diff --git a/esphome/helpers.py b/esphome/helpers.py
index 62ddc489ba..d7ddb5c416 100644
--- a/esphome/helpers.py
+++ b/esphome/helpers.py
@@ -618,10 +618,19 @@ class ProgressBar:
     """A simple terminal progress bar for upload operations."""
 
     def __init__(self, header: str, stream: TextIO | None = None) -> None:
+        # Local import to avoid a top-level cycle with esphome.core.
+        from esphome.core import CORE
+
         self.header = header
         self.stream = stream or sys.stderr
         self.last_progress: int | None = None
-        self.enabled = hasattr(self.stream, "isatty") and self.stream.isatty()
+        # Enable when writing to an interactive TTY *or* when running under
+        # ``--dashboard``. The dashboard captures our stderr via
+        # ``stdout=PIPE, stderr=STDOUT`` and parses the ``\rUploading: NN%``
+        # frames to drive its own progress UI -- gating purely on ``isatty()``
+        # silently disables every dashboard-side flash-progress indicator.
+        is_tty = hasattr(self.stream, "isatty") and self.stream.isatty()
+        self.enabled = is_tty or CORE.dashboard
 
     def update(self, progress: float) -> None:
         if not self.enabled:
diff --git a/tests/unit_tests/test_helpers.py b/tests/unit_tests/test_helpers.py
index f2faf3ba8f..bb00a15bee 100644
--- a/tests/unit_tests/test_helpers.py
+++ b/tests/unit_tests/test_helpers.py
@@ -1,9 +1,10 @@
+import io
 import logging
 import os
 from pathlib import Path
 import socket
 import stat
-from unittest.mock import patch
+from unittest.mock import MagicMock, patch
 
 from aioesphomeapi.host_resolver import AddrInfo, IPv4Sockaddr, IPv6Sockaddr
 from hypothesis import given
@@ -12,7 +13,8 @@ import pytest
 
 from esphome import helpers
 from esphome.address_cache import AddressCache
-from esphome.core import EsphomeError
+from esphome.core import CORE, EsphomeError
+from esphome.helpers import ProgressBar
 
 
 @pytest.mark.parametrize(
@@ -1024,3 +1026,39 @@ def test_resolve_ip_address_mixed_cached_uncached() -> None:
         assert "192.168.1.10" in addresses  # Direct IP
         assert "192.168.1.50" in addresses  # From cache
         assert "192.168.1.100" in addresses  # From resolver
+
+
+def test_progressbar_enabled_on_tty(monkeypatch) -> None:
+    """Interactive TTY: progress writes through (pre-existing behaviour)."""
+    stream = MagicMock(spec=io.TextIOWrapper)
+    stream.isatty.return_value = True
+    monkeypatch.setattr(CORE, "dashboard", False)
+
+    bar = ProgressBar("Uploading", stream=stream)
+    assert bar.enabled is True
+
+
+def test_progressbar_disabled_on_pipe_without_dashboard(monkeypatch) -> None:
+    """Piped output without --dashboard: progress suppressed."""
+    stream = MagicMock(spec=io.TextIOWrapper)
+    stream.isatty.return_value = False
+    monkeypatch.setattr(CORE, "dashboard", False)
+
+    bar = ProgressBar("Uploading", stream=stream)
+    assert bar.enabled is False
+
+
+def test_progressbar_enabled_on_pipe_with_dashboard(monkeypatch) -> None:
+    r"""Piped output under --dashboard: progress writes through.
+
+    The dashboard captures stderr through a pipe (so ``isatty()`` is False)
+    and parses ``\rUploading: NN%`` frames to drive its progress UI.
+    Gating purely on ``isatty()`` silently disables every dashboard-side
+    flash-progress indicator.
+    """
+    stream = MagicMock(spec=io.TextIOWrapper)
+    stream.isatty.return_value = False
+    monkeypatch.setattr(CORE, "dashboard", True)
+
+    bar = ProgressBar("Uploading", stream=stream)
+    assert bar.enabled is True