diff --git a/esphome/components/web_server/__init__.py b/esphome/components/web_server/__init__.py
index 68f1c18072..2587d13b9e 100644
--- a/esphome/components/web_server/__init__.py
+++ b/esphome/components/web_server/__init__.py
@@ -25,6 +25,7 @@ from esphome.const import (
     CONF_OTA,
     CONF_PASSWORD,
     CONF_PORT,
+    CONF_TYPE,
     CONF_USERNAME,
     CONF_VERSION,
     CONF_WEB_SERVER,
@@ -44,6 +45,9 @@ _LOGGER = logging.getLogger(__name__)
 
 AUTO_LOAD = ["json", "web_server_base"]
 
+AUTH_TYPE_BASIC = "basic"
+AUTH_TYPE_DIGEST = "digest"
+
 CONF_SORTING_GROUP_ID = "sorting_group_id"
 CONF_SORTING_GROUPS = "sorting_groups"
 CONF_SORTING_WEIGHT = "sorting_weight"
@@ -85,6 +89,19 @@ def validate_version_deprecated(config: ConfigType) -> ConfigType:
     return config
 
 
+def validate_auth_type_deprecated(auth: ConfigType) -> ConfigType:
+    # Remove before 2027.1.0: the default auth scheme changes from basic to digest.
+    if CONF_TYPE not in auth:
+        _LOGGER.warning(
+            "The 'web_server' 'auth' scheme currently defaults to 'basic', which sends the "
+            "password over the network in an easily reversible form. The default will change "
+            "to 'digest' in ESPHome 2027.1.0. To keep using basic authentication, set "
+            "'type: basic' under 'auth:' explicitly; otherwise set 'type: digest' now to "
+            "adopt the more secure scheme."
+        )
+    return auth
+
+
 def validate_local(config: ConfigType) -> ConfigType:
     if CONF_LOCAL in config and config[CONF_VERSION] == 1:
         raise cv.Invalid("'local' is not supported in version 1")
@@ -242,15 +259,21 @@ CONFIG_SCHEMA = cv.All(
             cv.Optional(CONF_ALLOWED_ORIGINS): cv.All(
                 cv.ensure_list(validate_origin), cv.Length(min=1)
             ),
-            cv.Optional(CONF_AUTH): cv.Schema(
-                {
-                    cv.Required(CONF_USERNAME): cv.All(
-                        cv.string_strict, cv.Length(min=1)
-                    ),
-                    cv.Required(CONF_PASSWORD): cv.sensitive(
-                        cv.All(cv.string_strict, cv.Length(min=1))
-                    ),
-                }
+            cv.Optional(CONF_AUTH): cv.All(
+                cv.Schema(
+                    {
+                        cv.Required(CONF_USERNAME): cv.All(
+                            cv.string_strict, cv.Length(min=1)
+                        ),
+                        cv.Required(CONF_PASSWORD): cv.sensitive(
+                            cv.All(cv.string_strict, cv.Length(min=1))
+                        ),
+                        cv.Optional(CONF_TYPE): cv.one_of(
+                            AUTH_TYPE_BASIC, AUTH_TYPE_DIGEST, lower=True
+                        ),
+                    }
+                ),
+                validate_auth_type_deprecated,
             ),
             cv.GenerateID(CONF_WEB_SERVER_BASE_ID): cv.use_id(
                 web_server_base.WebServerBase
@@ -378,10 +401,15 @@ async def to_code(config):
     if (allowed_origins := config.get(CONF_ALLOWED_ORIGINS)) is not None:
         cg.add_define("USE_WEBSERVER_ALLOWED_ORIGINS")
         cg.add(var.set_allowed_origins(allowed_origins))
-    if CONF_AUTH in config:
+    if (auth := config.get(CONF_AUTH)) is not None:
         cg.add_define("USE_WEBSERVER_AUTH")
-        cg.add(paren.set_auth_username(config[CONF_AUTH][CONF_USERNAME]))
-        cg.add(paren.set_auth_password(config[CONF_AUTH][CONF_PASSWORD]))
+        # The scheme is fixed at build time so the unused Basic/Digest code path is compiled
+        # out. Basic is the current default (the absence of this define); an explicit
+        # 'type: digest' opts in early. Default changes to digest in 2027.1.0.
+        if auth.get(CONF_TYPE) == AUTH_TYPE_DIGEST:
+            cg.add_define("USE_WEBSERVER_AUTH_DIGEST")
+        cg.add(paren.set_auth_username(auth[CONF_USERNAME]))
+        cg.add(paren.set_auth_password(auth[CONF_PASSWORD]))
     if CONF_CSS_INCLUDE in config:
         cg.add_define("USE_WEBSERVER_CSS_INCLUDE")
         path = CORE.relative_config_path(config[CONF_CSS_INCLUDE])
diff --git a/esphome/components/web_server_base/web_server_base.h b/esphome/components/web_server_base/web_server_base.h
index 19c2185fb9..9657853a73 100644
--- a/esphome/components/web_server_base/web_server_base.h
+++ b/esphome/components/web_server_base/web_server_base.h
@@ -59,7 +59,15 @@ class AuthMiddlewareHandler : public MiddlewareHandler {
   bool check_auth(AsyncWebServerRequest *request) {
     bool success = request->authenticate(credentials_->username.c_str(), credentials_->password.c_str());
     if (!success) {
+      // The scheme is chosen at build time (USE_WEBSERVER_AUTH_DIGEST); the unused path is
+      // compiled out. On ESP32 our own server picks the scheme internally.
+#if USE_ESP32
       request->requestAuthentication();
+#elif defined(USE_WEBSERVER_AUTH_DIGEST)
+      request->requestAuthentication(nullptr, true);
+#else
+      request->requestAuthentication(nullptr, false);
+#endif
     }
     return success;
   }
diff --git a/esphome/components/web_server_idf/web_server_idf.cpp b/esphome/components/web_server_idf/web_server_idf.cpp
index 46a389f359..bf5a8666dc 100644
--- a/esphome/components/web_server_idf/web_server_idf.cpp
+++ b/esphome/components/web_server_idf/web_server_idf.cpp
@@ -16,6 +16,11 @@
 #include "utils.h"
 #include "web_server_idf.h"
 
+#ifdef USE_WEBSERVER_AUTH_DIGEST
+#include <esp_random.h>
+#include <esp_rom_md5.h>
+#endif
+
 #ifdef USE_WEBSERVER_OTA
 #include <multipart_parser.h>
 #include "multipart.h"  // For parse_multipart_boundary and other utils
@@ -372,6 +377,135 @@ void AsyncWebServerRequest::init_response_(AsyncWebServerResponse *rsp, int code
 }
 
 #ifdef USE_WEBSERVER_AUTH
+
+#ifdef USE_WEBSERVER_AUTH_DIGEST
+namespace {
+
+// Hex-encode `len` bytes into `out`, which must hold at least 2 * len + 1 bytes. Null-terminated.
+void bytes_to_hex(const uint8_t *data, size_t len, char *out) {
+  static const char HEX[] = "0123456789abcdef";
+  for (size_t i = 0; i < len; i++) {
+    out[i * 2] = HEX[data[i] >> 4];
+    out[i * 2 + 1] = HEX[data[i] & 0x0f];
+  }
+  out[len * 2] = '\0';
+}
+
+// Extract the value of a Digest auth parameter (e.g. "nonce") from the comma-separated
+// parameter list. Values may be quoted or bare. Returns an empty ref when the key is absent.
+// Only whole parameter names match, so "nc" does not match inside "cnonce".
+StringRef digest_param(StringRef params, const char *key) {
+  size_t key_len = strlen(key);
+  const char *base = params.c_str();
+  size_t n = params.size();
+  size_t i = 0;
+  while (i < n) {
+    while (i < n && (base[i] == ' ' || base[i] == ','))
+      i++;
+    size_t name_start = i;
+    while (i < n && base[i] != '=' && base[i] != ',')
+      i++;
+    if (i >= n || base[i] == ',')
+      continue;  // token without a '=', skip it
+    size_t name_len = i - name_start;
+    while (name_len > 0 && base[name_start + name_len - 1] == ' ')
+      name_len--;
+    i++;  // consume '='
+    const char *val_start;
+    size_t val_len;
+    if (i < n && base[i] == '"') {
+      i++;
+      val_start = base + i;
+      while (i < n && base[i] != '"')
+        i++;
+      val_len = (base + i) - val_start;
+      if (i < n)
+        i++;  // consume closing quote
+    } else {
+      val_start = base + i;
+      while (i < n && base[i] != ',')
+        i++;
+      val_len = (base + i) - val_start;
+    }
+    if (name_len == key_len && memcmp(base + name_start, key, key_len) == 0)
+      return StringRef(val_start, val_len);
+    while (i < n && base[i] != ',')
+      i++;
+  }
+  return StringRef();
+}
+
+// Verify an RFC 2617 Digest response. Stateless (the nonce we issued is not tracked), which
+// matches the ESPAsyncWebServer backend used on the Arduino platforms.
+bool check_digest_auth(const char *username, const char *password, const std::string &header, const char *method) {
+  const size_t prefix_len = sizeof("Digest ") - 1;
+  StringRef params(header.c_str() + prefix_len, header.size() - prefix_len);
+
+  if (digest_param(params, "username") != username)
+    return false;
+
+  StringRef realm = digest_param(params, "realm");
+  StringRef nonce = digest_param(params, "nonce");
+  StringRef uri = digest_param(params, "uri");
+  StringRef qop = digest_param(params, "qop");
+  StringRef nc = digest_param(params, "nc");
+  StringRef cnonce = digest_param(params, "cnonce");
+  StringRef response = digest_param(params, "response");
+  if (response.size() != 32)
+    return false;
+
+  // Compute the three MD5 hashes by streaming the pieces straight into the ROM MD5 engine, so
+  // nothing is concatenated on the heap. Each hash is emitted as 32 lowercase hex characters.
+  md5_context_t ctx;
+  uint8_t digest[16];
+
+  // HA1 = MD5(username:realm:password) -- uses the realm the client echoed back.
+  char ha1[33];
+  esp_rom_md5_init(&ctx);
+  esp_rom_md5_update(&ctx, username, strlen(username));
+  esp_rom_md5_update(&ctx, ":", 1);
+  esp_rom_md5_update(&ctx, realm.c_str(), realm.size());
+  esp_rom_md5_update(&ctx, ":", 1);
+  esp_rom_md5_update(&ctx, password, strlen(password));
+  esp_rom_md5_final(digest, &ctx);
+  bytes_to_hex(digest, sizeof(digest), ha1);
+
+  // HA2 = MD5(method:uri) -- uses the uri the client echoed back.
+  char ha2[33];
+  esp_rom_md5_init(&ctx);
+  esp_rom_md5_update(&ctx, method, strlen(method));
+  esp_rom_md5_update(&ctx, ":", 1);
+  esp_rom_md5_update(&ctx, uri.c_str(), uri.size());
+  esp_rom_md5_final(digest, &ctx);
+  bytes_to_hex(digest, sizeof(digest), ha2);
+
+  // expected = MD5(HA1:nonce:nc:cnonce:qop:HA2)
+  char expected[33];
+  esp_rom_md5_init(&ctx);
+  esp_rom_md5_update(&ctx, ha1, 32);
+  esp_rom_md5_update(&ctx, ":", 1);
+  esp_rom_md5_update(&ctx, nonce.c_str(), nonce.size());
+  esp_rom_md5_update(&ctx, ":", 1);
+  esp_rom_md5_update(&ctx, nc.c_str(), nc.size());
+  esp_rom_md5_update(&ctx, ":", 1);
+  esp_rom_md5_update(&ctx, cnonce.c_str(), cnonce.size());
+  esp_rom_md5_update(&ctx, ":", 1);
+  esp_rom_md5_update(&ctx, qop.c_str(), qop.size());
+  esp_rom_md5_update(&ctx, ":", 1);
+  esp_rom_md5_update(&ctx, ha2, 32);
+  esp_rom_md5_final(digest, &ctx);
+  bytes_to_hex(digest, sizeof(digest), expected);
+
+  // Constant-time comparison of the two 32-char hex digests.
+  uint8_t result = 0;
+  for (size_t i = 0; i < 32; i++)
+    result |= static_cast<uint8_t>(expected[i] ^ response[i]);
+  return result == 0;
+}
+
+}  // namespace
+#endif  // USE_WEBSERVER_AUTH_DIGEST
+
 bool AsyncWebServerRequest::authenticate(const char *username, const char *password) const {
   if (username == nullptr || password == nullptr || *username == 0) {
     return true;
@@ -383,9 +517,18 @@ bool AsyncWebServerRequest::authenticate(const char *username, const char *passw
 
   auto *auth_str = auth.value().c_str();
 
+#ifdef USE_WEBSERVER_AUTH_DIGEST
+  // The build fixed the scheme to Digest, so the Basic path is compiled out entirely.
+  const auto auth_prefix_len = sizeof("Digest ") - 1;
+  if (strncmp("Digest ", auth_str, auth_prefix_len) != 0) {
+    ESP_LOGW(TAG, "Only Digest authorization supported");
+    return false;
+  }
+  return check_digest_auth(username, password, auth.value(), http_method_str(this->method()));
+#else
   const auto auth_prefix_len = sizeof("Basic ") - 1;
   if (strncmp("Basic ", auth_str, auth_prefix_len) != 0) {
-    ESP_LOGW(TAG, "Only Basic authorization supported yet");
+    ESP_LOGW(TAG, "Only Basic authorization supported");
     return false;
   }
 
@@ -434,16 +577,33 @@ bool AsyncWebServerRequest::authenticate(const char *username, const char *passw
     result |= static_cast<uint8_t>(digest[i] ^ provided_ch);
   }
   return result == 0;
+#endif  // USE_WEBSERVER_AUTH_DIGEST
 }
 
-void AsyncWebServerRequest::requestAuthentication(const char *realm) const {
+void AsyncWebServerRequest::requestAuthentication() const {
   httpd_resp_set_hdr(*this, "Connection", "keep-alive");
-  // Note: realm is never configured in ESPHome, always nullptr -> "Login Required"
-  (void) realm;  // Unused - always use default
+#ifdef USE_WEBSERVER_AUTH_DIGEST
+  // Issue a fresh random nonce and opaque. The nonce is not stored, so this is stateless and
+  // does not defend against replay -- its purpose is to keep the password off the wire.
+  // The header value must stay alive until httpd_resp_send_err() below sends it, so the buffer
+  // lives on this stack frame (httpd_resp_set_hdr stores the pointer, it does not copy).
+  uint8_t random_bytes[16];
+  char nonce[33];
+  char opaque[33];
+  char header[160];
+  esp_fill_random(random_bytes, sizeof(random_bytes));
+  bytes_to_hex(random_bytes, sizeof(random_bytes), nonce);
+  esp_fill_random(random_bytes, sizeof(random_bytes));
+  bytes_to_hex(random_bytes, sizeof(random_bytes), opaque);
+  snprintf(header, sizeof(header), R"(Digest realm="Login Required", qop="auth", nonce="%s", opaque="%s")", nonce,
+           opaque);
+  httpd_resp_set_hdr(*this, "WWW-Authenticate", header);
+#else
   httpd_resp_set_hdr(*this, "WWW-Authenticate", "Basic realm=\"Login Required\"");
+#endif  // USE_WEBSERVER_AUTH_DIGEST
   httpd_resp_send_err(*this, HTTPD_401_UNAUTHORIZED, nullptr);
 }
-#endif
+#endif  // USE_WEBSERVER_AUTH
 
 AsyncWebParameter *AsyncWebServerRequest::getParam(const char *name) {
   // Check cache first - only successful lookups are cached
diff --git a/esphome/components/web_server_idf/web_server_idf.h b/esphome/components/web_server_idf/web_server_idf.h
index 8b5fd5b726..baa55898bb 100644
--- a/esphome/components/web_server_idf/web_server_idf.h
+++ b/esphome/components/web_server_idf/web_server_idf.h
@@ -129,7 +129,7 @@ class AsyncWebServerRequest {
 #ifdef USE_WEBSERVER_AUTH
   bool authenticate(const char *username, const char *password) const;
   // NOLINTNEXTLINE(readability-identifier-naming)
-  void requestAuthentication(const char *realm = nullptr) const;
+  void requestAuthentication() const;
 #endif
 
   void redirect(const std::string &url);
diff --git a/esphome/core/defines.h b/esphome/core/defines.h
index 78f7769cf6..5c5fc5e8b9 100644
--- a/esphome/core/defines.h
+++ b/esphome/core/defines.h
@@ -298,6 +298,7 @@
 #define USE_VOICE_ASSISTANT
 #define USE_WEBSERVER
 #define USE_WEBSERVER_AUTH
+#define USE_WEBSERVER_AUTH_DIGEST
 #define USE_WEBSERVER_OTA
 #define USE_WEBSERVER_PORT 80  // NOLINT
 #define USE_WEBSERVER_GZIP
@@ -408,6 +409,7 @@
 
 #define USE_WEBSERVER
 #define USE_WEBSERVER_AUTH
+#define USE_WEBSERVER_AUTH_DIGEST
 #define USE_WEBSERVER_PORT 80  // NOLINT
 #endif
 
@@ -438,6 +440,7 @@
 #define USE_LWIP_FAST_SELECT
 #define USE_WEBSERVER
 #define USE_WEBSERVER_AUTH
+#define USE_WEBSERVER_AUTH_DIGEST
 #define USE_WEBSERVER_PORT 80  // NOLINT
 #define USE_ESPHOME_TASK_LOG_BUFFER
 #define ESPHOME_TASK_LOG_BUFFER_SIZE 768
diff --git a/tests/component_tests/web_server/test_web_server_auth.py b/tests/component_tests/web_server/test_web_server_auth.py
new file mode 100644
index 0000000000..82635b26da
--- /dev/null
+++ b/tests/component_tests/web_server/test_web_server_auth.py
@@ -0,0 +1,65 @@
+"""Tests for web_server authentication codegen."""
+
+from collections.abc import Callable
+
+import pytest
+
+from esphome.core import CORE
+
+_DEFAULT_CHANGE_WARNING = "default will change to 'digest' in ESPHome 2027.1.0"
+
+
+def _has_define(name: str) -> bool:
+    return any(d.name == name for d in CORE.defines)
+
+
+def test_web_server_auth_default_is_basic_with_deprecation_warning(
+    generate_main: Callable[[str], str],
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    """Auth without an explicit type builds Basic and warns about the upcoming default change."""
+    main_cpp = generate_main(
+        "tests/component_tests/web_server/web_server_auth_default.yaml"
+    )
+
+    assert '->set_auth_username("admin");' in main_cpp
+    assert '->set_auth_password("password");' in main_cpp
+    assert _has_define("USE_WEBSERVER_AUTH")
+    assert not _has_define("USE_WEBSERVER_AUTH_DIGEST")
+    assert _DEFAULT_CHANGE_WARNING in caplog.text
+
+
+def test_web_server_auth_explicit_basic_no_warning(
+    generate_main: Callable[[str], str],
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    """Auth type basic builds Basic and does not warn."""
+    generate_main("tests/component_tests/web_server/web_server_auth_basic.yaml")
+
+    assert _has_define("USE_WEBSERVER_AUTH")
+    assert not _has_define("USE_WEBSERVER_AUTH_DIGEST")
+    assert _DEFAULT_CHANGE_WARNING not in caplog.text
+
+
+def test_web_server_auth_explicit_digest(
+    generate_main: Callable[[str], str],
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    """Auth type digest builds Digest and does not warn."""
+    generate_main("tests/component_tests/web_server/web_server_auth_digest.yaml")
+
+    assert _has_define("USE_WEBSERVER_AUTH")
+    assert _has_define("USE_WEBSERVER_AUTH_DIGEST")
+    assert _DEFAULT_CHANGE_WARNING not in caplog.text
+
+
+def test_web_server_without_auth(
+    generate_main: Callable[[str], str],
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    """Without an auth block, no auth is compiled in and no warning is emitted."""
+    generate_main("tests/component_tests/web_server/web_server_no_auth.yaml")
+
+    assert not _has_define("USE_WEBSERVER_AUTH")
+    assert not _has_define("USE_WEBSERVER_AUTH_DIGEST")
+    assert _DEFAULT_CHANGE_WARNING not in caplog.text
diff --git a/tests/component_tests/web_server/web_server_auth_basic.yaml b/tests/component_tests/web_server/web_server_auth_basic.yaml
new file mode 100644
index 0000000000..70180f9fbc
--- /dev/null
+++ b/tests/component_tests/web_server/web_server_auth_basic.yaml
@@ -0,0 +1,18 @@
+---
+esphome:
+  name: test
+
+esp32:
+  board: nodemcu-32s
+  framework:
+    type: esp-idf
+
+wifi:
+  ssid: MySSID
+  password: password1
+
+web_server:
+  auth:
+    username: admin
+    password: password
+    type: basic
diff --git a/tests/component_tests/web_server/web_server_auth_default.yaml b/tests/component_tests/web_server/web_server_auth_default.yaml
new file mode 100644
index 0000000000..076180ab79
--- /dev/null
+++ b/tests/component_tests/web_server/web_server_auth_default.yaml
@@ -0,0 +1,17 @@
+---
+esphome:
+  name: test
+
+esp32:
+  board: nodemcu-32s
+  framework:
+    type: esp-idf
+
+wifi:
+  ssid: MySSID
+  password: password1
+
+web_server:
+  auth:
+    username: admin
+    password: password
diff --git a/tests/component_tests/web_server/web_server_auth_digest.yaml b/tests/component_tests/web_server/web_server_auth_digest.yaml
new file mode 100644
index 0000000000..f413787601
--- /dev/null
+++ b/tests/component_tests/web_server/web_server_auth_digest.yaml
@@ -0,0 +1,18 @@
+---
+esphome:
+  name: test
+
+esp32:
+  board: nodemcu-32s
+  framework:
+    type: esp-idf
+
+wifi:
+  ssid: MySSID
+  password: password1
+
+web_server:
+  auth:
+    username: admin
+    password: password
+    type: digest
diff --git a/tests/component_tests/web_server/web_server_no_auth.yaml b/tests/component_tests/web_server/web_server_no_auth.yaml
new file mode 100644
index 0000000000..1c7823b4ae
--- /dev/null
+++ b/tests/component_tests/web_server/web_server_no_auth.yaml
@@ -0,0 +1,14 @@
+---
+esphome:
+  name: test
+
+esp32:
+  board: nodemcu-32s
+  framework:
+    type: esp-idf
+
+wifi:
+  ssid: MySSID
+  password: password1
+
+web_server:
diff --git a/tests/components/web_server/test.esp32-idf.yaml b/tests/components/web_server/test.esp32-idf.yaml
index 858e3b0190..2e091b905a 100644
--- a/tests/components/web_server/test.esp32-idf.yaml
+++ b/tests/components/web_server/test.esp32-idf.yaml
@@ -5,3 +5,4 @@ web_server:
   auth:
     username: admin
     password: password
+    type: digest
diff --git a/tests/components/web_server/test.esp8266-ard.yaml b/tests/components/web_server/test.esp8266-ard.yaml
index 11ad5456ef..2e091b905a 100644
--- a/tests/components/web_server/test.esp8266-ard.yaml
+++ b/tests/components/web_server/test.esp8266-ard.yaml
@@ -1,2 +1,8 @@
 packages:
   web_server: !include common_v2.yaml
+
+web_server:
+  auth:
+    username: admin
+    password: password
+    type: digest
diff --git a/tests/components/web_server/test.rp2040-ard.yaml b/tests/components/web_server/test.rp2040-ard.yaml
index 11ad5456ef..e4d50d7776 100644
--- a/tests/components/web_server/test.rp2040-ard.yaml
+++ b/tests/components/web_server/test.rp2040-ard.yaml
@@ -1,2 +1,8 @@
 packages:
   web_server: !include common_v2.yaml
+
+web_server:
+  auth:
+    username: admin
+    password: password
+    type: basic
diff --git a/tests/components/web_server/validate.esp32-idf.yaml b/tests/components/web_server/validate.esp32-idf.yaml
new file mode 100644
index 0000000000..e4d50d7776
--- /dev/null
+++ b/tests/components/web_server/validate.esp32-idf.yaml
@@ -0,0 +1,8 @@
+packages:
+  web_server: !include common_v2.yaml
+
+web_server:
+  auth:
+    username: admin
+    password: password
+    type: basic