diff --git a/custom_components/hacs/__init__.py b/custom_components/hacs/__init__.py
index 79d9e17d384..6af3f8fc839 100644
--- a/custom_components/hacs/__init__.py
+++ b/custom_components/hacs/__init__.py
@@ -15,12 +15,13 @@
 from homeassistant.const import Platform, __version__ as HAVERSION
 from homeassistant.core import HomeAssistant
 from homeassistant.helpers.aiohttp_client import async_get_clientsession
+from homeassistant.helpers.entity_registry import async_get as async_get_entity_registry
 from homeassistant.helpers.event import async_call_later
 from homeassistant.helpers.start import async_at_start
 from homeassistant.loader import async_get_integration
 
 from .base import HacsBase
-from .const import DOMAIN, MINIMUM_HA_VERSION, STARTUP
+from .const import DOMAIN, HACS_SYSTEM_ID, MINIMUM_HA_VERSION, STARTUP
 from .data_client import HacsDataClient
 from .enums import HacsDisabledReason, HacsStage, LovelaceMode
 from .frontend import async_register_frontend
@@ -169,6 +170,11 @@ async def async_try_startup(_=None):
 
     await async_try_startup()
 
+    # Remove old (v0-v1) sensor if it exists, can be removed in v3
+    er = async_get_entity_registry(hass)
+    if old_sensor := er.async_get_entity_id("sensor", DOMAIN, HACS_SYSTEM_ID):
+        er.async_remove(old_sensor)
+
     # Mischief managed!
     return True
 
diff --git a/tests/snapshots/api-usage/tests/test_sensor_cleanuptest-sensor-cleanup.json b/tests/snapshots/api-usage/tests/test_sensor_cleanuptest-sensor-cleanup.json
new file mode 100644
index 00000000000..b73c9681234
--- /dev/null
+++ b/tests/snapshots/api-usage/tests/test_sensor_cleanuptest-sensor-cleanup.json
@@ -0,0 +1,17 @@
+{
+    "tests/test_sensor_cleanup.py::test_sensor_cleanup": {
+        "https://api.github.com/repos/hacs/integration": 1,
+        "https://api.github.com/repos/hacs/integration/contents/custom_components/hacs/manifest.json": 1,
+        "https://api.github.com/repos/hacs/integration/contents/hacs.json": 1,
+        "https://api.github.com/repos/hacs/integration/git/trees/main": 1,
+        "https://api.github.com/repos/hacs/integration/releases": 1,
+        "https://data-v2.hacs.xyz/appdaemon/data.json": 1,
+        "https://data-v2.hacs.xyz/critical/data.json": 1,
+        "https://data-v2.hacs.xyz/integration/data.json": 1,
+        "https://data-v2.hacs.xyz/plugin/data.json": 1,
+        "https://data-v2.hacs.xyz/python_script/data.json": 1,
+        "https://data-v2.hacs.xyz/removed/data.json": 1,
+        "https://data-v2.hacs.xyz/template/data.json": 1,
+        "https://data-v2.hacs.xyz/theme/data.json": 1
+    }
+}
\ No newline at end of file
diff --git a/tests/test_sensor_cleanup.py b/tests/test_sensor_cleanup.py
new file mode 100644
index 00000000000..669d22280a4
--- /dev/null
+++ b/tests/test_sensor_cleanup.py
@@ -0,0 +1,32 @@
+"""Test the sensor cleanup."""
+
+from homeassistant.core import HomeAssistant
+from homeassistant.helpers import entity_registry as er
+
+from custom_components.hacs.const import DOMAIN, HACS_SYSTEM_ID
+
+from tests.common import create_config_entry, setup_integration
+
+
+async def test_sensor_cleanup(hass: HomeAssistant) -> None:
+    """Test the sensor cleanup."""
+    entity_registry = er.async_get(hass)
+    assert len(entity_registry.entities) == 0
+    entry = entity_registry.async_get_or_create(
+        domain="sensor",
+        platform=DOMAIN,
+        unique_id=HACS_SYSTEM_ID,
+    )
+
+    assert entity_registry.async_get(entry.entity_id) is not None
+
+    await setup_integration(
+        hass,
+        create_config_entry(
+            options={
+                "appdaemon": True,
+            },
+        ),
+    )
+
+    assert entity_registry.async_get(entry.entity_id) is None