diff --git a/homeassistant/components/homeassistant/__init__.py b/homeassistant/components/homeassistant/__init__.py
index f1b8d4e87d6..c2ee40b7d43 100644
--- a/homeassistant/components/homeassistant/__init__.py
+++ b/homeassistant/components/homeassistant/__init__.py
@@ -21,7 +21,7 @@ from homeassistant.const import (
 import homeassistant.core as ha
 from homeassistant.exceptions import HomeAssistantError, Unauthorized, UnknownUser
 from homeassistant.helpers import config_validation as cv
-from homeassistant.helpers.service import async_extract_entity_ids
+from homeassistant.helpers.service import async_extract_referenced_entity_ids
 
 _LOGGER = logging.getLogger(__name__)
 DOMAIN = ha.DOMAIN
@@ -37,39 +37,37 @@ async def async_setup(hass: ha.HomeAssistant, config: dict) -> bool:
 
     async def async_handle_turn_service(service):
         """Handle calls to homeassistant.turn_on/off."""
-        entity_ids = await async_extract_entity_ids(hass, service)
+        referenced = await async_extract_referenced_entity_ids(hass, service)
+        all_referenced = referenced.referenced | referenced.indirectly_referenced
 
         # Generic turn on/off method requires entity id
-        if not entity_ids:
+        if not all_referenced:
             _LOGGER.error(
-                "homeassistant/%s cannot be called without entity_id", service.service
+                "homeassistant.%s cannot be called without a target", service.service
             )
             return
 
         # Group entity_ids by domain. groupby requires sorted data.
         by_domain = it.groupby(
-            sorted(entity_ids), lambda item: ha.split_entity_id(item)[0]
+            sorted(all_referenced), lambda item: ha.split_entity_id(item)[0]
         )
 
         tasks = []
+        unsupported_entities = set()
 
         for domain, ent_ids in by_domain:
             # This leads to endless loop.
             if domain == DOMAIN:
                 _LOGGER.warning(
-                    "Called service homeassistant.%s with invalid entity IDs %s",
+                    "Called service homeassistant.%s with invalid entities %s",
                     service.service,
                     ", ".join(ent_ids),
                 )
                 continue
 
-            # We want to block for all calls and only return when all calls
-            # have been processed. If a service does not exist it causes a 10
-            # second delay while we're blocking waiting for a response.
-            # But services can be registered on other HA instances that are
-            # listening to the bus too. So as an in between solution, we'll
-            # block only if the service is defined in the current HA instance.
-            blocking = hass.services.has_service(domain, service.service)
+            if not hass.services.has_service(domain, service.service):
+                unsupported_entities.update(set(ent_ids) & referenced.referenced)
+                continue
 
             # Create a new dict for this call
             data = dict(service.data)
@@ -79,10 +77,21 @@ async def async_setup(hass: ha.HomeAssistant, config: dict) -> bool:
 
             tasks.append(
                 hass.services.async_call(
-                    domain, service.service, data, blocking, context=service.context
+                    domain,
+                    service.service,
+                    data,
+                    blocking=True,
+                    context=service.context,
                 )
             )
 
+        if unsupported_entities:
+            _LOGGER.warning(
+                "The service homeassistant.%s does not support entities %s",
+                service.service,
+                ", ".join(sorted(unsupported_entities)),
+            )
+
         if tasks:
             await asyncio.gather(*tasks)
 
diff --git a/tests/components/homeassistant/test_init.py b/tests/components/homeassistant/test_init.py
index 3ad3ef76483..ca2f116a06a 100644
--- a/tests/components/homeassistant/test_init.py
+++ b/tests/components/homeassistant/test_init.py
@@ -248,7 +248,7 @@ class TestComponentsCore(unittest.TestCase):
         assert not mock_stop.called
 
 
-async def test_turn_on_to_not_block_for_domains_without_service(hass):
+async def test_turn_on_skips_domains_without_service(hass, caplog):
     """Test if turn_on is blocking domain with no service."""
     await async_setup_component(hass, "homeassistant", {})
     async_mock_service(hass, "light", SERVICE_TURN_ON)
@@ -261,7 +261,7 @@ async def test_turn_on_to_not_block_for_domains_without_service(hass):
     service_call = ha.ServiceCall(
         "homeassistant",
         "turn_on",
-        {"entity_id": ["light.test", "sensor.bla", "light.bla"]},
+        {"entity_id": ["light.test", "sensor.bla", "binary_sensor.blub", "light.bla"]},
     )
     service = hass.services._services["homeassistant"]["turn_on"]
 
@@ -271,18 +271,19 @@ async def test_turn_on_to_not_block_for_domains_without_service(hass):
     ) as mock_call:
         await service.job.target(service_call)
 
-    assert mock_call.call_count == 2
+    assert mock_call.call_count == 1
     assert mock_call.call_args_list[0][0] == (
         "light",
         "turn_on",
         {"entity_id": ["light.bla", "light.test"]},
-        True,
     )
-    assert mock_call.call_args_list[1][0] == (
-        "sensor",
-        "turn_on",
-        {"entity_id": ["sensor.bla"]},
-        False,
+    assert mock_call.call_args_list[0][1] == {
+        "blocking": True,
+        "context": service_call.context,
+    }
+    assert (
+        "The service homeassistant.turn_on does not support entities binary_sensor.blub, sensor.bla"
+        in caplog.text
     )
 
 
@@ -381,6 +382,6 @@ async def test_not_allowing_recursion(hass, caplog):
             blocking=True,
         )
         assert (
-            f"Called service homeassistant.{service} with invalid entity IDs homeassistant.light"
+            f"Called service homeassistant.{service} with invalid entities homeassistant.light"
             in caplog.text
         ), service