::oauth2_authorize_url_timeout%]",
+      "cannot_connect": "[%key:common::config_flow::error::cannot_connect%]",
       "cloud_not_enabled": "Please make sure you run Home Assistant with `{default_config}` enabled in your configuration.yaml.",
       "missing_configuration": "[%key:common::config_flow::abort::oauth2_missing_configuration%]",
       "no_url_available": "[%key:common::config_flow::abort::oauth2_no_url_available%]",
diff --git a/tests/components/aladdin_connect/__init__.py b/tests/components/aladdin_connect/__init__.py
index aa5957dc392..4909ebf90ff 100644
--- a/tests/components/aladdin_connect/__init__.py
+++ b/tests/components/aladdin_connect/__init__.py
@@ -1 +1,12 @@
 """Tests for the Aladdin Connect Garage Door integration."""
+
+from homeassistant.core import HomeAssistant
+
+from tests.common import MockConfigEntry
+
+
+async def init_integration(hass: HomeAssistant, entry: MockConfigEntry) -> None:
+    """Set up the Aladdin Connect integration for testing."""
+    entry.add_to_hass(hass)
+    await hass.config_entries.async_setup(entry.entry_id)
+    await hass.async_block_till_done()
diff --git a/tests/components/aladdin_connect/conftest.py b/tests/components/aladdin_connect/conftest.py
index 1843ba9db28..16e56f7d928 100644
--- a/tests/components/aladdin_connect/conftest.py
+++ b/tests/components/aladdin_connect/conftest.py
@@ -1,5 +1,9 @@
 """Fixtures for aladdin_connect tests."""
 
+from collections.abc import Generator
+from time import time
+from unittest.mock import AsyncMock, patch
+
 import pytest
 
 from homeassistant.components.aladdin_connect import DOMAIN
@@ -27,6 +31,42 @@ async def setup_credentials(hass: HomeAssistant) -> None:
     )
 
 
+@pytest.fixture(autouse=True)
+def mock_aladdin_connect_api() -> Generator[AsyncMock]:
+    """Mock the AladdinConnectClient."""
+    mock_door = AsyncMock()
+    mock_door.device_id = "test_device_id"
+    mock_door.door_number = 1
+    mock_door.name = "Test Door"
+    mock_door.status = "closed"
+    mock_door.link_status = "connected"
+    mock_door.battery_level = 100
+    mock_door.unique_id = f"{mock_door.device_id}-{mock_door.door_number}"
+
+    with (
+        patch(
+            "homeassistant.components.aladdin_connect.AladdinConnectClient",
+            autospec=True,
+        ) as mock_client,
+        patch(
+            "homeassistant.components.aladdin_connect.config_flow.AladdinConnectClient",
+            new=mock_client,
+        ),
+    ):
+        client = mock_client.return_value
+        client.get_doors.return_value = [mock_door]
+        yield client
+
+
+@pytest.fixture
+def mock_setup_entry() -> AsyncMock:
+    """Fixture to mock setup entry."""
+    with patch(
+        "homeassistant.components.aladdin_connect.async_setup_entry", return_value=True
+    ):
+        yield
+
+
 @pytest.fixture
 def mock_config_entry() -> MockConfigEntry:
     """Define a mock config entry fixture."""
@@ -41,7 +81,7 @@ def mock_config_entry() -> MockConfigEntry:
                 "access_token": "old-token",
                 "refresh_token": "old-refresh-token",
                 "expires_in": 3600,
-                "expires_at": 1234567890,
+                "expires_at": time() + 3600,
             },
         },
         source="user",
diff --git a/tests/components/aladdin_connect/test_config_flow.py b/tests/components/aladdin_connect/test_config_flow.py
index ee555cf2ebb..24a77b42ce5 100644
--- a/tests/components/aladdin_connect/test_config_flow.py
+++ b/tests/components/aladdin_connect/test_config_flow.py
@@ -1,6 +1,6 @@
 """Test the Aladdin Connect Garage Door config flow."""
 
-from unittest.mock import patch
+from unittest.mock import AsyncMock
 
 import pytest
 
@@ -43,7 +43,12 @@ async def access_token(hass: HomeAssistant) -> str:
     )
 
 
-@pytest.mark.usefixtures("current_request_with_host", "use_cloud")
+@pytest.mark.usefixtures(
+    "current_request_with_host",
+    "use_cloud",
+    "mock_setup_entry",
+    "mock_aladdin_connect_api",
+)
 async def test_full_flow(
     hass: HomeAssistant,
     hass_client_no_auth: ClientSessionGenerator,
@@ -83,10 +88,7 @@ async def test_full_flow(
         },
     )
 
-    with patch(
-        "homeassistant.components.aladdin_connect.async_setup_entry", return_value=True
-    ):
-        result = await hass.config_entries.flow.async_configure(result["flow_id"])
+    result = await hass.config_entries.flow.async_configure(result["flow_id"])
 
     assert result["type"] is FlowResultType.CREATE_ENTRY
     assert result["title"] == "Aladdin Connect"
@@ -103,7 +105,12 @@ async def test_full_flow(
     assert result["result"].unique_id == USER_ID
 
 
-@pytest.mark.usefixtures("current_request_with_host", "use_cloud")
+@pytest.mark.usefixtures(
+    "current_request_with_host",
+    "use_cloud",
+    "mock_setup_entry",
+    "mock_aladdin_connect_api",
+)
 async def test_full_dhcp_flow(
     hass: HomeAssistant,
     hass_client_no_auth: ClientSessionGenerator,
@@ -156,10 +163,7 @@ async def test_full_dhcp_flow(
         },
     )
 
-    with patch(
-        "homeassistant.components.aladdin_connect.async_setup_entry", return_value=True
-    ):
-        result = await hass.config_entries.flow.async_configure(result["flow_id"])
+    result = await hass.config_entries.flow.async_configure(result["flow_id"])
 
     assert result["type"] is FlowResultType.CREATE_ENTRY
     assert result["title"] == "Aladdin Connect"
@@ -176,7 +180,9 @@ async def test_full_dhcp_flow(
     assert result["result"].unique_id == USER_ID
 
 
-@pytest.mark.usefixtures("current_request_with_host", "use_cloud")
+@pytest.mark.usefixtures(
+    "current_request_with_host", "use_cloud", "mock_aladdin_connect_api"
+)
 async def test_duplicate_entry(
     hass: HomeAssistant,
     hass_client_no_auth: ClientSessionGenerator,
@@ -218,10 +224,7 @@ async def test_duplicate_entry(
         },
     )
 
-    with patch(
-        "homeassistant.components.aladdin_connect.async_setup_entry", return_value=True
-    ):
-        result = await hass.config_entries.flow.async_configure(result["flow_id"])
+    result = await hass.config_entries.flow.async_configure(result["flow_id"])
 
     assert result["type"] is FlowResultType.ABORT
     assert result["reason"] == "already_configured"
@@ -249,7 +252,12 @@ async def test_duplicate_dhcp_entry(
     assert result["reason"] == "already_configured"
 
 
-@pytest.mark.usefixtures("current_request_with_host", "use_cloud")
+@pytest.mark.usefixtures(
+    "current_request_with_host",
+    "use_cloud",
+    "mock_setup_entry",
+    "mock_aladdin_connect_api",
+)
 async def test_flow_reauth(
     hass: HomeAssistant,
     hass_client_no_auth: ClientSessionGenerator,
@@ -301,10 +309,7 @@ async def test_flow_reauth(
         },
     )
 
-    with patch(
-        "homeassistant.components.aladdin_connect.async_setup_entry", return_value=True
-    ):
-        result = await hass.config_entries.flow.async_configure(result["flow_id"])
+    result = await hass.config_entries.flow.async_configure(result["flow_id"])
 
     assert result["type"] is FlowResultType.ABORT
     assert result["reason"] == "reauth_successful"
@@ -312,7 +317,9 @@ async def test_flow_reauth(
     assert len(hass.config_entries.async_entries(DOMAIN)) == 1
 
 
-@pytest.mark.usefixtures("current_request_with_host", "use_cloud")
+@pytest.mark.usefixtures(
+    "current_request_with_host", "use_cloud", "mock_aladdin_connect_api"
+)
 async def test_flow_wrong_account_reauth(
     hass: HomeAssistant,
     hass_client_no_auth: ClientSessionGenerator,
@@ -412,3 +419,82 @@ async def test_reauthentication_no_cloud(
 
     assert result["type"] is FlowResultType.ABORT
     assert result["reason"] == "cloud_not_enabled"
+
+
+@pytest.mark.usefixtures("current_request_with_host", "use_cloud")
+async def test_flow_connection_error(
+    hass: HomeAssistant,
+    hass_client_no_auth: ClientSessionGenerator,
+    aioclient_mock: AiohttpClientMocker,
+    access_token: str,
+    mock_aladdin_connect_api: AsyncMock,
+) -> None:
+    """Test config flow aborts when API connection fails."""
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": config_entries.SOURCE_USER}
+    )
+    state = config_entry_oauth2_flow._encode_jwt(
+        hass,
+        {
+            "flow_id": result["flow_id"],
+            "redirect_uri": "https://example.com/auth/external/callback",
+        },
+    )
+
+    client = await hass_client_no_auth()
+    resp = await client.get(f"/auth/external/callback?code=abcd&state={state}")
+    assert resp.status == 200
+
+    aioclient_mock.post(
+        OAUTH2_TOKEN,
+        json={
+            "refresh_token": "mock-refresh-token",
+            "access_token": access_token,
+            "type": "Bearer",
+            "expires_in": 60,
+        },
+    )
+
+    mock_aladdin_connect_api.get_doors.side_effect = Exception("Connection failed")
+    result = await hass.config_entries.flow.async_configure(result["flow_id"])
+
+    assert result["type"] is FlowResultType.ABORT
+    assert result["reason"] == "cannot_connect"
+
+
+@pytest.mark.usefixtures("current_request_with_host", "use_cloud")
+async def test_flow_invalid_token(
+    hass: HomeAssistant,
+    hass_client_no_auth: ClientSessionGenerator,
+    aioclient_mock: AiohttpClientMocker,
+) -> None:
+    """Test config flow aborts when JWT token is invalid."""
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": config_entries.SOURCE_USER}
+    )
+    state = config_entry_oauth2_flow._encode_jwt(
+        hass,
+        {
+            "flow_id": result["flow_id"],
+            "redirect_uri": "https://example.com/auth/external/callback",
+        },
+    )
+
+    client = await hass_client_no_auth()
+    resp = await client.get(f"/auth/external/callback?code=abcd&state={state}")
+    assert resp.status == 200
+
+    aioclient_mock.post(
+        OAUTH2_TOKEN,
+        json={
+            "refresh_token": "mock-refresh-token",
+            "access_token": "not-a-valid-jwt-token",
+            "type": "Bearer",
+            "expires_in": 60,
+        },
+    )
+
+    result = await hass.config_entries.flow.async_configure(result["flow_id"])
+
+    assert result["type"] is FlowResultType.ABORT
+    assert result["reason"] == "oauth_error"
diff --git a/tests/components/aladdin_connect/test_init.py b/tests/components/aladdin_connect/test_init.py
index bc147839c2f..421836adbc5 100644
--- a/tests/components/aladdin_connect/test_init.py
+++ b/tests/components/aladdin_connect/test_init.py
@@ -1,116 +1,108 @@
 """Tests for the Aladdin Connect integration."""
 
+import http
 from unittest.mock import AsyncMock, patch
 
-from homeassistant.components.aladdin_connect.const import DOMAIN
+from aiohttp import ClientConnectionError, RequestInfo
+from aiohttp.client_exceptions import ClientResponseError
+import pytest
+
 from homeassistant.config_entries import ConfigEntryState
 from homeassistant.core import HomeAssistant
 
+from . import init_integration
+
 from tests.common import MockConfigEntry
 
 
-async def test_setup_entry(hass: HomeAssistant) -> None:
+async def test_setup_entry(
+    hass: HomeAssistant, mock_config_entry: MockConfigEntry
+) -> None:
     """Test a successful setup entry."""
-    config_entry = MockConfigEntry(
-        domain=DOMAIN,
-        data={
-            "token": {
-                "access_token": "test_token",
-                "refresh_token": "test_refresh_token",
-            }
-        },
-        unique_id="test_unique_id",
-    )
-    config_entry.add_to_hass(hass)
-
-    mock_door = AsyncMock()
-    mock_door.device_id = "test_device_id"
-    mock_door.door_number = 1
-    mock_door.name = "Test Door"
-    mock_door.status = "closed"
-    mock_door.link_status = "connected"
-    mock_door.battery_level = 100
-    mock_door.unique_id = f"{mock_door.device_id}-{mock_door.door_number}"
-
-    mock_client = AsyncMock()
-    mock_client.get_doors.return_value = [mock_door]
-
-    with (
-        patch(
-            "homeassistant.components.aladdin_connect.config_entry_oauth2_flow.async_get_config_entry_implementation",
-            return_value=AsyncMock(),
-        ),
-        patch(
-            "homeassistant.components.aladdin_connect.config_entry_oauth2_flow.OAuth2Session",
-            return_value=AsyncMock(),
-        ),
-        patch(
-            "homeassistant.components.aladdin_connect.AladdinConnectClient",
-            return_value=mock_client,
-        ),
-        patch(
-            "homeassistant.components.aladdin_connect.api.AsyncConfigEntryAuth",
-            return_value=AsyncMock(),
-        ),
-    ):
-        await hass.config_entries.async_setup(config_entry.entry_id)
-        await hass.async_block_till_done()
-
-    assert config_entry.state is ConfigEntryState.LOADED
+    await init_integration(hass, mock_config_entry)
+    assert mock_config_entry.state is ConfigEntryState.LOADED
 
 
-async def test_unload_entry(hass: HomeAssistant) -> None:
+async def test_unload_entry(
+    hass: HomeAssistant, mock_config_entry: MockConfigEntry
+) -> None:
     """Test a successful unload entry."""
-    config_entry = MockConfigEntry(
-        domain=DOMAIN,
-        data={
-            "token": {
-                "access_token": "test_token",
-                "refresh_token": "test_refresh_token",
-            }
-        },
-        unique_id="test_unique_id",
-    )
-    config_entry.add_to_hass(hass)
+    await init_integration(hass, mock_config_entry)
+    assert mock_config_entry.state is ConfigEntryState.LOADED
 
-    # Mock door data
-    mock_door = AsyncMock()
-    mock_door.device_id = "test_device_id"
-    mock_door.door_number = 1
-    mock_door.name = "Test Door"
-    mock_door.status = "closed"
-    mock_door.link_status = "connected"
-    mock_door.battery_level = 100
-    mock_door.unique_id = f"{mock_door.device_id}-{mock_door.door_number}"
+    await hass.config_entries.async_unload(mock_config_entry.entry_id)
+    await hass.async_block_till_done()
+    assert mock_config_entry.state is ConfigEntryState.NOT_LOADED
 
-    # Mock client
-    mock_client = AsyncMock()
-    mock_client.get_doors.return_value = [mock_door]
 
-    with (
-        patch(
-            "homeassistant.components.aladdin_connect.config_entry_oauth2_flow.async_get_config_entry_implementation",
-            return_value=AsyncMock(),
-        ),
-        patch(
-            "homeassistant.components.aladdin_connect.config_entry_oauth2_flow.OAuth2Session",
-            return_value=AsyncMock(),
-        ),
-        patch(
-            "homeassistant.components.aladdin_connect.AladdinConnectClient",
-            return_value=mock_client,
-        ),
-        patch(
-            "homeassistant.components.aladdin_connect.api.AsyncConfigEntryAuth",
-            return_value=AsyncMock(),
+@pytest.mark.parametrize(
+    ("status", "expected_state"),
+    [
+        (http.HTTPStatus.UNAUTHORIZED, ConfigEntryState.SETUP_ERROR),
+        (http.HTTPStatus.INTERNAL_SERVER_ERROR, ConfigEntryState.SETUP_RETRY),
+    ],
+    ids=["auth_failure", "server_error"],
+)
+async def test_setup_entry_token_error(
+    hass: HomeAssistant,
+    mock_config_entry: MockConfigEntry,
+    status: http.HTTPStatus,
+    expected_state: ConfigEntryState,
+) -> None:
+    """Test setup entry fails when token validation fails."""
+    with patch(
+        "homeassistant.helpers.config_entry_oauth2_flow.OAuth2Session.async_ensure_token_valid",
+        side_effect=ClientResponseError(
+            RequestInfo("", "POST", {}, ""), None, status=status
         ),
     ):
-        await hass.config_entries.async_setup(config_entry.entry_id)
-        await hass.async_block_till_done()
+        await init_integration(hass, mock_config_entry)
 
-    assert config_entry.state is ConfigEntryState.LOADED
+    assert mock_config_entry.state is expected_state
 
-    await hass.config_entries.async_unload(config_entry.entry_id)
-    await hass.async_block_till_done()
 
-    assert config_entry.state is ConfigEntryState.NOT_LOADED
+async def test_setup_entry_token_connection_error(
+    hass: HomeAssistant, mock_config_entry: MockConfigEntry
+) -> None:
+    """Test setup entry retries when token validation has a connection error."""
+    with patch(
+        "homeassistant.helpers.config_entry_oauth2_flow.OAuth2Session.async_ensure_token_valid",
+        side_effect=ClientConnectionError(),
+    ):
+        await init_integration(hass, mock_config_entry)
+
+    assert mock_config_entry.state is ConfigEntryState.SETUP_RETRY
+
+
+@pytest.mark.parametrize(
+    ("status", "expected_state"),
+    [
+        (http.HTTPStatus.UNAUTHORIZED, ConfigEntryState.SETUP_ERROR),
+        (http.HTTPStatus.INTERNAL_SERVER_ERROR, ConfigEntryState.SETUP_RETRY),
+    ],
+    ids=["auth_failure", "server_error"],
+)
+async def test_setup_entry_api_error(
+    hass: HomeAssistant,
+    mock_config_entry: MockConfigEntry,
+    mock_aladdin_connect_api: AsyncMock,
+    status: http.HTTPStatus,
+    expected_state: ConfigEntryState,
+) -> None:
+    """Test setup entry fails when API call fails."""
+    mock_aladdin_connect_api.get_doors.side_effect = ClientResponseError(
+        RequestInfo("", "GET", {}, ""), None, status=status
+    )
+    await init_integration(hass, mock_config_entry)
+    assert mock_config_entry.state is expected_state
+
+
+async def test_setup_entry_api_connection_error(
+    hass: HomeAssistant,
+    mock_config_entry: MockConfigEntry,
+    mock_aladdin_connect_api: AsyncMock,
+) -> None:
+    """Test setup entry retries when API has a connection error."""
+    mock_aladdin_connect_api.get_doors.side_effect = ClientConnectionError()
+    await init_integration(hass, mock_config_entry)
+    assert mock_config_entry.state is ConfigEntryState.SETUP_RETRY