diff --git a/homeassistant/components/esphome/manager.py b/homeassistant/components/esphome/manager.py
index e8d002fba9d..ef2a6862f10 100644
--- a/homeassistant/components/esphome/manager.py
+++ b/homeassistant/components/esphome/manager.py
@@ -654,12 +654,13 @@ def _async_setup_device_registry(
     if device_info.manufacturer:
         manufacturer = device_info.manufacturer
     model = device_info.model
-    hw_version = None
     if device_info.project_name:
         project_name = device_info.project_name.split(".")
         manufacturer = project_name[0]
         model = project_name[1]
-        hw_version = device_info.project_version
+        sw_version = (
+            f"{device_info.project_version} (ESPHome {device_info.esphome_version})"
+        )
 
     suggested_area = None
     if device_info.suggested_area:
@@ -674,7 +675,6 @@ def _async_setup_device_registry(
         manufacturer=manufacturer,
         model=model,
         sw_version=sw_version,
-        hw_version=hw_version,
         suggested_area=suggested_area,
     )
     return device_entry.id
diff --git a/tests/components/esphome/test_manager.py b/tests/components/esphome/test_manager.py
index 01f267581f4..651c52cd083 100644
--- a/tests/components/esphome/test_manager.py
+++ b/tests/components/esphome/test_manager.py
@@ -1024,7 +1024,7 @@ async def test_esphome_device_with_project(
     )
     assert dev.manufacturer == "mfr"
     assert dev.model == "model"
-    assert dev.hw_version == "2.2.2"
+    assert dev.sw_version == "2.2.2 (ESPHome 1.0.0)"
 
 
 async def test_esphome_device_with_manufacturer(