diff --git a/esphome/components/wifi/wifi_component.h b/esphome/components/wifi/wifi_component.h
index a8f9fa2ec42..9418165501c 100644
--- a/esphome/components/wifi/wifi_component.h
+++ b/esphome/components/wifi/wifi_component.h
@@ -507,7 +507,7 @@ class WiFiComponent final : public Component {
   /// Setup WiFi interface.
   void setup() override;
 #ifdef USE_LN882X
-  void on_shutdown() override;
+  void on_powerdown() override;
 #endif
   void start();
   void dump_config() override;
diff --git a/esphome/components/wifi/wifi_component_libretiny.cpp b/esphome/components/wifi/wifi_component_libretiny.cpp
index 66a0d406a7a..7e2c19627b9 100644
--- a/esphome/components/wifi/wifi_component_libretiny.cpp
+++ b/esphome/components/wifi/wifi_component_libretiny.cpp
@@ -790,9 +790,10 @@ network::IPAddress WiFiComponent::wifi_soft_ap_ip() { return {WiFi.softAPIP()};
 #endif  // USE_WIFI_AP
 
 #ifdef USE_LN882X
-void WiFiComponent::on_shutdown() {
-  // Leave the AP before a reboot: otherwise it still holds the association
-  // when the chip comes back and the first connects can stall or fail.
+void WiFiComponent::on_powerdown() {
+  // Leave the AP before a reboot or deep sleep, after teardown has let the
+  // API say goodbye: otherwise the AP still holds the association when the
+  // chip comes back and the first connects can stall or fail.
   if (!this->is_connected())
     return;
   ESP_LOGD(TAG, "Disconnecting before reboot");