diff --git a/homeassistant/components/esphome/manager.py b/homeassistant/components/esphome/manager.py
index 41fd60af07d..211404431c0 100644
--- a/homeassistant/components/esphome/manager.py
+++ b/homeassistant/components/esphome/manager.py
@@ -538,7 +538,7 @@ class ESPHomeManager:
             on_connect=self.on_connect,
             on_disconnect=self.on_disconnect,
             zeroconf_instance=self.zeroconf_instance,
-            name=self.host,
+            name=entry.data.get(CONF_DEVICE_NAME, self.host),
             on_connect_error=self.on_connect_error,
         )
         self.reconnect_logic = reconnect_logic
diff --git a/homeassistant/components/esphome/manifest.json b/homeassistant/components/esphome/manifest.json
index 8a2ede93b3e..463404fae1c 100644
--- a/homeassistant/components/esphome/manifest.json
+++ b/homeassistant/components/esphome/manifest.json
@@ -16,7 +16,7 @@
   "loggers": ["aioesphomeapi", "noiseprotocol"],
   "requirements": [
     "async-interrupt==1.1.1",
-    "aioesphomeapi==17.2.0",
+    "aioesphomeapi==18.0.1",
     "bluetooth-data-tools==1.12.0",
     "esphome-dashboard-api==1.2.3"
   ],
diff --git a/requirements_all.txt b/requirements_all.txt
index f811a966c16..a7623ad8764 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -237,7 +237,7 @@ aioecowitt==2023.5.0
 aioemonitor==1.0.5
 
 # homeassistant.components.esphome
-aioesphomeapi==17.2.0
+aioesphomeapi==18.0.1
 
 # homeassistant.components.flo
 aioflo==2021.11.0
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index f1fc8c25b7a..791f3f54e8f 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -218,7 +218,7 @@ aioecowitt==2023.5.0
 aioemonitor==1.0.5
 
 # homeassistant.components.esphome
-aioesphomeapi==17.2.0
+aioesphomeapi==18.0.1
 
 # homeassistant.components.flo
 aioflo==2021.11.0
diff --git a/tests/components/esphome/conftest.py b/tests/components/esphome/conftest.py
index 6b06545a06b..4ff6b503b3c 100644
--- a/tests/components/esphome/conftest.py
+++ b/tests/components/esphome/conftest.py
@@ -129,6 +129,7 @@ def mock_client(mock_device_info) -> APIClient:
     mock_client.connect = AsyncMock()
     mock_client.disconnect = AsyncMock()
     mock_client.list_entities_services = AsyncMock(return_value=([], []))
+    mock_client.address = "127.0.0.1"
     mock_client.api_version = APIVersion(99, 99)
 
     with patch("homeassistant.components.esphome.APIClient", mock_client), patch(