diff --git a/homeassistant/components/smlight/coordinator.py b/homeassistant/components/smlight/coordinator.py
index 5b38ec4a89e..6be36439e9f 100644
--- a/homeassistant/components/smlight/coordinator.py
+++ b/homeassistant/components/smlight/coordinator.py
@@ -144,11 +144,15 @@ class SmFirmwareUpdateCoordinator(SmBaseDataUpdateCoordinator[SmFwData]):
     async def _internal_update_data(self) -> SmFwData:
         """Fetch data from the SMLIGHT device."""
         info = await self.client.get_info()
+        esp_firmware = None
+        zb_firmware = None
 
-        return SmFwData(
-            info=info,
-            esp_firmware=await self.client.get_firmware_version(info.fw_channel),
-            zb_firmware=await self.client.get_firmware_version(
+        try:
+            esp_firmware = await self.client.get_firmware_version(info.fw_channel)
+            zb_firmware = await self.client.get_firmware_version(
                 info.fw_channel, device=info.model, mode="zigbee"
-            ),
-        )
+            )
+        except SmlightConnectionError as err:
+            self.async_set_update_error(err)
+
+        return SmFwData(info=info, esp_firmware=esp_firmware, zb_firmware=zb_firmware)
diff --git a/tests/components/smlight/test_init.py b/tests/components/smlight/test_init.py
index afc53932fb0..d0c5e494ae8 100644
--- a/tests/components/smlight/test_init.py
+++ b/tests/components/smlight/test_init.py
@@ -8,9 +8,14 @@ from pysmlight.exceptions import SmlightAuthError, SmlightConnectionError, Smlig
 import pytest
 from syrupy.assertion import SnapshotAssertion
 
-from homeassistant.components.smlight.const import DOMAIN, SCAN_INTERVAL
+from homeassistant.components.smlight.const import (
+    DOMAIN,
+    SCAN_FIRMWARE_INTERVAL,
+    SCAN_INTERVAL,
+)
+from homeassistant.components.update import ATTR_INSTALLED_VERSION
 from homeassistant.config_entries import ConfigEntryState
-from homeassistant.const import STATE_UNAVAILABLE
+from homeassistant.const import STATE_ON, STATE_UNAVAILABLE, STATE_UNKNOWN
 from homeassistant.core import HomeAssistant
 from homeassistant.helpers import device_registry as dr
 from homeassistant.helpers.issue_registry import IssueRegistry
@@ -73,6 +78,41 @@ async def test_async_setup_missing_credentials(
     assert progress[0]["context"]["unique_id"] == "aa:bb:cc:dd:ee:ff"
 
 
+async def test_async_setup_no_internet(
+    hass: HomeAssistant,
+    mock_config_entry_host: MockConfigEntry,
+    mock_smlight_client: MagicMock,
+    freezer: FrozenDateTimeFactory,
+) -> None:
+    """Test we still load integration when no internet is available."""
+    mock_smlight_client.get_firmware_version.side_effect = SmlightConnectionError
+
+    await setup_integration(hass, mock_config_entry_host)
+
+    entity = hass.states.get("update.mock_title_core_firmware")
+    assert entity is not None
+    assert entity.state == STATE_UNKNOWN
+
+    freezer.tick(SCAN_FIRMWARE_INTERVAL)
+    async_fire_time_changed(hass)
+    await hass.async_block_till_done()
+
+    entity = hass.states.get("update.mock_title_core_firmware")
+    assert entity is not None
+    assert entity.state == STATE_UNKNOWN
+
+    mock_smlight_client.get_firmware_version.side_effect = None
+
+    freezer.tick(SCAN_FIRMWARE_INTERVAL)
+    async_fire_time_changed(hass)
+    await hass.async_block_till_done()
+
+    entity = hass.states.get("update.mock_title_core_firmware")
+    assert entity is not None
+    assert entity.state == STATE_ON
+    assert entity.attributes[ATTR_INSTALLED_VERSION] == "v2.3.6"
+
+
 @pytest.mark.parametrize("error", [SmlightConnectionError, SmlightAuthError])
 async def test_update_failed(
     hass: HomeAssistant,
diff --git a/tests/components/smlight/test_update.py b/tests/components/smlight/test_update.py
index 0bb2e34d7ca..4fca7369116 100644
--- a/tests/components/smlight/test_update.py
+++ b/tests/components/smlight/test_update.py
@@ -81,7 +81,7 @@ async def test_update_setup(
     mock_config_entry: MockConfigEntry,
     snapshot: SnapshotAssertion,
 ) -> None:
-    """Test setup of SMLIGHT switches."""
+    """Test setup of SMLIGHT update entities."""
     entry = await setup_integration(hass, mock_config_entry)
 
     await snapshot_platform(hass, entity_registry, snapshot, entry.entry_id)