diff --git a/esphome/components/openthread/__init__.py b/esphome/components/openthread/__init__.py
index 5b1ea491e3..393c47e720 100644
--- a/esphome/components/openthread/__init__.py
+++ b/esphome/components/openthread/__init__.py
@@ -46,7 +46,7 @@ def set_sdkconfig_options(config):
     add_idf_sdkconfig_option("CONFIG_OPENTHREAD_NETWORK_PANID", config[CONF_PAN_ID])
     add_idf_sdkconfig_option("CONFIG_OPENTHREAD_NETWORK_CHANNEL", config[CONF_CHANNEL])
     add_idf_sdkconfig_option(
-        "CONFIG_OPENTHREAD_NETWORK_MASTERKEY", f"{config[CONF_NETWORK_KEY]:X}"
+        "CONFIG_OPENTHREAD_NETWORK_MASTERKEY", f"{config[CONF_NETWORK_KEY]:X}".lower()
     )
 
     if network_name := config.get(CONF_NETWORK_NAME):
@@ -54,14 +54,14 @@ def set_sdkconfig_options(config):
 
     if (ext_pan_id := config.get(CONF_EXT_PAN_ID)) is not None:
         add_idf_sdkconfig_option(
-            "CONFIG_OPENTHREAD_NETWORK_EXTPANID", f"{ext_pan_id:X}"
+            "CONFIG_OPENTHREAD_NETWORK_EXTPANID", f"{ext_pan_id:X}".lower()
         )
     if (mesh_local_prefix := config.get(CONF_MESH_LOCAL_PREFIX)) is not None:
         add_idf_sdkconfig_option(
-            "CONFIG_OPENTHREAD_MESH_LOCAL_PREFIX", f"{mesh_local_prefix:X}"
+            "CONFIG_OPENTHREAD_MESH_LOCAL_PREFIX", f"{mesh_local_prefix}".lower()
         )
     if (pskc := config.get(CONF_PSKC)) is not None:
-        add_idf_sdkconfig_option("CONFIG_OPENTHREAD_NETWORK_PSKC", f"{pskc:X}")
+        add_idf_sdkconfig_option("CONFIG_OPENTHREAD_NETWORK_PSKC", f"{pskc:X}".lower())
 
     if CONF_FORCE_DATASET in config:
         if config[CONF_FORCE_DATASET]:
@@ -98,7 +98,7 @@ _CONNECTION_SCHEMA = cv.Schema(
         cv.Optional(CONF_EXT_PAN_ID): cv.hex_int,
         cv.Optional(CONF_NETWORK_NAME): cv.string_strict,
         cv.Optional(CONF_PSKC): cv.hex_int,
-        cv.Optional(CONF_MESH_LOCAL_PREFIX): cv.hex_int,
+        cv.Optional(CONF_MESH_LOCAL_PREFIX): cv.ipv6network,
     }
 )
 
diff --git a/esphome/components/openthread/openthread.cpp b/esphome/components/openthread/openthread.cpp
index f40a56952a..24b3c23960 100644
--- a/esphome/components/openthread/openthread.cpp
+++ b/esphome/components/openthread/openthread.cpp
@@ -137,7 +137,7 @@ void OpenThreadSrpComponent::setup() {
   // Copy the mdns services to our local instance so that the c_str pointers remain valid for the lifetime of this
   // component
   this->mdns_services_ = this->mdns_->get_services();
-  ESP_LOGW(TAG, "Setting up SRP services. count = %d\n", this->mdns_services_.size());
+  ESP_LOGD(TAG, "Setting up SRP services. count = %d\n", this->mdns_services_.size());
   for (const auto &service : this->mdns_services_) {
     otSrpClientBuffersServiceEntry *entry = otSrpClientBuffersAllocateService(instance);
     if (!entry) {
@@ -185,11 +185,11 @@ void OpenThreadSrpComponent::setup() {
     if (error != OT_ERROR_NONE) {
       ESP_LOGW(TAG, "Failed to add service: %s", otThreadErrorToString(error));
     }
-    ESP_LOGW(TAG, "Added service: %s", full_service.c_str());
+    ESP_LOGD(TAG, "Added service: %s", full_service.c_str());
   }
 
   otSrpClientEnableAutoStartMode(instance, srp_start_callback, nullptr);
-  ESP_LOGW(TAG, "Finished SRP setup");
+  ESP_LOGD(TAG, "Finished SRP setup");
 }
 
 void *OpenThreadSrpComponent::pool_alloc_(size_t size) {
diff --git a/esphome/components/openthread/tlv.py b/esphome/components/openthread/tlv.py
index 45c8c47227..4a7d21c47d 100644
--- a/esphome/components/openthread/tlv.py
+++ b/esphome/components/openthread/tlv.py
@@ -1,5 +1,6 @@
 # Sourced from https://gist.github.com/agners/0338576e0003318b63ec1ea75adc90f9
 import binascii
+import ipaddress
 
 from esphome.const import CONF_CHANNEL
 
@@ -37,6 +38,12 @@ def parse_tlv(tlv) -> dict:
         if tag in TLV_TYPES:
             if tag == 3:
                 output[TLV_TYPES[tag]] = val.decode("utf-8")
+            elif tag == 7:
+                mesh_local_prefix = binascii.hexlify(val).decode("utf-8")
+                mesh_local_prefix_str = f"{mesh_local_prefix}0000000000000000"
+                ipv6_bytes = bytes.fromhex(mesh_local_prefix_str)
+                ipv6_address = ipaddress.IPv6Address(ipv6_bytes)
+                output[TLV_TYPES[tag]] = f"{ipv6_address}/64"
             else:
                 output[TLV_TYPES[tag]] = int.from_bytes(val)
     return output
diff --git a/tests/components/openthread/test.esp32-c6-idf.yaml b/tests/components/openthread/test.esp32-c6-idf.yaml
index 482fd1a453..f53b323bec 100644
--- a/tests/components/openthread/test.esp32-c6-idf.yaml
+++ b/tests/components/openthread/test.esp32-c6-idf.yaml
@@ -8,4 +8,6 @@ openthread:
   pan_id: 0x8f28
   ext_pan_id: 0xd63e8e3e495ebbc3
   pskc: 0xc23a76e98f1a6483639b1ac1271e2e27
+  mesh_local_prefix: fd53:145f:ed22:ad81::/64
   force_dataset: true
+