diff --git a/homeassistant/components/proxmoxve/coordinator.py b/homeassistant/components/proxmoxve/coordinator.py
index ad43d51da8a..f912bbabefe 100644
--- a/homeassistant/components/proxmoxve/coordinator.py
+++ b/homeassistant/components/proxmoxve/coordinator.py
@@ -22,7 +22,11 @@ from homeassistant.const import (
     CONF_VERIFY_SSL,
 )
 from homeassistant.core import HomeAssistant
-from homeassistant.exceptions import ConfigEntryError, ConfigEntryNotReady
+from homeassistant.exceptions import (
+    ConfigEntryAuthFailed,
+    ConfigEntryError,
+    ConfigEntryNotReady,
+)
 from homeassistant.helpers.update_coordinator import DataUpdateCoordinator, UpdateFailed
 
 from .const import CONF_NODE, CONF_REALM, DEFAULT_VERIFY_SSL, DOMAIN
@@ -80,7 +84,7 @@ class ProxmoxCoordinator(DataUpdateCoordinator[dict[str, ProxmoxNodeData]]):
         try:
             await self.hass.async_add_executor_job(self._init_proxmox)
         except AuthenticationError as err:
-            raise ConfigEntryError(
+            raise ConfigEntryAuthFailed(
                 translation_domain=DOMAIN,
                 translation_key="invalid_auth",
                 translation_placeholders={"error": repr(err)},
@@ -112,7 +116,7 @@ class ProxmoxCoordinator(DataUpdateCoordinator[dict[str, ProxmoxNodeData]]):
                 self._fetch_all_nodes
             )
         except AuthenticationError as err:
-            raise UpdateFailed(
+            raise ConfigEntryAuthFailed(
                 translation_domain=DOMAIN,
                 translation_key="invalid_auth",
                 translation_placeholders={"error": repr(err)},