diff --git a/homeassistant/components/homeassistant/__init__.py b/homeassistant/components/homeassistant/__init__.py
index 987a4317ba84a..e4032ad954d29 100644
--- a/homeassistant/components/homeassistant/__init__.py
+++ b/homeassistant/components/homeassistant/__init__.py
@@ -9,6 +9,7 @@
 from homeassistant.components import persistent_notification
 import homeassistant.config as conf_util
 from homeassistant.const import (
+    ATTR_ELEVATION,
     ATTR_ENTITY_ID,
     ATTR_LATITUDE,
     ATTR_LONGITUDE,
@@ -250,16 +251,28 @@ async def async_handle_reload_config(call: ha.ServiceCall) -> None:
 
     async def async_set_location(call: ha.ServiceCall) -> None:
         """Service handler to set location."""
-        await hass.config.async_update(
-            latitude=call.data[ATTR_LATITUDE], longitude=call.data[ATTR_LONGITUDE]
-        )
+        service_data = {
+            "latitude": call.data[ATTR_LATITUDE],
+            "longitude": call.data[ATTR_LONGITUDE],
+        }
+
+        if elevation := call.data.get(ATTR_ELEVATION):
+            service_data["elevation"] = elevation
+
+        await hass.config.async_update(**service_data)
 
     async_register_admin_service(
         hass,
         ha.DOMAIN,
         SERVICE_SET_LOCATION,
         async_set_location,
-        vol.Schema({ATTR_LATITUDE: cv.latitude, ATTR_LONGITUDE: cv.longitude}),
+        vol.Schema(
+            {
+                vol.Required(ATTR_LATITUDE): cv.latitude,
+                vol.Required(ATTR_LONGITUDE): cv.longitude,
+                vol.Optional(ATTR_ELEVATION): int,
+            }
+        ),
     )
 
     async def async_handle_reload_templates(call: ha.ServiceCall) -> None:
diff --git a/homeassistant/components/homeassistant/services.yaml b/homeassistant/components/homeassistant/services.yaml
index 899fee357fd52..09a280133f218 100644
--- a/homeassistant/components/homeassistant/services.yaml
+++ b/homeassistant/components/homeassistant/services.yaml
@@ -13,6 +13,11 @@ set_location:
       example: 117.22743
       selector:
         text:
+    elevation:
+      required: false
+      example: 120
+      selector:
+        text:
 
 stop:
 toggle:
diff --git a/homeassistant/components/homeassistant/strings.json b/homeassistant/components/homeassistant/strings.json
index 5404ee4af6496..53510a94f0195 100644
--- a/homeassistant/components/homeassistant/strings.json
+++ b/homeassistant/components/homeassistant/strings.json
@@ -81,6 +81,10 @@
         "longitude": {
           "name": "[%key:common::config_flow::data::longitude%]",
           "description": "Longitude of your location."
+        },
+        "elevation": {
+          "name": "[%key:common::config_flow::data::elevation%]",
+          "description": "Elevation of your location."
         }
       }
     },
diff --git a/homeassistant/const.py b/homeassistant/const.py
index 70f7827143b12..de968451af9f4 100644
--- a/homeassistant/const.py
+++ b/homeassistant/const.py
@@ -460,6 +460,9 @@ class Platform(StrEnum):
 ATTR_LATITUDE: Final = "latitude"
 ATTR_LONGITUDE: Final = "longitude"
 
+# Elevation of the entity
+ATTR_ELEVATION: Final = "elevation"
+
 # Accuracy of location in meters
 ATTR_GPS_ACCURACY: Final = "gps_accuracy"
 
diff --git a/tests/components/homeassistant/test_init.py b/tests/components/homeassistant/test_init.py
index 652fc4a1fdda7..4c5643ae3ca5b 100644
--- a/tests/components/homeassistant/test_init.py
+++ b/tests/components/homeassistant/test_init.py
@@ -305,6 +305,8 @@ async def test_setting_location(hass: HomeAssistant) -> None:
     # Just to make sure that we are updating values.
     assert hass.config.latitude != 30
     assert hass.config.longitude != 40
+    elevation = hass.config.elevation
+    assert elevation != 50
     await hass.services.async_call(
         "homeassistant",
         "set_location",
@@ -314,6 +316,15 @@ async def test_setting_location(hass: HomeAssistant) -> None:
     assert len(events) == 1
     assert hass.config.latitude == 30
     assert hass.config.longitude == 40
+    assert hass.config.elevation == elevation
+
+    await hass.services.async_call(
+        "homeassistant",
+        "set_location",
+        {"latitude": 30, "longitude": 40, "elevation": 50},
+        blocking=True,
+    )
+    assert hass.config.elevation == 50
 
 
 async def test_require_admin(