diff --git a/homeassistant/components/honeywell/climate.py b/homeassistant/components/honeywell/climate.py
index 63d05135d5df9..ab23c878c1570 100644
--- a/homeassistant/components/honeywell/climate.py
+++ b/homeassistant/components/honeywell/climate.py
@@ -38,6 +38,7 @@
     CONF_COOL_AWAY_TEMPERATURE,
     CONF_HEAT_AWAY_TEMPERATURE,
     DOMAIN,
+    RETRY,
 )
 
 ATTR_FAN_ACTION = "fan_action"
@@ -155,6 +156,7 @@ def __init__(
         self._cool_away_temp = cool_away_temp
         self._heat_away_temp = heat_away_temp
         self._away = False
+        self._retry = 0
 
         self._attr_unique_id = device.deviceid
 
@@ -483,21 +485,28 @@ async def async_update(self) -> None:
         try:
             await self._device.refresh()
             self._attr_available = True
+            self._retry = 0
+
         except UnauthorizedError:
             try:
                 await self._data.client.login()
                 await self._device.refresh()
                 self._attr_available = True
+                self._retry = 0
 
             except (
                 SomeComfortError,
                 ClientConnectionError,
                 asyncio.TimeoutError,
             ):
-                self._attr_available = False
+                self._retry += 1
+                if self._retry > RETRY:
+                    self._attr_available = False
 
         except (ClientConnectionError, asyncio.TimeoutError):
-            self._attr_available = False
+            self._retry += 1
+            if self._retry > RETRY:
+                self._attr_available = False
 
         except UnexpectedResponse:
             pass
diff --git a/homeassistant/components/honeywell/const.py b/homeassistant/components/honeywell/const.py
index d5153a69f65a1..32846563c4475 100644
--- a/homeassistant/components/honeywell/const.py
+++ b/homeassistant/components/honeywell/const.py
@@ -10,3 +10,4 @@
 CONF_DEV_ID = "thermostat"
 CONF_LOC_ID = "location"
 _LOGGER = logging.getLogger(__name__)
+RETRY = 3
diff --git a/tests/components/honeywell/test_climate.py b/tests/components/honeywell/test_climate.py
index 7bd76cb8522f9..53cb70475c98b 100644
--- a/tests/components/honeywell/test_climate.py
+++ b/tests/components/honeywell/test_climate.py
@@ -28,7 +28,7 @@
     SERVICE_SET_TEMPERATURE,
     HVACMode,
 )
-from homeassistant.components.honeywell.climate import SCAN_INTERVAL
+from homeassistant.components.honeywell.climate import RETRY, SCAN_INTERVAL
 from homeassistant.const import (
     ATTR_ENTITY_ID,
     ATTR_TEMPERATURE,
@@ -1083,6 +1083,17 @@ async def test_async_update_errors(
     state = hass.states.get(entity_id)
     assert state.state == "off"
 
+    # Due to server instability, only mark entity unavailable after RETRY update attempts
+    for _ in range(RETRY):
+        async_fire_time_changed(
+            hass,
+            utcnow() + SCAN_INTERVAL,
+        )
+        await hass.async_block_till_done()
+
+        state = hass.states.get(entity_id)
+        assert state.state == "off"
+
     async_fire_time_changed(
         hass,
         utcnow() + SCAN_INTERVAL,
@@ -1126,7 +1137,6 @@ async def test_async_update_errors(
     state = hass.states.get(entity_id)
     assert state.state == "off"
 
-    # "reload integration" test
     device.refresh.side_effect = aiosomecomfort.SomeComfortError
     client.login.side_effect = aiosomecomfort.AuthError
     async_fire_time_changed(
@@ -1139,6 +1149,18 @@ async def test_async_update_errors(
     assert state.state == "off"
 
     device.refresh.side_effect = ClientConnectionError
+
+    # Due to server instability, only mark entity unavailable after RETRY update attempts
+    for _ in range(RETRY):
+        async_fire_time_changed(
+            hass,
+            utcnow() + SCAN_INTERVAL,
+        )
+        await hass.async_block_till_done()
+
+        state = hass.states.get(entity_id)
+        assert state.state == "off"
+
     async_fire_time_changed(
         hass,
         utcnow() + SCAN_INTERVAL,