diff --git a/esphome/components/esp32/__init__.py b/esphome/components/esp32/__init__.py
index 18178c83ff..ef5ddad8a4 100644
--- a/esphome/components/esp32/__init__.py
+++ b/esphome/components/esp32/__init__.py
@@ -96,6 +96,7 @@ CONF_ENABLE_LWIP_ASSERT = "enable_lwip_assert"
 CONF_EXECUTE_FROM_PSRAM = "execute_from_psram"
 CONF_MINIMUM_CHIP_REVISION = "minimum_chip_revision"
 CONF_RELEASE = "release"
+CONF_SRAM1_AS_IRAM = "sram1_as_iram"
 
 ARDUINO_FRAMEWORK_NAME = "framework-arduinoespressif32"
 ARDUINO_FRAMEWORK_PKG = f"pioarduino/{ARDUINO_FRAMEWORK_NAME}"
@@ -882,6 +883,13 @@ def final_validate(config):
                 path=[CONF_FRAMEWORK, CONF_ADVANCED, CONF_MINIMUM_CHIP_REVISION],
             )
         )
+    if config[CONF_VARIANT] != VARIANT_ESP32 and advanced[CONF_SRAM1_AS_IRAM]:
+        errs.append(
+            cv.Invalid(
+                f"'{CONF_SRAM1_AS_IRAM}' is only supported on {VARIANT_ESP32}",
+                path=[CONF_FRAMEWORK, CONF_ADVANCED, CONF_SRAM1_AS_IRAM],
+            )
+        )
     if (
         config[CONF_VARIANT] != VARIANT_ESP32P4
         and config.get(CONF_ENGINEERING_SAMPLE) is not None
@@ -1129,6 +1137,7 @@ FRAMEWORK_SCHEMA = cv.Schema(
                 cv.Optional(CONF_MINIMUM_CHIP_REVISION): cv.one_of(
                     *ESP32_CHIP_REVISIONS
                 ),
+                cv.Optional(CONF_SRAM1_AS_IRAM, default=False): cv.boolean,
                 # DHCP server is needed for WiFi AP mode. When WiFi component is used,
                 # it will handle disabling DHCP server when AP is not configured.
                 # Default to false (disabled) when WiFi is not used.
@@ -1595,6 +1604,16 @@ async def to_code(config):
             for rev, flag in ESP32_CHIP_REVISIONS.items():
                 add_idf_sdkconfig_option(flag, rev == min_rev)
             cg.add_define("USE_ESP32_MIN_CHIP_REVISION_SET")
+
+    # Use SRAM1 region as IRAM on ESP32 (original) variant
+    # This provides an additional 40KB of IRAM by using SRAM1 memory that was previously
+    # reserved for bootloader DRAM. Requires a bootloader from ESP-IDF v5.1 or later.
+    # WARNING: If the device has an old bootloader (pre-v5.1), the app will fail to boot.
+    # A USB flash will update the bootloader automatically. OTA updates do not.
+    # See: https://docs.espressif.com/projects/esp-idf/en/stable/esp32/api-guides/performance/ram-usage.html
+    if variant == VARIANT_ESP32 and conf[CONF_ADVANCED][CONF_SRAM1_AS_IRAM]:
+        add_idf_sdkconfig_option("CONFIG_ESP_SYSTEM_ESP32_SRAM1_REGION_AS_IRAM", True)
+        cg.add_define("USE_ESP32_SRAM1_AS_IRAM")
     add_idf_sdkconfig_option("CONFIG_PARTITION_TABLE_SINGLE_APP", False)
     add_idf_sdkconfig_option("CONFIG_PARTITION_TABLE_CUSTOM", True)
     add_idf_sdkconfig_option("CONFIG_PARTITION_TABLE_CUSTOM_FILENAME", "partitions.csv")
diff --git a/esphome/core/application.cpp b/esphome/core/application.cpp
index 3a9e825e04..d36e90500d 100644
--- a/esphome/core/application.cpp
+++ b/esphome/core/application.cpp
@@ -9,6 +9,13 @@
 #endif
 #ifdef USE_ESP32
 #include <esp_chip_info.h>
+#if defined(USE_ESP32_FRAMEWORK_ESP_IDF)
+#include <esp_idf_version.h>
+#if ESP_IDF_VERSION >= ESP_IDF_VERSION_VAL(5, 2, 0)
+#include <esp_ota_ops.h>
+#include <esp_bootloader_desc.h>
+#endif
+#endif
 #endif
 #ifdef USE_LWIP_FAST_SELECT
 #include "esphome/core/lwip_fast_select.h"
@@ -237,15 +244,31 @@ void Application::process_dump_config_() {
     esp_chip_info(&chip_info);
     ESP_LOGI(TAG, "ESP32 Chip: %s rev%d.%d, %d core(s)", ESPHOME_VARIANT, chip_info.revision / 100,
              chip_info.revision % 100, chip_info.cores);
+    static const char *const ESP32_ADVANCED_PATH = "under esp32 > framework > advanced";
 #if defined(USE_ESP32_VARIANT_ESP32) && !defined(USE_ESP32_MIN_CHIP_REVISION_SET)
     // Suggest optimization for chips that don't need the PSRAM cache workaround
     if (chip_info.revision >= 300) {
 #ifdef USE_PSRAM
-      ESP_LOGW(TAG, "Set minimum_chip_revision: \"%d.%d\" to save ~10KB IRAM", chip_info.revision / 100,
-               chip_info.revision % 100);
+      ESP_LOGW(TAG, "Chip rev >= 3.0 detected. Set minimum_chip_revision: \"%d.%d\" %s to save ~10KB IRAM",
+               chip_info.revision / 100, chip_info.revision % 100, ESP32_ADVANCED_PATH);
 #else
-      ESP_LOGW(TAG, "Set minimum_chip_revision: \"%d.%d\" to reduce binary size", chip_info.revision / 100,
-               chip_info.revision % 100);
+      ESP_LOGW(TAG, "Chip rev >= 3.0 detected. Set minimum_chip_revision: \"%d.%d\" %s to reduce binary size",
+               chip_info.revision / 100, chip_info.revision % 100, ESP32_ADVANCED_PATH);
+#endif
+    }
+#endif
+#if defined(USE_ESP32_FRAMEWORK_ESP_IDF) && ESP_IDF_VERSION >= ESP_IDF_VERSION_VAL(5, 2, 0)
+    {
+      // esp_bootloader_desc_t is available in ESP-IDF >= 5.2; if readable the bootloader is modern
+      esp_bootloader_desc_t boot_desc;
+      if (esp_ota_get_bootloader_description(nullptr, &boot_desc) != ESP_OK) {
+        ESP_LOGW(TAG, "Bootloader too old for OTA rollback and SRAM1 as IRAM (+40KB). "
+                      "Flash via USB once to update the bootloader");
+      }
+#if defined(USE_ESP32_VARIANT_ESP32) && !defined(USE_ESP32_SRAM1_AS_IRAM)
+      else {
+        ESP_LOGW(TAG, "Bootloader supports SRAM1 as IRAM (+40KB). Set sram1_as_iram: true %s", ESP32_ADVANCED_PATH);
+      }
 #endif
     }
 #endif
diff --git a/esphome/core/defines.h b/esphome/core/defines.h
index 390ac8ddd7..57a9d7a159 100644
--- a/esphome/core/defines.h
+++ b/esphome/core/defines.h
@@ -200,6 +200,7 @@
 #define USE_ESPHOME_TASK_LOG_BUFFER
 #define USE_OTA_ROLLBACK
 #define USE_ESP32_MIN_CHIP_REVISION_SET
+#define USE_ESP32_SRAM1_AS_IRAM
 
 #define USE_BLUETOOTH_PROXY
 #define BLUETOOTH_PROXY_MAX_CONNECTIONS 3