diff --git a/homeassistant/components/derivative/__init__.py b/homeassistant/components/derivative/__init__.py
index afee8d5d175..e3fe9d85f41 100644
--- a/homeassistant/components/derivative/__init__.py
+++ b/homeassistant/components/derivative/__init__.py
@@ -1 +1,23 @@
-"""The derivative component."""
+"""The Derivative integration."""
+from __future__ import annotations
+
+from homeassistant.config_entries import ConfigEntry
+from homeassistant.const import Platform
+from homeassistant.core import HomeAssistant
+
+
+async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+    """Set up Derivative from a config entry."""
+    hass.config_entries.async_setup_platforms(entry, (Platform.SENSOR,))
+    entry.async_on_unload(entry.add_update_listener(config_entry_update_listener))
+    return True
+
+
+async def config_entry_update_listener(hass: HomeAssistant, entry: ConfigEntry) -> None:
+    """Update listener, called when the config entry options are changed."""
+    await hass.config_entries.async_reload(entry.entry_id)
+
+
+async def async_unload_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
+    """Unload a config entry."""
+    return await hass.config_entries.async_unload_platforms(entry, (Platform.SENSOR,))
diff --git a/homeassistant/components/derivative/config_flow.py b/homeassistant/components/derivative/config_flow.py
new file mode 100644
index 00000000000..ccb44b1963b
--- /dev/null
+++ b/homeassistant/components/derivative/config_flow.py
@@ -0,0 +1,93 @@
+"""Config flow for Derivative integration."""
+from __future__ import annotations
+
+from collections.abc import Mapping
+from typing import Any, cast
+
+import voluptuous as vol
+
+from homeassistant.const import (
+    CONF_NAME,
+    CONF_SOURCE,
+    CONF_UNIT_OF_MEASUREMENT,
+    TIME_DAYS,
+    TIME_HOURS,
+    TIME_MINUTES,
+    TIME_SECONDS,
+)
+from homeassistant.helpers import selector
+from homeassistant.helpers.helper_config_entry_flow import (
+    HelperConfigFlowHandler,
+    HelperFlowStep,
+)
+
+from .const import (
+    CONF_ROUND_DIGITS,
+    CONF_TIME_WINDOW,
+    CONF_UNIT_PREFIX,
+    CONF_UNIT_TIME,
+    DOMAIN,
+)
+
+UNIT_PREFIXES = [
+    {"value": "none", "label": "none"},
+    {"value": "n", "label": "n (nano)"},
+    {"value": "µ", "label": "µ (micro)"},
+    {"value": "m", "label": "m (milli)"},
+    {"value": "k", "label": "k (kilo)"},
+    {"value": "M", "label": "M (mega)"},
+    {"value": "G", "label": "T (tera)"},
+    {"value": "T", "label": "P (peta)"},
+]
+TIME_UNITS = [
+    {"value": TIME_SECONDS, "label": "s (seconds)"},
+    {"value": TIME_MINUTES, "label": "min (minutes)"},
+    {"value": TIME_HOURS, "label": "h (hours)"},
+    {"value": TIME_DAYS, "label": "d (days)"},
+]
+
+OPTIONS_SCHEMA = vol.Schema(
+    {
+        vol.Required(CONF_ROUND_DIGITS, default=2): selector.selector(
+            {
+                "number": {
+                    "min": 0,
+                    "max": 6,
+                    "mode": "box",
+                    CONF_UNIT_OF_MEASUREMENT: "decimals",
+                }
+            }
+        ),
+        vol.Required(CONF_TIME_WINDOW): selector.selector({"duration": {}}),
+        vol.Required(CONF_UNIT_PREFIX, default="none"): selector.selector(
+            {"select": {"options": UNIT_PREFIXES}}
+        ),
+        vol.Required(CONF_UNIT_TIME, default=TIME_HOURS): selector.selector(
+            {"select": {"options": TIME_UNITS}}
+        ),
+    }
+)
+
+CONFIG_SCHEMA = vol.Schema(
+    {
+        vol.Required(CONF_NAME): selector.selector({"text": {}}),
+        vol.Required(CONF_SOURCE): selector.selector(
+            {"entity": {"domain": "sensor"}},
+        ),
+    }
+).extend(OPTIONS_SCHEMA.schema)
+
+CONFIG_FLOW = {"user": HelperFlowStep(CONFIG_SCHEMA)}
+
+OPTIONS_FLOW = {"init": HelperFlowStep(OPTIONS_SCHEMA)}
+
+
+class ConfigFlowHandler(HelperConfigFlowHandler, domain=DOMAIN):
+    """Handle a config or options flow for Derivative."""
+
+    config_flow = CONFIG_FLOW
+    options_flow = OPTIONS_FLOW
+
+    def async_config_entry_title(self, options: Mapping[str, Any]) -> str:
+        """Return config entry title."""
+        return cast(str, options[CONF_NAME])
diff --git a/homeassistant/components/derivative/const.py b/homeassistant/components/derivative/const.py
new file mode 100644
index 00000000000..32f2777dc80
--- /dev/null
+++ b/homeassistant/components/derivative/const.py
@@ -0,0 +1,9 @@
+"""Constants for the Derivative integration."""
+
+DOMAIN = "derivative"
+
+CONF_ROUND_DIGITS = "round"
+CONF_TIME_WINDOW = "time_window"
+CONF_UNIT = "unit"
+CONF_UNIT_PREFIX = "unit_prefix"
+CONF_UNIT_TIME = "unit_time"
diff --git a/homeassistant/components/derivative/manifest.json b/homeassistant/components/derivative/manifest.json
index 2b86c07cfe4..bed23d33e15 100644
--- a/homeassistant/components/derivative/manifest.json
+++ b/homeassistant/components/derivative/manifest.json
@@ -2,6 +2,9 @@
   "domain": "derivative",
   "name": "Derivative",
   "documentation": "https://www.home-assistant.io/integrations/derivative",
-  "codeowners": ["@afaucogney"],
-  "iot_class": "calculated"
+  "codeowners": [
+    "@afaucogney"
+  ],
+  "iot_class": "calculated",
+  "config_flow": true
 }
diff --git a/homeassistant/components/derivative/sensor.py b/homeassistant/components/derivative/sensor.py
index 9be01f27e4d..25bc3450dcb 100644
--- a/homeassistant/components/derivative/sensor.py
+++ b/homeassistant/components/derivative/sensor.py
@@ -8,6 +8,7 @@ import logging
 import voluptuous as vol
 
 from homeassistant.components.sensor import PLATFORM_SCHEMA, SensorEntity
+from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import (
     ATTR_UNIT_OF_MEASUREMENT,
     CONF_NAME,
@@ -20,24 +21,26 @@ from homeassistant.const import (
     TIME_SECONDS,
 )
 from homeassistant.core import HomeAssistant, callback
-import homeassistant.helpers.config_validation as cv
+from homeassistant.helpers import config_validation as cv, entity_registry as er
 from homeassistant.helpers.entity_platform import AddEntitiesCallback
 from homeassistant.helpers.event import async_track_state_change_event
 from homeassistant.helpers.restore_state import RestoreEntity
 from homeassistant.helpers.typing import ConfigType, DiscoveryInfoType
 
+from .const import (
+    CONF_ROUND_DIGITS,
+    CONF_TIME_WINDOW,
+    CONF_UNIT,
+    CONF_UNIT_PREFIX,
+    CONF_UNIT_TIME,
+)
+
 # mypy: allow-untyped-defs, no-check-untyped-defs
 
 _LOGGER = logging.getLogger(__name__)
 
 ATTR_SOURCE_ID = "source"
 
-CONF_ROUND_DIGITS = "round"
-CONF_UNIT_PREFIX = "unit_prefix"
-CONF_UNIT_TIME = "unit_time"
-CONF_UNIT = "unit"
-CONF_TIME_WINDOW = "time_window"
-
 # SI Metric prefixes
 UNIT_PREFIXES = {
     None: 1,
@@ -76,6 +79,36 @@ PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend(
 )
 
 
+async def async_setup_entry(
+    hass: HomeAssistant,
+    config_entry: ConfigEntry,
+    async_add_entities: AddEntitiesCallback,
+) -> None:
+    """Initialize Derivative config entry."""
+    registry = er.async_get(hass)
+    # Validate + resolve entity registry id to entity_id
+    source_entity_id = er.async_validate_entity_id(
+        registry, config_entry.options[CONF_SOURCE]
+    )
+
+    unit_prefix = config_entry.options[CONF_UNIT_PREFIX]
+    if unit_prefix == "none":
+        unit_prefix = None
+
+    derivative_sensor = DerivativeSensor(
+        name=config_entry.title,
+        round_digits=int(config_entry.options[CONF_ROUND_DIGITS]),
+        source_entity=source_entity_id,
+        time_window=cv.time_period_dict(config_entry.options[CONF_TIME_WINDOW]),
+        unique_id=config_entry.entry_id,
+        unit_of_measurement=None,
+        unit_prefix=unit_prefix,
+        unit_time=config_entry.options[CONF_UNIT_TIME],
+    )
+
+    async_add_entities([derivative_sensor])
+
+
 async def async_setup_platform(
     hass: HomeAssistant,
     config: ConfigType,
@@ -84,13 +117,14 @@ async def async_setup_platform(
 ) -> None:
     """Set up the derivative sensor."""
     derivative = DerivativeSensor(
-        source_entity=config[CONF_SOURCE],
         name=config.get(CONF_NAME),
         round_digits=config[CONF_ROUND_DIGITS],
+        source_entity=config[CONF_SOURCE],
+        time_window=config[CONF_TIME_WINDOW],
+        unit_of_measurement=config.get(CONF_UNIT),
         unit_prefix=config[CONF_UNIT_PREFIX],
         unit_time=config[CONF_UNIT_TIME],
-        unit_of_measurement=config.get(CONF_UNIT),
-        time_window=config[CONF_TIME_WINDOW],
+        unique_id=None,
     )
 
     async_add_entities([derivative])
@@ -101,15 +135,18 @@ class DerivativeSensor(RestoreEntity, SensorEntity):
 
     def __init__(
         self,
-        source_entity,
+        *,
         name,
         round_digits,
+        source_entity,
+        time_window,
+        unit_of_measurement,
         unit_prefix,
         unit_time,
-        unit_of_measurement,
-        time_window,
+        unique_id,
     ):
         """Initialize the derivative sensor."""
+        self._attr_unique_id = unique_id
         self._sensor_source_id = source_entity
         self._round_digits = round_digits
         self._state = 0
@@ -214,7 +251,7 @@ class DerivativeSensor(RestoreEntity, SensorEntity):
             self.async_write_ha_state()
 
         async_track_state_change_event(
-            self.hass, [self._sensor_source_id], calc_derivative
+            self.hass, self._sensor_source_id, calc_derivative
         )
 
     @property
diff --git a/homeassistant/components/derivative/strings.json b/homeassistant/components/derivative/strings.json
new file mode 100644
index 00000000000..c21a486d039
--- /dev/null
+++ b/homeassistant/components/derivative/strings.json
@@ -0,0 +1,33 @@
+{
+  "config": {
+    "step": {
+      "user": {
+        "title": "New Derivative sensor",
+        "description": "Precision controls the number of decimal digits in the output.\nIf the time window is not 0, the sensor's value is a time weighted moving average of derivatives within the window.\nThe derivative will be scaled according to the selected metric prefix and time unit of the derivative.",
+        "data": {
+          "name": "Name",
+          "round": "Precision",
+          "source": "Input sensor",
+          "time_window": "Time window",
+          "unit_prefix": "Metric prefix",
+          "unit_time": "Time unit"
+        }
+      }
+    }
+  },
+  "options": {
+    "step": {
+      "options": {
+        "description": "[%key:component::derivative::config::step::user::description%]",
+        "data": {
+          "name": "[%key:component::derivative::config::step::user::data::name%]",
+          "round": "[%key:component::derivative::config::step::user::data::round%]",
+          "source": "[%key:component::derivative::config::step::user::data::source%]",
+          "time_window": "[%key:component::derivative::config::step::user::data::time_window%]",
+          "unit_prefix": "[%key:component::derivative::config::step::user::data::unit_prefix%]",
+          "unit_time": "[%key:component::derivative::config::step::user::data::unit_time%]"
+        }
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/homeassistant/components/derivative/translations/en.json b/homeassistant/components/derivative/translations/en.json
new file mode 100644
index 00000000000..b1fa702fe3c
--- /dev/null
+++ b/homeassistant/components/derivative/translations/en.json
@@ -0,0 +1,33 @@
+{
+    "config": {
+        "step": {
+            "user": {
+                "data": {
+                    "name": "Name",
+                    "round": "Precision",
+                    "source": "Input sensor",
+                    "time_window": "Time window",
+                    "unit_prefix": "Metric prefix",
+                    "unit_time": "Time unit"
+                },
+                "description": "Precision controls the number of decimal digits in the output.\nIf the time window is not 0, the sensor's value is a time weighted moving average of derivatives within the window.\nThe derivative will be scaled according to the selected metric prefix and time unit of the derivative.",
+                "title": "New Derivative sensor"
+            }
+        }
+    },
+    "options": {
+        "step": {
+            "options": {
+                "data": {
+                    "name": "Name",
+                    "round": "Precision",
+                    "source": "Input sensor",
+                    "time_window": "Time window",
+                    "unit_prefix": "Metric prefix",
+                    "unit_time": "Time unit"
+                },
+                "description": "Precision controls the number of decimal digits in the output.\nIf the time window is not 0, the sensor's value is a time weighted moving average of derivatives within the window.\nThe derivative will be scaled according to the selected metric prefix and time unit of the derivative."
+            }
+        }
+    }
+}
\ No newline at end of file
diff --git a/homeassistant/generated/config_flows.py b/homeassistant/generated/config_flows.py
index a6591cc693c..89cd4495326 100644
--- a/homeassistant/generated/config_flows.py
+++ b/homeassistant/generated/config_flows.py
@@ -67,6 +67,7 @@ FLOWS = [
     "daikin",
     "deconz",
     "denonavr",
+    "derivative",
     "devolo_home_control",
     "devolo_home_network",
     "dexcom",
diff --git a/tests/components/derivative/test_config_flow.py b/tests/components/derivative/test_config_flow.py
new file mode 100644
index 00000000000..61ab7251f8a
--- /dev/null
+++ b/tests/components/derivative/test_config_flow.py
@@ -0,0 +1,149 @@
+"""Test the Derivative config flow."""
+from unittest.mock import patch
+
+import pytest
+
+from homeassistant import config_entries
+from homeassistant.components.derivative.const import DOMAIN
+from homeassistant.core import HomeAssistant
+from homeassistant.data_entry_flow import RESULT_TYPE_CREATE_ENTRY, RESULT_TYPE_FORM
+
+from tests.common import MockConfigEntry
+
+
+@pytest.mark.parametrize("platform", ("sensor",))
+async def test_config_flow(hass: HomeAssistant, platform) -> None:
+    """Test the config flow."""
+    input_sensor_entity_id = "sensor.input"
+
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": config_entries.SOURCE_USER}
+    )
+    assert result["type"] == RESULT_TYPE_FORM
+    assert result["errors"] is None
+
+    with patch(
+        "homeassistant.components.derivative.async_setup_entry",
+        return_value=True,
+    ) as mock_setup_entry:
+        result = await hass.config_entries.flow.async_configure(
+            result["flow_id"],
+            {
+                "name": "My derivative",
+                "round": 1,
+                "source": input_sensor_entity_id,
+                "time_window": {"seconds": 0},
+                "unit_prefix": "none",
+                "unit_time": "min",
+            },
+        )
+        await hass.async_block_till_done()
+
+    assert result["type"] == RESULT_TYPE_CREATE_ENTRY
+    assert result["title"] == "My derivative"
+    assert result["data"] == {}
+    assert result["options"] == {
+        "name": "My derivative",
+        "round": 1.0,
+        "source": "sensor.input",
+        "time_window": {"seconds": 0.0},
+        "unit_prefix": "none",
+        "unit_time": "min",
+    }
+    assert len(mock_setup_entry.mock_calls) == 1
+
+    config_entry = hass.config_entries.async_entries(DOMAIN)[0]
+    assert config_entry.data == {}
+    assert config_entry.options == {
+        "name": "My derivative",
+        "round": 1.0,
+        "source": "sensor.input",
+        "time_window": {"seconds": 0.0},
+        "unit_prefix": "none",
+        "unit_time": "min",
+    }
+    assert config_entry.title == "My derivative"
+
+
+def get_suggested(schema, key):
+    """Get suggested value for key in voluptuous schema."""
+    for k in schema.keys():
+        if k == key:
+            if k.description is None or "suggested_value" not in k.description:
+                return None
+            return k.description["suggested_value"]
+    # Wanted key absent from schema
+    raise Exception
+
+
+@pytest.mark.parametrize("platform", ("sensor",))
+async def test_options(hass: HomeAssistant, platform) -> None:
+    """Test reconfiguring."""
+    # Setup the config entry
+    config_entry = MockConfigEntry(
+        data={},
+        domain=DOMAIN,
+        options={
+            "name": "My derivative",
+            "round": 1.0,
+            "source": "sensor.input",
+            "time_window": {"seconds": 0.0},
+            "unit_prefix": "k",
+            "unit_time": "min",
+        },
+        title="My derivative",
+    )
+    config_entry.add_to_hass(hass)
+    assert await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    result = await hass.config_entries.options.async_init(config_entry.entry_id)
+    assert result["type"] == RESULT_TYPE_FORM
+    assert result["step_id"] == "init"
+    schema = result["data_schema"].schema
+    assert get_suggested(schema, "round") == 1.0
+    assert get_suggested(schema, "time_window") == {"seconds": 0.0}
+    assert get_suggested(schema, "unit_prefix") == "k"
+    assert get_suggested(schema, "unit_time") == "min"
+
+    result = await hass.config_entries.options.async_configure(
+        result["flow_id"],
+        user_input={
+            "round": 2.0,
+            "time_window": {"seconds": 10.0},
+            "unit_prefix": "none",
+            "unit_time": "h",
+        },
+    )
+    assert result["type"] == RESULT_TYPE_CREATE_ENTRY
+    assert result["data"] == {
+        "name": "My derivative",
+        "round": 2.0,
+        "source": "sensor.input",
+        "time_window": {"seconds": 10.0},
+        "unit_prefix": "none",
+        "unit_time": "h",
+    }
+    assert config_entry.data == {}
+    assert config_entry.options == {
+        "name": "My derivative",
+        "round": 2.0,
+        "source": "sensor.input",
+        "time_window": {"seconds": 10.0},
+        "unit_prefix": "none",
+        "unit_time": "h",
+    }
+    assert config_entry.title == "My derivative"
+
+    # Check config entry is reloaded with new options
+    await hass.async_block_till_done()
+
+    # Check the entity was updated, no new entity was created
+    assert len(hass.states.async_all()) == 1
+
+    # Check the state of the entity has changed as expected
+    hass.states.async_set("sensor.input", 10, {"unit_of_measurement": "cat"})
+    hass.states.async_set("sensor.input", 11, {"unit_of_measurement": "cat"})
+    await hass.async_block_till_done()
+    state = hass.states.get(f"{platform}.my_derivative")
+    assert state.attributes["unit_of_measurement"] == "cat/h"
diff --git a/tests/components/derivative/test_init.py b/tests/components/derivative/test_init.py
new file mode 100644
index 00000000000..fef13109007
--- /dev/null
+++ b/tests/components/derivative/test_init.py
@@ -0,0 +1,61 @@
+"""Test the Derivative integration."""
+import pytest
+
+from homeassistant.components.derivative.const import DOMAIN
+from homeassistant.core import HomeAssistant
+from homeassistant.helpers import entity_registry as er
+
+from tests.common import MockConfigEntry
+
+
+@pytest.mark.parametrize("platform", ("sensor",))
+async def test_setup_and_remove_config_entry(
+    hass: HomeAssistant,
+    platform: str,
+) -> None:
+    """Test setting up and removing a config entry."""
+    input_sensor_entity_id = "sensor.input"
+    registry = er.async_get(hass)
+    derivative_entity_id = f"{platform}.my_derivative"
+
+    # Setup the config entry
+    config_entry = MockConfigEntry(
+        data={},
+        domain=DOMAIN,
+        options={
+            "name": "My derivative",
+            "round": 1.0,
+            "source": "sensor.input",
+            "time_window": {"seconds": 0.0},
+            "unit_prefix": "k",
+            "unit_time": "min",
+        },
+        title="My derivative",
+    )
+    config_entry.add_to_hass(hass)
+    assert await hass.config_entries.async_setup(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    # Check the entity is registered in the entity registry
+    assert registry.async_get(derivative_entity_id) is not None
+
+    # Check the platform is setup correctly
+    state = hass.states.get(derivative_entity_id)
+    assert state.state == "0"
+    assert "unit_of_measurement" not in state.attributes
+    assert state.attributes["source"] == "sensor.input"
+
+    hass.states.async_set(input_sensor_entity_id, 10, {"unit_of_measurement": "dog"})
+    hass.states.async_set(input_sensor_entity_id, 11, {"unit_of_measurement": "dog"})
+    await hass.async_block_till_done()
+    state = hass.states.get(derivative_entity_id)
+    assert state.state != "0"
+    assert state.attributes["unit_of_measurement"] == "kdog/min"
+
+    # Remove the config entry
+    assert await hass.config_entries.async_remove(config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    # Check the state and entity registry entry are removed
+    assert hass.states.get(derivative_entity_id) is None
+    assert registry.async_get(derivative_entity_id) is None