diff --git a/homeassistant/components/emulated_hue/hue_api.py b/homeassistant/components/emulated_hue/hue_api.py
index 5d08af6c5ee..51ce3e2e42a 100644
--- a/homeassistant/components/emulated_hue/hue_api.py
+++ b/homeassistant/components/emulated_hue/hue_api.py
@@ -56,6 +56,7 @@ from homeassistant.const import (
     SERVICE_VOLUME_SET,
     STATE_OFF,
     STATE_ON,
+    STATE_UNAVAILABLE,
 )
 from homeassistant.util.network import is_local
 
@@ -578,7 +579,7 @@ def entity_to_json(config, entity, state):
                 HUE_API_STATE_BRI: state[STATE_BRIGHTNESS],
                 HUE_API_STATE_HUE: state[STATE_HUE],
                 HUE_API_STATE_SAT: state[STATE_SATURATION],
-                "reachable": True,
+                "reachable": entity.state != STATE_UNAVAILABLE,
             },
             "type": "Dimmable light",
             "name": config.get_entity_name(entity),
@@ -587,7 +588,10 @@ def entity_to_json(config, entity, state):
             "swversion": "123",
         }
     return {
-        "state": {HUE_API_STATE_ON: state[STATE_ON], "reachable": True},
+        "state": {
+            HUE_API_STATE_ON: state[STATE_ON],
+            "reachable": entity.state != STATE_UNAVAILABLE,
+        },
         "type": "On/off light",
         "name": config.get_entity_name(entity),
         "modelid": "HASS321",
diff --git a/tests/components/emulated_hue/test_hue_api.py b/tests/components/emulated_hue/test_hue_api.py
index 02f24f5afba..9629ae6cf69 100644
--- a/tests/components/emulated_hue/test_hue_api.py
+++ b/tests/components/emulated_hue/test_hue_api.py
@@ -232,6 +232,26 @@ def test_light_without_brightness_supported(hass_hue, hue_client):
     assert light_without_brightness_json["type"] == "On/off light"
 
 
+@asyncio.coroutine
+@pytest.mark.parametrize(
+    "state,is_reachable",
+    [
+        (const.STATE_UNAVAILABLE, False),
+        (const.STATE_OK, True),
+        (const.STATE_UNKNOWN, True),
+    ],
+)
+def test_reachable_for_state(hass_hue, hue_client, state, is_reachable):
+    """Test that an entity is reported as unreachable if in unavailable state."""
+    entity_id = "light.ceiling_lights"
+
+    hass_hue.states.async_set(entity_id, state)
+
+    state_json = yield from perform_get_light_state(hue_client, entity_id, 200)
+
+    assert state_json["state"]["reachable"] == is_reachable, state_json
+
+
 @asyncio.coroutine
 def test_get_light_state(hass_hue, hue_client):
     """Test the getting of light state."""