diff --git a/esphome/components/template/alarm_control_panel/__init__.py b/esphome/components/template/alarm_control_panel/__init__.py
index a406c626ee..5d2421fcbc 100644
--- a/esphome/components/template/alarm_control_panel/__init__.py
+++ b/esphome/components/template/alarm_control_panel/__init__.py
@@ -10,6 +10,7 @@ CODEOWNERS = ["@grahambrown11", "@hwstar"]
 CONF_CODES = "codes"
 CONF_BYPASS_ARMED_HOME = "bypass_armed_home"
 CONF_BYPASS_ARMED_NIGHT = "bypass_armed_night"
+CONF_BYPASS_AUTO = "bypass_auto"
 CONF_CHIME = "chime"
 CONF_TRIGGER_MODE = "trigger_mode"
 CONF_REQUIRES_CODE_TO_ARM = "requires_code_to_arm"
@@ -23,6 +24,7 @@ CONF_TRIGGER_TIME = "trigger_time"
 FLAG_NORMAL = "normal"
 FLAG_BYPASS_ARMED_HOME = "bypass_armed_home"
 FLAG_BYPASS_ARMED_NIGHT = "bypass_armed_night"
+FLAG_BYPASS_AUTO = "bypass_auto"
 FLAG_CHIME = "chime"
 
 BinarySensorFlags = {
@@ -30,6 +32,7 @@ BinarySensorFlags = {
     FLAG_BYPASS_ARMED_HOME: 1 << 1,
     FLAG_BYPASS_ARMED_NIGHT: 1 << 2,
     FLAG_CHIME: 1 << 3,
+    FLAG_BYPASS_AUTO: 1 << 4,
 }
 
 
@@ -68,6 +71,7 @@ TEMPLATE_ALARM_CONTROL_PANEL_BINARY_SENSOR_SCHEMA = cv.maybe_simple_value(
         cv.Required(CONF_INPUT): cv.use_id(binary_sensor.BinarySensor),
         cv.Optional(CONF_BYPASS_ARMED_HOME, default=False): cv.boolean,
         cv.Optional(CONF_BYPASS_ARMED_NIGHT, default=False): cv.boolean,
+        cv.Optional(CONF_BYPASS_AUTO, default=False): cv.boolean,
         cv.Optional(CONF_CHIME, default=False): cv.boolean,
         cv.Optional(CONF_TRIGGER_MODE, default="DELAYED"): cv.enum(
             ALARM_SENSOR_TYPES, upper=True, space="_"
@@ -143,6 +147,8 @@ async def to_code(config):
         if sensor[CONF_BYPASS_ARMED_NIGHT]:
             flags |= BinarySensorFlags[FLAG_BYPASS_ARMED_NIGHT]
             supports_arm_night = True
+        if sensor[CONF_BYPASS_AUTO]:
+            flags |= BinarySensorFlags[FLAG_BYPASS_AUTO]
         if sensor[CONF_CHIME]:
             flags |= BinarySensorFlags[FLAG_CHIME]
         cg.add(var.add_sensor(bs, flags, sensor[CONF_TRIGGER_MODE]))
diff --git a/esphome/components/template/alarm_control_panel/template_alarm_control_panel.cpp b/esphome/components/template/alarm_control_panel/template_alarm_control_panel.cpp
index 84d256b18f..4b81ab1c35 100644
--- a/esphome/components/template/alarm_control_panel/template_alarm_control_panel.cpp
+++ b/esphome/components/template/alarm_control_panel/template_alarm_control_panel.cpp
@@ -49,6 +49,7 @@ void TemplateAlarmControlPanel::dump_config() {
                   TRUEFALSE(sensor_info.second.flags & BINARY_SENSOR_MODE_BYPASS_ARMED_HOME));
     ESP_LOGCONFIG(TAG, "    Armed night bypass: %s",
                   TRUEFALSE(sensor_info.second.flags & BINARY_SENSOR_MODE_BYPASS_ARMED_NIGHT));
+    ESP_LOGCONFIG(TAG, "    Auto bypass: %s", TRUEFALSE(sensor_info.second.flags & BINARY_SENSOR_MODE_BYPASS_AUTO));
     ESP_LOGCONFIG(TAG, "    Chime mode: %s", TRUEFALSE(sensor_info.second.flags & BINARY_SENSOR_MODE_CHIME));
     const char *sensor_type;
     switch (sensor_info.second.type) {
@@ -101,6 +102,15 @@ void TemplateAlarmControlPanel::loop() {
       delay = this->arming_night_time_;
     }
     if ((millis() - this->last_update_) > delay) {
+#ifdef USE_BINARY_SENSOR
+      for (auto sensor_info : this->sensor_map_) {
+        // Check for sensors left on and set to bypass automatically and remove them from monitoring
+        if ((sensor_info.second.flags & BINARY_SENSOR_MODE_BYPASS_AUTO) && (sensor_info.first->state)) {
+          ESP_LOGW(TAG, "%s is left on and will be automatically bypassed", sensor_info.first->get_name().c_str());
+          this->bypassed_sensor_indicies_.push_back(sensor_info.second.store_index);
+        }
+      }
+#endif
       this->publish_state(this->desired_state_);
     }
     return;
@@ -137,6 +147,11 @@ void TemplateAlarmControlPanel::loop() {
     }
     // Check for triggered sensors
     if (sensor_info.first->state) {  // Sensor triggered?
+      // Skip if auto bypassed
+      if (std::count(this->bypassed_sensor_indicies_.begin(), this->bypassed_sensor_indicies_.end(),
+                     sensor_info.second.store_index) == 1) {
+        continue;
+      }
       // Skip if bypass armed home
       if (this->current_state_ == ACP_STATE_ARMED_HOME &&
           (sensor_info.second.flags & BINARY_SENSOR_MODE_BYPASS_ARMED_HOME)) {
@@ -255,6 +270,9 @@ void TemplateAlarmControlPanel::control(const AlarmControlPanelCall &call) {
       }
       this->desired_state_ = ACP_STATE_DISARMED;
       this->publish_state(ACP_STATE_DISARMED);
+#ifdef USE_BINARY_SENSOR
+      this->bypassed_sensor_indicies_.clear();
+#endif
     } else if (call.get_state() == ACP_STATE_TRIGGERED) {
       this->publish_state(ACP_STATE_TRIGGERED);
     } else if (call.get_state() == ACP_STATE_PENDING) {
diff --git a/esphome/components/template/alarm_control_panel/template_alarm_control_panel.h b/esphome/components/template/alarm_control_panel/template_alarm_control_panel.h
index b29a48dfd7..0e3a5c77cf 100644
--- a/esphome/components/template/alarm_control_panel/template_alarm_control_panel.h
+++ b/esphome/components/template/alarm_control_panel/template_alarm_control_panel.h
@@ -22,6 +22,7 @@ enum BinarySensorFlags : uint16_t {
   BINARY_SENSOR_MODE_BYPASS_ARMED_HOME = 1 << 1,
   BINARY_SENSOR_MODE_BYPASS_ARMED_NIGHT = 1 << 2,
   BINARY_SENSOR_MODE_CHIME = 1 << 3,
+  BINARY_SENSOR_MODE_BYPASS_AUTO = 1 << 4,
 };
 
 enum AlarmSensorType : uint16_t {
@@ -121,7 +122,8 @@ class TemplateAlarmControlPanel : public alarm_control_panel::AlarmControlPanel,
 #ifdef USE_BINARY_SENSOR
   // This maps a binary sensor to its type and attribute bits
   std::map<binary_sensor::BinarySensor *, SensorInfo> sensor_map_;
-
+  // a list of automatically bypassed sensors
+  std::vector<uint8_t> bypassed_sensor_indicies_;
 #endif
   TemplateAlarmControlPanelRestoreMode restore_mode_{};
 
diff --git a/tests/components/alarm_control_panel/common.yaml b/tests/components/alarm_control_panel/common.yaml
index 218274bad4..5b8ae5a282 100644
--- a/tests/components/alarm_control_panel/common.yaml
+++ b/tests/components/alarm_control_panel/common.yaml
@@ -19,6 +19,7 @@ alarm_control_panel:
       - input: bin1
         bypass_armed_home: true
         bypass_armed_night: true
+        bypass_auto: true
     on_state:
       then:
         - lambda: !lambda |-
@@ -38,6 +39,7 @@ alarm_control_panel:
       - input: bin1
         bypass_armed_home: true
         bypass_armed_night: true
+        bypass_auto: true
     on_disarmed:
       then:
         - logger.log: "### DISARMED ###"