diff --git a/homeassistant/components/proximity/__init__.py b/homeassistant/components/proximity/__init__.py
index 07b5f931f79..23a8fc3bf64 100644
--- a/homeassistant/components/proximity/__init__.py
+++ b/homeassistant/components/proximity/__init__.py
@@ -88,7 +88,7 @@ def async_setup_proximity_component(
         proximity_zone,
         unit_of_measurement,
     )
-    proximity.entity_id = f"{DOMAIN}.{proximity_zone}"
+    proximity.entity_id = f"{DOMAIN}.{zone_friendly_name}"
 
     proximity.async_write_ha_state()
 
diff --git a/tests/components/proximity/test_init.py b/tests/components/proximity/test_init.py
index 0ec8765e604..cd96d0d7b81 100644
--- a/tests/components/proximity/test_init.py
+++ b/tests/components/proximity/test_init.py
@@ -13,6 +13,11 @@ async def test_proximities(hass: HomeAssistant) -> None:
                 "devices": ["device_tracker.test1", "device_tracker.test2"],
                 "tolerance": "1",
             },
+            "home_test2": {
+                "ignored_zones": ["work"],
+                "devices": ["device_tracker.test1", "device_tracker.test2"],
+                "tolerance": "1",
+            },
             "work": {
                 "devices": ["device_tracker.test1"],
                 "tolerance": "1",
@@ -23,7 +28,7 @@ async def test_proximities(hass: HomeAssistant) -> None:
 
     assert await async_setup_component(hass, DOMAIN, config)
 
-    proximities = ["home", "work"]
+    proximities = ["home", "home_test2", "work"]
 
     for prox in proximities:
         state = hass.states.get(f"proximity.{prox}")