diff --git a/homeassistant/config_entries.py b/homeassistant/config_entries.py
index 46bb2f7bfe2..b159f01c72b 100644
--- a/homeassistant/config_entries.py
+++ b/homeassistant/config_entries.py
@@ -141,6 +141,9 @@ ENTRY_STATE_SETUP_ERROR = 'setup_error'
 ENTRY_STATE_NOT_LOADED = 'not_loaded'
 ENTRY_STATE_FAILED_UNLOAD = 'failed_unload'
 
+DISCOVERY_NOTIFICATION_ID = 'config_entry_discovery'
+DISCOVERY_SOURCES = (data_entry_flow.SOURCE_DISCOVERY,)
+
 
 class ConfigEntry:
     """Hold a configuration entry."""
@@ -362,9 +365,19 @@ class ConfigEntries:
             await async_setup_component(
                 self.hass, entry.domain, self._hass_config)
 
+        # Return Entry if they not from a discovery request
+        if result['source'] not in DISCOVERY_SOURCES:
+            return entry
+
+        # If no discovery config entries in progress, remove notification.
+        if not any(ent['source'] in DISCOVERY_SOURCES for ent
+                   in self.hass.config_entries.flow.async_progress()):
+            self.hass.components.persistent_notification.async_dismiss(
+                DISCOVERY_NOTIFICATION_ID)
+
         return entry
 
-    async def _async_create_flow(self, handler):
+    async def _async_create_flow(self, handler, *, source, data):
         """Create a flow for specified handler.
 
         Handler key is the domain of the component that we want to setup.
@@ -379,6 +392,15 @@ class ConfigEntries:
         await async_process_deps_reqs(
             self.hass, self._hass_config, handler, component)
 
+        # Create notification.
+        if source in DISCOVERY_SOURCES:
+            self.hass.components.persistent_notification.async_create(
+                title='New devices discovered',
+                message=("We have discovered new devices on your network. "
+                         "[Check it out](/config/integrations)"),
+                notification_id=DISCOVERY_NOTIFICATION_ID
+            )
+
         return handler()
 
     @callback
diff --git a/homeassistant/data_entry_flow.py b/homeassistant/data_entry_flow.py
index cadec3f3d69..8eb18a3a7e7 100644
--- a/homeassistant/data_entry_flow.py
+++ b/homeassistant/data_entry_flow.py
@@ -52,7 +52,7 @@ class FlowManager:
 
     async def async_init(self, handler, *, source=SOURCE_USER, data=None):
         """Start a configuration flow."""
-        flow = await self._async_create_flow(handler)
+        flow = await self._async_create_flow(handler, source=source, data=data)
         flow.hass = self.hass
         flow.handler = handler
         flow.flow_id = uuid.uuid4().hex
diff --git a/tests/conftest.py b/tests/conftest.py
index 269d460ebb6..73e69605eae 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -20,7 +20,7 @@ if os.environ.get('UVLOOP') == '1':
     import uvloop
     asyncio.set_event_loop_policy(uvloop.EventLoopPolicy())
 
-logging.basicConfig()
+logging.basicConfig(level=logging.INFO)
 logging.getLogger('sqlalchemy.engine').setLevel(logging.INFO)
 
 
diff --git a/tests/test_config_entries.py b/tests/test_config_entries.py
index 94b1dcb47da..b46909d7732 100644
--- a/tests/test_config_entries.py
+++ b/tests/test_config_entries.py
@@ -245,3 +245,39 @@ async def test_forward_entry_does_not_setup_entry_if_setup_fails(hass):
     await hass.config_entries.async_forward_entry_setup(entry, 'forwarded')
     assert len(mock_setup.mock_calls) == 1
     assert len(mock_setup_entry.mock_calls) == 0
+
+
+async def test_discovery_notification(hass):
+    """Test that we create/dismiss a notification when source is discovery."""
+    await async_setup_component(hass, 'persistent_notification', {})
+
+    class TestFlow(data_entry_flow.FlowHandler):
+        VERSION = 5
+
+        async def async_step_discovery(self, user_input=None):
+            if user_input is not None:
+                return self.async_create_entry(
+                    title='Test Title',
+                    data={
+                        'token': 'abcd'
+                    }
+                )
+            return self.async_show_form(
+                step_id='discovery',
+            )
+
+    with patch.dict(config_entries.HANDLERS, {'test': TestFlow}):
+        result = await hass.config_entries.flow.async_init(
+            'test', source=data_entry_flow.SOURCE_DISCOVERY)
+
+    await hass.async_block_till_done()
+    state = hass.states.get('persistent_notification.config_entry_discovery')
+    assert state is not None
+
+    result = await hass.config_entries.flow.async_configure(
+        result['flow_id'], {})
+    assert result['type'] == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+
+    await hass.async_block_till_done()
+    state = hass.states.get('persistent_notification.config_entry_discovery')
+    assert state is None
diff --git a/tests/test_data_entry_flow.py b/tests/test_data_entry_flow.py
index 2767e206c30..6d3e41436c5 100644
--- a/tests/test_data_entry_flow.py
+++ b/tests/test_data_entry_flow.py
@@ -12,7 +12,7 @@ def manager():
     handlers = Registry()
     entries = []
 
-    async def async_create_flow(handler_name):
+    async def async_create_flow(handler_name, *, source, data):
         handler = handlers.get(handler_name)
 
         if handler is None: