diff --git a/homeassistant/components/template/template_entity.py b/homeassistant/components/template/template_entity.py
index 5e592e5d717..d7d6ab46c62 100644
--- a/homeassistant/components/template/template_entity.py
+++ b/homeassistant/components/template/template_entity.py
@@ -27,7 +27,11 @@ from homeassistant.helpers.event import (
     TrackTemplateResult,
     async_track_template_result,
 )
-from homeassistant.helpers.template import Template, result_as_boolean
+from homeassistant.helpers.template import (
+    Template,
+    TemplateStateFromEntityId,
+    result_as_boolean,
+)
 
 from .const import (
     CONF_ATTRIBUTE_TEMPLATES,
@@ -368,8 +372,11 @@ class TemplateEntity(Entity):
     async def _async_template_startup(self, *_) -> None:
         template_var_tups: list[TrackTemplate] = []
         has_availability_template = False
+
+        values = {"this": TemplateStateFromEntityId(self.hass, self.entity_id)}
+
         for template, attributes in self._template_attrs.items():
-            template_var_tup = TrackTemplate(template, None)
+            template_var_tup = TrackTemplate(template, values)
             is_availability_template = False
             for attribute in attributes:
                 # pylint: disable-next=protected-access
diff --git a/homeassistant/helpers/template.py b/homeassistant/helpers/template.py
index 9003fc2daf3..a8eb96c5ad1 100644
--- a/homeassistant/helpers/template.py
+++ b/homeassistant/helpers/template.py
@@ -719,22 +719,24 @@ class DomainStates:
         return f"<template DomainStates('{self._domain}')>"
 
 
-class TemplateState(State):
+class TemplateStateBase(State):
     """Class to represent a state object in a template."""
 
-    __slots__ = ("_hass", "_state", "_collect")
+    __slots__ = ("_hass", "_collect", "_entity_id")
+
+    _state: State
 
     # Inheritance is done so functions that check against State keep working
     # pylint: disable=super-init-not-called
-    def __init__(self, hass: HomeAssistant, state: State, collect: bool = True) -> None:
+    def __init__(self, hass: HomeAssistant, collect: bool, entity_id: str) -> None:
         """Initialize template state."""
         self._hass = hass
-        self._state = state
         self._collect = collect
+        self._entity_id = entity_id
 
     def _collect_state(self) -> None:
         if self._collect and _RENDER_INFO in self._hass.data:
-            self._hass.data[_RENDER_INFO].entities.add(self._state.entity_id)
+            self._hass.data[_RENDER_INFO].entities.add(self._entity_id)
 
     # Jinja will try __getitem__ first and it avoids the need
     # to call is_safe_attribute
@@ -743,10 +745,10 @@ class TemplateState(State):
         if item in _COLLECTABLE_STATE_ATTRIBUTES:
             # _collect_state inlined here for performance
             if self._collect and _RENDER_INFO in self._hass.data:
-                self._hass.data[_RENDER_INFO].entities.add(self._state.entity_id)
+                self._hass.data[_RENDER_INFO].entities.add(self._entity_id)
             return getattr(self._state, item)
         if item == "entity_id":
-            return self._state.entity_id
+            return self._entity_id
         if item == "state_with_unit":
             return self.state_with_unit
         raise KeyError
@@ -757,7 +759,7 @@ class TemplateState(State):
 
         Intentionally does not collect state
         """
-        return self._state.entity_id
+        return self._entity_id
 
     @property
     def state(self):
@@ -819,11 +821,44 @@ class TemplateState(State):
         self._collect_state()
         return self._state.__eq__(other)
 
+
+class TemplateState(TemplateStateBase):
+    """Class to represent a state object in a template."""
+
+    __slots__ = ("_state",)
+
+    # Inheritance is done so functions that check against State keep working
+    # pylint: disable=super-init-not-called
+    def __init__(self, hass: HomeAssistant, state: State, collect: bool = True) -> None:
+        """Initialize template state."""
+        super().__init__(hass, collect, state.entity_id)
+        self._state = state
+
     def __repr__(self) -> str:
         """Representation of Template State."""
         return f"<template TemplateState({self._state!r})>"
 
 
+class TemplateStateFromEntityId(TemplateStateBase):
+    """Class to represent a state object in a template."""
+
+    def __init__(
+        self, hass: HomeAssistant, entity_id: str, collect: bool = True
+    ) -> None:
+        """Initialize template state."""
+        super().__init__(hass, collect, entity_id)
+
+    @property
+    def _state(self) -> State:  # type: ignore[override] # mypy issue 4125
+        state = self._hass.states.get(self._entity_id)
+        assert state
+        return state
+
+    def __repr__(self) -> str:
+        """Representation of Template State."""
+        return f"<template TemplateStateFromEntityId({self._entity_id})>"
+
+
 def _collect_state(hass: HomeAssistant, entity_id: str) -> None:
     if (entity_collect := hass.data.get(_RENDER_INFO)) is not None:
         entity_collect.entities.add(entity_id)
diff --git a/tests/components/template/test_sensor.py b/tests/components/template/test_sensor.py
index cffb714da9a..033d5636720 100644
--- a/tests/components/template/test_sensor.py
+++ b/tests/components/template/test_sensor.py
@@ -620,6 +620,35 @@ async def test_sun_renders_once_per_sensor(hass, start_ha):
     }
 
 
+@pytest.mark.parametrize("count,domain", [(1, sensor.DOMAIN)])
+@pytest.mark.parametrize(
+    "config",
+    [
+        {
+            "sensor": {
+                "platform": "template",
+                "sensors": {
+                    "test_template_sensor": {
+                        "value_template": "{{ this.attributes.test }}: {{ this.entity_id }}",
+                        "attribute_templates": {
+                            "test": "It {{ states.sensor.test_state.state }}"
+                        },
+                    }
+                },
+            },
+        },
+    ],
+)
+async def test_this_variable(hass, start_ha):
+    """Test template."""
+    assert hass.states.get(TEST_NAME).state == "It: " + TEST_NAME
+
+    hass.states.async_set("sensor.test_state", "Works")
+    await hass.async_block_till_done()
+    await hass.async_block_till_done()
+    assert hass.states.get(TEST_NAME).state == "It Works: " + TEST_NAME
+
+
 @pytest.mark.parametrize("count,domain", [(1, sensor.DOMAIN)])
 @pytest.mark.parametrize(
     "config",