diff --git a/homeassistant/components/generic/config_flow.py b/homeassistant/components/generic/config_flow.py
index d3b2a260477..ce8caa457ec 100644
--- a/homeassistant/components/generic/config_flow.py
+++ b/homeassistant/components/generic/config_flow.py
@@ -136,7 +136,7 @@ async def async_test_still(hass, info) -> tuple[dict[str, str], str | None]:
     try:
         url = url.async_render(parse_result=False)
     except TemplateError as err:
-        _LOGGER.error("Error parsing template %s: %s", url, err)
+        _LOGGER.warning("Problem rendering template %s: %s", url, err)
         return {CONF_STILL_IMAGE_URL: "template_error"}, None
     verify_ssl = info.get(CONF_VERIFY_SSL)
     auth = generate_auth(info)
@@ -283,6 +283,14 @@ class GenericIPCamConfigFlow(ConfigFlow, domain=DOMAIN):
         if self.check_for_existing(import_config):
             return self.async_abort(reason="already_exists")
         errors, still_format = await async_test_still(self.hass, import_config)
+        if errors.get(CONF_STILL_IMAGE_URL) == "template_error":
+            _LOGGER.warning(
+                "Could not render template, but it could be that "
+                "referenced entities are still initialising. "
+                "Continuing assuming that imported YAML template is valid"
+            )
+            errors.pop(CONF_STILL_IMAGE_URL)
+            still_format = import_config.get(CONF_CONTENT_TYPE, "image/jpeg")
         errors = errors | await async_test_stream(self.hass, import_config)
         still_url = import_config.get(CONF_STILL_IMAGE_URL)
         stream_url = import_config.get(CONF_STREAM_SOURCE)