diff --git a/homeassistant/components/modbus/__init__.py b/homeassistant/components/modbus/__init__.py
index 875669e6dd7..85fba66b68a 100644
--- a/homeassistant/components/modbus/__init__.py
+++ b/homeassistant/components/modbus/__init__.py
@@ -344,7 +344,7 @@ MODBUS_SCHEMA = vol.Schema(
         vol.Optional(CONF_CLOSE_COMM_ON_ERROR): cv.boolean,
         vol.Optional(CONF_DELAY, default=0): cv.positive_int,
         vol.Optional(CONF_RETRIES, default=3): cv.positive_int,
-        vol.Optional(CONF_RETRY_ON_EMPTY, default=False): cv.boolean,
+        vol.Optional(CONF_RETRY_ON_EMPTY): cv.boolean,
         vol.Optional(CONF_MSG_WAIT): cv.positive_int,
         vol.Optional(CONF_BINARY_SENSORS): vol.All(
             cv.ensure_list, [BINARY_SENSOR_SCHEMA]
diff --git a/homeassistant/components/modbus/modbus.py b/homeassistant/components/modbus/modbus.py
index db8a4d47fdc..4ef205aace3 100644
--- a/homeassistant/components/modbus/modbus.py
+++ b/homeassistant/components/modbus/modbus.py
@@ -276,7 +276,25 @@ class ModbusHub:
                 },
             )
             _LOGGER.warning(
-                "`close_comm_on_error`: is deprecated and will be remove in version 2024.4"
+                "`close_comm_on_error`: is deprecated and will be removed in version 2024.4"
+            )
+        if CONF_RETRY_ON_EMPTY in client_config:
+            async_create_issue(
+                hass,
+                DOMAIN,
+                "deprecated_retry_on_empty",
+                breaks_in_ha_version="2024.4.0",
+                is_fixable=False,
+                severity=IssueSeverity.WARNING,
+                translation_key="deprecated_retry_on_empty",
+                translation_placeholders={
+                    "config_key": "retry_on_empty",
+                    "integration": DOMAIN,
+                    "url": "https://www.home-assistant.io/integrations/modbus",
+                },
+            )
+            _LOGGER.warning(
+                "`retry_on_empty`: is deprecated and will be removed in version 2024.4"
             )
         # generic configuration
         self._client: ModbusBaseClient | None = None
@@ -298,7 +316,7 @@ class ModbusHub:
             "port": client_config[CONF_PORT],
             "timeout": client_config[CONF_TIMEOUT],
             "retries": client_config[CONF_RETRIES],
-            "retry_on_empty": client_config[CONF_RETRY_ON_EMPTY],
+            "retry_on_empty": True,
         }
         if self._config_type == SERIAL:
             # serial configuration
diff --git a/homeassistant/components/modbus/strings.json b/homeassistant/components/modbus/strings.json
index 780757a3eeb..5f45d0df596 100644
--- a/homeassistant/components/modbus/strings.json
+++ b/homeassistant/components/modbus/strings.json
@@ -73,6 +73,10 @@
     "deprecated_close_comm_config": {
       "title": "`{config_key}` configuration key is being removed",
       "description": "Please remove the `{config_key}` key from the {integration} entry in your configuration.yaml file and restart Home Assistant to fix this issue.\n\nCommunication is automatically closed on errors, see [the documentation]({url}) for other error handling parameters."
+    },
+    "deprecated_retry_on_empty": {
+      "title": "`{config_key}` configuration key is being removed",
+      "description": "Please remove the `{config_key}` key from the {integration} entry in your configuration.yaml file and restart Home Assistant to fix this issue.\n\nRetry on empty is automatically applied, see [the documentation]({url}) for other error handling parameters."
     }
   }
 }
diff --git a/tests/components/modbus/test_init.py b/tests/components/modbus/test_init.py
index 5f8c0554e6d..e66115f24d9 100644
--- a/tests/components/modbus/test_init.py
+++ b/tests/components/modbus/test_init.py
@@ -46,6 +46,7 @@ from homeassistant.components.modbus.const import (
     CONF_INPUT_TYPE,
     CONF_MSG_WAIT,
     CONF_PARITY,
+    CONF_RETRY_ON_EMPTY,
     CONF_SLAVE_COUNT,
     CONF_STOPBITS,
     CONF_SWAP,
@@ -420,6 +421,12 @@ async def test_duplicate_entity_validator(do_config) -> None:
             CONF_PORT: TEST_PORT_TCP,
             CONF_CLOSE_COMM_ON_ERROR: True,
         },
+        {
+            CONF_TYPE: TCP,
+            CONF_HOST: TEST_MODBUS_HOST,
+            CONF_PORT: TEST_PORT_TCP,
+            CONF_RETRY_ON_EMPTY: True,
+        },
         {
             CONF_TYPE: TCP,
             CONF_HOST: TEST_MODBUS_HOST,