diff --git a/homeassistant/components/inkbird/config_flow.py b/homeassistant/components/inkbird/config_flow.py
index 0d4e404c9b5..09dd31a9cf6 100644
--- a/homeassistant/components/inkbird/config_flow.py
+++ b/homeassistant/components/inkbird/config_flow.py
@@ -72,7 +72,7 @@ class INKBIRDConfigFlow(ConfigFlow, domain=DOMAIN):
                 title=self._discovered_devices[address], data={}
             )
 
-        current_addresses = self._async_current_ids()
+        current_addresses = self._async_current_ids(include_ignore=False)
         for discovery_info in async_discovered_service_info(self.hass, False):
             address = discovery_info.address
             if address in current_addresses or address in self._discovered_devices:
diff --git a/tests/components/inkbird/test_config_flow.py b/tests/components/inkbird/test_config_flow.py
index 154132c34fc..796f57da55b 100644
--- a/tests/components/inkbird/test_config_flow.py
+++ b/tests/components/inkbird/test_config_flow.py
@@ -75,6 +75,36 @@ async def test_async_step_user_with_found_devices(hass: HomeAssistant) -> None:
     assert result2["result"].unique_id == "61DE521B-F0BF-9F44-64D4-75BBE1738105"
 
 
+async def test_async_step_user_replace_ignored(hass: HomeAssistant) -> None:
+    """Test setup from service info can replace an ignored entry."""
+    entry = MockConfigEntry(
+        domain=DOMAIN,
+        unique_id=SPS_SERVICE_INFO.address,
+        data={},
+        source=config_entries.SOURCE_IGNORE,
+    )
+    entry.add_to_hass(hass)
+    with patch(
+        "homeassistant.components.inkbird.config_flow.async_discovered_service_info",
+        return_value=[SPS_SERVICE_INFO],
+    ):
+        result = await hass.config_entries.flow.async_init(
+            DOMAIN,
+            context={"source": config_entries.SOURCE_USER},
+        )
+    assert result["type"] is FlowResultType.FORM
+    assert result["step_id"] == "user"
+    with patch("homeassistant.components.inkbird.async_setup_entry", return_value=True):
+        result2 = await hass.config_entries.flow.async_configure(
+            result["flow_id"],
+            user_input={"address": "61DE521B-F0BF-9F44-64D4-75BBE1738105"},
+        )
+    assert result2["type"] is FlowResultType.CREATE_ENTRY
+    assert result2["title"] == "IBS-TH 8105"
+    assert result2["data"] == {}
+    assert result2["result"].unique_id == "61DE521B-F0BF-9F44-64D4-75BBE1738105"
+
+
 async def test_async_step_user_device_added_between_steps(hass: HomeAssistant) -> None:
     """Test the device gets added via another flow between steps."""
     with patch(