diff --git a/homeassistant/helpers/entity_registry.py b/homeassistant/helpers/entity_registry.py
index d495d196440..cd1be43690d 100644
--- a/homeassistant/helpers/entity_registry.py
+++ b/homeassistant/helpers/entity_registry.py
@@ -327,7 +327,6 @@ class EntityRegistry:
         disabled_by: RegistryEntryDisabler | None = None,
         hidden_by: RegistryEntryHider | None = None,
         # Data that we want entry to have
-        area_id: str | None | UndefinedType = UNDEFINED,
         capabilities: Mapping[str, Any] | None | UndefinedType = UNDEFINED,
         config_entry: ConfigEntry | None | UndefinedType = UNDEFINED,
         device_id: str | None | UndefinedType = UNDEFINED,
@@ -353,7 +352,6 @@ class EntityRegistry:
         if entity_id:
             return self.async_update_entity(
                 entity_id,
-                area_id=area_id,
                 capabilities=capabilities,
                 config_entry_id=config_entry_id,
                 device_id=device_id,
@@ -404,7 +402,6 @@ class EntityRegistry:
             return None if value is UNDEFINED else value
 
         entry = RegistryEntry(
-            area_id=none_if_undefined(area_id),
             capabilities=none_if_undefined(capabilities),
             config_entry_id=none_if_undefined(config_entry_id),
             device_id=none_if_undefined(device_id),
diff --git a/tests/components/cloud/test_google_config.py b/tests/components/cloud/test_google_config.py
index a86f1f3cf8a..20bca347590 100644
--- a/tests/components/cloud/test_google_config.py
+++ b/tests/components/cloud/test_google_config.py
@@ -197,9 +197,8 @@ async def test_google_device_registry_sync(hass, mock_cloud_login, cloud_prefs):
         hass, GACTIONS_SCHEMA({}), "mock-user-id", cloud_prefs, hass.data["cloud"]
     )
     ent_reg = er.async_get(hass)
-    entity_entry = ent_reg.async_get_or_create(
-        "light", "hue", "1234", device_id="1234", area_id="ABCD"
-    )
+    entity_entry = ent_reg.async_get_or_create("light", "hue", "1234", device_id="1234")
+    entity_entry = ent_reg.async_update_entity(entity_entry.entity_id, area_id="ABCD")
 
     with patch.object(config, "async_sync_entities_all"):
         await config.async_initialize()
diff --git a/tests/components/google_assistant/test_smart_home.py b/tests/components/google_assistant/test_smart_home.py
index 684a6db2640..eefa163bdd8 100644
--- a/tests/components/google_assistant/test_smart_home.py
+++ b/tests/components/google_assistant/test_smart_home.py
@@ -232,7 +232,9 @@ async def test_sync_in_area(area_on_device, hass, registries):
         "1235",
         suggested_object_id="demo_light",
         device_id=device.id,
-        area_id=area.id if not area_on_device else None,
+    )
+    entity = registries.entity.async_update_entity(
+        entity.entity_id, area_id=area.id if not area_on_device else None
     )
 
     light = DemoLight(
diff --git a/tests/helpers/test_entity_registry.py b/tests/helpers/test_entity_registry.py
index e4c371a0198..8ccba2c7ecc 100644
--- a/tests/helpers/test_entity_registry.py
+++ b/tests/helpers/test_entity_registry.py
@@ -73,7 +73,6 @@ def test_get_or_create_updates_data(registry):
         "light",
         "hue",
         "5678",
-        area_id="mock-area-id",
         capabilities={"max": 100},
         config_entry=orig_config_entry,
         device_id="mock-dev-id",
@@ -92,7 +91,6 @@ def test_get_or_create_updates_data(registry):
         "light.hue_5678",
         "5678",
         "hue",
-        area_id="mock-area-id",
         capabilities={"max": 100},
         config_entry_id=orig_config_entry.entry_id,
         device_class=None,
@@ -117,8 +115,7 @@ def test_get_or_create_updates_data(registry):
         "light",
         "hue",
         "5678",
-        area_id="new-mock-area-id",
-        capabilities={"new-max": 100},
+        capabilities={"new-max": 150},
         config_entry=new_config_entry,
         device_id="new-mock-dev-id",
         disabled_by=er.RegistryEntryDisabler.USER,
@@ -136,8 +133,8 @@ def test_get_or_create_updates_data(registry):
         "light.hue_5678",
         "5678",
         "hue",
-        area_id="new-mock-area-id",
-        capabilities={"new-max": 100},
+        area_id=None,
+        capabilities={"new-max": 150},
         config_entry_id=new_config_entry.entry_id,
         device_class=None,
         device_id="new-mock-dev-id",
@@ -159,7 +156,6 @@ def test_get_or_create_updates_data(registry):
         "light",
         "hue",
         "5678",
-        area_id=None,
         capabilities=None,
         config_entry=None,
         device_id=None,
@@ -235,7 +231,6 @@ async def test_loading_saving_data(hass, registry):
         "light",
         "hue",
         "5678",
-        area_id="mock-area-id",
         capabilities={"max": 100},
         config_entry=mock_config,
         device_id="mock-dev-id",
@@ -251,6 +246,7 @@ async def test_loading_saving_data(hass, registry):
     )
     registry.async_update_entity(
         orig_entry2.entity_id,
+        area_id="mock-area-id",
         device_class="user-class",
         name="User Name",
         icon="hass:user-icon",
diff --git a/tests/helpers/test_template.py b/tests/helpers/test_template.py
index fb57eff7685..3186c10b20e 100644
--- a/tests/helpers/test_template.py
+++ b/tests/helpers/test_template.py
@@ -2768,13 +2768,13 @@ async def test_area_entities(hass):
     assert info.rate_limit is None
 
     area_entry = area_registry.async_get_or_create("sensor.fake")
-    entity_registry.async_get_or_create(
+    entity_entry = entity_registry.async_get_or_create(
         "light",
         "hue",
         "5678",
         config_entry=config_entry,
-        area_id=area_entry.id,
     )
+    entity_registry.async_update_entity(entity_entry.entity_id, area_id=area_entry.id)
 
     info = render_to_info(hass, f"{{{{ area_entities('{area_entry.id}') }}}}")
     assert_result_info(info, ["light.hue_5678"])