diff --git a/homeassistant/components/dhcp/__init__.py b/homeassistant/components/dhcp/__init__.py
index 2afe53422fb..b8a12a937e3 100644
--- a/homeassistant/components/dhcp/__init__.py
+++ b/homeassistant/components/dhcp/__init__.py
@@ -9,7 +9,6 @@ from dataclasses import dataclass
 from datetime import timedelta
 from fnmatch import translate
 from functools import lru_cache
-from ipaddress import ip_address as make_ip_address
 import logging
 import os
 import re
@@ -22,6 +21,7 @@ from aiodiscover.discovery import (
     IP_ADDRESS as DISCOVERY_IP_ADDRESS,
     MAC_ADDRESS as DISCOVERY_MAC_ADDRESS,
 )
+from cached_ipaddress import cached_ip_addresses
 from scapy.config import conf
 from scapy.error import Scapy_Exception
 
@@ -153,7 +153,10 @@ class WatcherBase(ABC):
         self, ip_address: str, hostname: str, mac_address: str
     ) -> None:
         """Process a client."""
-        made_ip_address = make_ip_address(ip_address)
+        if (made_ip_address := cached_ip_addresses(ip_address)) is None:
+            # Ignore invalid addresses
+            _LOGGER.debug("Ignoring invalid IP Address: %s", ip_address)
+            return
 
         if (
             made_ip_address.is_link_local
diff --git a/homeassistant/components/dhcp/manifest.json b/homeassistant/components/dhcp/manifest.json
index db6e5948196..f190f0ab10e 100644
--- a/homeassistant/components/dhcp/manifest.json
+++ b/homeassistant/components/dhcp/manifest.json
@@ -7,5 +7,9 @@
   "iot_class": "local_push",
   "loggers": ["aiodiscover", "dnspython", "pyroute2", "scapy"],
   "quality_scale": "internal",
-  "requirements": ["scapy==2.5.0", "aiodiscover==1.6.0"]
+  "requirements": [
+    "scapy==2.5.0",
+    "aiodiscover==1.6.0",
+    "cached_ipaddress==0.3.0"
+  ]
 }
diff --git a/homeassistant/package_constraints.txt b/homeassistant/package_constraints.txt
index 721801c176d..3f95e36a00b 100644
--- a/homeassistant/package_constraints.txt
+++ b/homeassistant/package_constraints.txt
@@ -16,6 +16,7 @@ bleak==0.21.1
 bluetooth-adapters==0.16.2
 bluetooth-auto-recovery==1.2.3
 bluetooth-data-tools==1.19.0
+cached_ipaddress==0.3.0
 certifi>=2021.5.30
 ciso8601==2.3.0
 cryptography==41.0.7
diff --git a/requirements_all.txt b/requirements_all.txt
index af0b9d63679..530670b62bd 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -608,6 +608,9 @@ btsmarthub-devicelist==0.2.3
 # homeassistant.components.buienradar
 buienradar==1.0.5
 
+# homeassistant.components.dhcp
+cached_ipaddress==0.3.0
+
 # homeassistant.components.caldav
 caldav==1.3.8
 
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 7385ed2e953..665a4a5fa05 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -507,6 +507,9 @@ bthome-ble==3.3.1
 # homeassistant.components.buienradar
 buienradar==1.0.5
 
+# homeassistant.components.dhcp
+cached_ipaddress==0.3.0
+
 # homeassistant.components.caldav
 caldav==1.3.8
 
diff --git a/tests/components/dhcp/test_init.py b/tests/components/dhcp/test_init.py
index 5013568ad39..a63300b1ea2 100644
--- a/tests/components/dhcp/test_init.py
+++ b/tests/components/dhcp/test_init.py
@@ -828,6 +828,36 @@ async def test_device_tracker_hostname_and_macaddress_after_start_hostname_missi
     assert len(mock_init.mock_calls) == 0
 
 
+async def test_device_tracker_invalid_ip_address(
+    hass: HomeAssistant, caplog: pytest.LogCaptureFixture
+) -> None:
+    """Test an invalid ip address."""
+
+    with patch.object(hass.config_entries.flow, "async_init") as mock_init:
+        device_tracker_watcher = dhcp.DeviceTrackerWatcher(
+            hass,
+            {},
+            [{"domain": "mock-domain", "hostname": "connect", "macaddress": "B8B7F1*"}],
+        )
+        await device_tracker_watcher.async_start()
+        await hass.async_block_till_done()
+        hass.states.async_set(
+            "device_tracker.august_connect",
+            STATE_HOME,
+            {
+                ATTR_IP: "invalid",
+                ATTR_SOURCE_TYPE: SourceType.ROUTER,
+                ATTR_MAC: "B8:B7:F1:6D:B5:33",
+            },
+        )
+        await hass.async_block_till_done()
+        await device_tracker_watcher.async_stop()
+        await hass.async_block_till_done()
+
+    assert "Ignoring invalid IP Address: invalid" in caplog.text
+    assert len(mock_init.mock_calls) == 0
+
+
 async def test_device_tracker_ignore_self_assigned_ips_before_start(
     hass: HomeAssistant,
 ) -> None: