diff --git a/homeassistant/components/unifi/sensor.py b/homeassistant/components/unifi/sensor.py
index efb3eed4de4..54ecc2ea763 100644
--- a/homeassistant/components/unifi/sensor.py
+++ b/homeassistant/components/unifi/sensor.py
@@ -339,6 +339,19 @@ ENTITY_DESCRIPTIONS: tuple[UnifiSensorEntityDescription, ...] = (
         value_fn=async_device_state_value_fn,
         options=list(DEVICE_STATES.values()),
     ),
+    UnifiSensorEntityDescription[Wlans, Wlan](
+        key="WLAN password",
+        entity_category=EntityCategory.DIAGNOSTIC,
+        entity_registry_enabled_default=False,
+        api_handler_fn=lambda api: api.wlans,
+        available_fn=async_wlan_available_fn,
+        device_info_fn=async_wlan_device_info_fn,
+        name_fn=lambda wlan: "Password",
+        object_fn=lambda api, obj_id: api.wlans[obj_id],
+        supported_fn=lambda hub, obj_id: hub.api.wlans[obj_id].x_passphrase is not None,
+        unique_id_fn=lambda hub, obj_id: f"password-{obj_id}",
+        value_fn=lambda hub, obj: obj.x_passphrase,
+    ),
 )
 
 
diff --git a/tests/components/unifi/test_sensor.py b/tests/components/unifi/test_sensor.py
index 7a58252a6bd..239707aa4c9 100644
--- a/tests/components/unifi/test_sensor.py
+++ b/tests/components/unifi/test_sensor.py
@@ -998,3 +998,74 @@ async def test_device_state(
         device["state"] = i
         mock_unifi_websocket(message=MessageKey.DEVICE, data=device)
         assert hass.states.get("sensor.device_state").state == DEVICE_STATES[i]
+
+
+async def test_wlan_password(
+    hass: HomeAssistant,
+    entity_registry: er.EntityRegistry,
+    aioclient_mock: AiohttpClientMocker,
+    mock_unifi_websocket,
+    websocket_mock,
+) -> None:
+    """Test the WLAN password sensor behavior."""
+    await setup_unifi_integration(hass, aioclient_mock, wlans_response=[WLAN])
+
+    sensor_password = "sensor.ssid_1_password"
+    password = "password"
+    new_password = "new_password"
+
+    ent_reg_entry = entity_registry.async_get(sensor_password)
+    assert ent_reg_entry.unique_id == "password-012345678910111213141516"
+    assert ent_reg_entry.disabled_by == RegistryEntryDisabler.INTEGRATION
+    assert ent_reg_entry.entity_category is EntityCategory.DIAGNOSTIC
+
+    # Enable entity
+    entity_registry.async_update_entity(entity_id=sensor_password, disabled_by=None)
+    await hass.async_block_till_done()
+
+    async_fire_time_changed(
+        hass,
+        dt_util.utcnow() + timedelta(seconds=RELOAD_AFTER_UPDATE_DELAY + 1),
+    )
+    await hass.async_block_till_done()
+
+    # Validate state object
+    wlan_password_sensor_1 = hass.states.get(sensor_password)
+    assert wlan_password_sensor_1.state == password
+
+    # Update state object - same password - no change to state
+    mock_unifi_websocket(message=MessageKey.WLAN_CONF_UPDATED, data=WLAN)
+    await hass.async_block_till_done()
+    wlan_password_sensor_2 = hass.states.get(sensor_password)
+    assert wlan_password_sensor_1.state == wlan_password_sensor_2.state
+
+    # Update state object - changed password - new state
+    data = deepcopy(WLAN)
+    data["x_passphrase"] = new_password
+    mock_unifi_websocket(message=MessageKey.WLAN_CONF_UPDATED, data=data)
+    await hass.async_block_till_done()
+    wlan_password_sensor_3 = hass.states.get(sensor_password)
+    assert wlan_password_sensor_1.state != wlan_password_sensor_3.state
+
+    # Availability signaling
+
+    # Controller disconnects
+    await websocket_mock.disconnect()
+    assert hass.states.get(sensor_password).state == STATE_UNAVAILABLE
+
+    # Controller reconnects
+    await websocket_mock.reconnect()
+    assert hass.states.get(sensor_password).state == new_password
+
+    # WLAN gets disabled
+    wlan_1 = deepcopy(WLAN)
+    wlan_1["enabled"] = False
+    mock_unifi_websocket(message=MessageKey.WLAN_CONF_UPDATED, data=wlan_1)
+    await hass.async_block_till_done()
+    assert hass.states.get(sensor_password).state == STATE_UNAVAILABLE
+
+    # WLAN gets re-enabled
+    wlan_1["enabled"] = True
+    mock_unifi_websocket(message=MessageKey.WLAN_CONF_UPDATED, data=wlan_1)
+    await hass.async_block_till_done()
+    assert hass.states.get(sensor_password).state == password