diff --git a/homeassistant/components/august/__init__.py b/homeassistant/components/august/__init__.py
index d58541e708d..3fc113c6038 100644
--- a/homeassistant/components/august/__init__.py
+++ b/homeassistant/components/august/__init__.py
@@ -43,7 +43,9 @@ async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
         return await async_setup_august(hass, entry, august_gateway)
     except (RequireValidation, InvalidAuth) as err:
         raise ConfigEntryAuthFailed from err
-    except (ClientResponseError, CannotConnect, asyncio.TimeoutError) as err:
+    except asyncio.TimeoutError as err:
+        raise ConfigEntryNotReady("Timed out connecting to august api") from err
+    except (ClientResponseError, CannotConnect) as err:
         raise ConfigEntryNotReady from err
 
 
@@ -141,15 +143,34 @@ class AugustData(AugustSubscriberMixin):
         self._pubnub_unsub = async_create_pubnub(user_data["UserID"], pubnub)
 
         if self._locks_by_id:
-            tasks = []
-            for lock_id in self._locks_by_id:
-                detail = self._device_detail_by_id[lock_id]
-                tasks.append(
-                    self.async_status_async(
-                        lock_id, bool(detail.bridge and detail.bridge.hyper_bridge)
-                    )
+            # Do not prevent setup as the sync can timeout
+            # but it is not a fatal error as the lock
+            # will recover automatically when it comes back online.
+            asyncio.create_task(self._async_initial_sync())
+
+    async def _async_initial_sync(self):
+        """Attempt to request an initial sync."""
+        # We don't care if this fails because we only want to wake
+        # locks that are actually online anyways and they will be
+        # awake when they come back online
+        for result in await asyncio.gather(
+            *[
+                self.async_status_async(
+                    device_id, bool(detail.bridge and detail.bridge.hyper_bridge)
+                )
+                for device_id, detail in self._device_detail_by_id.items()
+                if device_id in self._locks_by_id
+            ],
+            return_exceptions=True,
+        ):
+            if isinstance(result, Exception) and not isinstance(
+                result, (asyncio.TimeoutError, ClientResponseError, CannotConnect)
+            ):
+                _LOGGER.warning(
+                    "Unexpected exception during initial sync: %s",
+                    result,
+                    exc_info=result,
                 )
-            await asyncio.gather(*tasks)
 
     @callback
     def async_pubnub_message(self, device_id, date_time, message):
diff --git a/homeassistant/components/august/const.py b/homeassistant/components/august/const.py
index dfe9cc0f700..ae3fcdf90e3 100644
--- a/homeassistant/components/august/const.py
+++ b/homeassistant/components/august/const.py
@@ -4,7 +4,7 @@ from datetime import timedelta
 
 from homeassistant.const import Platform
 
-DEFAULT_TIMEOUT = 10
+DEFAULT_TIMEOUT = 15
 
 CONF_ACCESS_TOKEN_CACHE_FILE = "access_token_cache_file"
 CONF_LOGIN_METHOD = "login_method"
diff --git a/homeassistant/components/august/manifest.json b/homeassistant/components/august/manifest.json
index db537287b05..ea6769fabcf 100644
--- a/homeassistant/components/august/manifest.json
+++ b/homeassistant/components/august/manifest.json
@@ -2,7 +2,7 @@
   "domain": "august",
   "name": "August",
   "documentation": "https://www.home-assistant.io/integrations/august",
-  "requirements": ["yalexs==1.1.19"],
+  "requirements": ["yalexs==1.1.20"],
   "codeowners": ["@bdraco"],
   "dhcp": [
     {
diff --git a/requirements_all.txt b/requirements_all.txt
index 5628e197e2c..0585eb636e2 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -2513,7 +2513,7 @@ xs1-api-client==3.0.0
 yalesmartalarmclient==0.3.7
 
 # homeassistant.components.august
-yalexs==1.1.19
+yalexs==1.1.20
 
 # homeassistant.components.yeelight
 yeelight==0.7.8
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index c2cae070fd4..9178470f838 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -1541,7 +1541,7 @@ xmltodict==0.12.0
 yalesmartalarmclient==0.3.7
 
 # homeassistant.components.august
-yalexs==1.1.19
+yalexs==1.1.20
 
 # homeassistant.components.yeelight
 yeelight==0.7.8
diff --git a/tests/components/august/test_init.py b/tests/components/august/test_init.py
index 4d73eec7f1f..320461ca6e9 100644
--- a/tests/components/august/test_init.py
+++ b/tests/components/august/test_init.py
@@ -30,6 +30,26 @@ from tests.components.august.mocks import (
 )
 
 
+async def test_august_api_is_failing(hass):
+    """Config entry state is SETUP_RETRY when august api is failing."""
+
+    config_entry = MockConfigEntry(
+        domain=DOMAIN,
+        data=_mock_get_config()[DOMAIN],
+        title="August august",
+    )
+    config_entry.add_to_hass(hass)
+
+    with patch(
+        "yalexs.authenticator_async.AuthenticatorAsync.async_authenticate",
+        side_effect=ClientResponseError(None, None, status=500),
+    ):
+        await hass.config_entries.async_setup(config_entry.entry_id)
+        await hass.async_block_till_done()
+
+    assert config_entry.state is ConfigEntryState.SETUP_RETRY
+
+
 async def test_august_is_offline(hass):
     """Config entry state is SETUP_RETRY when august is offline."""