diff --git a/homeassistant/components/konnected/__init__.py b/homeassistant/components/konnected/__init__.py
index bbc7226cf9f..a6bc7eff5ca 100644
--- a/homeassistant/components/konnected/__init__.py
+++ b/homeassistant/components/konnected/__init__.py
@@ -63,7 +63,6 @@ from .const import (
     ZONE_TO_PIN,
     ZONES,
 )
-from .errors import CannotConnect
 from .handlers import HANDLERS
 from .panel import AlarmPanel
 
@@ -258,11 +257,9 @@ async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry):
     # creates a panel data store in hass.data[DOMAIN][CONF_DEVICES]
     await client.async_save_data()
 
-    try:
-        await client.async_connect()
-    except CannotConnect:
-        # this will trigger a retry in the future
-        raise config_entries.ConfigEntryNotReady
+    # if the cfg entry was created we know we could connect to the panel at some point
+    # async_connect will handle retries until it establishes a connection
+    await client.async_connect()
 
     for component in PLATFORMS:
         hass.async_create_task(
@@ -355,6 +352,11 @@ class KonnectedView(HomeAssistantView):
                 "unregistered device", status_code=HTTP_BAD_REQUEST
             )
 
+        panel = device.get("panel")
+        if panel is not None:
+            # connect if we haven't already
+            hass.async_create_task(panel.async_connect())
+
         try:
             zone_num = str(payload.get(CONF_ZONE) or PIN_TO_ZONE[payload[CONF_PIN]])
             payload[CONF_ZONE] = zone_num
@@ -390,6 +392,11 @@ class KonnectedView(HomeAssistantView):
                 f"Device {device_id} not configured", status_code=HTTP_NOT_FOUND
             )
 
+        panel = device.get("panel")
+        if panel is not None:
+            # connect if we haven't already
+            hass.async_create_task(panel.async_connect())
+
         # Our data model is based on zone ids but we convert from/to pin ids
         # based on whether they are specified in the request
         try:
diff --git a/homeassistant/components/konnected/panel.py b/homeassistant/components/konnected/panel.py
index 3b19a700837..3fcb51929ed 100644
--- a/homeassistant/components/konnected/panel.py
+++ b/homeassistant/components/konnected/panel.py
@@ -73,6 +73,9 @@ class AlarmPanel:
         self.client = None
         self.status = None
         self.api_version = KONN_API_VERSIONS[KONN_MODEL]
+        self.connected = False
+        self.connect_attempts = 0
+        self.cancel_connect_retry = None
 
     @property
     def device_id(self):
@@ -84,6 +87,11 @@ class AlarmPanel:
         """Return the configuration stored in `hass.data` for this device."""
         return self.hass.data[DOMAIN][CONF_DEVICES].get(self.device_id)
 
+    @property
+    def available(self):
+        """Return whether the device is available."""
+        return self.connected
+
     def format_zone(self, zone, other_items=None):
         """Get zone or pin based dict based on the client type."""
         payload = {
@@ -94,8 +102,15 @@ class AlarmPanel:
         payload.update(other_items or {})
         return payload
 
-    async def async_connect(self):
+    async def async_connect(self, now=None):
         """Connect to and setup a Konnected device."""
+        if self.connected:
+            return
+
+        if self.cancel_connect_retry:
+            # cancel any pending connect attempt and try now
+            self.cancel_connect_retry()
+
         try:
             self.client = konnected.Client(
                 host=self.host,
@@ -118,8 +133,16 @@ class AlarmPanel:
 
         except self.client.ClientError as err:
             _LOGGER.warning("Exception trying to connect to panel: %s", err)
-            raise CannotConnect
 
+            # retry in a bit, never more than ~3 min
+            self.connect_attempts += 1
+            self.cancel_connect_retry = self.hass.helpers.event.async_call_later(
+                2 ** min(self.connect_attempts, 5) * 5, self.async_connect
+            )
+            return
+
+        self.connect_attempts = 0
+        self.connected = True
         _LOGGER.info(
             "Set up Konnected device %s. Open http://%s:%s in a "
             "web browser to view device status",
@@ -129,7 +152,6 @@ class AlarmPanel:
         )
 
         device_registry = await dr.async_get_registry(self.hass)
-
         device_registry.async_get_or_create(
             config_entry_id=self.config_entry.entry_id,
             connections={(dr.CONNECTION_NETWORK_MAC, self.status.get("mac"))},
diff --git a/homeassistant/components/konnected/switch.py b/homeassistant/components/konnected/switch.py
index afc83458aaf..1d26f7875c7 100644
--- a/homeassistant/components/konnected/switch.py
+++ b/homeassistant/components/konnected/switch.py
@@ -81,6 +81,11 @@ class KonnectedSwitch(ToggleEntity):
             "identifiers": {(KONNECTED_DOMAIN, self._device_id)},
         }
 
+    @property
+    def available(self):
+        """Return whether the panel is available."""
+        return self.panel.available
+
     async def async_turn_on(self, **kwargs):
         """Send a command to turn on the switch."""
         resp = await self.panel.update_switch(
diff --git a/tests/components/konnected/test_init.py b/tests/components/konnected/test_init.py
index 74e3b931f61..d36b937d3c3 100644
--- a/tests/components/konnected/test_init.py
+++ b/tests/components/konnected/test_init.py
@@ -411,12 +411,14 @@ async def test_api(hass, aiohttp_client, mock_panel):
             "id": "112233445566",
             "model": "Konnected Pro",
             "access_token": "abcdefgh",
+            "api_host": "http://192.168.86.32:8123",
             "default_options": config_flow.OPTIONS_SCHEMA({config_flow.CONF_IO: {}}),
         }
     )
 
     device_options = config_flow.OPTIONS_SCHEMA(
         {
+            "api_host": "http://192.168.86.32:8123",
             "io": {
                 "1": "Binary Sensor",
                 "2": "Binary Sensor",
diff --git a/tests/components/konnected/test_panel.py b/tests/components/konnected/test_panel.py
index f167c558d01..d21fd3c8ebf 100644
--- a/tests/components/konnected/test_panel.py
+++ b/tests/components/konnected/test_panel.py
@@ -1,11 +1,14 @@
 """Test Konnected setup process."""
+from datetime import timedelta
+
 import pytest
 
 from homeassistant.components.konnected import config_flow, panel
 from homeassistant.setup import async_setup_component
+from homeassistant.util import utcnow
 
 from tests.async_mock import patch
-from tests.common import MockConfigEntry
+from tests.common import MockConfigEntry, async_fire_time_changed
 
 
 @pytest.fixture(name="mock_panel")
@@ -551,3 +554,118 @@ async def test_default_options(hass, mock_panel):
             },
         ],
     }
+
+
+async def test_connect_retry(hass, mock_panel):
+    """Test that we create a Konnected Panel and save the data."""
+    device_config = config_flow.CONFIG_ENTRY_SCHEMA(
+        {
+            "host": "1.2.3.4",
+            "port": 1234,
+            "id": "112233445566",
+            "model": "Konnected Pro",
+            "access_token": "11223344556677889900",
+            "default_options": config_flow.OPTIONS_SCHEMA(
+                {
+                    "io": {
+                        "1": "Binary Sensor",
+                        "2": "Binary Sensor",
+                        "3": "Binary Sensor",
+                        "4": "Digital Sensor",
+                        "5": "Digital Sensor",
+                        "6": "Switchable Output",
+                        "out": "Switchable Output",
+                    },
+                    "binary_sensors": [
+                        {"zone": "1", "type": "door"},
+                        {
+                            "zone": "2",
+                            "type": "window",
+                            "name": "winder",
+                            "inverse": True,
+                        },
+                        {"zone": "3", "type": "door"},
+                    ],
+                    "sensors": [
+                        {"zone": "4", "type": "dht"},
+                        {"zone": "5", "type": "ds18b20", "name": "temper"},
+                    ],
+                    "switches": [
+                        {
+                            "zone": "out",
+                            "name": "switcher",
+                            "activation": "low",
+                            "momentary": 50,
+                            "pause": 100,
+                            "repeat": 4,
+                        },
+                        {"zone": "6"},
+                    ],
+                }
+            ),
+        }
+    )
+
+    entry = MockConfigEntry(
+        domain="konnected",
+        title="Konnected Alarm Panel",
+        data=device_config,
+        options={},
+    )
+    entry.add_to_hass(hass)
+
+    # fail first 2 attempts, and succeed the third
+    mock_panel.get_status.side_effect = [
+        mock_panel.ClientError,
+        mock_panel.ClientError,
+        {
+            "hwVersion": "2.3.0",
+            "swVersion": "2.3.1",
+            "heap": 10000,
+            "uptime": 12222,
+            "ip": "192.168.1.90",
+            "port": 9123,
+            "sensors": [],
+            "actuators": [],
+            "dht_sensors": [],
+            "ds18b20_sensors": [],
+            "mac": "11:22:33:44:55:66",
+            "model": "Konnected Pro",
+            "settings": {},
+        },
+    ]
+
+    # setup the integration and inspect panel behavior
+    assert (
+        await async_setup_component(
+            hass,
+            panel.DOMAIN,
+            {
+                panel.DOMAIN: {
+                    panel.CONF_ACCESS_TOKEN: "arandomstringvalue",
+                    panel.CONF_API_HOST: "http://192.168.1.1:8123",
+                }
+            },
+        )
+        is True
+    )
+
+    # confirm switch is unavailable after initial attempt
+    await hass.async_block_till_done()
+    assert hass.states.get("switch.konnected_445566_actuator_6").state == "unavailable"
+
+    # confirm switch is unavailable after second attempt
+    async_fire_time_changed(hass, utcnow() + timedelta(seconds=11))
+    await hass.async_block_till_done()
+    await hass.helpers.entity_component.async_update_entity(
+        "switch.konnected_445566_actuator_6"
+    )
+    assert hass.states.get("switch.konnected_445566_actuator_6").state == "unavailable"
+
+    # confirm switch is available after third attempt
+    async_fire_time_changed(hass, utcnow() + timedelta(seconds=21))
+    await hass.async_block_till_done()
+    await hass.helpers.entity_component.async_update_entity(
+        "switch.konnected_445566_actuator_6"
+    )
+    assert hass.states.get("switch.konnected_445566_actuator_6").state == "off"