diff --git a/esphome/components/fan/__init__.py b/esphome/components/fan/__init__.py
index f8772948fc..15895976d1 100644
--- a/esphome/components/fan/__init__.py
+++ b/esphome/components/fan/__init__.py
@@ -41,6 +41,7 @@ FAN_DIRECTION_ENUM = {
 TurnOnAction = fan_ns.class_("TurnOnAction", automation.Action)
 TurnOffAction = fan_ns.class_("TurnOffAction", automation.Action)
 ToggleAction = fan_ns.class_("ToggleAction", automation.Action)
+CycleSpeedAction = fan_ns.class_("CycleSpeedAction", automation.Action)
 
 FanTurnOnTrigger = fan_ns.class_("FanTurnOnTrigger", automation.Trigger.template())
 FanTurnOffTrigger = fan_ns.class_("FanTurnOffTrigger", automation.Trigger.template())
@@ -204,6 +205,12 @@ async def fan_turn_on_to_code(config, action_id, template_arg, args):
     return var
 
 
+@automation.register_action("fan.cycle_speed", CycleSpeedAction, FAN_ACTION_SCHEMA)
+async def fan_cycle_speed_to_code(config, action_id, template_arg, args):
+    paren = await cg.get_variable(config[CONF_ID])
+    return cg.new_Pvariable(action_id, template_arg, paren)
+
+
 @automation.register_condition(
     "fan.is_on",
     FanIsOnCondition,
diff --git a/esphome/components/fan/automation.h b/esphome/components/fan/automation.h
index 7ff7c720df..608f772b75 100644
--- a/esphome/components/fan/automation.h
+++ b/esphome/components/fan/automation.h
@@ -50,6 +50,42 @@ template<typename... Ts> class ToggleAction : public Action<Ts...> {
   FanState *state_;
 };
 
+template<typename... Ts> class CycleSpeedAction : public Action<Ts...> {
+ public:
+  explicit CycleSpeedAction(FanState *state) : state_(state) {}
+
+  void play(Ts... x) override {
+    // check to see if fan supports speeds and is on
+    if (this->state_->get_traits().supported_speed_count()) {
+      if (this->state_->state) {
+        int speed = this->state_->speed + 1;
+        int supported_speed_count = this->state_->get_traits().supported_speed_count();
+        if (speed > supported_speed_count) {
+          // was running at max speed, so turn off
+          speed = 1;
+          auto call = this->state_->turn_off();
+          call.set_speed(speed);
+          call.perform();
+        } else {
+          auto call = this->state_->turn_on();
+          call.set_speed(speed);
+          call.perform();
+        }
+      } else {
+        // fan was off, so set speed to 1
+        auto call = this->state_->turn_on();
+        call.set_speed(1);
+        call.perform();
+      }
+    } else {
+      // fan doesn't support speed counts, so toggle
+      this->state_->toggle().perform();
+    }
+  }
+
+  FanState *state_;
+};
+
 template<typename... Ts> class FanIsOnCondition : public Condition<Ts...> {
  public:
   explicit FanIsOnCondition(FanState *state) : state_(state) {}