diff --git a/.gitignore b/.gitignore
index 5999001..1043c81 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,4 +3,5 @@ icon
 venv
 hass-custom-pyscript.zip
 .coverage
+.vscode
 .*.swp
diff --git a/README.md b/README.md
index aac1dfc..3d8660a 100644
--- a/README.md
+++ b/README.md
@@ -59,13 +59,11 @@ this [README](https://github.com/craigbarratt/hass-pyscript-jupyter/blob/master/
 
 ## Configuration
 
-* Add `pyscript:` to `<config>/configuration.yaml`; pyscript has one optional
-configuration parameter that allows any python package to be imported if set, eg:
+* Go to the Integrations menu in the Home Assistant Configuration UI and add `Pyscript Python scripting` from there, or add `pyscript:` to `<config>/configuration.yaml`; pyscript has one optional configuration parameter that allows any python package to be imported if set, eg:
     ```yaml
     pyscript:
       allow_all_imports: true
     ```
-* Create the folder `<config>/pyscript`
 * Add files with a suffix of `.py` in the folder `<config>/pyscript`.
 * Restart HASS.
 * Whenever you change a script file, make a `reload` service call to `pyscript`.
diff --git a/custom_components/pyscript/__init__.py b/custom_components/pyscript/__init__.py
index 86c9f2d..0ca6ca9 100644
--- a/custom_components/pyscript/__init__.py
+++ b/custom_components/pyscript/__init__.py
@@ -8,6 +8,7 @@
 import voluptuous as vol
 
 from homeassistant.config import async_hass_config_yaml, async_process_component_config
+from homeassistant.config_entries import SOURCE_IMPORT
 from homeassistant.const import (
     EVENT_HOMEASSISTANT_STARTED,
     EVENT_HOMEASSISTANT_STOP,
@@ -18,7 +19,7 @@
 import homeassistant.helpers.config_validation as cv
 from homeassistant.loader import async_get_integration, bind_hass
 
-from .const import DOMAIN, FOLDER, LOGGER_PATH, SERVICE_JUPYTER_KERNEL_START
+from .const import CONF_ALLOW_ALL_IMPORTS, DOMAIN, FOLDER, LOGGER_PATH, SERVICE_JUPYTER_KERNEL_START
 from .eval import AstEval
 from .event import Event
 from .function import Function
@@ -29,20 +30,27 @@
 
 _LOGGER = logging.getLogger(LOGGER_PATH)
 
-CONF_ALLOW_ALL_IMPORTS = "allow_all_imports"
-
-CONFIG_SCHEMA = vol.Schema(
-    {
-        DOMAIN: vol.Schema(
-            {vol.Optional(CONF_ALLOW_ALL_IMPORTS, default=False): cv.boolean}, extra=vol.ALLOW_EXTRA,
-        )
-    },
-    extra=vol.ALLOW_EXTRA,
+PYSCRIPT_SCHEMA = vol.Schema(
+    {vol.Optional(CONF_ALLOW_ALL_IMPORTS, default=False): cv.boolean}, extra=vol.ALLOW_EXTRA,
 )
 
+CONFIG_SCHEMA = vol.Schema({DOMAIN: PYSCRIPT_SCHEMA}, extra=vol.ALLOW_EXTRA)
+
 
 async def async_setup(hass, config):
-    """Initialize the pyscript component."""
+    """Component setup, run import config flow for each entry in config."""
+    if DOMAIN in config:
+        hass.async_create_task(
+            hass.config_entries.flow.async_init(
+                DOMAIN, context={"source": SOURCE_IMPORT}, data=config[DOMAIN]
+            )
+        )
+
+    return True
+
+
+async def async_setup_entry(hass, config_entry):
+    """Initialize the pyscript config entry."""
     Function.init(hass)
     Event.init(hass)
     TrigTime.init(hass)
@@ -52,19 +60,16 @@ async def async_setup(hass, config):
 
     pyscript_folder = hass.config.path(FOLDER)
 
-    def check_isdir(path):
-        return os.path.isdir(path)
-
-    if not await hass.async_add_executor_job(check_isdir, pyscript_folder):
-        _LOGGER.error("Folder %s not found in configuration folder", FOLDER)
-        return False
+    if not await hass.async_add_executor_job(os.path.isdir, pyscript_folder):
+        _LOGGER.debug("Folder %s not found in configuration folder, creating it", FOLDER)
+        await hass.async_add_executor_job(os.makedirs, pyscript_folder)
 
     hass.data.setdefault(DOMAIN, {})
-    hass.data[DOMAIN]["allow_all_imports"] = config[DOMAIN].get(CONF_ALLOW_ALL_IMPORTS)
+    hass.data[DOMAIN][CONF_ALLOW_ALL_IMPORTS] = config_entry.data.get(CONF_ALLOW_ALL_IMPORTS)
 
-    State.set_pyscript_config(config.get(DOMAIN, {}))
+    State.set_pyscript_config(config_entry.data)
 
-    await load_scripts(hass, config)
+    await load_scripts(hass, config_entry.data)
 
     async def reload_scripts_handler(call):
         """Handle reload service calls."""
@@ -176,6 +181,12 @@ async def stop_triggers(event):
     return True
 
 
+async def async_unload_entry(hass, config_entry):
+    """Unload a config entry."""
+    hass.data.pop(DOMAIN)
+    return True
+
+
 @bind_hass
 async def load_scripts(hass, config):
     """Load all python scripts in FOLDER."""
diff --git a/custom_components/pyscript/config_flow.py b/custom_components/pyscript/config_flow.py
new file mode 100644
index 0000000..d91b636
--- /dev/null
+++ b/custom_components/pyscript/config_flow.py
@@ -0,0 +1,48 @@
+"""Config flow for pyscript."""
+import voluptuous as vol
+
+from homeassistant import config_entries
+
+from .const import CONF_ALLOW_ALL_IMPORTS, DOMAIN
+
+PYSCRIPT_SCHEMA = vol.Schema(
+    {vol.Optional(CONF_ALLOW_ALL_IMPORTS, default=False): bool}, extra=vol.ALLOW_EXTRA,
+)
+
+
+class PyscriptConfigFlow(config_entries.ConfigFlow, domain=DOMAIN):
+    """Handle a pyscript config flow."""
+
+    VERSION = 1
+    CONNECTION_CLASS = config_entries.CONN_CLASS_LOCAL_PUSH
+
+    async def async_step_user(self, user_input):
+        """Handle a flow initialized by the user."""
+        if user_input is not None:
+            if len(self.hass.config_entries.async_entries(DOMAIN)) > 0:
+                return self.async_abort(reason="single_instance_allowed")
+
+            await self.async_set_unique_id(DOMAIN)
+            return self.async_create_entry(title=DOMAIN, data=user_input)
+
+        return self.async_show_form(step_id="user", data_schema=PYSCRIPT_SCHEMA)
+
+    async def async_step_import(self, import_config):
+        """Import a config entry from configuration.yaml."""
+        # Check if import config entry matches any existing config entries
+        # so we can update it if necessary
+        entries = self.hass.config_entries.async_entries(DOMAIN)
+        if entries:
+            entry = entries[0]
+            if entry.data.get(CONF_ALLOW_ALL_IMPORTS, False) != import_config.get(
+                CONF_ALLOW_ALL_IMPORTS, False
+            ):
+                updated_data = entry.data.copy()
+                updated_data[CONF_ALLOW_ALL_IMPORTS] = import_config.get(CONF_ALLOW_ALL_IMPORTS, False)
+                self.hass.config_entries.async_update_entry(entry=entry, data=updated_data)
+                await self.hass.config_entries.async_reload(entry.entry_id)
+                return self.async_abort(reason="updated_entry")
+
+            return self.async_abort(reason="already_configured_service")
+
+        return await self.async_step_user(user_input=import_config)
diff --git a/custom_components/pyscript/const.py b/custom_components/pyscript/const.py
index 1bd61ee..cc9c7d7 100644
--- a/custom_components/pyscript/const.py
+++ b/custom_components/pyscript/const.py
@@ -4,6 +4,8 @@
 
 FOLDER = "pyscript"
 
+CONF_ALLOW_ALL_IMPORTS = "allow_all_imports"
+
 SERVICE_JUPYTER_KERNEL_START = "jupyter_kernel_start"
 
 LOGGER_PATH = "custom_components.pyscript"
diff --git a/custom_components/pyscript/manifest.json b/custom_components/pyscript/manifest.json
index f991cd5..b011e92 100644
--- a/custom_components/pyscript/manifest.json
+++ b/custom_components/pyscript/manifest.json
@@ -1,7 +1,7 @@
 {
   "domain": "pyscript",
   "name": "Pyscript Python scripting",
-  "config_flow": false,
+  "config_flow": true,
   "documentation": "https://github.com/custom-components/pyscript",
   "issue_tracker": "https://github.com/custom-components/pyscript/issues",
   "requirements": ["croniter==0.3.34"],
diff --git a/custom_components/pyscript/strings.json b/custom_components/pyscript/strings.json
new file mode 100644
index 0000000..3f13345
--- /dev/null
+++ b/custom_components/pyscript/strings.json
@@ -0,0 +1,18 @@
+{
+  "config": {
+    "step": {
+      "user": {
+        "title": "pyscript",
+        "description": "Once you have created an entry, refer to the [docs](https://hacs-pyscript.readthedocs.io/en/latest/) to learn how to create scripts and functions.",
+        "data": {
+          "allow_all_imports": "Allow All Imports?"
+        }
+      }
+    },
+    "abort": {
+      "already_configured_service": "[%key:common::config_flow::abort::already_configured_service%]",
+      "single_instance_allowed": "[%key:common::config_flow::abort::single_instance_allowed%]",
+      "updated_entry": "This entry has already been setup but the configuration has been updated."
+    }
+  }
+}
\ No newline at end of file
diff --git a/custom_components/pyscript/translations/en.json b/custom_components/pyscript/translations/en.json
new file mode 100644
index 0000000..3f13345
--- /dev/null
+++ b/custom_components/pyscript/translations/en.json
@@ -0,0 +1,18 @@
+{
+  "config": {
+    "step": {
+      "user": {
+        "title": "pyscript",
+        "description": "Once you have created an entry, refer to the [docs](https://hacs-pyscript.readthedocs.io/en/latest/) to learn how to create scripts and functions.",
+        "data": {
+          "allow_all_imports": "Allow All Imports?"
+        }
+      }
+    },
+    "abort": {
+      "already_configured_service": "[%key:common::config_flow::abort::already_configured_service%]",
+      "single_instance_allowed": "[%key:common::config_flow::abort::single_instance_allowed%]",
+      "updated_entry": "This entry has already been setup but the configuration has been updated."
+    }
+  }
+}
\ No newline at end of file
diff --git a/docs/configuration.rst b/docs/configuration.rst
index b68f2ad..f98154b 100644
--- a/docs/configuration.rst
+++ b/docs/configuration.rst
@@ -1,16 +1,16 @@
 Configuration
 =============
 
--  Add ``pyscript:`` to ``<config>/configuration.yaml``; pyscript has
-   one optional configuration parameter that allows any python package
-   to be imported if set, eg:
+-  Go to the Integrations menu in the Home Assistant Configuration UI and add
+   ``Pyscript Python scripting`` from there, or add ``pyscript:`` to 
+   ``<config>/configuration.yaml``; pyscript has one optional configuration
+   parameter that allows any python package to be imported if set, eg:
 
    .. code:: yaml
 
       pyscript:
         allow_all_imports: true
 
--  Create the folder ``<config>/pyscript``
 -  Add files with a suffix of ``.py`` in the folder ``<config>/pyscript``.
 -  Restart HASS.
 -  Whenever you change a script file, make a ``reload`` service call to ``pyscript``.
diff --git a/info.md b/info.md
index 00de20e..55e81f9 100644
--- a/info.md
+++ b/info.md
@@ -23,8 +23,7 @@ See the documentation if you want to install pyscript manually.
 
 ## Configuration
 
-* Add `pyscript:` to `<config>/configuration.yaml`; there is one optional parameter (see docs)
-* Create the folder `<config>/pyscript`
+* Go to the Integrations menu in the Home Assistant Configuration UI and add `Pyscript Python scripting` from there, or add `pyscript:` to `<config>/configuration.yaml`; there is one optional parameter (see docs)
 * Add files with a suffix of `.py` in the folder `<config>/pyscript`.
 * Whenever you change a script file, make a `reload` service call to `pyscript`.
 * Watch the HASS log for `pyscript` errors and logger output from your scripts.
diff --git a/tests/test_config_flow.py b/tests/test_config_flow.py
new file mode 100644
index 0000000..7f76f35
--- /dev/null
+++ b/tests/test_config_flow.py
@@ -0,0 +1,107 @@
+"""Tests for pyscript config flow."""
+import logging
+
+from custom_components.pyscript import PYSCRIPT_SCHEMA
+from custom_components.pyscript.const import CONF_ALLOW_ALL_IMPORTS, DOMAIN
+import pytest
+from pytest_homeassistant.async_mock import patch
+
+from homeassistant import data_entry_flow
+from homeassistant.config_entries import SOURCE_IMPORT, SOURCE_USER
+
+_LOGGER = logging.getLogger(__name__)
+
+
+@pytest.fixture(name="pyscript_bypass_setup", autouse=True)
+def pyscript_bypass_setup_fixture():
+    """Mock component setup."""
+    with patch("custom_components.pyscript.async_setup_entry", return_value=True):
+        yield
+
+
+async def test_user_flow_minimum_fields(hass):
+    """Test user config flow with minimum fields."""
+    # test form shows
+    result = await hass.config_entries.flow.async_init(DOMAIN, context={"source": SOURCE_USER})
+    assert result["type"] == data_entry_flow.RESULT_TYPE_FORM
+    assert result["step_id"] == "user"
+
+    result = await hass.config_entries.flow.async_configure(result["flow_id"], user_input={})
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+    assert CONF_ALLOW_ALL_IMPORTS in result["data"]
+    assert not result["data"][CONF_ALLOW_ALL_IMPORTS]
+
+
+async def test_user_flow_all_fields(hass):
+    """Test user config flow with all fields."""
+    # test form shows
+    result = await hass.config_entries.flow.async_init(DOMAIN, context={"source": SOURCE_USER})
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_FORM
+    assert result["step_id"] == "user"
+
+    result = await hass.config_entries.flow.async_configure(
+        result["flow_id"], user_input={CONF_ALLOW_ALL_IMPORTS: True}
+    )
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+    assert CONF_ALLOW_ALL_IMPORTS in result["data"]
+    assert result["data"][CONF_ALLOW_ALL_IMPORTS]
+
+
+async def test_user_already_configured(hass):
+    """Test service is already configured during user setup."""
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_USER}, data={CONF_ALLOW_ALL_IMPORTS: True}
+    )
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_USER}, data={CONF_ALLOW_ALL_IMPORTS: True}
+    )
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_ABORT
+    assert result["reason"] == "single_instance_allowed"
+
+
+async def test_import_flow(hass, pyscript_bypass_setup):
+    """Test import config flow works."""
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_IMPORT}, data=PYSCRIPT_SCHEMA({})
+    )
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+
+
+async def test_import_flow_update_entry(hass):
+    """Test import config flow updates existing entry."""
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_IMPORT}, data=PYSCRIPT_SCHEMA({})
+    )
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_IMPORT}, data={CONF_ALLOW_ALL_IMPORTS: True}
+    )
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_ABORT
+    assert result["reason"] == "updated_entry"
+
+
+async def test_import_flow_no_update(hass):
+    """Test import config flow doesn't update existing entry when data is same."""
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_IMPORT}, data=PYSCRIPT_SCHEMA({})
+    )
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+
+    result = await hass.config_entries.flow.async_init(
+        DOMAIN, context={"source": SOURCE_IMPORT}, data=PYSCRIPT_SCHEMA({})
+    )
+
+    assert result["type"] == data_entry_flow.RESULT_TYPE_ABORT
+    assert result["reason"] == "already_configured_service"
diff --git a/tests/test_init.py b/tests/test_init.py
index 6805bef..d897d08 100644
--- a/tests/test_init.py
+++ b/tests/test_init.py
@@ -65,8 +65,8 @@ async def wait_until_done(notify_q):
     return await asyncio.wait_for(notify_q.get(), timeout=4)
 
 
-async def test_setup_fails_on_no_dir(hass, caplog):
-    """Test we fail setup when no dir found."""
+async def test_setup_makedirs_on_no_dir(hass, caplog):
+    """Test setup calls os.makedirs when no dir found."""
     integration = loader.Integration(
         hass,
         "custom_components.pyscript",
@@ -76,11 +76,11 @@ async def test_setup_fails_on_no_dir(hass, caplog):
 
     with patch("homeassistant.loader.async_get_integration", return_value=integration), patch(
         "custom_components.pyscript.os.path.isdir", return_value=False
-    ):
+    ), patch("custom_components.pyscript.os.makedirs") as makedirs_call:
         res = await async_setup_component(hass, "pyscript", {DOMAIN: {}})
 
-    assert not res
-    assert "Folder pyscript not found in configuration folder" in caplog.text
+    assert res
+    assert makedirs_call.called
 
 
 async def test_service_exists(hass, caplog):