diff --git a/homeassistant/components/esphome/manifest.json b/homeassistant/components/esphome/manifest.json
index 89ffde03a7f..01e04df6db8 100644
--- a/homeassistant/components/esphome/manifest.json
+++ b/homeassistant/components/esphome/manifest.json
@@ -17,7 +17,7 @@
   "mqtt": ["esphome/discover/#"],
   "quality_scale": "platinum",
   "requirements": [
-    "aioesphomeapi==33.1.1",
+    "aioesphomeapi==34.1.0",
     "esphome-dashboard-api==1.3.0",
     "bleak-esphome==2.16.0"
   ],
diff --git a/requirements_all.txt b/requirements_all.txt
index 588508c3a36..09142fb10a8 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -247,7 +247,7 @@ aioelectricitymaps==0.4.0
 aioemonitor==1.0.5
 
 # homeassistant.components.esphome
-aioesphomeapi==33.1.1
+aioesphomeapi==34.1.0
 
 # homeassistant.components.flo
 aioflo==2021.11.0
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index a82b835cfde..7cc3f43014a 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -235,7 +235,7 @@ aioelectricitymaps==0.4.0
 aioemonitor==1.0.5
 
 # homeassistant.components.esphome
-aioesphomeapi==33.1.1
+aioesphomeapi==34.1.0
 
 # homeassistant.components.flo
 aioflo==2021.11.0
diff --git a/tests/components/esphome/snapshots/test_diagnostics.ambr b/tests/components/esphome/snapshots/test_diagnostics.ambr
index dac224c802f..6b7a1c64c9f 100644
--- a/tests/components/esphome/snapshots/test_diagnostics.ambr
+++ b/tests/components/esphome/snapshots/test_diagnostics.ambr
@@ -82,6 +82,7 @@
         'minor': 99,
       }),
       'device_info': dict({
+        'api_encryption_supported': False,
         'area': dict({
           'area_id': 0,
           'name': '',
diff --git a/tests/components/esphome/test_diagnostics.py b/tests/components/esphome/test_diagnostics.py
index 2653df57adb..ebfe15d562f 100644
--- a/tests/components/esphome/test_diagnostics.py
+++ b/tests/components/esphome/test_diagnostics.py
@@ -124,6 +124,7 @@ async def test_diagnostics_with_bluetooth(
         "storage_data": {
             "api_version": {"major": 99, "minor": 99},
             "device_info": {
+                "api_encryption_supported": False,
                 "area": {"area_id": 0, "name": ""},
                 "areas": [],
                 "bluetooth_mac_address": "**REDACTED**",