diff --git a/homeassistant/components/fritz/binary_sensor.py b/homeassistant/components/fritz/binary_sensor.py
index db1aac99c47f..f119b7c11cbd 100644
--- a/homeassistant/components/fritz/binary_sensor.py
+++ b/homeassistant/components/fritz/binary_sensor.py
@@ -42,6 +42,8 @@ SENSOR_TYPES: tuple[FritzBinarySensorEntityDescription, ...] = (
         entity_category=EntityCategory.DIAGNOSTIC,
     ),
     FritzBinarySensorEntityDescription(
+        # Deprecated, scheduled to be removed in 2022.7 (#70096)
+        entity_registry_enabled_default=False,
         key="firmware_update",
         name="Firmware Update",
         device_class=BinarySensorDeviceClass.UPDATE,
diff --git a/homeassistant/components/fritz/const.py b/homeassistant/components/fritz/const.py
index a3ba907366c8..77c5c02c2880 100644
--- a/homeassistant/components/fritz/const.py
+++ b/homeassistant/components/fritz/const.py
@@ -30,6 +30,7 @@ PLATFORMS = [
     Platform.DEVICE_TRACKER,
     Platform.SENSOR,
     Platform.SWITCH,
+    Platform.UPDATE,
 ]
 
 CONF_OLD_DISCOVERY = "old_discovery"
diff --git a/homeassistant/components/fritz/update.py b/homeassistant/components/fritz/update.py
new file mode 100644
index 000000000000..620b932999e0
--- /dev/null
+++ b/homeassistant/components/fritz/update.py
@@ -0,0 +1,62 @@
+"""Support for AVM FRITZ!Box update platform."""
+from __future__ import annotations
+
+import logging
+from typing import Any
+
+from homeassistant.components.update import UpdateEntity, UpdateEntityFeature
+from homeassistant.config_entries import ConfigEntry
+from homeassistant.core import HomeAssistant
+from homeassistant.helpers.entity_platform import AddEntitiesCallback
+
+from .common import AvmWrapper, FritzBoxBaseEntity
+from .const import DOMAIN
+
+_LOGGER = logging.getLogger(__name__)
+
+
+async def async_setup_entry(
+    hass: HomeAssistant, entry: ConfigEntry, async_add_entities: AddEntitiesCallback
+) -> None:
+    """Set up AVM FRITZ!Box update entities."""
+    _LOGGER.debug("Setting up AVM FRITZ!Box update entities")
+    avm_wrapper: AvmWrapper = hass.data[DOMAIN][entry.entry_id]
+
+    entities = [FritzBoxUpdateEntity(avm_wrapper, entry.title)]
+
+    async_add_entities(entities)
+
+
+class FritzBoxUpdateEntity(FritzBoxBaseEntity, UpdateEntity):
+    """Mixin for update entity specific attributes."""
+
+    _attr_supported_features = UpdateEntityFeature.INSTALL
+    _attr_title = "FRITZ!OS"
+
+    def __init__(
+        self,
+        avm_wrapper: AvmWrapper,
+        device_friendly_name: str,
+    ) -> None:
+        """Init FRITZ!Box connectivity class."""
+        self._attr_name = f"{device_friendly_name} FRITZ!OS"
+        self._attr_unique_id = f"{avm_wrapper.unique_id}-update"
+        super().__init__(avm_wrapper, device_friendly_name)
+
+    @property
+    def installed_version(self) -> str | None:
+        """Version currently in use."""
+        return self._avm_wrapper.current_firmware
+
+    @property
+    def latest_version(self) -> str | None:
+        """Latest version available for install."""
+        if self._avm_wrapper.update_available:
+            return self._avm_wrapper.latest_firmware
+        return self._avm_wrapper.current_firmware
+
+    async def async_install(
+        self, version: str | None, backup: bool, **kwargs: Any
+    ) -> None:
+        """Install an update."""
+        await self._avm_wrapper.async_trigger_firmware_update()
diff --git a/tests/components/fritz/const.py b/tests/components/fritz/const.py
index 79d92a1e22de..39533d07a93a 100644
--- a/tests/components/fritz/const.py
+++ b/tests/components/fritz/const.py
@@ -29,6 +29,7 @@ MOCK_HOST = "fake_host"
 MOCK_IPS = {"fritz.box": "192.168.178.1", "printer": "192.168.178.2"}
 MOCK_MODELNAME = "FRITZ!Box 7530 AX"
 MOCK_FIRMWARE = "256.07.29"
+MOCK_FIRMWARE_AVAILABLE = "256.07.50"
 MOCK_SERIAL_NUMBER = "fake_serial_number"
 MOCK_FIRMWARE_INFO = [True, "1.1.1"]
 MOCK_MESH_SSID = "TestSSID"
diff --git a/tests/components/fritz/test_update.py b/tests/components/fritz/test_update.py
new file mode 100644
index 000000000000..f43b35755e84
--- /dev/null
+++ b/tests/components/fritz/test_update.py
@@ -0,0 +1,105 @@
+"""The tests for the Fritzbox update entity."""
+
+from unittest.mock import patch
+
+from aiohttp import ClientSession
+
+from homeassistant.components.fritz.const import DOMAIN
+from homeassistant.components.update import DOMAIN as UPDATE_DOMAIN
+from homeassistant.config_entries import ConfigEntryState
+from homeassistant.core import HomeAssistant
+from homeassistant.setup import async_setup_component
+
+from .const import MOCK_FIRMWARE, MOCK_FIRMWARE_AVAILABLE, MOCK_USER_DATA
+
+from tests.common import MockConfigEntry
+
+
+async def test_update_entities_initialized(
+    hass: HomeAssistant, hass_client: ClientSession, fc_class_mock, fh_class_mock
+):
+    """Test update entities."""
+
+    entry = MockConfigEntry(domain=DOMAIN, data=MOCK_USER_DATA)
+    entry.add_to_hass(hass)
+
+    assert await async_setup_component(hass, DOMAIN, {})
+    await hass.async_block_till_done()
+    assert entry.state == ConfigEntryState.LOADED
+
+    updates = hass.states.async_all(UPDATE_DOMAIN)
+    assert len(updates) == 1
+
+
+async def test_update_available(
+    hass: HomeAssistant, hass_client: ClientSession, fc_class_mock, fh_class_mock
+):
+    """Test update entities."""
+
+    with patch(
+        "homeassistant.components.fritz.common.FritzBoxTools._update_device_info",
+        return_value=(True, MOCK_FIRMWARE_AVAILABLE),
+    ):
+        entry = MockConfigEntry(domain=DOMAIN, data=MOCK_USER_DATA)
+        entry.add_to_hass(hass)
+
+        assert await async_setup_component(hass, DOMAIN, {})
+        await hass.async_block_till_done()
+        assert entry.state == ConfigEntryState.LOADED
+
+        update = hass.states.get("update.mock_title_fritz_os")
+        assert update is not None
+        assert update.state == "on"
+        assert update.attributes.get("installed_version") == MOCK_FIRMWARE
+        assert update.attributes.get("latest_version") == MOCK_FIRMWARE_AVAILABLE
+
+
+async def test_no_update_available(
+    hass: HomeAssistant, hass_client: ClientSession, fc_class_mock, fh_class_mock
+):
+    """Test update entities."""
+
+    entry = MockConfigEntry(domain=DOMAIN, data=MOCK_USER_DATA)
+    entry.add_to_hass(hass)
+
+    assert await async_setup_component(hass, DOMAIN, {})
+    await hass.async_block_till_done()
+    assert entry.state == ConfigEntryState.LOADED
+
+    update = hass.states.get("update.mock_title_fritz_os")
+    assert update is not None
+    assert update.state == "off"
+    assert update.attributes.get("installed_version") == MOCK_FIRMWARE
+    assert update.attributes.get("latest_version") == MOCK_FIRMWARE
+
+
+async def test_available_update_can_be_installed(
+    hass: HomeAssistant, hass_client: ClientSession, fc_class_mock, fh_class_mock
+):
+    """Test update entities."""
+
+    with patch(
+        "homeassistant.components.fritz.common.FritzBoxTools._update_device_info",
+        return_value=(True, MOCK_FIRMWARE_AVAILABLE),
+    ), patch(
+        "homeassistant.components.fritz.common.FritzBoxTools.async_trigger_firmware_update",
+        return_value=True,
+    ) as mocked_update_call:
+        entry = MockConfigEntry(domain=DOMAIN, data=MOCK_USER_DATA)
+        entry.add_to_hass(hass)
+
+        assert await async_setup_component(hass, DOMAIN, {})
+        await hass.async_block_till_done()
+        assert entry.state == ConfigEntryState.LOADED
+
+        update = hass.states.get("update.mock_title_fritz_os")
+        assert update is not None
+        assert update.state == "on"
+
+        assert await hass.services.async_call(
+            "update",
+            "install",
+            {"entity_id": "update.mock_title_fritz_os"},
+            blocking=True,
+        )
+        assert mocked_update_call.assert_called_once