diff --git a/homeassistant/components/zone/__init__.py b/homeassistant/components/zone/__init__.py
index 01ec041e9d8..86593c36737 100644
--- a/homeassistant/components/zone/__init__.py
+++ b/homeassistant/components/zone/__init__.py
@@ -135,7 +135,7 @@ def async_active_zone(
             is None
             # Skip zone that are outside the radius aka the
             # lat/long is outside the zone
-            or not (zone_dist - (radius := zone_attrs[ATTR_RADIUS]) < radius)
+            or not (zone_dist - (zone_radius := zone_attrs[ATTR_RADIUS]) < radius)
         ):
             continue
 
@@ -144,7 +144,7 @@ def async_active_zone(
             zone_dist < min_dist
             or (
                 # If same distance, prefer smaller zone
-                zone_dist == min_dist and radius < closest.attributes[ATTR_RADIUS]
+                zone_dist == min_dist and zone_radius < closest.attributes[ATTR_RADIUS]
             )
         ):
             continue
diff --git a/tests/components/zone/test_init.py b/tests/components/zone/test_init.py
index 70a399d27a4..2924e6654e2 100644
--- a/tests/components/zone/test_init.py
+++ b/tests/components/zone/test_init.py
@@ -228,6 +228,46 @@ async def test_in_zone_works_for_passive_zones(hass: HomeAssistant) -> None:
     assert zone.in_zone(hass.states.get("zone.passive_zone"), latitude, longitude)
 
 
+async def test_async_active_zone_with_non_zero_radius(
+    hass: HomeAssistant,
+) -> None:
+    """Test async_active_zone with a non-zero radius."""
+    latitude = 32.880600
+    longitude = -117.237561
+
+    assert await setup.async_setup_component(
+        hass,
+        zone.DOMAIN,
+        {
+            "zone": [
+                {
+                    "name": "Small Zone",
+                    "latitude": 32.980600,
+                    "longitude": -117.137561,
+                    "radius": 50000,
+                },
+                {
+                    "name": "Big Zone",
+                    "latitude": 32.980600,
+                    "longitude": -117.137561,
+                    "radius": 100000,
+                },
+            ]
+        },
+    )
+
+    home_state = hass.states.get("zone.home")
+    assert home_state.attributes["radius"] == 100
+    assert home_state.attributes["latitude"] == 32.87336
+    assert home_state.attributes["longitude"] == -117.22743
+
+    active = zone.async_active_zone(hass, latitude, longitude, 5000)
+    assert active.entity_id == "zone.home"
+
+    active = zone.async_active_zone(hass, latitude, longitude, 0)
+    assert active.entity_id == "zone.small_zone"
+
+
 async def test_core_config_update(hass: HomeAssistant) -> None:
     """Test updating core config will update home zone."""
     assert await setup.async_setup_component(hass, "zone", {})