diff --git a/homeassistant/components/workday/binary_sensor.py b/homeassistant/components/workday/binary_sensor.py
index 8f8b794515e..44f30cf9538 100644
--- a/homeassistant/components/workday/binary_sensor.py
+++ b/homeassistant/components/workday/binary_sensor.py
@@ -20,6 +20,7 @@ CONF_WORKDAYS = "workdays"
 CONF_EXCLUDES = "excludes"
 CONF_OFFSET = "days_offset"
 CONF_ADD_HOLIDAYS = "add_holidays"
+CONF_REMOVE_HOLIDAYS = "remove_holidays"
 
 # By default, Monday - Friday are workdays
 DEFAULT_WORKDAYS = ["mon", "tue", "wed", "thu", "fri"]
@@ -60,6 +61,7 @@ PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend(
             cv.ensure_list, [vol.In(ALLOWED_DAYS)]
         ),
         vol.Optional(CONF_ADD_HOLIDAYS): vol.All(cv.ensure_list, [cv.string]),
+        vol.Optional(CONF_REMOVE_HOLIDAYS): vol.All(cv.ensure_list, [cv.string]),
     }
 )
 
@@ -67,6 +69,7 @@ PLATFORM_SCHEMA = PLATFORM_SCHEMA.extend(
 def setup_platform(hass, config, add_entities, discovery_info=None):
     """Set up the Workday sensor."""
     add_holidays = config.get(CONF_ADD_HOLIDAYS)
+    remove_holidays = config.get(CONF_REMOVE_HOLIDAYS)
     country = config[CONF_COUNTRY]
     days_offset = config[CONF_OFFSET]
     excludes = config[CONF_EXCLUDES]
@@ -96,6 +99,13 @@ def setup_platform(hass, config, add_entities, discovery_info=None):
     except TypeError:
         _LOGGER.debug("No custom holidays or invalid holidays")
 
+    # Remove holidays
+    try:
+        for date in remove_holidays:
+            obj_holidays.pop(date)
+    except TypeError:
+        _LOGGER.debug("No holidays to remove or invalid holidays")
+
     _LOGGER.debug("Found the following holidays for your configuration:")
     for date, name in sorted(obj_holidays.items()):
         _LOGGER.debug("%s %s", date, name)
diff --git a/tests/components/workday/test_binary_sensor.py b/tests/components/workday/test_binary_sensor.py
index 1c4ebb29b5a..7d50ec2994c 100644
--- a/tests/components/workday/test_binary_sensor.py
+++ b/tests/components/workday/test_binary_sensor.py
@@ -75,6 +75,16 @@ class TestWorkdaySetup:
             }
         }
 
+        self.config_remove_holidays = {
+            "binary_sensor": {
+                "platform": "workday",
+                "country": "US",
+                "workdays": ["mon", "tue", "wed", "thu", "fri"],
+                "excludes": ["sat", "sun", "holiday"],
+                "remove_holidays": ["2020-12-25", "2020-11-26"],
+            }
+        }
+
         self.config_tomorrow = {
             "binary_sensor": {"platform": "workday", "country": "DE", "days_offset": 1}
         }
@@ -298,3 +308,15 @@ class TestWorkdaySetup:
         assert binary_sensor.day_to_string(1) == "tue"
         assert binary_sensor.day_to_string(7) == "holiday"
         assert binary_sensor.day_to_string(8) is None
+
+    # Freeze time to test Fri, but remove holiday - December 25, 2020
+    @patch(FUNCTION_PATH, return_value=date(2020, 12, 25))
+    def test_config_remove_holidays_xmas(self, mock_date):
+        """Test if removed holidays are reported correctly."""
+        with assert_setup_component(1, "binary_sensor"):
+            setup_component(self.hass, "binary_sensor", self.config_remove_holidays)
+
+        self.hass.start()
+
+        entity = self.hass.states.get("binary_sensor.workday_sensor")
+        assert entity.state == "on"