diff --git a/src/common/entity/compute_entity_name_display.ts b/src/common/entity/compute_entity_name_display.ts
index 44717c2bfcfe..324bc6453b19 100644
--- a/src/common/entity/compute_entity_name_display.ts
+++ b/src/common/entity/compute_entity_name_display.ts
@@ -3,7 +3,7 @@ import type { HomeAssistant } from "../../types";
 import { ensureArray } from "../array/ensure-array";
 import { computeAreaName } from "./compute_area_name";
 import { computeDeviceName } from "./compute_device_name";
-import { computeEntityName, entityUseDeviceName } from "./compute_entity_name";
+import { computeEntityName } from "./compute_entity_name";
 import { computeFloorName } from "./compute_floor_name";
 import { computeStateName } from "./compute_state_name";
 import { getEntityContext } from "./context/get_entity_context";
@@ -46,7 +46,7 @@ export const computeEntityNameDisplay = (
     return computeStateName(stateObj);
   }
 
-  let items = ensureArray(name);
+  const items = ensureArray(name);
 
   const separator = options?.separator ?? DEFAULT_SEPARATOR;
 
@@ -55,16 +55,6 @@ export const computeEntityNameDisplay = (
     return items.map((item) => item.text).join(separator);
   }
 
-  const useDeviceName = entityUseDeviceName(stateObj, entities, devices);
-
-  // If entity uses device name, and device is not already included, replace it with device name
-  if (useDeviceName) {
-    const hasDevice = items.some((n) => n.type === "device");
-    if (!hasDevice) {
-      items = items.map((n) => (n.type === "entity" ? { type: "device" } : n));
-    }
-  }
-
   const names = computeEntityNameList(
     stateObj,
     items,
diff --git a/src/components/entity/state-info.ts b/src/components/entity/state-info.ts
index 9df328c77425..40b04fb07742 100644
--- a/src/components/entity/state-info.ts
+++ b/src/components/entity/state-info.ts
@@ -21,7 +21,9 @@ class StateInfo extends LitElement {
       return nothing;
     }
 
-    const name = this.hass.formatEntityName(this.stateObj, { type: "entity" });
+    const name =
+      this.hass.formatEntityName(this.stateObj, { type: "entity" }) ||
+      this.hass.formatEntityName(this.stateObj, { type: "device" });
 
     return html`<state-badge
         .hass=${this.hass}
diff --git a/test/common/entity/compute_entity_name_display.test.ts b/test/common/entity/compute_entity_name_display.test.ts
index 6e521e1d15d8..909f7d7d9def 100644
--- a/test/common/entity/compute_entity_name_display.test.ts
+++ b/test/common/entity/compute_entity_name_display.test.ts
@@ -109,7 +109,7 @@ describe("computeEntityNameDisplay", () => {
     expect(result).toBe("Kitchen Light");
   });
 
-  it("replaces entity with device name when entity uses device name", () => {
+  it("returns empty for entity type when entity name is empty", () => {
     const stateObj = mockStateObj({ entity_id: "light.kitchen" });
     const hass = {
       entities: {
@@ -138,10 +138,10 @@ describe("computeEntityNameDisplay", () => {
       hass.floors
     );
 
-    expect(result).toBe("Kitchen Device");
+    expect(result).toBe("");
   });
 
-  it("does not replace entity with device when device is already included", () => {
+  it("returns device name when entity uses device name and device is included", () => {
     const stateObj = mockStateObj({ entity_id: "light.kitchen" });
     const hass = {
       entities: {
@@ -170,8 +170,6 @@ describe("computeEntityNameDisplay", () => {
       hass.floors
     );
 
-    // Since entity name equals device name, entity returns undefined
-    // So we only get the device name
     expect(result).toBe("Kitchen Device");
   });