test this

esphome/components/api/api_connection.cpp

@@ -1425,7 +1425,7 @@ void APIConnection::complete_authentication_() {
   }
 
   this->flags_.connection_state = static_cast<uint8_t>(ConnectionState::AUTHENTICATED);
-  ESP_LOGD(TAG, "%s connected (no password)", this->get_client_combined_info().c_str());
+  ESP_LOGD(TAG, "%s connected", this->get_client_combined_info().c_str());
 #ifdef USE_API_CLIENT_CONNECTED_TRIGGER
   this->parent_->get_client_connected_trigger()->trigger(this->client_info_, this->client_peername_);
 #endif
@@ -1471,7 +1471,6 @@ ConnectResponse APIConnection::connect(const ConnectRequest &msg) {
   // bool invalid_password = 1;
   resp.invalid_password = !correct;
   if (correct) {
-    ESP_LOGD(TAG, "%s connected", this->get_client_combined_info().c_str());
     this->complete_authentication_();
   }
   return resp;

tests/integration/fixtures/host_mode_api_password.yaml

@@ -0,0 +1,27 @@
+esphome:
+  name: ${name}
+  build_path: ${build_path}
+  friendly_name: ESPHome Host Mode API Password Test
+  name_add_mac_suffix: no
+  area: Entryway
+  platformio_options:
+    build_flags:
+      - -std=gnu++17
+      - -Wall
+    build_unflags:
+      - -std=gnu++11
+
+api:
+  password: "test_password_123"
+
+logger:
+  level: DEBUG
+
+# Test sensor to verify connection works
+sensor:
+  - platform: template
+    name: Test Sensor
+    id: test_sensor
+    lambda: |-
+      return 42.0;
+    update_interval: 1s

tests/integration/test_host_mode_api_password.py

@@ -0,0 +1,51 @@
+"""Integration test for API password authentication."""
+
+from __future__ import annotations
+
+import asyncio
+
+from aioesphomeapi import APIConnectionError
+import pytest
+
+from .types import APIClientConnectedFactory, RunCompiledFunction
+
+
+@pytest.mark.asyncio
+async def test_host_mode_api_password(
+    yaml_config: str,
+    run_compiled: RunCompiledFunction,
+    api_client_connected: APIClientConnectedFactory,
+) -> None:
+    """Test API authentication with password."""
+    async with run_compiled(yaml_config):
+        # First, try to connect without password - should fail
+        with pytest.raises(APIConnectionError, match="Authentication"):
+            async with api_client_connected(password=""):
+                pass  # Should not reach here
+
+        # Now connect with correct password
+        async with api_client_connected(password="test_password_123") as client:
+            # Verify we can get device info
+            device_info = await client.device_info()
+            assert device_info is not None
+            assert device_info.uses_password is True
+            assert device_info.name == "host-mode-api-password"
+
+            # Subscribe to states to ensure authenticated connection works
+            states = {}
+
+            def on_state(state):
+                states[state.key] = state
+
+            await client.subscribe_states(on_state)
+
+            # Wait a bit to receive the test sensor state
+            await asyncio.sleep(0.5)
+
+            # Should have received at least one state (the test sensor)
+            assert len(states) > 0
+
+        # Test with wrong password - should fail
+        with pytest.raises(APIConnectionError, match="Authentication"):
+            async with api_client_connected(password="wrong_password"):
+                pass  # Should not reach here