diff --git a/src/common/entity/compute_state_display.ts b/src/common/entity/compute_state_display.ts
index 395c6372bba2..49c9d5182a23 100644
--- a/src/common/entity/compute_state_display.ts
+++ b/src/common/entity/compute_state_display.ts
@@ -56,13 +56,15 @@ export const computeStateDisplayFromEntityAttributes = (
   }
 
   const domain = computeDomain(entityId);
-
+  const is_number_domain =
+    domain === "counter" || domain === "number" || domain === "input_number";
   // Entities with a `unit_of_measurement` or `state_class` are numeric values and should use `formatNumber`
   if (
     isNumericFromAttributes(
       attributes,
       domain === "sensor" ? sensorNumericDeviceClasses : []
-    )
+    ) ||
+    is_number_domain
   ) {
     // state is duration
     if (
@@ -165,20 +167,6 @@ export const computeStateDisplayFromEntityAttributes = (
     }
   }
 
-  // `counter` `number` and `input_number` domains do not have a unit of measurement but should still use `formatNumber`
-  if (
-    domain === "counter" ||
-    domain === "number" ||
-    domain === "input_number"
-  ) {
-    // Format as an integer if the value and step are integers
-    return formatNumber(
-      state,
-      locale,
-      getNumberFormatOptions({ state, attributes } as HassEntity, entity)
-    );
-  }
-
   // state is a timestamp
   if (
     [
diff --git a/test/common/entity/compute_state_display.test.ts b/test/common/entity/compute_state_display.test.ts
index 629bd2b47220..2a120abe5c45 100644
--- a/test/common/entity/compute_state_display.test.ts
+++ b/test/common/entity/compute_state_display.test.ts
@@ -269,6 +269,43 @@ describe("computeStateDisplay", () => {
     );
   });
 
+  describe("Localizes a number entity value with translated unit_of_measurement", () => {
+    const testDomain = (domain: string) => {
+      const entity_id = `${domain}.test`;
+      const stateObj: any = {
+        entity_id: entity_id,
+        state: "1234",
+        attributes: {},
+      };
+      const entities: any = {
+        [entity_id]: {
+          translation_key: "custom_translation",
+          platform: "custom_integration",
+        },
+      };
+      assert.strictEqual(
+        computeStateDisplay(
+          localize,
+          stateObj,
+          localeData,
+          numericDeviceClasses,
+          demoConfig,
+          entities
+        ),
+        `1,234 component.custom_integration.entity.${domain}.custom_translation.unit_of_measurement`
+      );
+    };
+    it("Localizes counter domain", () => {
+      testDomain("counter");
+    });
+    it("Localizes number domain", () => {
+      testDomain("number");
+    });
+    it("Localizes input_number domain", () => {
+      testDomain("input_number");
+    });
+  });
+
   describe("Localizes input_datetime with full date time", () => {
     const stateObj: any = {
       entity_id: "input_datetime.test",