diff --git a/esphome/components/dashboard_import/__init__.py b/esphome/components/dashboard_import/__init__.py
index aca0901d2b..576887f6dc 100644
--- a/esphome/components/dashboard_import/__init__.py
+++ b/esphome/components/dashboard_import/__init__.py
@@ -1,13 +1,12 @@
-import base64
 from pathlib import Path
 import re
-import secrets
 from typing import Any
 
 from ruamel.yaml import YAML
 
 from esphome import git
 import esphome.codegen as cg
+from esphome.components.noise import generate_encryption_key
 from esphome.components.packages import validate_source_shorthand
 import esphome.config_validation as cv
 from esphome.const import CONF_ESPHOME, CONF_PROJECT, CONF_REF, CONF_WIFI
@@ -175,8 +174,7 @@ def import_config(
             "esphome": esphome_core,
         }
         if encryption:
-            noise_psk = secrets.token_bytes(32)
-            key = base64.b64encode(noise_psk).decode()
+            key = generate_encryption_key()
             config["api"] = {"encryption": {"key": key}}
 
         output = dump(config)
diff --git a/esphome/components/noise/__init__.py b/esphome/components/noise/__init__.py
index 1769c11018..781079c190 100644
--- a/esphome/components/noise/__init__.py
+++ b/esphome/components/noise/__init__.py
@@ -1,5 +1,6 @@
 import base64
 import binascii
+import secrets
 from typing import Any
 
 import esphome.codegen as cg
@@ -22,6 +23,11 @@ noise_ns = cg.esphome_ns.namespace("noise")
 CONFIG_SCHEMA = cv.Schema({})
 
 
+def generate_encryption_key() -> str:
+    """A fresh random key in the base64 form the yaml takes."""
+    return base64.b64encode(secrets.token_bytes(32)).decode()
+
+
 def validate_encryption_key(value: Any) -> str:
     value = cv.string_strict(value)
     try:
diff --git a/esphome/wizard.py b/esphome/wizard.py
index 897d5f60a1..10ea0d0b4c 100644
--- a/esphome/wizard.py
+++ b/esphome/wizard.py
@@ -1,4 +1,3 @@
-import base64
 from pathlib import Path
 import secrets
 import string
@@ -7,6 +6,7 @@ import unicodedata
 
 import voluptuous as vol
 
+from esphome.components.noise import generate_encryption_key
 import esphome.config_validation as cv
 from esphome.const import ALLOWED_NAME_CHARS, ENV_QUICKWIZARD
 from esphome.core import CORE
@@ -516,9 +516,7 @@ def wizard(path: Path) -> int:
         safe_print()
         sleep(0.5)
 
-        # Generate encryption key (32 bytes, base64 encoded) for secure API communication
-        noise_psk = secrets.token_bytes(32)
-        api_encryption_key = base64.b64encode(noise_psk).decode()
+        api_encryption_key = generate_encryption_key()
 
         safe_print(
             "For secure API communication, I've generated a random encryption key."
diff --git a/tests/component_tests/noise/test_encryption_key.py b/tests/component_tests/noise/test_encryption_key.py
index 2b79bd5464..3a895e25de 100644
--- a/tests/component_tests/noise/test_encryption_key.py
+++ b/tests/component_tests/noise/test_encryption_key.py
@@ -5,7 +5,11 @@ from __future__ import annotations
 import pytest
 
 from esphome import config_validation as cv
-from esphome.components.noise import decode_encryption_key, validate_encryption_key
+from esphome.components.noise import (
+    decode_encryption_key,
+    generate_encryption_key,
+    validate_encryption_key,
+)
 
 KEY = "AAECAwQFBgcICQoLDA0ODxAREhMUFRYXGBkaGxwdHh8="
 
@@ -42,3 +46,11 @@ def test_validate_encryption_key_rejects_all_zeros() -> None:
     key, so it never reaches a build."""
     with pytest.raises(cv.Invalid, match="all-zeros key is reserved"):
         validate_encryption_key("AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA=")
+
+
+def test_generate_encryption_key_passes_the_validator() -> None:
+    """A fresh key is 32 random bytes in the base64 form the yaml takes."""
+    key = generate_encryption_key()
+    assert validate_encryption_key(key) == key
+    assert len(decode_encryption_key(key)) == 32
+    assert key != generate_encryption_key()