diff --git a/homeassistant/components/template/alarm_control_panel.py b/homeassistant/components/template/alarm_control_panel.py
index ae26e58ac04..132e9fb0ca5 100644
--- a/homeassistant/components/template/alarm_control_panel.py
+++ b/homeassistant/components/template/alarm_control_panel.py
@@ -21,6 +21,7 @@ from homeassistant.const import (
     STATE_ALARM_ARMED_AWAY,
     STATE_ALARM_ARMED_HOME,
     STATE_ALARM_ARMED_NIGHT,
+    STATE_ALARM_ARMED_VACATION,
     STATE_ALARM_ARMING,
     STATE_ALARM_DISARMED,
     STATE_ALARM_PENDING,
@@ -43,6 +44,7 @@ _VALID_STATES = [
     STATE_ALARM_ARMED_AWAY,
     STATE_ALARM_ARMED_HOME,
     STATE_ALARM_ARMED_NIGHT,
+    STATE_ALARM_ARMED_VACATION,
     STATE_ALARM_ARMING,
     STATE_ALARM_DISARMED,
     STATE_ALARM_PENDING,
@@ -53,6 +55,7 @@ _VALID_STATES = [
 CONF_ARM_AWAY_ACTION = "arm_away"
 CONF_ARM_HOME_ACTION = "arm_home"
 CONF_ARM_NIGHT_ACTION = "arm_night"
+CONF_ARM_VACATION_ACTION = "arm_vacation"
 CONF_DISARM_ACTION = "disarm"
 CONF_ALARM_CONTROL_PANELS = "panels"
 CONF_CODE_ARM_REQUIRED = "code_arm_required"
@@ -74,6 +77,7 @@ ALARM_CONTROL_PANEL_SCHEMA = vol.Schema(
         vol.Optional(CONF_ARM_AWAY_ACTION): cv.SCRIPT_SCHEMA,
         vol.Optional(CONF_ARM_HOME_ACTION): cv.SCRIPT_SCHEMA,
         vol.Optional(CONF_ARM_NIGHT_ACTION): cv.SCRIPT_SCHEMA,
+        vol.Optional(CONF_ARM_VACATION_ACTION): cv.SCRIPT_SCHEMA,
         vol.Optional(CONF_CODE_ARM_REQUIRED, default=True): cv.boolean,
         vol.Optional(CONF_CODE_FORMAT, default=TemplateCodeFormat.number.name): cv.enum(
             TemplateCodeFormat
@@ -157,6 +161,9 @@ class AlarmControlPanelTemplate(TemplateEntity, AlarmControlPanelEntity):
         self._arm_night_script = None
         if (arm_night_action := config.get(CONF_ARM_NIGHT_ACTION)) is not None:
             self._arm_night_script = Script(hass, arm_night_action, name, DOMAIN)
+        self._arm_vacation_script = None
+        if (arm_vacation_action := config.get(CONF_ARM_VACATION_ACTION)) is not None:
+            self._arm_vacation_script = Script(hass, arm_vacation_action, name, DOMAIN)
 
         self._state: str | None = None
 
@@ -184,6 +191,11 @@ class AlarmControlPanelTemplate(TemplateEntity, AlarmControlPanelEntity):
                 supported_features | AlarmControlPanelEntityFeature.ARM_AWAY
             )
 
+        if self._arm_vacation_script is not None:
+            supported_features = (
+                supported_features | AlarmControlPanelEntityFeature.ARM_VACATION
+            )
+
         return supported_features
 
     @property
@@ -257,6 +269,12 @@ class AlarmControlPanelTemplate(TemplateEntity, AlarmControlPanelEntity):
             STATE_ALARM_ARMED_NIGHT, script=self._arm_night_script, code=code
         )
 
+    async def async_alarm_arm_vacation(self, code: str | None = None) -> None:
+        """Arm the panel to Vacation."""
+        await self._async_alarm_arm(
+            STATE_ALARM_ARMED_VACATION, script=self._arm_vacation_script, code=code
+        )
+
     async def async_alarm_disarm(self, code: str | None = None) -> None:
         """Disarm the panel."""
         await self._async_alarm_arm(
diff --git a/tests/components/template/test_alarm_control_panel.py b/tests/components/template/test_alarm_control_panel.py
index 8f9ab39f7c0..9e51b48dcc6 100644
--- a/tests/components/template/test_alarm_control_panel.py
+++ b/tests/components/template/test_alarm_control_panel.py
@@ -10,6 +10,7 @@ from homeassistant.const import (
     STATE_ALARM_ARMED_AWAY,
     STATE_ALARM_ARMED_HOME,
     STATE_ALARM_ARMED_NIGHT,
+    STATE_ALARM_ARMED_VACATION,
     STATE_ALARM_ARMING,
     STATE_ALARM_DISARMED,
     STATE_ALARM_PENDING,
@@ -56,6 +57,11 @@ OPTIMISTIC_TEMPLATE_ALARM_CONFIG = {
         "entity_id": "alarm_control_panel.test",
         "data": {"code": "{{ this.entity_id }}"},
     },
+    "arm_vacation": {
+        "service": "alarm_control_panel.alarm_arm_vacation",
+        "entity_id": "alarm_control_panel.test",
+        "data": {"code": "{{ this.entity_id }}"},
+    },
     "disarm": {
         "service": "alarm_control_panel.alarm_disarm",
         "entity_id": "alarm_control_panel.test",
@@ -89,6 +95,7 @@ async def test_template_state_text(hass, start_ha):
         STATE_ALARM_ARMED_HOME,
         STATE_ALARM_ARMED_AWAY,
         STATE_ALARM_ARMED_NIGHT,
+        STATE_ALARM_ARMED_VACATION,
         STATE_ALARM_ARMING,
         STATE_ALARM_DISARMED,
         STATE_ALARM_PENDING,
@@ -128,6 +135,7 @@ async def test_optimistic_states(hass, start_ha):
         ("alarm_arm_away", STATE_ALARM_ARMED_AWAY),
         ("alarm_arm_home", STATE_ALARM_ARMED_HOME),
         ("alarm_arm_night", STATE_ALARM_ARMED_NIGHT),
+        ("alarm_arm_vacation", STATE_ALARM_ARMED_VACATION),
         ("alarm_disarm", STATE_ALARM_DISARMED),
     ]:
         await hass.services.async_call(
@@ -250,6 +258,7 @@ async def test_name(hass, start_ha):
         "alarm_arm_home",
         "alarm_arm_away",
         "alarm_arm_night",
+        "alarm_arm_vacation",
         "alarm_disarm",
     ],
 )