diff --git a/.coveragerc b/.coveragerc
index 3f537e39f0d..5d9f7366090 100644
--- a/.coveragerc
+++ b/.coveragerc
@@ -620,7 +620,6 @@ omit =
     homeassistant/components/plugwise/climate.py
     homeassistant/components/plugwise/sensor.py
     homeassistant/components/plugwise/switch.py
-    homeassistant/components/plum_lightpad/__init__.py
     homeassistant/components/plum_lightpad/light.py
     homeassistant/components/pocketcasts/sensor.py
     homeassistant/components/point/*
diff --git a/tests/components/plum_lightpad/test_init.py b/tests/components/plum_lightpad/test_init.py
new file mode 100644
index 00000000000..b92dbaf1aa5
--- /dev/null
+++ b/tests/components/plum_lightpad/test_init.py
@@ -0,0 +1,104 @@
+"""Tests for the Plum Lightpad config flow."""
+from aiohttp import ContentTypeError
+from requests.exceptions import HTTPError
+
+from homeassistant.components.plum_lightpad.const import DOMAIN
+from homeassistant.core import HomeAssistant
+from homeassistant.setup import async_setup_component
+
+from tests.async_mock import Mock, patch
+from tests.common import MockConfigEntry
+
+
+async def test_async_setup_no_domain_config(hass: HomeAssistant):
+    """Test setup without configuration is noop."""
+    result = await async_setup_component(hass, DOMAIN, {})
+
+    assert result is True
+    assert DOMAIN not in hass.data
+
+
+async def test_async_setup_imports_from_config(hass: HomeAssistant):
+    """Test that specifying config will setup an entry."""
+    with patch(
+        "homeassistant.components.plum_lightpad.utils.Plum.loadCloudData"
+    ) as mock_loadCloudData, patch(
+        "homeassistant.components.plum_lightpad.async_setup_entry", return_value=True,
+    ) as mock_async_setup_entry:
+        result = await async_setup_component(
+            hass,
+            DOMAIN,
+            {
+                DOMAIN: {
+                    "username": "test-plum-username",
+                    "password": "test-plum-password",
+                }
+            },
+        )
+        await hass.async_block_till_done()
+
+    assert result is True
+    assert len(mock_loadCloudData.mock_calls) == 1
+    assert len(mock_async_setup_entry.mock_calls) == 1
+
+
+async def test_async_setup_entry_sets_up_light(hass: HomeAssistant):
+    """Test that configuring entry sets up light domain."""
+    config_entry = MockConfigEntry(
+        domain=DOMAIN,
+        data={"username": "test-plum-username", "password": "test-plum-password"},
+    )
+    config_entry.add_to_hass(hass)
+
+    with patch(
+        "homeassistant.components.plum_lightpad.utils.Plum.loadCloudData"
+    ) as mock_loadCloudData, patch(
+        "homeassistant.components.plum_lightpad.light.async_setup_entry"
+    ) as mock_light_async_setup_entry:
+        result = await hass.config_entries.async_setup(config_entry.entry_id)
+        assert result is True
+
+        await hass.async_block_till_done()
+
+    assert len(mock_loadCloudData.mock_calls) == 1
+    assert len(mock_light_async_setup_entry.mock_calls) == 1
+
+
+async def test_async_setup_entry_handles_auth_error(hass: HomeAssistant):
+    """Test that configuring entry handles Plum Cloud authentication error."""
+    config_entry = MockConfigEntry(
+        domain=DOMAIN,
+        data={"username": "test-plum-username", "password": "test-plum-password"},
+    )
+    config_entry.add_to_hass(hass)
+
+    with patch(
+        "homeassistant.components.plum_lightpad.utils.Plum.loadCloudData",
+        side_effect=ContentTypeError(Mock(), None),
+    ), patch(
+        "homeassistant.components.plum_lightpad.light.async_setup_entry"
+    ) as mock_light_async_setup_entry:
+        result = await hass.config_entries.async_setup(config_entry.entry_id)
+
+    assert result is False
+    assert len(mock_light_async_setup_entry.mock_calls) == 0
+
+
+async def test_async_setup_entry_handles_http_error(hass: HomeAssistant):
+    """Test that configuring entry handles HTTP error."""
+    config_entry = MockConfigEntry(
+        domain=DOMAIN,
+        data={"username": "test-plum-username", "password": "test-plum-password"},
+    )
+    config_entry.add_to_hass(hass)
+
+    with patch(
+        "homeassistant.components.plum_lightpad.utils.Plum.loadCloudData",
+        side_effect=HTTPError,
+    ), patch(
+        "homeassistant.components.plum_lightpad.light.async_setup_entry"
+    ) as mock_light_async_setup_entry:
+        result = await hass.config_entries.async_setup(config_entry.entry_id)
+
+    assert result is False
+    assert len(mock_light_async_setup_entry.mock_calls) == 0