diff --git a/esphome/core/__init__.py b/esphome/core/__init__.py
index 274bb18186..d8a9eaccc3 100644
--- a/esphome/core/__init__.py
+++ b/esphome/core/__init__.py
@@ -616,6 +616,12 @@ def _wrap_in_iifes(lines: list[str], max_statements: int | None) -> list[str]:
     out: list[str] = []
     chunk: list[str] = []
     depth: int = 0
+    # Once depth goes negative we stop trusting the brace count and
+    # keep everything remaining in one final IIFE. A later ``{`` could
+    # arithmetically bring depth back to 0, but by that point the brace
+    # tracking is already unreliable — re-enabling mid-stream splits
+    # could land between a declaration and its use.
+    poisoned: bool = False
 
     def flush() -> None:
         if not chunk:
@@ -631,11 +637,16 @@ def _wrap_in_iifes(lines: list[str], max_statements: int | None) -> list[str]:
     for line in lines:
         chunk.append(line)
         # Count { and } per line so inline control flow (e.g. `if (cond) {`)
-        # and balanced inline lambdas are tracked correctly. If depth ever
-        # goes negative (unbalanced input) we never return to 0 and the
-        # rest falls through into a single final IIFE — safe fallback.
+        # and balanced inline lambdas are tracked correctly.
         depth += line.count("{") - line.count("}")
-        if max_statements is not None and depth == 0 and len(chunk) >= max_statements:
+        if depth < 0:
+            poisoned = True
+        if (
+            not poisoned
+            and max_statements is not None
+            and depth == 0
+            and len(chunk) >= max_statements
+        ):
             flush()
     flush()
     return out
diff --git a/tests/unit_tests/test_core.py b/tests/unit_tests/test_core.py
index a4e1d0b8bd..ad84c12d8e 100644
--- a/tests/unit_tests/test_core.py
+++ b/tests/unit_tests/test_core.py
@@ -943,6 +943,20 @@ def test_wrap_in_iifes_unbalanced_braces_fall_through() -> None:
     assert [line for line in result if line in lines] == lines
 
 
+def test_wrap_in_iifes_negative_depth_stays_poisoned() -> None:
+    # Once depth goes negative the brace tracker is unreliable; a later
+    # arithmetic return to depth 0 must not re-enable splitting. Here
+    # "}" drives depth to -1 immediately, then "{" later brings depth
+    # back to 0 arithmetically. With max=1 every statement would flush
+    # if splitting were still enabled — assert everything emits as one
+    # IIFE because the poisoned flag stayed set.
+    lines = ["}", "a();", "{", "b();", "}", "c();"]
+    result = core._wrap_in_iifes(lines, max_statements=1)
+    assert sum(1 for line in result if line == "[]() {") == 1
+    assert result[0] == "[]() {"
+    assert result[-1] == "}();"
+
+
 def test_wrap_in_iifes_never_splits_inline_brace_lines() -> None:
     # Defensive: if codegen ever emits control flow with braces on the
     # same line (if/else/for), the depth tracker should keep the whole