diff --git a/homeassistant/components/climate/mqtt.py b/homeassistant/components/climate/mqtt.py
index 79c49db7955..ff9b78135fd 100644
--- a/homeassistant/components/climate/mqtt.py
+++ b/homeassistant/components/climate/mqtt.py
@@ -75,6 +75,7 @@ CONF_SEND_IF_OFF = 'send_if_off'
 
 CONF_MIN_TEMP = 'min_temp'
 CONF_MAX_TEMP = 'max_temp'
+CONF_TEMP_STEP = 'temp_step'
 
 SCHEMA_BASE = CLIMATE_PLATFORM_SCHEMA.extend(MQTT_BASE_PLATFORM_SCHEMA.schema)
 PLATFORM_SCHEMA = SCHEMA_BASE.extend({
@@ -124,7 +125,8 @@ PLATFORM_SCHEMA = SCHEMA_BASE.extend({
     vol.Optional(CONF_PAYLOAD_OFF, default="OFF"): cv.string,
 
     vol.Optional(CONF_MIN_TEMP, default=DEFAULT_MIN_TEMP): vol.Coerce(float),
-    vol.Optional(CONF_MAX_TEMP, default=DEFAULT_MAX_TEMP): vol.Coerce(float)
+    vol.Optional(CONF_MAX_TEMP, default=DEFAULT_MAX_TEMP): vol.Coerce(float),
+    vol.Optional(CONF_TEMP_STEP, default=1.0): vol.Coerce(float)
 
 }).extend(mqtt.MQTT_AVAILABILITY_SCHEMA.schema)
 
@@ -213,6 +215,7 @@ async def _async_setup_entity(hass, config, async_add_entities,
             config.get(CONF_PAYLOAD_NOT_AVAILABLE),
             config.get(CONF_MIN_TEMP),
             config.get(CONF_MAX_TEMP),
+            config.get(CONF_TEMP_STEP),
             discovery_hash,
         )])
 
@@ -226,7 +229,7 @@ class MqttClimate(MqttAvailability, MqttDiscoveryUpdate, ClimateDevice):
                  current_swing_mode, current_operation, aux, send_if_off,
                  payload_on, payload_off, availability_topic,
                  payload_available, payload_not_available,
-                 min_temp, max_temp, discovery_hash):
+                 min_temp, max_temp, temp_step, discovery_hash):
         """Initialize the climate device."""
         MqttAvailability.__init__(self, availability_topic, qos,
                                   payload_available, payload_not_available)
@@ -249,7 +252,7 @@ class MqttClimate(MqttAvailability, MqttDiscoveryUpdate, ClimateDevice):
         self._fan_list = fan_mode_list
         self._operation_list = mode_list
         self._swing_list = swing_mode_list
-        self._target_temperature_step = 1
+        self._target_temperature_step = temp_step
         self._send_if_off = send_if_off
         self._payload_on = payload_on
         self._payload_off = payload_off
diff --git a/tests/components/climate/test_mqtt.py b/tests/components/climate/test_mqtt.py
index c63dbf26690..f330efd99b8 100644
--- a/tests/components/climate/test_mqtt.py
+++ b/tests/components/climate/test_mqtt.py
@@ -653,6 +653,19 @@ class TestMQTTClimate(unittest.TestCase):
         self.assertIsInstance(max_temp, float)
         self.assertEqual(60, max_temp)
 
+    def test_temp_step_custom(self):
+        """Test a custom temp step."""
+        config = copy.deepcopy(DEFAULT_CONFIG)
+        config['climate']['temp_step'] = 0.01
+
+        assert setup_component(self.hass, climate.DOMAIN, config)
+
+        state = self.hass.states.get(ENTITY_CLIMATE)
+        temp_step = state.attributes.get('target_temp_step')
+
+        self.assertIsInstance(temp_step, float)
+        self.assertEqual(0.01, temp_step)
+
 
 async def test_discovery_removal_climate(hass, mqtt_mock, caplog):
     """Test removal of discovered climate."""