diff --git a/esphome/components/api/api_connection.cpp b/esphome/components/api/api_connection.cpp
index b624cace2c..12766ffe65 100644
--- a/esphome/components/api/api_connection.cpp
+++ b/esphome/components/api/api_connection.cpp
@@ -1826,9 +1826,18 @@ bool APIConnection::send_buffer(ProtoWriteBuffer buffer, uint8_t message_type) {
     return false;
   }
 
-  // Toggle NODELAY based on message type:
-  // - Log messages: Enable Nagle (NODELAY=false) so they coalesce into fewer packets
-  // - All other messages: Disable Nagle (NODELAY=true) for immediate delivery
+  // Toggle Nagle's algorithm based on message type to prevent log messages from
+  // filling the TCP send buffer and crowding out important state updates.
+  //
+  // - Log messages: Enable Nagle (NODELAY=false) so small log packets coalesce
+  //   into fewer, larger packets. They flush naturally via TCP delayed ACK timer
+  //   (~200ms), buffer filling, or when a state update triggers a flush.
+  //
+  // - All other messages (state updates, responses): Disable Nagle (NODELAY=true)
+  //   for immediate delivery. These are time-sensitive and should not be delayed.
+  //
+  // This must be done proactively BEFORE the buffer fills up - checking buffer
+  // state here would be too late since we'd already be in a degraded state.
   this->helper_->set_nodelay(!is_log_message);
 
   APIError err = this->helper_->write_protobuf_packet(message_type, buffer);
diff --git a/esphome/components/api/api_frame_helper.h b/esphome/components/api/api_frame_helper.h
index 6fdda64c3e..1c4c045a86 100644
--- a/esphome/components/api/api_frame_helper.h
+++ b/esphome/components/api/api_frame_helper.h
@@ -111,7 +111,15 @@ class APIFrameHelper {
     }
     return APIError::OK;
   }
-  /// Set TCP_NODELAY option. Only calls setsockopt when state changes.
+  /// Toggle TCP_NODELAY socket option to control Nagle's algorithm.
+  ///
+  /// This is used to allow log messages to coalesce (Nagle enabled) while keeping
+  /// state updates low-latency (NODELAY enabled). Without this, many small log
+  /// packets fill the TCP send buffer, crowding out important state updates.
+  ///
+  /// State is tracked to minimize setsockopt() overhead - on lwip_raw (ESP8266/RP2040)
+  /// this is just a boolean assignment; on other platforms it's a lightweight syscall.
+  ///
   /// @param enable true to enable NODELAY (disable Nagle), false to enable Nagle
   /// @return true if successful or already in desired state
   bool set_nodelay(bool enable) {
@@ -211,7 +219,10 @@ class APIFrameHelper {
   uint8_t tx_buf_head_{0};
   uint8_t tx_buf_tail_{0};
   uint8_t tx_buf_count_{0};
-  bool nodelay_enabled_{true};  // Tracks current TCP_NODELAY state
+  // Tracks TCP_NODELAY state to minimize setsockopt() calls. Initialized to true
+  // since init_common_() enables NODELAY. Used by set_nodelay() to allow log
+  // messages to coalesce while keeping state updates low-latency.
+  bool nodelay_enabled_{true};
 
   // Common initialization for both plaintext and noise protocols
   APIError init_common_();