diff --git a/esphome/components/rotary_encoder/rotary_encoder.h b/esphome/components/rotary_encoder/rotary_encoder.h
index 286267baed..0d2f069c42 100644
--- a/esphome/components/rotary_encoder/rotary_encoder.h
+++ b/esphome/components/rotary_encoder/rotary_encoder.h
@@ -4,7 +4,6 @@
 
 #include "esphome/core/component.h"
 #include "esphome/core/hal.h"
-#include "esphome/core/automation.h"
 #include "esphome/components/sensor/sensor.h"
 
 namespace esphome::rotary_encoder {
@@ -106,15 +105,4 @@ class RotaryEncoderSensor final : public sensor::Sensor, public Component {
   CallbackManager<void(int32_t)> listeners_{};
 };
 
-template<typename... Ts> class RotaryEncoderSetValueAction final : public Action<Ts...> {
- public:
-  RotaryEncoderSetValueAction(RotaryEncoderSensor *encoder) : encoder_(encoder) {}
-  TEMPLATABLE_VALUE(int, value)
-
-  void play(const Ts &...x) override { this->encoder_->set_value(this->value_.value(x...)); }
-
- protected:
-  RotaryEncoderSensor *encoder_;
-};
-
 }  // namespace esphome::rotary_encoder
diff --git a/esphome/components/rotary_encoder/sensor.py b/esphome/components/rotary_encoder/sensor.py
index 72722ec4b1..ab5442e676 100644
--- a/esphome/components/rotary_encoder/sensor.py
+++ b/esphome/components/rotary_encoder/sensor.py
@@ -15,8 +15,6 @@ from esphome.const import (
     STATE_CLASS_MEASUREMENT,
     UNIT_STEPS,
 )
-from esphome.core import ID
-from esphome.cpp_generator import MockObj, TemplateArgsType
 from esphome.types import ConfigType
 
 rotary_encoder_ns = cg.esphome_ns.namespace("rotary_encoder")
@@ -42,9 +40,6 @@ CONF_PUBLISH_INITIAL_VALUE = "publish_initial_value"
 RotaryEncoderSensor = rotary_encoder_ns.class_(
     "RotaryEncoderSensor", sensor.Sensor, cg.Component
 )
-RotaryEncoderSetValueAction = rotary_encoder_ns.class_(
-    "RotaryEncoderSetValueAction", automation.Action
-)
 
 
 def validate_min_max_value(config: ConfigType) -> ConfigType:
@@ -118,25 +113,13 @@ async def to_code(config: ConfigType) -> None:
     await automation.build_callback_automations(var, config, _CALLBACK_AUTOMATIONS)
 
 
-@automation.register_action(
+automation.register_apply_action(
     "sensor.rotary_encoder.set_value",
-    RotaryEncoderSetValueAction,
     cv.Schema(
         {
             cv.Required(CONF_ID): cv.use_id(RotaryEncoderSensor),
             cv.Required(CONF_VALUE): cv.templatable(cv.int_),
         }
     ),
-    synchronous=True,
+    automation.ApplyField(CONF_VALUE, "set_value", cg.int_),
 )
-async def sensor_template_publish_to_code(
-    config: ConfigType,
-    action_id: ID,
-    template_arg: cg.TemplateArguments,
-    args: TemplateArgsType,
-) -> MockObj:
-    paren = await cg.get_variable(config[CONF_ID])
-    var = cg.new_Pvariable(action_id, template_arg, paren)
-    template_ = await cg.templatable(config[CONF_VALUE], args, cg.int_)
-    cg.add(var.set_value(template_))
-    return var
diff --git a/tests/components/rotary_encoder/common.yaml b/tests/components/rotary_encoder/common.yaml
index 57ffdab817..668cfac0e2 100644
--- a/tests/components/rotary_encoder/common.yaml
+++ b/tests/components/rotary_encoder/common.yaml
@@ -18,7 +18,7 @@ sensor:
           value: 10
       - sensor.rotary_encoder.set_value:
           id: rotary_encoder1
-          value: !lambda "return -1;"
+          value: !lambda "return -static_cast<int>(x);"
     on_clockwise:
       - logger.log: Clockwise
     on_anticlockwise: