diff --git a/homeassistant/components/insteon/config_flow.py b/homeassistant/components/insteon/config_flow.py
index 5bf8769f321..be68a66b70a 100644
--- a/homeassistant/components/insteon/config_flow.py
+++ b/homeassistant/components/insteon/config_flow.py
@@ -7,7 +7,7 @@ from pyinsteon import async_connect
 import voluptuous as vol
 
 from homeassistant import config_entries
-from homeassistant.components import usb
+from homeassistant.components import dhcp, usb
 from homeassistant.const import (
     CONF_ADDRESS,
     CONF_DEVICE,
@@ -19,6 +19,7 @@ from homeassistant.const import (
 )
 from homeassistant.core import callback
 from homeassistant.data_entry_flow import FlowResult
+from homeassistant.helpers.device_registry import format_mac
 from homeassistant.helpers.dispatcher import async_dispatcher_send
 
 from .const import (
@@ -114,6 +115,7 @@ class InsteonFlowHandler(config_entries.ConfigFlow, domain=DOMAIN):
 
     _device_path: str | None = None
     _device_name: str | None = None
+    discovered_conf: dict[str, str] = {}
 
     @staticmethod
     @callback
@@ -170,7 +172,7 @@ class InsteonFlowHandler(config_entries.ConfigFlow, domain=DOMAIN):
                 return self.async_create_entry(title="", data=user_input)
             user_input.pop(CONF_HUB_VERSION)
             errors["base"] = "cannot_connect"
-        schema_defaults = user_input if user_input is not None else {}
+        schema_defaults = user_input if user_input is not None else self.discovered_conf
         data_schema = build_hub_schema(hub_version=hub_version, **schema_defaults)
         step_id = STEP_HUB_V2 if hub_version == 2 else STEP_HUB_V1
         return self.async_show_form(
@@ -203,12 +205,14 @@ class InsteonFlowHandler(config_entries.ConfigFlow, domain=DOMAIN):
             discovery_info.pid,
         )
         self._set_confirm_only()
-        self.context["title_placeholders"] = {CONF_NAME: self._device_name}
+        self.context["title_placeholders"] = {
+            CONF_NAME: f"Insteon PLM {self._device_name}"
+        }
         await self.async_set_unique_id(config_entries.DEFAULT_DISCOVERY_UNIQUE_ID)
         return await self.async_step_confirm_usb()
 
     async def async_step_confirm_usb(self, user_input=None):
-        """Confirm a discovery."""
+        """Confirm a USB discovery."""
         if user_input is not None:
             return await self.async_step_plm({CONF_DEVICE: self._device_path})
 
@@ -217,6 +221,15 @@ class InsteonFlowHandler(config_entries.ConfigFlow, domain=DOMAIN):
             description_placeholders={CONF_NAME: self._device_name},
         )
 
+    async def async_step_dhcp(self, discovery_info: dhcp.DhcpServiceInfo) -> FlowResult:
+        """Handle a DHCP discovery."""
+        self.discovered_conf = {CONF_HOST: discovery_info.ip}
+        self.context["title_placeholders"] = {
+            CONF_NAME: f"Insteon Hub {discovery_info.ip}"
+        }
+        await self.async_set_unique_id(format_mac(discovery_info.macaddress))
+        return await self.async_step_user()
+
 
 class InsteonOptionsFlowHandler(config_entries.OptionsFlow):
     """Handle an Insteon options flow."""
diff --git a/homeassistant/components/insteon/manifest.json b/homeassistant/components/insteon/manifest.json
index 63eb24ee453..d9e1f1bfb18 100644
--- a/homeassistant/components/insteon/manifest.json
+++ b/homeassistant/components/insteon/manifest.json
@@ -4,6 +4,7 @@
   "documentation": "https://www.home-assistant.io/integrations/insteon",
   "requirements": ["pyinsteon==1.0.13"],
   "codeowners": ["@teharris1"],
+  "dhcp": [{ "macaddress": "000EF3*" }, { "registered_devices": true }],
   "config_flow": true,
   "iot_class": "local_push",
   "loggers": ["pyinsteon", "pypubsub"],
diff --git a/homeassistant/components/insteon/strings.json b/homeassistant/components/insteon/strings.json
index 793a38a2694..e451e080539 100644
--- a/homeassistant/components/insteon/strings.json
+++ b/homeassistant/components/insteon/strings.json
@@ -43,7 +43,8 @@
     },
     "abort": {
       "cannot_connect": "[%key:common::config_flow::error::cannot_connect%]",
-      "single_instance_allowed": "[%key:common::config_flow::abort::single_instance_allowed%]"
+      "single_instance_allowed": "[%key:common::config_flow::abort::single_instance_allowed%]",
+      "not_insteon_device": "Discovered device not an Insteon device"
     }
   },
   "options": {
diff --git a/homeassistant/generated/dhcp.py b/homeassistant/generated/dhcp.py
index d2661452a4b..3ae5b0a1376 100644
--- a/homeassistant/generated/dhcp.py
+++ b/homeassistant/generated/dhcp.py
@@ -49,6 +49,8 @@ DHCP: list[dict[str, str | bool]] = [
     {'domain': 'hunterdouglas_powerview',
      'hostname': 'hunter*',
      'macaddress': '002674*'},
+    {'domain': 'insteon', 'macaddress': '000EF3*'},
+    {'domain': 'insteon', 'registered_devices': True},
     {'domain': 'intellifire', 'hostname': 'zentrios-*'},
     {'domain': 'isy994', 'registered_devices': True},
     {'domain': 'isy994', 'hostname': 'isy*', 'macaddress': '0021B9*'},
diff --git a/tests/components/insteon/test_config_flow.py b/tests/components/insteon/test_config_flow.py
index 878b540b721..ce49f9df816 100644
--- a/tests/components/insteon/test_config_flow.py
+++ b/tests/components/insteon/test_config_flow.py
@@ -2,8 +2,10 @@
 
 from unittest.mock import patch
 
+import voluptuous_serialize
+
 from homeassistant import config_entries, data_entry_flow
-from homeassistant.components import usb
+from homeassistant.components import dhcp, usb
 from homeassistant.components.insteon.config_flow import (
     HUB1,
     HUB2,
@@ -37,6 +39,7 @@ from homeassistant.const import (
     CONF_USERNAME,
 )
 from homeassistant.core import HomeAssistant
+import homeassistant.helpers.config_validation as cv
 
 from .const import (
     MOCK_HOSTNAME,
@@ -648,3 +651,48 @@ async def test_discovery_via_usb_already_setup(hass):
 
     assert result["type"] == data_entry_flow.RESULT_TYPE_ABORT
     assert result["reason"] == "single_instance_allowed"
+
+
+async def test_discovery_via_dhcp_hubv1(hass):
+    """Test usb flow."""
+    await _test_dhcp(hass, HUB1)
+
+
+async def test_discovery_via_dhcp_hubv2(hass):
+    """Test usb flow."""
+    await _test_dhcp(hass, HUB2)
+
+
+async def _test_dhcp(hass, modem_type):
+    """Test the dhcp discovery for a moddem type."""
+    discovery_info = dhcp.DhcpServiceInfo(
+        ip="11.22.33.44", hostname="", macaddress="00:0e:f3:aa:bb:cc"
+    )
+    result = await hass.config_entries.flow.async_init(
+        "insteon",
+        context={"source": config_entries.SOURCE_DHCP},
+        data=discovery_info,
+    )
+    await hass.async_block_till_done()
+    assert result["type"] == data_entry_flow.RESULT_TYPE_FORM
+    assert result["step_id"] == "user"
+
+    with patch("homeassistant.components.insteon.config_flow.async_connect"), patch(
+        "homeassistant.components.insteon.async_setup_entry", return_value=True
+    ):
+        result2 = await hass.config_entries.flow.async_configure(
+            result["flow_id"], user_input={"modem_type": modem_type}
+        )
+        await hass.async_block_till_done()
+
+        assert result2["type"] == data_entry_flow.RESULT_TYPE_FORM
+        assert result["step_id"] == "user"
+
+        schema = voluptuous_serialize.convert(
+            result2["data_schema"],
+            custom_serializer=cv.custom_serializer,
+        )
+        for field in schema:
+            if field["name"] == "host":
+                assert field.get("default") == "11.22.33.44"
+                break