diff --git a/homeassistant/components/asuswrt/__init__.py b/homeassistant/components/asuswrt/__init__.py
index a0eee38c3f8..446fe898aaa 100644
--- a/homeassistant/components/asuswrt/__init__.py
+++ b/homeassistant/components/asuswrt/__init__.py
@@ -14,6 +14,7 @@ from homeassistant.const import (
 )
 from homeassistant.helpers import config_validation as cv
 from homeassistant.helpers.discovery import async_load_platform
+from homeassistant.helpers.event import async_call_later
 
 _LOGGER = logging.getLogger(__name__)
 
@@ -31,6 +32,9 @@ DEFAULT_SSH_PORT = 22
 DEFAULT_INTERFACE = "eth0"
 DEFAULT_DNSMASQ = "/var/lib/misc"
 
+FIRST_RETRY_TIME = 60
+MAX_RETRY_TIME = 900
+
 SECRET_GROUP = "Password or SSH Key"
 SENSOR_TYPES = ["upload_speed", "download_speed", "download", "upload"]
 
@@ -59,7 +63,7 @@ CONFIG_SCHEMA = vol.Schema(
 )
 
 
-async def async_setup(hass, config):
+async def async_setup(hass, config, retry_delay=FIRST_RETRY_TIME):
     """Set up the asuswrt component."""
 
     conf = config[DOMAIN]
@@ -77,9 +81,29 @@ async def async_setup(hass, config):
         dnsmasq=conf[CONF_DNSMASQ],
     )
 
-    await api.connection.async_connect()
+    try:
+        await api.connection.async_connect()
+    except OSError as ex:
+        _LOGGER.warning(
+            "Error [%s] connecting %s to %s. Will retry in %s seconds...",
+            str(ex),
+            DOMAIN,
+            conf[CONF_HOST],
+            retry_delay,
+        )
+
+        async def retry_setup(now):
+            """Retry setup if a error happens on asuswrt API."""
+            await async_setup(
+                hass, config, retry_delay=min(2 * retry_delay, MAX_RETRY_TIME)
+            )
+
+        async_call_later(hass, retry_delay, retry_setup)
+
+        return True
+
     if not api.is_connected:
-        _LOGGER.error("Unable to setup component")
+        _LOGGER.error("Error connecting %s to %s.", DOMAIN, conf[CONF_HOST])
         return False
 
     hass.data[DATA_ASUSWRT] = api
diff --git a/tests/components/asuswrt/test_device_tracker.py b/tests/components/asuswrt/test_device_tracker.py
index b91b815d58e..62e5ed891ff 100644
--- a/tests/components/asuswrt/test_device_tracker.py
+++ b/tests/components/asuswrt/test_device_tracker.py
@@ -24,6 +24,18 @@ async def test_password_or_pub_key_required(hass):
         assert not result
 
 
+async def test_network_unreachable(hass):
+    """Test creating an AsusWRT scanner without a pass or pubkey."""
+    with patch("homeassistant.components.asuswrt.AsusWrt") as AsusWrt:
+        AsusWrt().connection.async_connect = mock_coro_func(exception=OSError)
+        AsusWrt().is_connected = False
+        result = await async_setup_component(
+            hass, DOMAIN, {DOMAIN: {CONF_HOST: "fake_host", CONF_USERNAME: "fake_user"}}
+        )
+        assert result
+        assert hass.data.get(DATA_ASUSWRT, None) is None
+
+
 async def test_get_scanner_with_password_no_pubkey(hass):
     """Test creating an AsusWRT scanner with a password and no pubkey."""
     with patch("homeassistant.components.asuswrt.AsusWrt") as AsusWrt: