diff --git a/homeassistant/components/http/__init__.py b/homeassistant/components/http/__init__.py
index d8c877e83a2..f769d2bc4ff 100644
--- a/homeassistant/components/http/__init__.py
+++ b/homeassistant/components/http/__init__.py
@@ -180,7 +180,7 @@ class HomeAssistantHTTP(object):
             middlewares=[staticresource_middleware])
 
         # This order matters
-        setup_real_ip(app, use_x_forwarded_for)
+        setup_real_ip(app, use_x_forwarded_for, trusted_networks)
 
         if is_ban_enabled:
             setup_bans(hass, app, login_threshold)
diff --git a/homeassistant/components/http/real_ip.py b/homeassistant/components/http/real_ip.py
index c394016a683..401a09dc306 100644
--- a/homeassistant/components/http/real_ip.py
+++ b/homeassistant/components/http/real_ip.py
@@ -11,18 +11,22 @@ from .const import KEY_REAL_IP
 
 
 @callback
-def setup_real_ip(app, use_x_forwarded_for):
+def setup_real_ip(app, use_x_forwarded_for, trusted_networks):
     """Create IP Ban middleware for the app."""
     @middleware
     async def real_ip_middleware(request, handler):
         """Real IP middleware."""
+        connected_ip = ip_address(
+            request.transport.get_extra_info('peername')[0])
+        request[KEY_REAL_IP] = connected_ip
+
+        # Only use the XFF header if enabled, present, and from a trusted proxy
         if (use_x_forwarded_for and
-                X_FORWARDED_FOR in request.headers):
+                X_FORWARDED_FOR in request.headers and
+                any(connected_ip in trusted_network
+                    for trusted_network in trusted_networks)):
             request[KEY_REAL_IP] = ip_address(
                 request.headers.get(X_FORWARDED_FOR).split(',')[0])
-        else:
-            request[KEY_REAL_IP] = \
-                ip_address(request.transport.get_extra_info('peername')[0])
 
         return await handler(request)
 
diff --git a/tests/components/http/test_auth.py b/tests/components/http/test_auth.py
index a44d17d513d..dd8b2cd35c4 100644
--- a/tests/components/http/test_auth.py
+++ b/tests/components/http/test_auth.py
@@ -41,7 +41,7 @@ def app():
     """Fixture to setup a web.Application."""
     app = web.Application()
     app.router.add_get('/', mock_handler)
-    setup_real_ip(app, False)
+    setup_real_ip(app, False, [])
     return app
 
 
diff --git a/tests/components/http/test_real_ip.py b/tests/components/http/test_real_ip.py
index 61846eb94c2..b6af8159207 100644
--- a/tests/components/http/test_real_ip.py
+++ b/tests/components/http/test_real_ip.py
@@ -1,6 +1,7 @@
 """Test real IP middleware."""
 from aiohttp import web
 from aiohttp.hdrs import X_FORWARDED_FOR
+from ipaddress import ip_network
 
 from homeassistant.components.http.real_ip import setup_real_ip
 from homeassistant.components.http.const import KEY_REAL_IP
@@ -15,7 +16,7 @@ async def test_ignore_x_forwarded_for(aiohttp_client):
     """Test that we get the IP from the transport."""
     app = web.Application()
     app.router.add_get('/', mock_handler)
-    setup_real_ip(app, False)
+    setup_real_ip(app, False, [])
 
     mock_api_client = await aiohttp_client(app)
 
@@ -27,11 +28,27 @@ async def test_ignore_x_forwarded_for(aiohttp_client):
     assert text != '255.255.255.255'
 
 
-async def test_use_x_forwarded_for(aiohttp_client):
+async def test_use_x_forwarded_for_without_trusted_proxy(aiohttp_client):
     """Test that we get the IP from the transport."""
     app = web.Application()
     app.router.add_get('/', mock_handler)
-    setup_real_ip(app, True)
+    setup_real_ip(app, True, [])
+
+    mock_api_client = await aiohttp_client(app)
+
+    resp = await mock_api_client.get('/', headers={
+        X_FORWARDED_FOR: '255.255.255.255'
+    })
+    assert resp.status == 200
+    text = await resp.text()
+    assert text != '255.255.255.255'
+
+
+async def test_use_x_forwarded_for_with_trusted_proxy(aiohttp_client):
+    """Test that we get the IP from the transport."""
+    app = web.Application()
+    app.router.add_get('/', mock_handler)
+    setup_real_ip(app, True, [ip_network('127.0.0.1')])
 
     mock_api_client = await aiohttp_client(app)