diff --git a/homeassistant/components/camera/__init__.py b/homeassistant/components/camera/__init__.py
index 2430ccebb4f..861b184975b 100644
--- a/homeassistant/components/camera/__init__.py
+++ b/homeassistant/components/camera/__init__.py
@@ -511,14 +511,14 @@ class Camera(Entity, cached_properties=CACHED_PROPERTIES_WITH_ATTR_):
         self._create_stream_lock: asyncio.Lock | None = None
         self._rtsp_to_webrtc = False
 
-    @property
+    @cached_property
     def entity_picture(self) -> str:
         """Return a link to the camera feed as entity picture."""
         if self._attr_entity_picture is not None:
             return self._attr_entity_picture
         return ENTITY_IMAGE_URL.format(self.entity_id, self.access_tokens[-1])
 
-    @property
+    @cached_property
     def use_stream_for_stills(self) -> bool:
         """Whether or not to use stream to generate stills."""
         return False
@@ -745,6 +745,7 @@ class Camera(Entity, cached_properties=CACHED_PROPERTIES_WITH_ATTR_):
     def async_update_token(self) -> None:
         """Update the used token."""
         self.access_tokens.append(hex(_RND.getrandbits(256))[2:])
+        self.__dict__.pop("entity_picture", None)
 
     async def async_internal_added_to_hass(self) -> None:
         """Run when entity about to be added to hass."""
diff --git a/tests/components/camera/test_init.py b/tests/components/camera/test_init.py
index ccec2b6f50c..dffc7e5aa53 100644
--- a/tests/components/camera/test_init.py
+++ b/tests/components/camera/test_init.py
@@ -24,10 +24,15 @@ from homeassistant.core import HomeAssistant
 from homeassistant.exceptions import HomeAssistantError
 from homeassistant.helpers import entity_registry as er
 from homeassistant.setup import async_setup_component
+from homeassistant.util import dt as dt_util
 
 from .common import EMPTY_8_6_JPEG, WEBRTC_ANSWER, mock_turbo_jpeg
 
-from tests.common import help_test_all, import_and_test_deprecated_constant_enum
+from tests.common import (
+    async_fire_time_changed,
+    help_test_all,
+    import_and_test_deprecated_constant_enum,
+)
 from tests.typing import ClientSessionGenerator, WebSocketGenerator
 
 STREAM_SOURCE = "rtsp://127.0.0.1/stream"
@@ -1073,3 +1078,23 @@ def test_deprecated_supported_features_ints(caplog: pytest.LogCaptureFixture) ->
     caplog.clear()
     assert entity.supported_features_compat is camera.CameraEntityFeature(1)
     assert "is using deprecated supported features values" not in caplog.text
+
+
+async def test_entity_picture_url_changes_on_token_update(
+    hass: HomeAssistant, mock_camera
+) -> None:
+    """Test the token is rotated and entity entity picture cache is cleared."""
+    await async_setup_component(hass, "camera", {})
+    await hass.async_block_till_done()
+
+    camera_state = hass.states.get("camera.demo_camera")
+    original_picture = camera_state.attributes["entity_picture"]
+    assert "token=" in original_picture
+
+    async_fire_time_changed(hass, dt_util.utcnow() + camera.TOKEN_CHANGE_INTERVAL)
+    await hass.async_block_till_done(wait_background_tasks=True)
+
+    camera_state = hass.states.get("camera.demo_camera")
+    new_entity_picture = camera_state.attributes["entity_picture"]
+    assert new_entity_picture != original_picture
+    assert "token=" in new_entity_picture